UseCalcPro
Home
MathFinanceHealthConstructionAutoPetsGardenCraftsFood & BrewingToolsSportsMarineEducationTravel
Blog
  1. Home
  2. Finance

FHA Loan Calculator

Calculate FHA loan payments with MIP

Total Monthly Payment

$2911

Down Payment

$12250

Upfront MIP

$5911

FHA Loan Requirements

Credit score 580+: 3.5% down payment • Credit score 500-579: 10% down payment • Upfront MIP: 1.75% • Annual MIP: 0.45-0.85%

$
%
%
%
$
Monthly Payment
$2911
PITI + MIP
Down Payment
$12,250
Upfront MIP
$5,911
1.75%
Total Loan
$343,661

FHA Loan Summary

Home Price$350,000
Base Loan Amount$337,750
Total Interest Paid$438,320
Total Cost of Home$1,060,357

Monthly Payment Breakdown

Principal & Interest$2,172
Monthly MIP$239
Property Tax$350
Home Insurance$150

Frequently Asked Questions

Q

What is the minimum down payment for an FHA loan?

FHA loans require a minimum 3.5% down payment with a credit score of 580 or higher. With a credit score of 500-579, you need at least 10% down. For a $350,000 home, the minimum down payment is $12,250 (3.5%) or $35,000 (10%).

  • Credit score 580+: 3.5% down minimum – $12,250 on a $350,000 home
  • Credit score 500–579: 10% down required – $35,000 on a $350,000 home
  • Down payment can come from gifts, grants, or approved down payment assistance programs
  • FHA does not require cash reserves, unlike conventional loans that may require 2–6 months
  • Seller can contribute up to 6% of sale price toward buyer’s closing costs (typically 2–5%)
Q

What is FHA mortgage insurance premium (MIP)?

FHA MIP has two components: Upfront MIP (1.75% of the loan amount, typically financed into the loan) and Annual MIP (0.45%-0.85% depending on loan term and LTV, paid monthly). For most 30-year loans with less than 10% down, MIP is required for the life of the loan.

  • Upfront MIP: 1.75% of base loan amount (e.g., $5,906 on a $337,500 loan), usually financed
  • Annual MIP for 30-year loans with LTV > 95%: 0.85% ($239/month on $337,500)
  • Annual MIP for 30-year loans with LTV ≤ 95%: 0.80% ($165/month on $247,500)
  • 15-year loans with LTV ≤ 90% get the lowest rate at 0.45% annual MIP
  • MIP adds $100–$300/month to your payment compared to conventional loans with 20% down
Q

How long do I have to pay FHA mortgage insurance?

For loans with less than 10% down payment, MIP is required for the entire loan term. For loans with 10% or more down payment, MIP can be removed after 11 years. You can refinance to a conventional loan to remove MIP once you reach 20% equity.

  • Less than 10% down: MIP lasts the full 30-year term with no automatic removal
  • 10%+ down payment: MIP drops off after 11 years of on-time payments
  • Refinancing to conventional at 20% equity eliminates MIP entirely (saves $150–$300/month)
  • Break-even on refinance closing costs ($3,000–$6,000) is typically 18–36 months of MIP savings
  • FHA Streamline refinance requires no appraisal but keeps MIP – only helps lower your rate
Q

What are FHA loan limits?

FHA loan limits vary by county. In 2024, the floor is $472,030 for low-cost areas and the ceiling is $1,089,300 for high-cost areas. Check your local FHA loan limit as it depends on your county's median home prices.

  • Low-cost area floor: $472,030 (applies to about 80% of US counties)
  • High-cost area ceiling: $1,089,300 (San Francisco, New York, LA, DC metro areas)
  • Alaska, Hawaii, Guam, and US Virgin Islands get 150% of the regular ceiling
  • Limits are updated annually based on FHFA’s conforming loan limit changes
  • Exceeding your county’s FHA limit means you must use conventional or jumbo financing
Q

What is the minimum credit score for FHA?

The minimum credit score is 500 with 10% down, or 580 with 3.5% down. However, many lenders require higher scores (620-640) and may offer better rates for scores above 680. Your credit score also affects your interest rate.

  • FHA minimum: 500 (10% down) or 580 (3.5% down) – but most lenders set their own minimums higher
  • Many lenders require 620–640 minimum even though FHA allows 580
  • Scores above 680 typically qualify for rates 0.25–0.50% lower than the 580–620 range
  • Improving your score from 620 to 680 could save $50–$100/month on a $300,000 loan
  • Check all three bureaus (Equifax, Experian, TransUnion) – FHA uses the middle score
Q

How does FHA compare to conventional loans?

FHA pros: Lower down payment (3.5% vs 5-20%), lower credit score requirements, competitive rates. FHA cons: Mandatory mortgage insurance for life of loan (vs removable PMI), loan limits, property requirements. Conventional may be better if you have 20% down or excellent credit.

