FHA Loan Calculator

What is an FHA loan?

The Federal Housing Administration does not lend money. It is a mortgage insurer inside HUD: a private lender originates the loan, FHA collects premiums, and if the borrower defaults, FHA reimburses the lender out of the mutual mortgage insurance fund. That guarantee, not the government's own credit, is what lets a borrower with a thin file and 3.5% of cash be approved at all. The loan itself behaves like any other mortgage: a fixed rate, a 30-year amortization schedule, one payment a month, and interest and principal split inside that payment.

The program exists to serve the borrower a conventional lender will not touch. With a credit score of 580 or better you can put 3.5% down on a $350,000 home, which is $12,250, and finance 96.5% of the price. Between 500 and 579 you need 10% down, or $35,000 on the same house. Below 500 you are not eligible. Those thresholds are FHA's floor, not a guarantee: individual lenders add their own overlays, and most want a score of 620 or better regardless of what the agency permits.

Two premiums are the price of that flexibility. An upfront premium of 1.75% of the base loan amount is due at closing and is nearly always financed. On a $337,750 loan that is $5,910.63, raising the amount that actually amortizes to $343,660.63. An annual premium is billed monthly alongside the payment: 0.85% of the base loan for a 30-year loan above 95% loan-to-value and 0.55% for a 15-year in the same position, which on $337,750 is $239.24 and $154.80 a month. Put down less than 10% and that monthly premium runs for the life of the loan; put down 10% or more and it stops after 11 years.

FHA also writes the property rules. The home must be your primary residence, occupied within 60 and lived in for at least the first 12 months. It must pass HUD's minimum property standards and be appraised by an FHA-approved appraiser. An FHA loan cannot be used for a second home or a rental property, and the county loan limit applies no matter how large a down payment you bring.

FHA loan requirements for 2026

• Credit score: 580 or better qualifies for the 3.5% down program; 500 to 579 requires 10% down; below 500 is ineligible. FHA itself sets no higher minimum, but most lender overlays start at 620, so the practical cutoff for most borrowers is 620.
• Down payment: 3.5% of the purchase price. Gift funds from a family member, an employer, or a charitable organization are allowed for the entire amount, including the closing costs, which is not true of every conventional program.
• Debt-to-income ratio: 43% of gross monthly income as the typical ceiling, extendable to 50% with compensating factors such as cash reserves, a score above 620, or documented cash to close. On $6,000 of gross monthly income, 43% caps total monthly debt at $2,580 and 50% caps it at $3,000.
• Employment: a two-year employment history, with gaps permitted when explained on paper. Recent full-time college coursework counts toward the two years, and overtime or bonus income needs a two-year history to be averaged.
• Property and occupancy: a single-family home, condo, duplex, or manufactured home that will be your primary residence. Investment properties and second homes are ineligible, and the property must meet HUD's minimum habitability standards.
• Mortgage insurance: required on every FHA loan no matter how large the down payment, unlike conventional PMI, which is cancellable. This is the single largest structural difference between the two programs.
• Credit events: most lenders want two years since a Chapter 7 discharge and three years since a foreclosure, and two years since a short sale or deed in lieu with re-established credit. Extenuating circumstances such as a job loss or medical event can shorten those windows with documentation.

FHA loan limits reset every January and vary by county. The 2026 nationwide figures apply to case numbers assigned on or after January 1, 2026:

If your purchase price sits above your county's limit, the FHA loan cannot be written at any down payment and you need conventional or jumbo financing instead. Look up your county before you start touring homes, and compare the result against a conventional loan in the FHA vs conventional guide.

How to use this calculator

1. Enter the home price and your down payment percentage. FHA's minimum is 3.5% with a score of 580 or better; use 10% if your score falls between 500 and 579.
2. Set the interest rate and the loan term: 360 months for a 30-year or 180 months for a 15-year. Current quotes are listed on our rates page.
3. Confirm the upfront MIP field reads 1.75%. That figure is set by HUD and does not vary by lender or by credit score.
4. Check the annual MIP field. Use 0.85% for a 30-year loan above 95% loan-to-value and 0.55% for a 15-year in the same position. Lower down payments step the premium down once you reach 95% loan-to-value or below.
5. Read the breakdown: principal and interest, financed upfront MIP, annual MIP, and the total before property taxes and homeowners insurance.

