FHA Loan Calculator
Free FHA loan calculator. Calculate monthly payments including upfront and annual MIP, see total cost, and compare with conventional loans.
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Decision Support System
Showing national median — click Calculate above to personalize with your numbers
FHA Loan Benchmarks
LIVE DATA fincalcs.coSource: HUD, FHA Mortgagee Letter 2025-01, Urban Institute 2026
FHA vs. Conventional Cost Comparison
fincalcs.coSide-by-side comparison across different down payments and credit scores.
| Scenario | Down Payment | Monthly P&I + MIP | Upfront MIP | Total Insurance Cost | MIP Duration |
|---|---|---|---|---|---|
| FHA — 3.5% down | $14,700 | $2,855 | $7,236 | $76,532 | Life of loan |
| FHA — 5% down | $21,000 | $2,779 | $6,983 | $73,413 | Life of loan |
| FHA — 10% down | $42,000 | $2,585 | $6,615 | $42,849 | 11 years |
| Conv. — 5% down | $21,000 | $2,821 | $0 | $28,560 | ~10 years |
| Conv. — 10% down | $42,000 | $2,610 | $0 | $13,272 | ~7 years |
| Conv. — 20% down | $84,000 | $2,180 | $0 | $0 | No PMI |
Based on $420,000 home, 6.75% rate, 30-year term. FHA MIP at 0.55% annual (0.50% with 10%+ down). Conventional PMI at 0.78%. Enter your scenario above for exact numbers.
How Does Your FHA Payment Compare?
UPDATES LIVEShowing the national median FHA payment. Click Calculate to see where your FHA loan falls.
FHA vs. Conventional Comparison
UPDATES LIVEYour FHA loan includes $7,350 in upfront MIP plus $193/mo in ongoing MIP. Over 30 years, the total MIP cost is $76,830.
Your Complete Mortgage Picture
CONNECTEDEvery mortgage decision connects to others. Here’s how your numbers ripple across your finances.
What Should You Do Next?
UPDATES LIVEBased on your FHA analysis, here’s what a financial planner would focus on.
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FHA vs. Conventional Decision Matrix
fincalcs.coWhen FHA makes sense and when conventional is the better choice.
| Decision Factor | Status | Your Number | What It Means |
|---|---|---|---|
| Credit score | FHA advantage |
500–679 | FHA accepts lower scores. 680+ should compare conventional. Run conventional numbers |
| Down payment available | FHA advantage |
3.5% minimum | FHA’s low minimum makes homeownership accessible sooner. Compare down payments |
| Total insurance cost | FHA disadvantage |
$76K+ (MIP life of loan) | FHA MIP costs significantly more than conventional PMI over time. Plan refi to conventional |
| DTI flexibility | FHA advantage |
Up to 43% allowed | FHA allows higher DTI than conventional’s 36%. Check your DTI |
| Long-term plan | Evaluate |
Refi at 20% equity | FHA is a stepping stone — plan to refinance when equity builds. Track your equity |
Based on $420,000 home. FHA is often best for first-time buyers with limited savings or lower credit. Enter your scenario above.
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This calculator is for informational and educational purposes only. Results are estimates based on the information you provide and standard financial formulas. This is not financial advice. Consult a qualified financial advisor for decisions specific to your situation. Full Disclaimer
Learn More About FHA Loans
Things to Know
Essential concepts for understanding your results
RequirementsWhat are the FHA loan requirements?
Minimum 580 credit score for 3.5% down payment (500-579 requires 10% down). DTI up to 43% automated, 50% with manual underwriting. No income limits. Property must be primary residence. FHA loans are backed by the Federal Housing Administration, allowing lenders to accept higher-risk borrowers. Available through any FHA-approved lender — rates vary so shop multiple lenders.
MIP CostHow much does FHA mortgage insurance cost?
Upfront MIP: 1.75% of loan amount ($5,250 on $300,000) — usually rolled into the loan. Annual MIP: 0.55-0.85% depending on LTV and term ($138-213/month on $300,000). Unlike conventional PMI, FHA MIP on loans with less than 10% down lasts the entire loan term — it never drops off. This permanent cost is the primary reason borrowers refinance from FHA to conventional once they reach 20% equity.
FHA vs ConventionalWhen is FHA better than conventional?
FHA wins when: credit score is 580-680 (conventional rates are much higher or unavailable), DTI exceeds 43% (FHA allows up to 50% manual), or down payment is limited to 3.5%. Conventional wins when: credit score is 700+ (better rates, cheaper PMI that drops off), you can put 10%+ down, or you want to avoid permanent MIP. Most borrowers who start with FHA should plan to refinance to conventional within 3-5 years.
