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FHA Loan Calculator

Calculate FHA loan payments including upfront and annual Mortgage Insurance Premium (MIP). See the true monthly cost for low-down-payment buyers.

⚠ FHA requires a minimum 3.5% down payment ($12,251 for this home price).

Calculation Inputs

Results computed instantly — your data never leaves your device.

Live Results

Real-Time

Total Monthly Payment

$2,836.49

Principal & Interest

$2,228.98

Monthly MIP (0.55%/yr)

$157.51

Property Tax

$350

Insurance

$100

Upfront MIP (1.75%)

$5,910.63

Total Loan Amount

$343,660.63

MIP Duration

30 years

Total MIP Cost

$56,704

Total Interest

$458,770.83

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How to Use the FHA Loan Calculator

  1. 1

    Enter the home price — the calculator will set the minimum 3.5% down payment automatically.

  2. 2

    Adjust the down payment if putting more than 3.5% down.

  3. 3

    Choose whether to finance the upfront MIP (1.75%) into the loan — most borrowers do to preserve cash.

  4. 4

    Select the loan term (30 or 15 years), add property tax and insurance, and see your full monthly payment.

Formula & Mathematical Basis

Base Loan = Home Price − Down Payment UFMIP = Base Loan × 0.0175 Total Loan = Base Loan + UFMIP (if financed) Monthly MIP = Total Loan × (Annual MIP Rate ÷ 12) 30-yr, LTV>90%: Annual MIP = 0.55% | LTV≤90%: 0.50% 15-yr, LTV>90%: Annual MIP = 0.40% | LTV≤90%: 0.15% MIP Duration: LTV>90% → full term | LTV≤90% → 11 years

Variable Key

UFMIP

Upfront Mortgage Insurance Premium — 1.75% of base loan amount, always required

Annual MIP Rate

Ongoing annual MIP rate charged monthly; varies by loan term and LTV at origination

LTV

Loan-to-Value Ratio — base loan amount ÷ home price at origination

Total Loan

Base loan amount plus financed UFMIP (if elected)

MIP Duration

Number of months annual MIP is charged: full term if LTV>90%; 11 years if LTV≤90%

📝 FHA MIP rates shown are effective 2023–2024 per HUD Mortgagee Letter 2023-05. HUD adjusts MIP rates periodically; always confirm current rates at hud.gov. The UFMIP is non-refundable after 3 years (partial refund available within 3 years for FHA streamline refinances).

Step-by-Step Examples

1

First-time buyer — 3.5% down, 30-year loan

Scenario: $350,000 home, $12,250 down (3.5%), 6.75% rate, 30-year term, UFMIP financed, 1.2% tax, $1,200 insurance.

  1. 1.Base loan: $350,000 − $12,250 = $337,750.
  2. 2.UFMIP: $337,750 × 1.75% = $5,911.
  3. 3.Total loan (UFMIP financed): $337,750 + $5,911 = $343,661.
  4. 4.Monthly P&I on $343,661 at 6.75% / 30 yr ≈ $2,229.
  5. 5.Annual MIP rate (LTV 96.5%, 30-yr): 0.55%.
  6. 6.Monthly MIP: $343,661 × 0.0055 ÷ 12 ≈ $157.
  7. 7.Property tax: $350,000 × 1.2% ÷ 12 = $350. Insurance: $100.
  8. 8.Total monthly: $2,229 + $157 + $350 + $100 = $2,836.
✅ Monthly payment: $2,836 | Monthly MIP: $157 (paid for life of loan) | Total MIP: ~$56,500
2

Buyer with 10% down — MIP cancels after 11 years

Scenario: $350,000 home, $35,000 down (10%), 6.75% rate, 30-year term.

  1. 1.Base loan: $315,000. LTV = 90%. Annual MIP rate: 0.50%.
  2. 2.Monthly MIP: $315,000 × 0.0050 ÷ 12 ≈ $131.
  3. 3.MIP duration: 11 years (132 payments), not full 30 years.
  4. 4.Total MIP saved vs 3.5% down scenario: ≈ $23,000 less MIP.
✅ Monthly MIP: $131 for 11 years only. Total MIP savings from 10% down: ~$23,000 vs 3.5% down.

