FHA Loan Calculator
See your true FHA monthly payment - P&I plus upfront MIP, annual MIP, taxes, and insurance.
🏛️ What is an FHA Loan Calculator?
An FHA loan calculator helps homebuyers estimate the full monthly cost of an FHA-backed mortgage - including both the Mortgage Insurance Premium (MIP) components that make FHA loans unique among loan types. FHA loans are insured by the Federal Housing Administration (HUD) and are designed to make homeownership accessible to buyers with lower credit scores and smaller down payments than conventional loans require. The trade-off for this accessibility is mandatory mortgage insurance that conventional loans don't always require.
FHA loans are particularly valuable in three common scenarios: first-time buyers who haven't accumulated a large down payment, buyers with credit scores in the 580–679 range who don't qualify for the best conventional rates, and buyers who want to finance closing costs or use gift funds for their entire down payment. FHA allows down payments as low as 3.5% with a 580+ credit score - well below the 5%–20% typically needed for conventional financing.
What makes FHA loan math distinctly different from conventional mortgages is the two-part MIP structure. The upfront MIP of 1.75% of the loan amount is financed into the loan balance, quietly increasing your mortgage and monthly payment. The annual MIP - ranging from 0.15% to 0.55% of the loan amount depending on term and LTV - is collected monthly in addition to your P&I payment. This calculator handles both components automatically, so you see your true total monthly obligation, not just the deceptively lower P&I figure some lenders advertise.
The duration of MIP is the factor most borrowers misunderstand. Unlike PMI on conventional loans (which cancels at 80% LTV), FHA annual MIP does not cancel when you build equity through appreciation or payments - unless you put at least 10% down at origination, in which case it cancels after 11 years. With less than 10% down, MIP lasts the life of the loan unless you refinance into a conventional loan. This calculator shows total MIP cost and duration clearly, so you can compare the true lifetime cost of an FHA loan against conventional alternatives.
📐 Formula
📖 How to Use This Calculator
Steps to Calculate Your FHA Loan Payment
💡 Example Calculations
Example 1 — First-Time Buyer, Minimum 3.5% Down
$300,000 home | 3.5% down | 6.5% rate | 30-year term | 1.1% tax | $1,500/yr insurance
Example 2 — 10% Down to Limit MIP Duration
$300,000 home | 10% down | 6.5% rate | 30-year term | 1.1% tax | $1,500/yr insurance
Example 3 — 15-Year FHA Loan for Lower Total Interest
$250,000 home | 5% down | 6.0% rate | 15-year term | 1.0% tax | $1,200/yr insurance
❓ Frequently Asked Questions
🔗 Related Calculators
What is the FHA upfront MIP rate for 2024?
The FHA upfront Mortgage Insurance Premium (MIP) is 1.75% of the base loan amount for all FHA loans regardless of down payment or term. On a $300,000 loan, that's $5,250 upfront. It is typically financed into the loan rather than paid in cash at closing, which increases your monthly payment slightly but preserves your cash reserves.
How long do I have to pay FHA MIP?
MIP duration depends on your down payment. With less than 10% down, you pay annual MIP for the entire loan term. With 10% or more down, annual MIP cancels after 11 years. Unlike PMI on conventional loans, FHA MIP cannot be cancelled by reaching 80% LTV through appreciation or payments alone - you must refinance into a conventional loan to eliminate it early.
What is the minimum credit score for an FHA loan?
FHA guidelines allow a minimum credit score of 580 for the 3.5% down payment option, or 500–579 for the 10% down option. Individual lenders may impose higher overlays - many require 620 or higher. A higher credit score often results in a lower interest rate, which significantly reduces your total cost even on an FHA loan.
What is the FHA loan limit for 2024?
FHA loan limits for 2024 are $498,257 for standard areas and up to $1,149,825 for high-cost areas. Limits are set per county based on HUD's median home price data. Alaska, Hawaii, Guam, and the US Virgin Islands have even higher limits. Check HUD's website or ask your lender for the current limit in your specific county.
Can I remove MIP from an FHA loan?
For most FHA loans, the only way to eliminate MIP before the end of the MIP period is to refinance into a conventional loan once you have 20% equity. Unlike PMI on conventional loans (which cancels at 80% LTV), FHA MIP does not automatically cancel based on equity growth from appreciation. If you start with 10% or more down, annual MIP cancels after 11 years without refinancing.
How does an FHA loan differ from a conventional loan?
FHA loans are government-backed (insured by HUD), making them accessible to borrowers with lower credit scores and smaller down payments. The trade-off is mandatory MIP, which adds significant cost. Conventional loans require no MIP when you put 20% down, and their PMI cancels at 80% LTV. FHA also has stricter property condition standards. For borrowers with excellent credit and 10%+ down, a conventional loan is often cheaper in the long run.
What is the FHA annual MIP rate?
Annual MIP rates depend on loan term and LTV. For 30-year FHA loans: 0.55% annually when LTV is above 95%, 0.50% when LTV is 95% or below. For 15-year FHA loans: 0.40% when LTV is above 90%, 0.15% when LTV is 90% or below. The annual MIP is divided by 12 and added to each monthly payment. These rates are per HUD guidelines — always verify current MIP rates at hud.gov as they are subject to change.
Can I use gift funds for an FHA down payment?
Yes - FHA allows 100% of the required down payment to come from gift funds from an acceptable donor (a relative, employer, close friend, or government agency). The donor must provide a gift letter stating the funds are a gift and not a loan. FHA is one of the few loan types that permits this flexibility, making it particularly accessible for first-time buyers who may not have savings.