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.

🏠 HOME PRICE ($)

⬇️ DOWN PAYMENT (%)

Down: $12,250 | LTV: 96.5%

% INTEREST RATE

📅 LOAN TERM

🏛️ PROPERTY TAX ($/yr)

🛡️ HOME INSURANCE ($/yr)

MONTHLY PAYMENT (PITI + MIP)

$2,719/mo

P&I

$2,172

PROPERTY TAX

$292

INSURANCE

$100

ANNUAL MIP

$155

PMI

N/A

🏛️ FHA MORTGAGE INSURANCE PREMIUMS

UPFRONT MIP

$5,911

1.75% (financed)

ANNUAL MIP RATE

0.55%

$155/mo

MIP DURATION

Life of loan

TOTAL MIP COST

$61,639

⚠️ With less than 10% down, annual MIP is required for the entire life of the loan. Consider 10%+ down to save $35,295 in MIP.

FHA vs CONVENTIONAL vs VA

	FHA Loan ✓	Conventional	VA Loan
Down Payment	3.5% (580+) / 10% (500-579)	5-20%	0%
Credit Score	580+ (3.5%) or 500+ (10%)	620-680+	620+ (lender)
Mortgage Insurance	1.75% upfront + 0.55%/yr	PMI until 20% equity	None
MIP Cancellation	Life of loan	At 20% equity	N/A
Monthly (est.)	$2,719	$2,632	—
Loan Limits	$498,257 – $1,149,825	$766,550 conforming	None (full)
Best For	Low credit / low down	Good credit / 20% down	Veterans

📐 How FHA Loan is Calculated

Home price & down payment
$350,000 × 3.5% = $12,250 down
= Loan: $337,750
Upfront MIP (financed)
$337,750 × 1.75%
= $5,911 → Total loan: $343,661
Annual MIP
$337,750 × 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

With less than 10% down, FHA annual MIP is required for the ENTIRE life of the loan. On a $337,750 loan at 0.55%, that's $155/month or $55,800 over 30 years — on top of the $5,911 upfront MIP. Strategy: use FHA to get into a home, then refinance to conventional once you have 20% equity to eliminate the ongoing insurance cost.

💡 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 — 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 — Loan Term > 15 Years

Base Loan Amount	LTV ≤ 90%	LTV 90.01-95%	LTV > 95%
≤ $726,200	0.50%	0.55%	0.55%
> $726,200	0.70%	0.75%	0.75%

Annual MIP Rates — Loan Term ≤ 15 Years

Base Loan Amount	LTV ≤ 78%	LTV 78.01-90%	LTV > 90%
≤ $726,200	0.15%	0.15%	0.40%
> $726,200	0.15%	0.40%	0.65%

MIP cancellation: If you put 10%+ down (LTV ≤ 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 — buyer can take over seller's FHA loan

Cons:

MIP for life of loan (if less than 10% down) — 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 — 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.

Example: $350,000 home with 3.5% down ($12,250). Loan: $337,750. Upfront MIP: $5,911 (financed). Annual MIP: 0.55% = $155/mo. Total monthly PITI+MIP: ~$2,631. Over 30 years, total MIP cost: ~$61,600.