FHA Loan Calculator
Calculate your FHA mortgage payment including upfront and annual mortgage insurance.
This tool is for informational and educational purposes only. It is not a substitute for professional financial, medical, legal, or engineering advice. See Terms of Service.
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FHA loans are government-backed mortgages that allow lower down payments and more flexible credit requirements. This calculator shows your true monthly cost including FHA mortgage insurance premiums (MIP).
- Enter the home price. This is the full purchase price of the property.
- Set your down payment percentage. FHA loans require a minimum of 3.5% down. A higher down payment reduces your monthly MIP rate.
- Enter the interest rate. FHA rates are often slightly lower than conventional rates since the loan is government-insured.
- Choose your loan term. 30 years is the most common for FHA loans.
The calculator includes both the upfront MIP (1.75% of the loan, financed into the balance) and the annual MIP (paid monthly). Your total monthly payment combines principal, interest, and the monthly MIP portion.
FHA loans charge 0.55% annual MIP when LTV exceeds 95%, or 0.50% when LTV is 95% or below. For most borrowers with 3.5% down, the higher rate applies.
About FHA Loans
FHA loans are insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development. They are popular with first-time homebuyers because of the low down payment requirement (3.5%) and more lenient credit score thresholds.
The trade-off is mortgage insurance. FHA charges both an upfront premium (1.75% of the loan amount, usually rolled into the loan) and an annual premium (0.50% to 0.55%) paid monthly for the life of the loan. On conventional loans, PMI can be removed at 80% LTV, but FHA MIP stays for the full term unless you refinance.
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Frequently Asked Questions
What is FHA mortgage insurance premium (MIP)?
FHA MIP is insurance that protects the lender if you default. It has two parts: an upfront premium of 1.75% of the loan amount (usually financed into the loan), and an annual premium of 0.50% to 0.55% paid monthly. Both are required on all FHA loans.
How much down payment do I need for an FHA loan?
The minimum down payment for an FHA loan is 3.5% of the purchase price. This is lower than the typical 5% to 20% required for conventional loans. With a credit score below 580, you may need 10% down.
Can I remove FHA mortgage insurance?
For FHA loans with less than 10% down, MIP lasts for the life of the loan. With 10% or more down, MIP drops off after 11 years. The most common way to eliminate FHA MIP is to refinance into a conventional loan once you have 20% equity.