A realistic set of inputs for 2026: home price $350,000, down payment 3.5% ($12,250), base loan $337,750, upfront MIP $5,910.63 financed into the payoff for a financed amount of $343,660.63, rate 6.5% (the benchmark rate used in every worked example on this page), term 360 months, annual MIP 0.85%. That configuration returns $2,172.17 of principal and interest plus $239.24 of annual MIP, for $2,411.41 before escrow. Add property tax at roughly 0.9% to 1.2% of value a year, which is $263 to $350 a month on $350,000, and homeowners insurance at $1,200 to $2,000 a year, or $100 to $167 a month. Lenders qualify you on the full number, not on the principal-and-interest figure, so build the escrow lines before you set a price range. Size the income side in the debt-to-income calculator and the cash side in the closing cost calculator.

How an FHA payment is calculated

The principal-and-interest portion uses the same amortization formula as any mortgage. The FHA-specific work happens on either side of it: the upfront premium is added to the balance before the formula runs, and the annual premium is added to the payment after it.

M = P × [ i (1 + i)ⁿ ] ÷ [ (1 + i)ⁿ − 1 ]

Here M is the monthly principal and interest payment, P is the financed loan amount including the upfront premium, i is the monthly interest rate (annual rate divided by 12), and n is the number of payments. The annual MIP does not enter the formula; it is calculated separately on the base loan and appended.

Worked example: $350,000 home, 3.5% down, 6.5%, 30 years

Step 1: the down payment is 350,000 × 0.035 = $12,250, so the base loan is 350,000 − 12,250 = $337,750. Step 2: the upfront MIP is 337,750 × 0.0175 = $5,910.63, and because it is financed the amount that amortizes is 337,750 + 5,910.63 = $343,660.63. Step 3: the monthly rate is 6.5% ÷ 12 = 0.005416667 and n = 30 × 12 = 360. Step 4: the compounding factor is 1.005416667 to the 360th power = 6.991798, so M = 343,660.63 × 0.005416667 × 6.991798 ÷ 5.991798 = $2,172.17. Step 5: the annual MIP is charged on the base loan rather than the financed amount, so 337,750 × 0.0085 = $2,870.88 a year ÷ 12 = $239.24 a month. Step 6: the payment before taxes and insurance is $2,172.17 + $239.24 = $2,411.41.

Step 7 works both ends of the schedule. Month one's interest is 343,660.63 × 0.005416667 = $1,861.50, so only $310.67 of the first $2,172.17 payment reduces principal. Total repayment is $2,172.17 × 360 = $781,981, which makes lifetime interest $781,981 − $343,661 = $438,320. Financing the upfront premium costs $37.36 a month against the unfinanced $2,134.81 payment, or $13,450 across 360 payments. Then add the annual MIP: $239.24 × 360 = $86,126 over the life of the loan for a borrower who never refinances out of it. On an FHA loan the most expensive line is usually not the interest rate; it is an insurance premium that conventional borrowers stop paying at 80% loan-to-value and FHA borrowers with less than 10% down never stop paying.

Worked scenarios: price, rate, and loan type

Three inputs move an FHA payment: what you pay for the house, the rate you are quoted, and the term you choose. Each table changes one of them and holds the rest constant. All figures are principal, interest, and FHA mortgage insurance; property taxes, homeowners insurance, and HOA dues are separate lines on the real payment.

Price scenarios: 3.5% down, 6.50%, 30-year term

Every row is priced at the same rate and term, so the last column moves almost exactly with the purchase price: each additional $50,000 of home adds $344 a month of principal and interest and about $34 of annual MIP. The upfront premium is not cash out of pocket, because it is financed, but it does raise the amortized balance and therefore the payment by 1.75% of the loan, which is $37.36 a month on the $337,750 example. Run your own price through the affordability calculator to see what the income side needs to support.

Rate and term scenarios: $350,000 home, 3.5% down, $343,660.63 financed

Half a point of rate is worth $111.75 a month on the financed amount, which is $40,230 across 360 payments, so rate shopping on an FHA loan is as valuable as it is on a conventional one. The 15-year term at the same 6.50% rate costs $821.48 more a month but removes $243,123 of interest, and its annual MIP is $84.44 lower because the 0.55% rate replaces the 0.85% rate. The full amortization mechanics behind those columns are in the amortization guide.

