Home Finance Real Estate FHA Loan Calculator
Loan Details
$10,500 down payment — FHA minimum is 3.5%
Affects eligibility; 580+ required for 3.5% down
$
$
Minimum payments on all recurring debts
💰 Closing Costs Estimate
Typically 0.5–2% of loan amount
Recording, inspection, survey, etc.
Results
Monthly Total Payment
$—
P&I + MIP + Tax + Insurance
💰 Cash to Close
Down Payment
Est. Closing Costs
UFMIP (1.75%)— rolled into loan ✓
Total Cash to Close

Enter your annual income above to see DTI qualification.

UFMIP: rolled in
Annual MIP: /mo
Duration:
MIP Duration Visual
MIP for life of loan (LTV > 90% on 30yr)
Principal & Interest
Annual MIP/mo
Cash to Close
Total Loan (w/ UFMIP)
LTV Ratio
Total Interest
Equity at Closing
MIP↓
Refi
Total Loan = Price − Down + UFMIP (1.75%) Monthly MIP = Loan × 0.55% ÷ 12 PITI = P&I + MIP + Tax + Ins Front DTI = PITI ÷ Income
Chart: results.
FHA Loan
/mo total
Conventional (est.)
/mo total (3.5% down)
MIP will last the life of the loan. Put 10%+ down to limit MIP to 11 years.
MIP limited to 11 years — you reach <90% LTV at closing.
Credit score 500–619 requires 10% minimum down payment for FHA.
You may qualify for conventional with no PMI at 20%+ down — compare options.
Down payment below FHA minimum (3.5%). Adjusted to 3.5%.
HOA fees add $0/mo to your monthly obligation.
Your loan amount exceeds the FHA baseline limit of $498,257. High-cost area limits apply — verify with your lender.
Your debt-to-income ratio is elevated. FHA may require compensating factors (reserves, low debt history).
Cash to close is below 2.5% of the home price. Double-check all fees with your lender before budgeting.
Bear (+0.75%)
Monthly Total
Base (Current)
Monthly Total
Bull (−0.75%)
Monthly Total
Down Payment % vs Interest Rate → Monthly Total Payment
Item FHA Loan Conventional (3.5% down) Conventional (20% down)
Calculate to see comparison
Item 3.5% Down (FHA Min) 5% Down 10% Down 20% Down
Calculate to see comparison
💰
MIP Removal
📊
78% LTV
FHA auto-cancel threshold
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Refi Window
20% equity — refi to conventional
🏠
Full Payoff
Equity & Balance Growth Over Time
Chart: equity & balance growth over time.
⚡ Extra Payment Accelerator How much faster can you build equity and eliminate MIP?
$0/mo extra
Months Saved
Interest Saved
MIP Saved
New Payoff Yr
View Full Amortization Schedule
Total Interest Paid
Total MIP Paid
Total Paid (P+I+MIP)
Period Payment Principal Interest MIP Balance
Calculate to see schedule
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How to Use This Calculator

1

Enter Property Details

Input the home price and your planned down payment (minimum 3.5%).

2

Review FHA Costs

See upfront MIP, annual MIP, and total monthly payment including taxes and insurance.

3

Compare to Conventional

View a side-by-side comparison of FHA vs. conventional loan costs.

Formula & Methodology

Upfront MIP

UFMIP = Base Loan Amount x 1.75%

Paid at closing or rolled into the loan. Required on all FHA purchase loans.

Annual MIP

Annual MIP = Loan Amount x MIP Rate / 12

Monthly mortgage insurance premium, typically 0.55% annually for 30-year loans with less than 10% down.

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Key Terms Explained

FHA Loan A mortgage insured by the Federal Housing Administration, designed for borrowers with lower credit scores or smaller down payments.
MIP Mortgage Insurance Premium — FHA's version of PMI, including both an upfront fee (1.75%) and annual premiums.
UFMIP Upfront Mortgage Insurance Premium — a one-time 1.75% fee on the base loan amount, typically financed into the loan.
FHA Loan Limit The maximum loan amount FHA will insure, varying by county. Check HUD's website for your area's limit.
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Real-World Examples

👤

Alex

Minimum Down Payment

Inputs: Home: $300,000, Down: 3.5% ($10,500), Rate: 6.5%, 30 years

Result: Result: UFMIP = $5,066, Monthly MIP = $133, Total payment (PITI + MIP) = $2,150. MIP required for life of loan.

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FHA Loans: Pros, Cons, and Alternatives

When FHA Makes Sense

FHA loans are ideal for first-time buyers with credit scores between 580-680 and limited savings. The 3.5% minimum down payment is the lowest available for buyers without military service eligibility.

The Hidden Cost of MIP

Unlike conventional PMI that drops at 80% LTV, FHA MIP lasts the entire loan life when putting less than 10% down. This makes refinancing to a conventional loan attractive once you reach 20% equity.

FHA vs. Conventional Break-Even

With credit scores above 700 and 5% or more down, a conventional loan often costs less over time. The break-even point depends on your credit score, down payment, and how long you plan to keep the loan.

Frequently Asked Questions

What is the minimum down payment for an FHA loan?+

FHA loans require a minimum down payment of 3.5% of the purchase price if your credit score is 580 or higher. Borrowers with credit scores between 500-579 must put down at least 10%. These lower requirements make FHA loans popular among first-time homebuyers.

How does FHA mortgage insurance (MIP) work?+

FHA loans require both an upfront mortgage insurance premium (1.75% of the loan amount, usually rolled into the loan) and annual MIP (0.55-1.05% depending on loan terms). Unlike PMI on conventional loans, FHA MIP typically lasts the entire life of the loan unless you refinance.

What are FHA loan limits and how do they affect me?+

FHA loan limits vary by county and are updated annually. In 2024, the floor is $498,257 for single-family homes in most areas, while high-cost areas can go up to $1,149,825. If your desired home exceeds local FHA limits, you will need a conventional or jumbo loan instead.

Can I use an FHA loan for a house that needs repairs?+

Yes, the FHA 203(k) rehabilitation loan allows you to finance both the purchase price and repair costs in a single mortgage. The Standard 203(k) covers major renovations over $5,000, while the Limited 203(k) handles minor improvements up to $35,000.

When should I consider refinancing out of an FHA loan?+

Consider refinancing to a conventional loan once you have 20% equity in your home, as this eliminates the ongoing MIP requirement. Since FHA MIP lasts the life of the loan for most borrowers, refinancing can save hundreds per month and tens of thousands over the remaining loan term.