FHA Loan Calculator
FHA loans open the door with just 3.5% down — but mortgage insurance (MIP) is the price of admission. This calculator shows the upfront MIP financed into your loan, the annual MIP in your monthly payment, and the full cost breakdown.
Your FHA loan
Monthly payment
How FHA loans work
FHA loans are insured by the Federal Housing Administration, which lets lenders accept smaller down payments and lower credit scores. The minimum down payment is 3.5% with a 580+ credit score (10% if your score is 500–579).
The catch is MIP — Mortgage Insurance Premium — in two parts. The upfront MIP is 1.75% of the loan amount; most borrowers finance it, so it gets added to the loan balance rather than paid in cash. The annual MIP is billed monthly: 0.55% per year for 30-year loans with less than 5% down (0.50% with 5%+ down). Unlike conventional PMI, annual MIP on most FHA loans never drops off automatically — with less than 10% down it lasts the life of the loan.
That makes FHA fantastic for getting in the door but expensive to keep: many borrowers refinance into a conventional loan once they reach 20% equity, dropping the MIP entirely. Use this calculator to see the true monthly cost before you commit.
Frequently asked questions
What is the minimum down payment for an FHA loan?
3.5% of the purchase price with a credit score of 580 or higher. Scores between 500 and 579 generally require 10% down.
What is FHA MIP and how much is it?
Mortgage Insurance Premium. The upfront MIP is 1.75% of the loan amount (usually financed into the loan), and the annual MIP is 0.55% per year for 30-year loans with less than 5% down, or 0.50% with 5% or more down, billed monthly.
Does FHA MIP ever go away?
With less than 10% down, annual MIP lasts for the life of the loan. With 10% or more down, it cancels after 11 years. Many borrowers refinance into a conventional loan once they reach 20% equity to drop it.
What are FHA loan limits?
FHA loan limits vary by county and are set annually by HUD, with higher limits in high-cost areas. Check HUD's official mortgage limits lookup for your county before house hunting.
Can I use an FHA loan for an investment property?
No. FHA loans require the borrower to occupy the property as a primary residence within 60 days of closing.
FHA vs conventional — which is cheaper?
It depends on your down payment and credit score. FHA often wins for lower credit scores and small down payments; conventional usually wins once you can put 10–20% down because its PMI can be removed.
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