FHA Loan Calculator
Calculate FHA loan payments with mortgage insurance and down payment requirements
The FHA Loan Calculator helps you estimate monthly payments for Federal Housing Administration loans, including required mortgage insurance premiums (MIP). FHA loans are government-backed mortgages that allow lower down payments and credit scores, making homeownership more accessible for first-time buyers.
FHA Loan Calculation
FHA Loan Analysis
Monthly Payment Breakdown
FHA Mortgage Insurance (MIP)
Total Cost Analysis
FHA Loan Limits
Your loan status: Within standard FHA loan limits
• Standard area limit: $498,257
• High-cost area limit: $1,149,825
Limits vary by county. Check with your lender for specific area limits.
FHA Qualification Analysis
Credit score 580-619 qualifies for 3.5% down payment. Consider improving score for better rates.
With 3.5% down, MIP will remain for the life of the loan. Consider 10%+ down to enable MIP cancellation.
Estimated minimum monthly income needed: $9,589 (based on 28% housing ratio).
Mortgage insurance represents 5.7% of your monthly payment ($155).
How to Use
1. Enter the home price you're considering
2. Set your down payment (minimum 3.5% with 580+ credit score)
3. Input the interest rate offered by your lender
4. Select your loan term (15 or 30 years)
5. Choose your credit score range
6. Add property taxes, insurance, and HOA fees
7. Review your total monthly payment including MIP
What is an FHA Loan?
FHA loans are mortgages insured by the Federal Housing Administration, designed to help homebuyers with lower credit scores and smaller down payments achieve homeownership. These government-backed loans offer more flexible qualification requirements.
Key Benefits
- Down payment as low as 3.5%
- Credit scores as low as 580 (500 with 10% down)
- Competitive interest rates
- Assumable loans
- Flexible debt-to-income ratios
FHA Loan Requirements
Credit Score Requirements
- 580+ credit score: 3.5% minimum down payment
- 500-579 credit score: 10% minimum down payment
- Below 500: Generally not eligible
Other Requirements
- Debt-to-income ratio typically under 43%
- Steady employment history (2+ years)
- Property must be primary residence
- Property must meet FHA standards
- Mortgage insurance required
FHA Mortgage Insurance (MIP)
FHA loans require mortgage insurance premiums (MIP) to protect lenders against default. This includes both an upfront premium and annual premiums.
MIP Structure
- Upfront MIP: 1.75% of loan amount (can be financed)
- Annual MIP: 0.45% to 1.05% of loan amount
- Payment: Divided into 12 monthly payments
MIP Cancellation
- 10%+ down: Can cancel after 11 years
- Less than 10% down: MIP for life of loan
- Refinance to conventional loan to remove MIP
FHA Loan Limits 2024
FHA loan limits vary by county and are based on local median home prices. These limits are updated annually.
2024 Limits
- Standard areas: $498,257 (most counties)
- High-cost areas: Up to $1,149,825
- Alaska/Hawaii: Higher limits apply
Note: Loan limits vary significantly by location. Check with your lender for specific limits in your area.
FHA vs Conventional Loans
| Feature | FHA Loan | Conventional |
|---|---|---|
| Min. Down Payment | 3.5% | 3-5% |
| Min. Credit Score | 580 | 620 |
| Mortgage Insurance | Required (MIP) | PMI if <20% down |
| Loan Limits | County-based | Higher limits |
| Property Type | Primary only | Primary/Secondary |
Example Calculation
First-Time Buyer Example:
• Home Price: $300,000
• Down Payment: 3.5% ($10,500)
• Loan Amount: $289,500
• Interest Rate: 6.5%
• Loan Term: 30 years
• Monthly P&I: $1,830
• Monthly MIP: $221
• Total Monthly Payment: ~$2,400
Including estimated taxes, insurance, and MIP. Actual payments may vary.
Frequently Asked Questions
Can I remove FHA mortgage insurance?
If you put down 10% or more, MIP can be removed after 11 years. With less than 10% down, MIP stays for the life of the loan unless you refinance.
What credit score do I need for an FHA loan?
Minimum 580 for 3.5% down payment, or 500-579 with 10% down payment. Individual lenders may have higher requirements.
Can I use an FHA loan for investment property?
No, FHA loans are only for primary residences. You must live in the home as your main residence.