FHA Loan Calculator
Calculate FHA loan payments with automatic MIP (mortgage insurance premium) calculation, PITI breakdown, and side-by-side comparison with conventional and VA mortgages.
Your Monthly EMI
โน2,212
Principal
โน3,50,000
Total Interest
โน4,46,406
Total Payable
โน7,96,406
Breakdown
Principal: โน3,50,000 (44%)
Total Interest: โน4,46,406 (56%)
Interest-to-Principal: 127.5%
๐ Interactive EMI Breakdown
Principal vs Interest
Year-by-Year Payment Split
Loan Scenario Comparison
| Metric | Your plan | +1% Interest (7.5%) | +12 Months (372mo) |
|---|---|---|---|
| Monthly EMI | โน2,212 | โน2,447 โ โน235 | โน2,189 โ โน23 |
| Total Interest | โน4,46,406 | โน5,31,010 โ โน84,604 | โน4,64,421 โ โน18,015 |
| Total Payable | โน7,96,406 | โน8,81,010 | โน8,14,421 |
๐ How FHA Loan is Calculated
Home price & down payment
$350,000 ร 3.5% = $12,250 down= Loan: $337,750
Upfront MIP (financed)
$337,750 ร 1.75%= $5,911 โ Total loan: $343,661
Annual MIP
$337,750 ร 0.55% / 12= $155/month
Monthly PITI + MIP
P&I + tax + insurance + MIP= $2,631/month
Rate Comparison
FHA (3.5% down)
$2,631/mo
Low credit OK | MIP for life | 3.5% down
Conventional (5% down)
$2,595/mo
620+ credit | PMI drops at 20% | 5% down
VA (0% down)
$2,594/mo
Veterans only | No PMI | 0% down
FHA MIP: The Hidden Long-Term Cost
๐ก What Is an FHA Loan?
FHA Loan Basics
FHA loans are government-insured mortgages designed to make homeownership accessible to borrowers with lower credit scores and smaller down payments. The FHA (Federal Housing Administration), part of HUD (Department of Housing and Urban Development), insures these loans โ it doesn't lend money directly. This insurance protects lenders if borrowers default, enabling them to offer more favorable terms.
FHA Mortgage Insurance Premiums (MIP)
FHA loans require two types of mortgage insurance:
1. Upfront MIP (UFMIP): 1.75% of the base loan amount, typically financed into the loan. This is the same for all FHA borrowers regardless of credit score or down payment.
2. Annual MIP: Varies based on loan term, LTV ratio, and loan amount. Paid monthly as part of your mortgage payment.
Annual MIP Rates โ Loan Term > 15 Years
| Base Loan Amount | LTV โค 90% | LTV 90.01-95% | LTV > 95% |
|---|---|---|---|
| โค $726,200 | 0.50% | 0.55% | 0.55% |
| > $726,200 | 0.70% | 0.75% | 0.75% |
Annual MIP Rates โ Loan Term โค 15 Years
| Base Loan Amount | LTV โค 78% | LTV 78.01-90% | LTV > 90% |
|---|---|---|---|
| โค $726,200 | 0.15% | 0.15% | 0.40% |
| > $726,200 | 0.15% | 0.40% | 0.65% |
MIP cancellation: If you put 10%+ down (LTV โค 90%), annual MIP is cancelled after 11 years. If you put less than 10% down, MIP is required for the entire life of the loan.
FHA Loan Pros and Cons
Pros:
- Low down payment: 3.5% with 580+ credit score
- Low credit score acceptance: 500+ can qualify
- No prepayment penalties
- Flexible DTI ratios: up to 43% back-end (57% with compensating factors)
- Seller can contribute up to 6% of price toward closing costs
- Assumable loans โ buyer can take over seller's FHA loan
Cons:
- MIP for life of loan (if less than 10% down) โ expensive long-term
- Upfront MIP (1.75%) adds to loan balance
- Lower loan limits than conventional ($498,257-$1,149,825)
- Property must meet FHA minimum standards (health and safety)
- FHA stigma โ some sellers prefer conventional offers
FHA 203(k) Renovation Loans
The FHA 203(k) program lets borrowers finance both a home purchase and renovation costs in one loan. Two types:
- Standard 203(k): For major renovations ($5,000+ minimum, no maximum). Requires HUD-approved consultant. Improvements must be completed within 6 months.
- Streamlined 203(k): For minor repairs and improvements under $35,000. Simpler process, no consultant required.
Both types carry the same MIP requirements as regular FHA loans.