FHA Loan Calculator
Calculate FHA loan payments, mortgage insurance, and total costs for home financing
Loan Details
Total purchase price of the home
Minimum 500 for FHA loans (580+ for 3.5% down)
Minimum 3.5% with 580+ credit score
Annual interest rate (varies by lender and credit)
Length of the mortgage loan
Additional Monthly Costs (Optional)
FHA Loan Results
FHA Qualification: Qualifies
Meets FHA loan requirements
Mortgage Insurance Premium (MIP)
Monthly MIP: $0
Annual MIP Rate: 0%
MIP Duration: 0.0 years
Upfront MIP: $0
MIP continues for the life of the loan with less than 10% down payment
Total Cost Summary
Example FHA Loan Calculation
Example Scenario
Home Price: $200,000
Credit Score: 520 (requires 10% down)
Down Payment: 10% = $20,000
Loan Term: 30 years at 3% interest
Calculations
1. Base loan amount = $200,000 - $20,000 = $180,000
2. Upfront MIP = 1.75% × $180,000 = $3,150
3. Total loan = $180,000 + $3,150 = $183,150
4. Monthly P&I = $758.89
5. Monthly MIP = 0.85% × $180,000 ÷ 12 = $127.50
6. Total monthly payment = $886.39
2024 FHA Loan Limits
Limits vary by county. Special exception areas have higher limits.
Credit Score Requirements
FHA Loan Benefits
Low down payment (3.5%)
Lower credit score requirements
Down payment can be a gift
Higher debt-to-income ratios
Important Notes
Understanding FHA Loans
What is an FHA Loan?
An FHA (Federal Housing Administration) loan is a government-backed mortgage designed to help homebuyers with limited cash for down payments and lower credit scores. Created in 1934 during the Great Depression, FHA loans make homeownership accessible to more Americans.
Key Features
- •Down payment as low as 3.5% with 580+ credit score
- •Accepts credit scores as low as 500 (with 10% down)
- •Down payment can be entirely from gift funds
- •Higher debt-to-income ratios allowed (up to 43-50%)
Mortgage Insurance Premium (MIP)
Upfront MIP: 1.75% of loan amount (can be financed)
Annual MIP: 0.45% to 1.05% of loan amount (paid monthly)
Duration: 11 years with 10%+ down, or loan life with less
Qualification Requirements
Credit Score: Minimum 500 (580+ for 3.5% down)
Down Payment: 3.5% to 10% depending on credit
DTI Ratio: Generally 43% or less
Employment: 2 years steady work history
Property: Must be primary residence
Note: FHA loans are ideal for first-time homebuyers and those with limited savings or credit challenges. Compare with conventional loans to find the best option.