Practical Use Cases

  • First-time homebuyers with limited down payment savings (3.5% minimum)
  • Buyers with credit scores 580–679 who cannot qualify for competitive conventional rates
  • Comparing FHA vs conventional: at what LTV and credit score does conventional become cheaper?
  • Planning a strategy to refinance out of FHA MIP once equity reaches 20%
  • Estimating the true cost of MIP over the life of a 30-year FHA loan
  • Evaluating higher down payment to reduce MIP to 0.50% and limit its duration to 11 years

Common Mistakes to Avoid

  • Assuming FHA MIP cancels at 80% LTV like conventional PMI — it does not for loans with less than 10% down.
  • Financing the UFMIP without realizing it adds to the loan balance and accrues interest over 30 years.
  • Not comparing FHA to conventional with PMI at the same credit score — above 700, conventional is often cheaper.
  • Ignoring FHA county loan limits — homes priced above the limit do not qualify for FHA financing.
  • Overlooking the FHA property condition requirements — appraisers enforce stricter standards than conventional loans.

Glossary of Terms

FHA (Federal Housing Administration)
A U.S. government agency within HUD that insures mortgages made by approved lenders, enabling low-down-payment financing for qualified buyers.
MIP (Mortgage Insurance Premium)
FHA's version of mortgage insurance, consisting of an upfront premium (1.75%) and an annual premium charged monthly. Protects the lender against default.
UFMIP (Upfront MIP)
The one-time 1.75% mortgage insurance premium paid at closing or rolled into the FHA loan balance.
LTV (Loan-to-Value)
Base loan amount ÷ home purchase price or appraised value. Determines MIP rate and duration for FHA loans.
FHA Loan Limit
The maximum FHA loan amount in a given county, set annually by HUD based on median home prices. Varies from $498,257 (floor) to $1,149,825 (ceiling) in 2024.
FHA Streamline Refinance
A simplified refinance program for existing FHA borrowers, requiring limited documentation and no appraisal, to reduce the interest rate or switch loan terms.

Frequently Asked Questions

What is FHA MIP?

▾
FHA MIP (Mortgage Insurance Premium) comes in two parts: an upfront MIP of 1.75% of the base loan amount (paid at closing or rolled into the loan), and an annual MIP charged monthly. For 30-year loans with LTV above 90%, the annual rate is 0.55% — a significant addition to your monthly payment.

How long do I pay FHA mortgage insurance?

▾
If your LTV at origination is above 90% (less than 10% down), you pay annual MIP for the full loan term — it cannot be cancelled. If your LTV is 90% or less (10%+ down), MIP lasts 11 years. This is a key difference from conventional PMI, which cancels at 80% LTV.

What credit score do I need for an FHA loan?

▾
FHA allows credit scores as low as 580 for a 3.5% down payment, and 500–579 for a 10% down payment. Scores below 500 are not eligible for FHA financing.

Should I choose FHA or conventional?

▾
FHA is typically better when your credit score is below 680 or you can only put 3.5–5% down. Conventional PMI can be less expensive than FHA MIP for borrowers with scores above 700. Run both scenarios: conventional PMI cancels at 80% LTV, while FHA MIP on a 3.5%-down loan never cancels.

Are there FHA loan limits?

▾
Yes. FHA sets county-level loan limits annually. For 2024, the national floor is $498,257 for single-family homes; high-cost areas (e.g., California, New York) can be up to $1,149,825. The calculator assumes you are within the applicable limit.

Sources & References

  1. [1]
    FHA Single Family Housing Policy Handbook (HUD 4000.1)— U.S. Department of Housing and Urban Development, 2024
  2. [2]
  3. [3]
    FHA Loan Limits for 2024— FHA / HUD, 2024

CalculatorFree Mortgage & Lending TeamHUD/FHA Guidelines & Mortgage Compliance Review

MIP rates and rules verified against HUD Mortgagee Letter 2023-05 and FHA Single Family Housing Policy Handbook 4000.1.

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