π‘ FHA Loan Calculator
FHA payment with upfront and annual MIP, done precisely.
Monthly payment with MIP, tax & insurance
Estimates for planning only, not financial advice.
An FHA loan lets you buy a home with 3.5 percent down and a 580 credit score, at the cost of mortgage insurance: 1.75 percent upfront (usually rolled into the loan) plus 0.55 percent a year on minimum-down 30-year loans. The annual premium lasts for the life of the loan unless you put down 10 percent or more. It is the best deal in lending for lower-score buyers, and an expensive one to keep forever.
How to Use This Calculator
Enter the home price and your down payment as a percent or dollar amount. The calculator checks your credit score against FHA down payment tiers, applies the 2026 loan limit, adds the 1.75 percent upfront MIP to your loan (or to cash at closing if you choose), and computes the monthly payment with the correct annual MIP rate for your loan-to-value and term. Pair it with our down payment calculator to plan the savings, and our closing cost estimator for the rest of the cash you will need at closing.
Enter the Home Price and Down Payment. The default 3.5 percent is the FHA minimum for scores of 580 and up.
Enter your Credit Score and APR, pick the Term, and choose whether to finance the upfront MIP into the loan (most borrowers do).
Add Property Tax and Insurance to see the full monthly payment, and read how long the annual MIP lasts for your loan.
FHA Costs, Step by Step
The two MIP charges do different jobs. The upfront premium goes to the FHA insurance fund at closing and is almost always rolled into the loan, which is why your FHA loan balance starts slightly above the base amount. The annual premium is the ongoing monthly charge, and its rate comes from a HUD table based on your loan-to-value and term. At 3.5 percent down on a 30-year loan, the LTV is 96.5 percent, so the 0.55 percent rate applies for the life of the loan. Because the financed upfront MIP does not count toward LTV, it cannot push you into a worse MIP bracket.
FHA MIP Rates at a Glance
The annual MIP rate comes from a HUD table based on your loan-to-value and term. Loans above the standard limit can carry higher rates, but most buyers land in this table.
| Term | Loan-to-value | Annual MIP | Duration |
|---|---|---|---|
| 30 years | Over 95% | 0.55% | Life of loan |
| 30 years | 90% to 95% | 0.50% | Life of loan |
| 30 years | 90% or less | 0.50% | 11 years |
| 15 years | Over 90% | 0.40% | Life of loan |
| 15 years | 78% to 90% | 0.40% | 11 years |
| 15 years | 78% or less | 0.15% | 11 years |
Notice the line that matters most: put down 10 percent or more on a 30-year loan and the MIP has an expiration date. Put down 3.5 percent and it never ends. That single row of the table is worth tens of thousands of dollars over a full term, so if you can stretch to 10 percent down, run the numbers before settling for the minimum.
Worked Example
Buy a $400,000 home with 3.5 percent down ($14,000) and a 680 credit score at 6.5 percent APR for 30 years. Base loan = $386,000, which is under the 2026 standard limit of $541,287. Upfront MIP = $386,000 x 1.75% = $6,755, financed, so the total loan is $392,755. P&I on $392,755 at 6.5 percent for 30 years = $2,482.48 a month. Annual MIP at 0.55 percent = $392,755 x 0.0055 / 12 = $180.01 a month, lasting the life of the loan. Add $400 a month in tax and $150 in insurance: the full monthly payment is $3,212.49. Cash needed at closing for the down payment alone is $14,000 (the $6,755 upfront MIP is in the loan, not out of pocket).
FHA vs Conventional vs VA: Which Wins
No loan type wins for everyone. The right one depends on your credit score, your down payment, and how long you will keep the loan.
| FHA | Conventional | VA | |
|---|---|---|---|
| Minimum down | 3.5% | 3% | 0% |
| Minimum credit score | 500 (10% down) / 580 (3.5% down) | 620 | No official minimum* |
| Monthly insurance | MIP, priced the same for all scores | PMI, priced by credit score | None |
| Insurance duration | Life of loan (usually) | Ends at 78 to 80% LTV | Not applicable |
| Upfront cost | 1.75% upfront MIP | None required | Funding fee 1.25 to 3.3% |
| Best for | Lower scores, small down payment | Strong credit, 5% or more down | Eligible veterans |
*The VA sets no minimum score, but most lenders require around 620.
My honest take: FHA is a starter loan, not a forever loan. It gets you in the door when your score or savings are not there yet, which is genuinely valuable. But the permanent MIP means you should have an exit plan from day one: build equity, build credit, and refinance into conventional the moment the math favors it. Buyers who treat FHA as permanent overpay for years without noticing.
The MIP Duration Trap and the Refinance Exit
The feature that makes FHA accessible, low down payment with score-blind pricing, comes with the feature that makes it expensive long term: permanent MIP. On a minimum-down 30-year loan, you pay that $180 a month in year 25 just like in year 1, long after the insurance serves any purpose for a lender holding a loan at 50 percent loan-to-value. Contrast conventional PMI, which cancels automatically at 78 percent LTV and can be removed at 80 percent on request. The standard playbook is to refinance into a conventional loan once your home has appreciated or you have paid down to 20 percent equity and your score supports conventional pricing. Run the numbers on that refinance the day you close, and set a calendar reminder to recheck your equity every year. Track your equity climb with our PMI removal calculator so you know the month a conventional refinance becomes possible.