Property LimitsWhat properties qualify for FHA loans?
FHA requires primary residence occupancy — no investment properties or vacation homes. Property must meet FHA minimum property standards: safe, sound, and secure. Common issues: peeling paint (lead hazard in pre-1978 homes), structural defects, non-functional systems, and health/safety violations. FHA appraisals are stricter than conventional — the appraiser acts as a property inspector. Condos require FHA project approval for the entire complex, limiting condo options.
What Is an FHA Loan?
Whether you are looking for a fha loan estimator, calculate fha loan, how to calculate fha loan, fha loan formula, fha loan mortgage, or home fha loan — this free fha loan calculator provides accurate estimates to help you plan and make informed financial decisions.
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help first-time homebuyers, low-to-moderate income borrowers, and those with less-than-perfect credit achieve homeownership. FHA loans require only 3.5% down payment and accept credit scores as low as 580 — significantly more accessible than conventional loans.
Like VA loans, the FHA does not lend directly — private lenders issue the loans, and FHA provides mortgage insurance that protects the lender against default. This insurance allows lenders to offer loans to borrowers who might not qualify for conventional financing. Approximately 17% of all home purchase mortgages are FHA loans, making them the second most popular loan type after conventional.
The trade-off for easier qualification: FHA loans require mortgage insurance for the life of the loan (unless you put 10%+ down). This MIP adds $100-$350/month and cannot be removed without refinancing to a conventional loan — the biggest drawback compared to conventional financing.
FHA Loan Requirements and Limits
Down payment: 3.5% with a 580+ credit score. 10% with a 500-579 credit score. On a $300,000 home: $10,500 at 3.5% down.
Credit score: 580 minimum for 3.5% down (most lenders require 580-620). 500-579 requires 10% down. Conventional loans typically require 620-680+. FHA's lower threshold opens homeownership to millions who cannot qualify conventionally.
DTI ratio: Maximum 43% back-end (some lenders allow up to 50% with compensating factors like strong reserves or significant income growth).
Loan limits (2026): Vary by county. Standard limit: approximately $524,225 for a single-family home. High-cost areas: up to $1,149,825. Hawaii, Alaska, US Virgin Islands, and Guam have special higher limits. Check HUD's loan limit lookup tool for your specific county.
Property requirements: FHA requires a property appraisal that meets minimum health and safety standards. Issues like peeling paint, broken windows, missing handrails, or structural concerns must be repaired before closing. This is more stringent than conventional appraisals and can complicate purchases of older or fixer-upper homes.
FHA Mortgage Insurance: The Critical Cost
FHA mortgage insurance has two components:
Upfront Mortgage Insurance Premium (UFMIP): 1.75% of the loan amount, due at closing. On a $290,000 loan: $5,075. Almost always rolled into the loan balance (increasing your loan to $295,075) rather than paid in cash.
Annual Mortgage Insurance Premium (MIP): 0.55% of the loan balance, paid monthly. On a $290,000 loan: approximately $133/month initially, decreasing slightly as the balance is paid down.
The critical difference from conventional PMI: FHA MIP is required for the entire life of the loan if your down payment was less than 10%. You cannot request removal at 20% equity like conventional PMI. The only way to eliminate FHA MIP is to refinance into a conventional loan once you have 20% equity and a 620+ credit score. This is why FHA loans are often considered a "starter mortgage" — use them to get into the home, build equity and improve credit, then refinance to conventional and drop the insurance.
With 10% or more down, MIP drops off after 11 years — but most borrowers choosing FHA do not have 10% down (the whole point is the low down payment).
FHA vs Conventional: Making the Right Choice
Choose FHA if: Your credit score is below 680 and you cannot qualify for competitive conventional rates. You have limited savings and need the 3.5% minimum down payment. You have a higher DTI that conventional lenders reject. You are a first-time buyer who needs the most accessible path to homeownership.
Choose Conventional if: Your credit score is 680+ (you will get better rates and avoid lifetime MIP). You can put 5-20% down (conventional PMI is cheaper and removable). You want to buy a fixer-upper (conventional has less stringent property requirements). You are buying a second home or investment property (FHA is primary residence only).
The crossover point: At approximately 680 credit score and 5%+ down payment, conventional loans typically become cheaper than FHA when you factor in the lifetime MIP. Below 680 or with less than 5% down, FHA is usually the better deal. Run both scenarios through this calculator to compare total costs over your expected ownership period.
The FHA-to-conventional strategy: Buy with FHA now (get into the home with minimal down payment), make payments for 2-5 years (building equity and improving credit), then refinance to conventional (eliminating MIP once you hit 20% equity and 680+ score). Many first-time buyers use this two-step approach successfully.