FHA versus conventional with 5% down: $350,000 home, 6.50%, 30-year

On monthly payment alone the conventional 5%-down loan wins by $115.82, which is the gap between $2,411.41 and $2,295.59, but it needs $5,250 more cash at closing and it only stays cheaper if you reach 80% loan-to-value and cancel the PMI. The 20%-down row finances $63,661 less than the FHA row, which is why its payment is $641.62 lower; it is not an apples-to-apples comparison, it is the price of $70,000 sitting in the transaction instead of in your accounts. The PMI calculator sizes the conventional premium on your own loan, and the down payment calculator prices the cash it takes to reach each row.

FHA mortgage insurance explained

Mortgage insurance on an FHA loan is not optional and, for most borrowers, it does not end. It has two parts and one duration rule.

• Upfront MIP (UFMIP): 1.75% of the base loan amount, due once at closing. On $337,750 that is $5,910.63. Most borrowers finance it, which raises the payoff to $343,660.63 and adds $37.36 a month to the payment at 6.50% over 30 years. It is not refunded when you sell and not credited back if you refinance.
• Annual MIP, billed monthly: 0.85% of the base loan for a 30-year loan above 95% loan-to-value and 0.55% for a 15-year in the same position. On $337,750 that is $2,870.88 ÷ 12 = $239.24 a month on the 30-year and $1,857.63 ÷ 12 = $154.80 a month on the 15-year. The premium is computed on the base loan, not on the financed amount that includes the upfront premium.
• Duration with less than 10% down: the monthly premium runs for the life of the loan, all 360 payments. At $239.24 a month that is $86,126 over 30 years. There is no 80% request and no 78% automatic cancellation the way there is with conventional PMI, so the only exit is a refinance.
• Duration with 10% or more down: the premium stops after 132 payments, which is 11 years into a 30-year loan. At $239.24 that would be $31,580 instead of $86,126, and because the annual rate also steps down once you are at or below 95% loan-to-value, the real figure is lower still.
• Compared with conventional PMI: conventional premiums commonly run 0.5% to 1.5% of the loan amount a year, which on $337,750 is $141 to $422 a month. FHA's $239.24 sits in the middle of that range, but conventional PMI ends and FHA's does not. The mechanics of the conventional side are covered in what is PMI.
• The exit route: refinance into a conventional loan once you reach 20% equity. On a $350,000 purchase with $337,750 borrowed, that requires a value of $422,188, which is $337,750 divided by 0.80, a 20.6% gain from the purchase price. The cheaper fallback when equity is thin is an FHA streamline refinance: no appraisal, no income documentation, six on-time payments and 210 days of seasoning. See the refinance calculator for the break-even.

Mortgage insurance premiums have qualified as an itemized deduction in tax years when Congress renewed the provision, subject to income phase-outs. Keep your Form 1098 and confirm the current year's treatment with your tax preparer rather than assuming it carries forward.

FHA loan tips for 2026

• Check your score against 580 before you start touring homes. A 580 score qualifies for 3.5% down on a $350,000 house, which is $12,250. A 579 requires 10%, which is $35,000. Five points of credit score is worth $22,750 of cash, and it is usually cheaper to raise the score than to find the money.
• Bring your debt-to-income ratio under 43% before you apply. On $6,000 of gross monthly income the 43% ceiling allows $2,580 of total monthly debt. If a $350 car payment is in that total, your housing capacity is $2,230; pay it off and the capacity rises to $2,580. Check your file in the debt-to-income calculator before a lender does.
• Price FHA against a conventional loan with 5% down. On a $350,000 home the FHA path costs $2,411.41 a month and the conventional path costs $2,295.59, a $115.82 difference, while the conventional needs $5,250 more cash and carries cancellable insurance. If your score is 680 or better and you have the cash, get both quotes in writing.
• Shop the rate, because FHA pricing is not fixed. Moving from 6.50% to 6.00% on the $343,660.63 financed amount saves $111.75 a month, which is $40,230 over 360 payments. Origination fees vary at the same time, from 0.5% to 1% of the loan, so ask every lender for the same day, same points, same lock.
• Plan the MIP exit on day one. Reaching 20% equity on the $350,000 example means a value of $422,188. Track it annually, because every year you remain in FHA MIP at $239.24 costs $2,870.88, and conventional PMI at a similar loan size may cost less than that once your score and equity support it.
• Confirm your county's loan limit before you fall in love with a price. The 2026 floor is $541,287 and the ceiling is $1,249,125 for a single-family home, with county figures published at hud.gov. A price above the local limit cannot be financed with an FHA loan at any down payment.
• Keep occupancy, or the whole program unwinds. FHA requires you to take possession within 60 days and to live in the property for at least the first 12 months. Renting the house out in year one is a breach of the note and can trigger acceleration of the balance.

