FHA Mortgage Calculator
Calculate monthly FHA loan payments, including base principal, interest, upfront MIP, and monthly mortgage insurance premiums. Free and responsive.
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What is an FHA Mortgage?
An FHA Mortgage is a government-backed home loan insured by the Federal Housing Administration (FHA). Created to make homeownership more accessible, FHA loans are highly popular among first-time homebuyers and individuals with moderate incomes or non-perfect credit. Because the government insures the lender against default, banks are willing to offer these loans with lower down payments and more flexible credit qualifications.
The defining feature of FHA loans is that you can qualify with a down payment as low as 3.5% if your credit score is 580 or higher. For homebuyers with credit scores between 500 and 579, a 10% down payment is required. FHA loans require both upfront and monthly mortgage insurance premiums (MIP), which this FHA mortgage calculator will estimate automatically.
Understanding FHA Mortgage Insurance (MIP)
Unlike conventional loans where Private Mortgage Insurance (PMI) is cancelled once you reach 20% home equity, FHA loans require FHA Mortgage Insurance Premium (MIP) regardless of your equity level in most cases. FHA mortgage insurance consists of two separate charges:
- Upfront MIP: This is equal to 1.75% of your base loan amount. You can pay this cash at closing, or more commonly, roll it into the total financed loan amount, which our calculator models by default.
- Annual MIP: This annual fee is divided into 12 monthly installments and added to your monthly payment. For standard 30-year FHA mortgages with a 3.5% down payment, the annual MIP rate is 0.55% of the base loan balance.
FHA Loan Eligibility and Requirements
To qualify for an FHA mortgage, you must meet the following federal requirements:
- Minimum Credit Score: 580 for a 3.5% down payment; 500 for a 10% down payment.
- Debt-to-Income (DTI) Ratio: Generally capped at 43%, though borrowers with strong compensating factors (like high cash reserves) may be approved up to 50% or more.
- Primary Residence: FHA loans can only be used to purchase a primary residence. You cannot use FHA financing for investment properties or second vacation homes.
- FHA Appraisal: The home must undergo a specialized FHA appraisal to ensure it meets basic safety, security, and structural soundness guidelines.
Step-by-Step FHA Calculation Example
Let's run a calculation for a home priced at $300,000 using the minimum 3.5% down payment:
- Down Payment Cash: \(300,000 \times 3.5\% = \mathbf{\$10,500}\).
- Base Loan Amount: \(300,000 - 10,500 = \mathbf{\$289,500}\).
- Calculate Upfront MIP: \(289,500 \times 1.75\% = \mathbf{\$5,066.25}\).
- Total Financed Loan (Rolled In): \(289,500 + 5,066.25 = \mathbf{\$294,566.25}\).
- Principal & Interest (P&I): At a 30-year fixed rate of 6.0%, the monthly P&I payment is $1,766.08.
- Monthly MIP Premium: Based on the 0.55% annual rate: \((289,500 \times 0.55\%) / 12 = \mathbf{\$132.69}\) per month.
- Total Monthly P&I + MIP: \(1,766.08 + 132.69 = \mathbf{\$1,898.77}\) (excluding taxes and homeowners insurance).
Frequently Asked Questions (FAQ)
What is the minimum down payment for an FHA loan?
The minimum down payment for an FHA loan is 3.5% if your FICO credit score is 580 or higher. If your credit score is between 500 and 579, FHA guidelines require a minimum 10% down payment.
How does FHA mortgage insurance (MIP) work?
FHA loans require two types of MIP: an Upfront MIP of 1.75% of the base loan amount (usually rolled into the total loan balance) and an Annual MIP (typically 0.55% for 30-year loans) paid in monthly installments.
Can I remove FHA MIP?
If you make a down payment of 10% or more, FHA MIP will automatically cancel after 11 years. If you put down less than 10%, FHA MIP remains on the loan for the entire term, meaning you must refinance into a conventional loan to remove it once you reach 20% equity.
What credit score do I need for an FHA loan?
You need a minimum credit score of 580 to qualify for the low 3.5% down payment option. You can qualify with a credit score down to 500, but a 10% down payment is required by FHA rules.
Can upfront FHA MIP be rolled into the mortgage?
Yes, FHA rules allow you to finance the 1.75% upfront MIP directly into your loan balance. This reduces your upfront cash out of pocket but increases your monthly payment and total interest cost.
Is there a maximum loan limit for FHA mortgages?
Yes, the FHA establishes regional loan limits that vary by county. For 2026, the baseline FHA loan limit for single-family homes is ,257, but high-cost counties have limits up to ,149,825.
Can FHA loans be used for investment properties?
No, FHA loans are strictly for primary owner-occupied residences. However, you can buy a multi-family property (up to 4 units) with an FHA loan as long as you live in one of the units.
What are FHA seller concessions?
Under FHA guidelines, the seller can contribute up to 6% of the purchase price toward the buyer's closing costs, escrow prepaids, or interest rate buy-downs. Conventional loans typically limit seller concessions to 3% with low down payments.
How do I qualify for an FHA loan after bankruptcy?
Generally, you must wait at least 2 years after a Chapter 7 bankruptcy discharge, or be successfully paying on a Chapter 13 bankruptcy plan for at least 12 months with court approval, to qualify for FHA financing.
What is an FHA 203k loan?
An FHA 203(k) loan is a specialized renovation mortgage that allows you to buy a fixer-upper home and finance both the purchase price and the cost of repairs into a single, long-term mortgage.