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🏘 FHA Loan Calculator

Estimate your FHA mortgage payment including mortgage insurance premiums. Enter the home price, rate and term to see your full monthly cost.

Home purchase price

Down payment (%)

Interest rate (%)

Loan term (years)

What is this tool?

An FHA loan is a mortgage insured by the Federal Housing Administration, a US government agency. FHA loans are designed to make homeownership accessible to buyers who may not qualify for conventional mortgages, particularly first-time buyers and those with lower credit scores or smaller down payments. The key advantage is a minimum down payment of just 3.5 percent, compared to the 20 percent typically required to avoid private mortgage insurance on a conventional loan. The trade-off for this low down payment is that FHA loans require mortgage insurance premiums (MIP). There are two components: an up-front premium (usually 1.75 percent of the loan amount, which can be financed into the loan) and an annual premium (typically 0.55–01.05 percent of the loan amount, paid monthly). Unlike private mortgage insurance on conventional loans, FHA MIP cannot always be removed, so it adds to your cost for the life of the loan in many cases. This FHA loan calculator lets you enter the home price, down payment percentage (minimum 3.5 percent), interest rate and loan term. It computes the down payment, the base loan amount, the monthly MIP, and your total monthly payment including principal, interest and MIP. All calculations run locally in your browser.

How it works

The down payment is calculated as Down Payment = Home Price × (Down % / 100), with a minimum of 3.5 percent for FHA loans. The base loan amount is the home price minus the down payment. The monthly mortgage insurance premium (MIP) is calculated as MIP Monthly = Base Loan × (Annual MIP Rate / 100 / 12). This calculator uses an annual MIP rate of 0.55 percent, which is the standard rate for most FHA loans with down payments of 5 percent or more and terms over 15 years. The monthly principal-and-interest payment uses the standard amortisation formula: M = P × (r(1+r)^n) / ((1+r)^n − 1). The total monthly payment is the sum of this amount plus the monthly MIP. For example, a 300,000-dollar home with 3.5 percent down at 7 percent for 30 years gives a 10,500-dollar down payment, a 289,500-dollar base loan, a monthly MIP of about 133 dollars, and a total monthly payment of roughly 2,057 dollars.

FHA Loan Requirements (2025)

FHA loans are designed for accessibility. The table below summarises the key qualification criteria and standard terms.

Requirement	Standard FHA Rule
Minimum credit score (3.5% down)	580
Minimum credit score (10% down)	500 – 579
Minimum down payment	3.5% of purchase price
Maximum DTI ratio	43% (some lenders allow up to 56.9% with compensating factors)
Up-front MIP (UFMIP)	1.75% of base loan amount
Annual MIP (term > 15 yr, down < 5%)	0.55% (for the life of the loan)
MIP removal	11 years (if down ≥ 10%); otherwise life of loan
Loan limit (low-cost area, 2025)	$524,225 (single-family)
Loan limit (high-cost area, 2025)	$1,209,750 (single-family)

Note: FHA loan limits are set annually by HUD and vary by county. Lenders may impose "overlays" stricter than the FHA minimum. Confirm current limits and rates with an FHA-approved lender.

FHA vs Conventional Loan Comparison

FHA and conventional loans serve different borrower profiles. This table helps you decide which path fits your situation.

Feature	FHA Loan	Conventional Loan
Minimum down payment	3.5%	3% – 5%
Minimum credit score	580 (3.5% down)	620+ (typical)
Mortgage insurance	MIP — often for life of loan	PMI — removable at 20% equity
Up-front premium	1.75% UFMIP	None
Loan limits	Set by HUD per county	Conforming limit ($806,500 in 2025)
Property requirements	Must meet FHA appraisal standards	Standard appraisal
Best for	Lower credit, smaller savings	Stronger credit, planning to drop MI

Note: For borrowers who can reach 20% equity within a few years, a conventional loan is often cheaper long-term because PMI can be cancelled. FHA MIP, by contrast, typically lasts the full loan term when the down payment is under 10%.

How to use

Enter the home purchase price.
Enter the down payment percentage (minimum 3.5 percent for FHA).
Enter the annual interest rate as a percentage.
Enter the loan term in years (typically 15 or 30).
Click Calculate to see the down payment, base loan, MIP and total monthly payment.

Frequently Asked Questions

What is the minimum down payment for an FHA loan?

The minimum down payment is 3.5 percent of the purchase price, provided your credit score is 580 or higher. If your credit score is between 500 and 579, the minimum increases to 10 percent. This low down payment is one of the main attractions of FHA loans for first-time buyers.

What is MIP and can I remove it?

MIP (Mortgage Insurance Premium) is the insurance that protects the lender on an FHA loan. It has two parts: an up-front premium of 1.75 percent (usually financed into the loan) and an annual premium paid monthly. For loans with down payments of less than 10 percent, MIP typically lasts for the life of the loan. With 10 percent or more down, it can be removed after 11 years.

How does an FHA loan compare to a conventional loan?

FHA loans have lower down payment requirements (3.5 percent vs. typically 5–20 percent) and more lenient credit standards, but they require MIP for the life of the loan in most cases. Conventional loans may require private mortgage insurance (PMI) with less than 20 percent down, but PMI can be removed once you reach 20 percent equity. The right choice depends on your credit score, down payment savings and how long you plan to stay.

What credit score do I need for an FHA loan?

The FHA requires a minimum credit score of 580 to qualify for the 3.5 percent down payment option. Scores between 500 and 579 require a 10 percent down payment. However, many lenders set their own overlay requirements higher than the FHA minimum (often 620 or above), so shop around for a lender that matches your profile.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Tips & Advice

When comparing an FHA loan to a conventional loan, calculate the total cost over the time you expect to own the home, not just the monthly payment. FHA MIP lasts for the life of the loan with less than 10 percent down, while conventional PMI can be removed at 20 percent equity — so over 7–10 years, the conventional loan may be cheaper despite a higher rate or down payment. The up-front MIP of 1.75 percent adds to your loan balance, which means you are paying interest on it for 30 years; consider paying it in cash if you have the savings. FHA loan limits vary by county and are updated annually, so check the limit in your area before house-hunting, as homes above the limit do not qualify. If you can improve your credit score before buying, you may qualify for a conventional loan with a better rate and no permanent mortgage insurance, which could save thousands over the life of the loan. Finally, remember that the 3.5 percent down payment is a minimum, not a recommendation — putting down more reduces your loan amount, your monthly payment and the total MIP you pay.

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