Common FHA loan mistakes

• Treating 3.5% down as the cash you need. On a $350,000 purchase, budget $12,250 down plus 2% to 5% in closing costs, which is $6,755 to $16,888 on a $337,750 loan, plus prepaid taxes and insurance. Realistic cash to close is $21,000 to $32,000, not $12,250.
• Taking the 30-year FHA loan with no plan to leave it. Lifetime MIP at $239.24 a month is $86,126 across 360 payments. Every year you delay a conventional refinance at 20% equity costs $2,870.88 in premium that a conventional borrower would not be paying.
• Borrowing at the 50% debt-to-income ceiling without compensating factors. Fifty percent of $6,000 of gross monthly income is $3,000 of total monthly debt. Approvals at that level need reserves, a stronger score, or documented cash to close, and the payment still has to survive a job change.
• Ignoring the county loan limit. The 2026 floor is $541,287 and the ceiling is $1,249,125 for a single-family home. A price above your county's number means conventional or jumbo financing, no matter how large your down payment is, and discovering that after an offer has been accepted costs you the deal.
• Emptying savings to make the down payment. Keep at least two months of the full payment after closing, which is $4,823 on the $2,411.41 example. Reserves are part of the underwriting file, and a payment shock in month four is how FHA loans end in foreclosure.
• Accepting the first lender's quote. On a $337,750 loan, origination fees alone run $1,689 to $3,378 across lenders, and a quarter point of rate is another $53 a month. Request the same loan amount, same points, and same lock window from three lenders on the same day before you commit.

Frequently asked questions

What credit score do I need for an FHA loan? FHA requires 580 or better for the 3.5% down program and accepts 500 to 579 with 10% down; below 500 you are ineligible. On a $350,000 home that is $12,250 versus $35,000 of cash for 80 points of score. The agency sets no higher floor, but most lenders overlay a 620 minimum, so 620 is the practical target.

How much down payment does an FHA loan require? 3.5% of the purchase price with a credit score of 580 or better, which is $12,250 on a $350,000 home and $14,000 on a $400,000 home. With a score between 500 and 579 the requirement rises to 10%, or $35,000 on the $350,000 house. Gift funds from family, an employer, or a charity may cover the entire amount.

What is the upfront FHA MIP? A one-time premium of 1.75% of the base loan amount, due at closing. On a $337,750 loan that is $5,910.63, and most borrowers finance it, raising the payoff to $343,660.63 and the payment by $37.36 a month at 6.50% over 30 years. It is neither refundable at sale nor credited back if you refinance.

How long do I pay FHA MIP? For loans originated with less than 10% down, for the life of the loan, which is all 360 payments and $86,126 at $239.24 a month on $337,750. With 10% or more down the premium stops after 132 payments, or 11 years. Loans originated before June 3, 2013 follow different rules and may be eligible for earlier termination.

What is the maximum FHA loan amount? Limits are set by county and reset each January. For 2026 a single-family home ranges from a $541,287 floor in low-cost areas to a $1,249,125 ceiling in high-cost areas; duplex limits run $693,050 to $1,599,375. The limit applies regardless of your down payment, and the county lookup lives at hud.gov.

What debt-to-income ratio do I need? 43% of gross monthly income as the typical ceiling, extendable to 50% with compensating factors such as cash reserves, a score above 620, or documented cash to close. On $6,000 of gross monthly income that is $2,580 of total monthly debt at 43% and $3,000 at 50%. Front-end housing cost is usually held near 31%.

Can I refinance out of an FHA loan? Yes, two ways. A conventional refinance once you reach 20% equity and a score of 620 or better, which on a $350,000 purchase with $337,750 borrowed requires a value of $422,188. Or an FHA streamline, which skips the appraisal and income documentation and needs six on-time payments plus 210 days from your current note date.

Is FHA MIP tax deductible? Mortgage insurance premiums have qualified as an itemized deduction in tax years when Congress renewed the provision, with income phase-outs that reduce or eliminate it for higher earners. The rule changes from year to year, so keep your Form 1098 showing the premium paid and confirm current treatment with your tax preparer.

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