How to use the FHA Loan Calculator
- 1 Enter the home price and down payment, at least 3.5%.
- 2 Enter the interest rate and choose the term.
- 3 Enter yearly property tax and homeowners insurance.
- 4 Read the monthly payment and MIP details.
Worked example
A $350,000 home with 3.5% down at 6.25% over 30 years. The base loan is $337,750; adding the $5,911 upfront MIP gives $343,661. Principal and interest are $2,116, monthly MIP $155, and tax and insurance $500, so the payment is about $2,771 a month.
Features
Upfront MIP
1.75% of the base loan, added to the loan.
Annual MIP
0.55% for most 30-year FHA loans with under 5% down, lower for 15-year loans.
MIP duration
Life of the loan with under 10% down, 11 years with 10% or more.
Full payment
Principal, interest, MIP, tax and insurance.
When to use it
First-time buyers
See the cost of buying with 3.5% down.
FHA or conventional
Compare MIP with private mortgage insurance.
Lower credit scores
Plan a purchase with a score from 580.
Budgeting
Check the full monthly cost.
Frequently asked questions
What is the minimum down payment for FHA?
3.5% with a credit score of 580 or higher, or 10% with a score from 500 to 579.
How much is FHA mortgage insurance?
An upfront premium of 1.75% of the loan and an annual premium, usually 0.55% for 30-year loans, paid monthly.
Can I remove FHA MIP?
With less than 10% down, MIP lasts for the life of the loan. With 10% or more, it ends after 11 years. Refinancing into a conventional loan can remove it.
What are FHA loan limits?
Limits vary by county and are set each year based on home prices. Check HUD's loan limit lookup for your area.
What debt-to-income ratio does FHA allow?
Often up to 43%, and higher with strong compensating factors.
Is FHA only for first-time buyers?
No. Any buyer who will live in the home can use FHA.
Can sellers pay closing costs?
Yes, up to 6% of the price.
Can I use gift money for the down payment?
Yes. FHA allows the full down payment to come from a gift from family, an employer or an approved charity, with a gift letter.
Can I buy a multi-unit property with FHA?
Yes. FHA loans can finance two- to four-unit properties if you live in one of the units.
Is the FHA rate lower than conventional?
FHA rates are often similar or slightly lower, but mortgage insurance can make the total cost higher for borrowers with good credit.
What property standards apply?
The home must pass an FHA appraisal that checks safety, security and soundness.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated