FHA Loan Calculator
Calculate FHA loan payments online free — MIP, down payment and monthly cost for government-backed mortgages. No upload required — instant, private, in-browser.
FHA payment with MIP included
- Monthly payment incl. MIP$2,076.14
- Down payment$11,200
- Base loan amount$308,800
- Upfront MIP added to the loan$5,404
- Total financed$314,204
- Monthly MIP$141.53At under 10% down, MIP runs for the life of the loan.
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What makes an FHA loan different
An FHA loan is a mortgage insured by the Federal Housing Administration. The government guarantee lets lenders accept a 3.5% down payment and credit scores well below conventional minimums. The cost of that access is mortgage insurance, charged twice and structured differently from conventional PMI.
- Upfront MIP, currently 1.75% of the base loan, almost always financed into the balance rather than paid in cash.
- Annual MIP, currently around 0.55% for most 30-year loans, divided by twelve and added to every monthly payment.
The calculator adds the upfront premium to the loan, computes principal and interest on the higher balance, adds monthly MIP, and reports the true total payment.
The insurance that never goes away
This is the detail that decides most FHA decisions. Conventional PMI is cancellable once you reach 20% equity. FHA annual MIP, on loans with less than 10% down, lasts for the entire life of the loan. It does not fall off as you pay down principal and it does not fall off when the home appreciates.
With 10% or more down, MIP drops off after eleven years. The common escape route for everyone else is to refinance into a conventional loan once equity reaches 20%, which cancels the insurance entirely, at the cost of new closing costs and whatever rate is available then.
Who FHA suits and who it does not
FHA is genuinely useful for buyers with credit scores in the 580 to 660 range, thin savings, or a higher debt-to-income ratio than conventional underwriting allows. It is often the difference between buying and not buying.
If your score is above 700 and you can put 5% or more down, run the conventional numbers too. A conventional loan with cancellable PMI frequently costs less over the years you actually hold the loan, even when the headline rate is slightly higher. FHA also imposes loan limits by county and property condition standards that some homes will not meet.
Frequently Asked Questions
What is the minimum down payment for an FHA loan?
3.5% with a credit score of 580 or above. Between 500 and 579 the requirement rises to 10%. Individual lenders often set their own higher minimums on top of the FHA floor.What is FHA MIP and how much does it cost?
Mortgage insurance premium, charged in two parts: 1.75% of the loan upfront, usually financed into the balance, plus an annual premium around 0.55% of the balance charged monthly.Does FHA mortgage insurance ever go away?
With less than 10% down it lasts the full life of the loan. With 10% or more down it ends after eleven years. Most borrowers who want it gone refinance into a conventional loan once they reach 20% equity.Is an FHA loan cheaper than a conventional loan?
Not necessarily. FHA rates are often slightly lower, but permanent MIP frequently outweighs that over time. FHA wins on access when credit or savings are limited; conventional usually wins on lifetime cost when you qualify comfortably.Can I use an FHA loan for an investment property?
No. FHA loans are for owner-occupied primary residences. You must intend to live in the property, though multi-unit buildings up to four units qualify if you occupy one of them.Are there FHA loan limits?
Yes, set by county and updated annually. Limits are considerably higher in expensive metropolitan areas than in the national baseline. Check the limit for your county before relying on the figure here.Does the property need to pass an inspection?
An FHA appraisal includes minimum property standards covering safety, security and structural soundness. Homes needing significant repair often fail, which is why FHA offers is sometimes weaker in competitive markets.