Minimum Property Standards: The Deal-Killer Nobody Warns You About
FHA appraisals enforce minimum property standards, and they kill more deals than buyers expect. The appraiser checks for a sound roof, working heat and plumbing, safe electrical, intact windows, handrails on stairs, and no peeling or chipping paint in homes built before 1978. Anything flagged must be repaired before closing, usually at the seller's expense.
In a competitive market this puts FHA buyers at a disadvantage, because sellers often prefer conventional offers that will not demand repairs. If you are touring fixer-uppers, know that a standard FHA loan cannot finance a home needing major work. The FHA 203(k) program bundles purchase and renovation into one loan for exactly that situation, but it adds paperwork and contractor rules. For a move-in-ready home the standards are a non-issue. For anything else, ask your lender about 203(k) before you fall in love with the property.
FHA vs Conventional: A Quick Framework
With a 660 credit score and 5 percent down, FHA usually wins on monthly payment because conventional PMI penalizes lower scores heavily while FHA MIP ignores score entirely. With a 740 score and 10 percent down, conventional usually wins, and its PMI drops off while FHA MIP lingers. Also weigh the non-price factors: FHA appraisals enforce minimum property standards that can kill deals on fixer-uppers, FHA is primary-residence only, and FHA loan limits cap expensive markets. There is no universally better program, only the cheaper one for your score, down payment, and timeline. Before you compare programs, confirm your price range with our home affordability calculator.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What is the minimum down payment for an FHA loan?
With a credit score of 580 or higher, the FHA minimum down payment is 3.5 percent of the purchase price. With a score between 500 and 579, FHA requires 10 percent down. Below 500, the program is not available. The entire 3.5 percent can come from gift funds from family, an employer, or a state down payment assistance program, so no borrower contribution of your own money is required.
What is FHA mortgage insurance (MIP) and how much does it cost?
Every FHA loan carries two mortgage insurance premiums. The upfront MIP is 1.75 percent of the base loan amount. The annual MIP is typically 0.55 percent per year for 30-year loans with less than 5 percent down, paid monthly as part of your payment. On a $386,000 base loan that means $6,755 financed upfront plus about $180 a month. Unlike conventional PMI, the rate does not depend on your credit score.
Can MIP ever be removed from an FHA loan?
If you put down less than 10 percent, which covers most FHA borrowers, the annual MIP lasts for the life of the loan and never drops off, no matter how much equity you build. With 10 percent or more down, MIP cancels after 11 years. The practical exit is refinancing into a conventional loan once you reach 20 percent equity and a qualifying credit score, which eliminates the MIP entirely. Plan that refinance from the day you close.
What credit score do I need for an FHA loan?
FHA guidelines allow scores as low as 500, but the down payment tier depends on the score: 580 and above qualifies for 3.5 percent down, while 500 to 579 requires 10 percent down. Individual lenders often set their own minimums, commonly 620, as an overlay on top of FHA rules. If your score is near 580, shopping multiple lenders matters, because willingness to originate at lower scores varies widely.
What are the FHA loan limits for 2026?
For 2026, the FHA loan limit is $541,287 for a single-family home in most counties, rising to $1,249,125 in designated high-cost counties. The limit applies to the base loan amount before the financed upfront MIP is added. This calculator flags it if your loan exceeds the standard limit, so check your county's specific limit if you are buying in an expensive market.
Should I choose FHA or a conventional loan?
FHA usually wins when your credit score is under the high 600s or your down payment is small, because its pricing and MIP stay flat while conventional PMI gets expensive for lower scores. Conventional usually wins with strong credit: its PMI cancels automatically at 78 percent loan-to-value, while FHA MIP at minimum down lasts forever. Run both, compare the monthly payment and the 10-year total cost, and let the arithmetic decide.
Can I get rid of FHA MIP without refinancing?
Only in two cases. If you put down 10 percent or more, the annual MIP drops off on its own after 11 years. If your loan was originated before June 3, 2013, MIP cancels when you reach 78 percent loan-to-value. Everyone else, which means nearly all recent borrowers with minimum down, must refinance into a conventional loan to end MIP. No servicer request or new appraisal removes it.
Can I buy an investment property with an FHA loan?
No. FHA loans are for primary residences only, and you must move in within 60 days of closing. The workaround investors use is a two-to-four-unit property: FHA allows it if you live in one unit, and the rental income from the others can even help you qualify. After living there as required, you can move out and keep the property as a rental.
Does an FHA loan require a home inspection?
No, but do not confuse the FHA appraisal with an inspection. The appraisal checks minimum property standards for the lender: roof condition, peeling paint on pre-1978 homes, working utilities, handrails. It is not a deep inspection of the home's systems. My advice: always pay for your own independent inspection. The few hundred dollars can save you from five-figure surprises the appraisal was never designed to catch.
What would disqualify a house from FHA financing?
Anything that fails HUD's minimum property standards: a failing roof, broken windows, peeling or chipping paint in pre-1978 homes, exposed wiring, or non-working heat or plumbing. The appraiser flags these issues and the seller must fix them before closing. This is why fixer-uppers often cannot use standard FHA loans, though the FHA 203(k) program exists exactly for homes that need repairs.