FHA Loan Calculator
Estimate FHA mortgage payments with our FHA Loan Calculator. Use it to model a low-down-payment home purchase, compare principal and interest with property taxes, homeowners insurance, HOA dues, and annual mortgage insurance, and pressure-test the total monthly housing cost before you apply. It is useful for first-time buyers, lower-down-payment scenarios, and anyone comparing FHA against conventional financing while keeping a close eye on cash needed and payment fit. The calculator shows payment breakdown, amortization, total interest, loan-to-value, and the effect of mortgage-insurance assumptions, all instantly in your browser with no data storage.
What Is an FHA Loan Calculator?
An FHA loan calculator estimates your full monthly payment on a Federal Housing Administration-backed mortgage, including the loan's principal and interest, the required Mortgage Insurance Premium (MIP), and estimated property taxes and homeowner's insurance. FHA loans are popular with first-time homebuyers because they require only a 3.5% down payment (with a 580+ credit score) and accept credit profiles that conventional lenders would reject. But that accessibility comes at a cost: FHA MIP adds $50–$250/month to your payment and, for most borrowers, lasts the entire 30-year loan term — unlike conventional PMI, which drops at 20% equity.
How FHA Loan Costs Are Calculated
FHA requires two types of mortgage insurance: (1) an Upfront MIP (UFMIP) of 1.75% of the loan amount, typically rolled into the loan; and (2) an Annual MIP ranging from 0.45% to 0.85% depending on loan term, LTV, and loan amount, divided into monthly payments. For a $270,200 loan (3.5% down on a $280,000 home), the UFMIP adds $4,728 to the loan balance. At 0.85% annual MIP, you pay $191/month on top of your P&I payment.
Worked Example: Marcus Buys a $295,000 Home with FHA
Marcus has a 610 credit score and $11,000 saved. He qualifies for an FHA loan with 3.5% down ($10,325 on a $295,000 home). His base loan is $284,675. With UFMIP (1.75% = $4,982) rolled in, his total FHA loan is $289,657. At 7.0% for 30 years:
Principal & Interest: $1,928/month
Loan: $289,657 | Rate: 7.0% | Term: 30 years
Annual MIP (0.85%): $205/month
Estimated taxes ($3,600/yr): +$300/month | Insurance ($1,200/yr): +$100/month
Total Monthly Payment: ~$2,533
FHA vs. Conventional Loan — Full Comparison
| Feature | FHA Loan | Conventional (3% down) | Conventional (20% down) |
|---|---|---|---|
| Min. down payment | 3.5% | 3% | 20% |
| Min. credit score | 580 (3.5% down) | 620+ | 620+ |
| Upfront MIP/fee | 1.75% of loan | None | None |
| Monthly MI | 0.45%–0.85%/yr (often for life) | PMI ~0.5%–1% (drops at 20% equity) | None |
| Loan limits | County-based FHA limits | Conforming limit ($766,550 in 2024) | Jumbo available |
| Property condition | Appraiser checks habitability | Flexible | Flexible |
| Best for | Low credit, low down payment | Good credit, low savings | Buyers with 20%+ saved |
FHA Loan Key Concepts: MIP, Loan Limits, and DTI Requirements
FHA's annual MIP rate depends on three variables: loan term (15 vs 30 years), original LTV, and loan amount. For most buyers — 30-year loans with less than 10% down and loan amounts above $150,000 — the rate is 0.85%. It applies to the entire loan life unless you refinance out of FHA. FHA loan limits vary by county; in high-cost areas (e.g., San Jose, CA) the 2024 limit is $1,149,825. In low-cost areas, the floor is $498,257 for a single-family home. FHA requires a debt-to-income (DTI) ratio of 43% or less, though lenders may approve up to 50% with strong compensating factors.
Is FHA Worth It? Tips for First-Time Buyers
FHA makes sense when you have a credit score below 680 and less than 5% saved for a down payment. Once you're above 680 and can put 5%+ down, run the numbers: a conventional loan with PMI often ends up cheaper over 7+ years because PMI cancels when you hit 20% equity, whereas FHA MIP lasts the loan's life if you put less than 10% down. If you're close to 10% down, stretching to reach it cuts the MIP duration to 11 years and saves meaningful money.
Frequently Asked Questions About FHA Loans
What credit score do I need for an FHA loan?
580+ credit score qualifies for 3.5% down. A score between 500–579 requires 10% down. Below 500, FHA-backed loans are not available. Individual lenders may set higher minimums (620+ is common) even though FHA allows 580.
How long does FHA MIP last?
If you put less than 10% down, FHA MIP lasts the full 30-year loan term. If you put 10% or more down, MIP cancels after 11 years. To remove MIP before then, you must refinance into a conventional loan once you have 20% equity.
What is the FHA UFMIP?
The Upfront Mortgage Insurance Premium is a one-time fee of 1.75% of the base loan amount. It's almost always financed into the loan rather than paid in cash at closing. On a $270,000 loan, UFMIP adds $4,725 to your loan balance.
Can I use gift funds for an FHA down payment?
Yes. FHA allows 100% of the down payment to come from a qualified gift (family member, employer, nonprofit). The donor must provide a gift letter stating the funds are not a loan. This makes FHA especially accessible for first-time buyers without savings.
What are 2024 FHA loan limits?
FHA loan limits are set by county. For 2024, the national floor is $498,257 for single-family homes in low-cost areas. The ceiling (high-cost areas like San Francisco and NYC) is $1,149,825. Check HUD's website for your specific county limit.
Should I choose FHA or conventional?
Compare total costs over your expected time horizon. If you plan to stay 5+ years and have a 680+ credit score, conventional often wins because PMI cancels. If you have credit challenges, lower income, or need seller contribution flexibility, FHA is often the better path.
Related Calculators
Mortgage Calculator
Full conventional mortgage payment with PMI and taxes
VA Loan Calculator
Zero-down loan for eligible veterans and military
Down Payment Calculator
How much to save and how long it will take
DTI Calculator
Check your debt-to-income ratio before applying
Cash Back vs Low Interest
Compare rebate vs lower APR deals