FHA Loan Calculator
Calculate monthly payments for an FHA loan, including mortgage insurance premiums (MIP). Ideal for first-time buyers with a low down payment.
What this calculator does
This FHA loan calculator estimates the monthly cost of a mortgage insured by the Federal Housing Administration. Enter the home price, your down payment, the interest rate, and the term, and it returns the monthly principal and interest along with the FHA mortgage insurance premiums that make this loan type distinct from conventional financing.
The insurance is the part worth understanding. FHA charges an upfront premium normally financed into the loan and an annual premium collected monthly, and together they change the arithmetic of whether an FHA loan is the right choice.
When to use it
FHA financing exists for buyers who cannot clear conventional underwriting. Use this calculator if your credit score is in the 580 to 660 range, if your down payment is well below 20 percent, or if your debt-to-income ratio is above what conventional lenders accept. Those are the situations FHA was designed for.
It is also the tool for the comparison that matters most: FHA against conventional at a low down payment. FHA usually wins on approval odds and upfront cost, and usually loses over a full term because its insurance rarely cancels. Seeing both totals side by side turns that into a decision rather than a guess.
Understanding the inputs
Home price and down payment set the base loan amount. FHA's headline minimum is 3.5 percent, which requires a 580 score; below that you need 10 percent. Entering 10 percent or more matters beyond the loan size, because it is the threshold at which annual insurance eventually terminates.
Enter the interest rate as quoted. FHA rates often run slightly below conventional for the same credit profile, since the government guarantee reduces lender risk — the offsetting cost is the insurance. Term is normally 30 years, though 15-year FHA loans carry lower annual premiums and are worth testing if the payment is affordable.
How is this calculated?
M = P[r(1+r)^n]/[(1+r)^n-1] where P is the principal loan amount, r is the monthly interest rate, and n is the number of payments.
A worked example
Take a $320,000 home with the minimum 3.5 percent down, or $11,200, leaving a $308,800 base loan. The upfront premium of 1.75 percent adds about $5,404, financed in for a total of roughly $314,204. At 6.5 percent over 30 years the principal and interest comes to about $1,986 a month.
The annual premium at 0.55 percent adds roughly $144 a month, taking the total to about $2,130 before taxes and insurance. Over the full term that insurance costs more than $50,000 — which is why borrowers who expect their credit and equity to improve often plan an eventual refinance out of FHA rather than holding it to maturity.
Limitations and assumptions
This calculator covers principal, interest, and FHA mortgage insurance. It excludes property taxes, homeowners insurance, HOA dues, and closing costs beyond the financed upfront premium. The annual premium rate is an estimate — your actual rate depends on loan size, term, and loan-to-value, and is set at closing.
It also assumes a standard FHA purchase loan. Streamline refinances, 203(k) renovation loans, and energy-efficient mortgage add-ons follow different rules. County loan limits are not enforced here, so confirm your figure sits under the cap for your area before relying on the result.
Common Questions
- What credit score do I need for an FHA loan?
- FHA allows scores down to 580 with a 3.5 percent down payment, and down to 500 if you can put 10 percent down. Individual lenders often impose stricter overlays, commonly requiring 620 or higher, so a score that qualifies under FHA rules may still be turned down by a particular lender.
- How much is FHA mortgage insurance?
- Two charges apply. An upfront premium of 1.75 percent of the loan amount is normally financed into the balance, and an annual premium of roughly 0.15 to 0.75 percent is split across your monthly payments. The annual rate depends on your loan size, term, and loan-to-value ratio.
- Does FHA mortgage insurance ever come off?
- Only if you put down 10 percent or more, in which case it drops after 11 years. With the standard 3.5 percent down, the annual premium lasts the entire 30-year term. Most borrowers who want rid of it refinance into a conventional loan once they reach 20 percent equity.
- What is the FHA loan limit in my area?
- Limits are set county by county and updated annually. The 2026 floor for a single-family home is around $524,000 in most areas, rising to roughly $1,209,000 in high-cost counties. Anything above your county limit needs a conventional or jumbo loan instead.
- Can I use an FHA loan for an investment property?
- No. FHA financing requires you to occupy the property as your primary residence within 60 days of closing and live there for at least a year. You can buy a two to four unit building and rent the other units, provided you occupy one of them yourself.
- How does FHA compare to a conventional loan?
- FHA is more forgiving on credit and debt-to-income, which is its main advantage. Conventional loans typically cost less over time because PMI can be cancelled at 20 percent equity while FHA insurance usually cannot. Run both above — FHA often wins at closing and loses over the full term.
- What is an FHA 203(k) loan?
- A version that rolls renovation costs into the purchase mortgage, letting you buy a property that would otherwise fail FHA condition standards and repair it with borrowed funds. It carries more paperwork and requires approved contractors, and this calculator does not model the renovation draw schedule.
- Can the seller pay my closing costs?
- FHA permits seller concessions of up to 6 percent of the sale price, which is more generous than conventional limits. This can cover closing costs and prepaid items but cannot be used for your down payment, which must come from your own funds or a documented gift.
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