  • FHA: 3.5% down, 580 credit score minimum, MIP for life (under 10% down)
  • Conventional: 3–5% down possible but PMI applies until 20% equity, then it drops off
  • On a $350,000 home, FHA MIP costs $86,000+ over 30 years vs $0 conventional PMI after ~7 years
  • Conventional with 20% down ($70,000) has no PMI at all – saves $200–$300/month from day one
  • FHA allows higher debt-to-income ratios (up to 50%) vs conventional (usually 43–45%)
FeatureFHA LoanConventional Loan
Min. Down Payment3.5%3–5% (20% to avoid PMI)
Min. Credit Score580 (3.5% down)620–640 typical
Mortgage InsuranceLife of loan (<10% down)Removed at 20% equity
Max DTI RatioUp to 50%43–45% typical

Example Calculations

1FHA Loan with 3.5% Down Payment

Inputs

Home Price$350,000
Down Payment3.5% ($12,250)
Interest Rate6.5%
Loan Term30 years
Property Tax Rate1.2%
Home Insurance$1,800/yr

Result

Total Monthly Payment$2,911
Base Loan Amount$337,750
Upfront MIP (1.75%)$5,911
Total Loan Amount$343,661
Monthly P&I$2,172
Monthly MIP (0.85%)$239
Total Interest Paid$438,320

Base loan = $350,000 − $12,250 = $337,750. Upfront MIP = $337,750 × 1.75% = $5,911. Total loan = $343,661. LTV = 96.5% so annual MIP rate = 0.85%. Monthly P&I = $2,172, monthly MIP = $337,750 × 0.85% / 12 = $239, property tax = $350, insurance = $150. Total = $2,911/month.

2FHA Loan with 10% Down Payment

Inputs

Home Price$275,000
Down Payment10% ($27,500)
Interest Rate7.0%
Loan Term30 years
Property Tax Rate1.0%
Home Insurance$1,500/yr

Result

Total Monthly Payment$2,195
Base Loan Amount$247,500
Upfront MIP (1.75%)$4,331
Total Loan Amount$251,831
Monthly P&I$1,675
Monthly MIP (0.80%)$165
Total Interest Paid$351,327

Base loan = $275,000 − $27,500 = $247,500. Upfront MIP = $247,500 × 1.75% = $4,331. Total loan = $251,831. LTV = 90% (<=95%) so annual MIP rate = 0.80%. Monthly P&I = $1,675, monthly MIP = $247,500 × 0.80% / 12 = $165, property tax = $229, insurance = $125. Total = $2,195/month.

Formulas Used

FHA Upfront Mortgage Insurance Premium

Upfront MIP = Base Loan Amount × 1.75%

The one-time upfront MIP is financed into the total loan amount.

Where:

Base Loan Amount= Home price minus down payment
1.75%= FHA upfront MIP rate (fixed)

Monthly Principal & Interest

M = (Base Loan + Upfront MIP) × r(1 + r)^n / ((1 + r)^n − 1)

Monthly P&I is calculated on the total loan including financed upfront MIP.

Where:

M= Monthly principal & interest payment
r= Monthly interest rate (annual rate / 100 / 12)
n= Total payments (years × 12)

Monthly MIP (Annual Mortgage Insurance)

Monthly MIP = Base Loan Amount × Annual MIP Rate / 12

Annual MIP rate depends on LTV and loan term: 0.85% for LTV > 95%, 0.80% for LTV <= 95% (30-year loans).

Where:

Base Loan Amount= Home price minus down payment (before upfront MIP)
Annual MIP Rate= 0.45%–0.85% depending on LTV and loan term

Total Monthly Payment

Total = P&I + Monthly MIP + Property Tax/12 + Insurance/12

Full monthly housing cost for an FHA loan.

Where:

P&I= Monthly principal & interest (on total loan incl. upfront MIP)
Monthly MIP= Annual MIP divided by 12
Property Tax= Home price × tax rate / 12
Insurance= Annual homeowner's insurance / 12

Complete Guide to FHA Loans: Costs, MIP, and Qualification

1

FHA Loan Costs: Upfront MIP and Annual Premiums

1.75% of the base loan amount — that is the upfront mortgage insurance premium (UFMIP) every FHA borrower pays at closing. On a $337,750 loan (a $350,000 home with 3.5% down), the upfront MIP adds $5,911 to the total loan balance. Most borrowers finance this cost rather than paying it out of pocket, increasing the principal that accrues interest over the full loan term.

Annual MIP is the ongoing cost that separates FHA from conventional loans. For 30-year loans with more than 95% LTV (i.e., less than 5% down), the annual rate is 0.85% of the base loan amount, or $239/month on $337,750. Loans with 90–95% LTV pay 0.80%, while 15-year loans with LTV at or below 90% enjoy the lowest rate of 0.45%. These premiums apply for the life of the loan when the down payment is under 10%.

The total insurance cost over 30 years is substantial. On a $337,750 loan at 0.85% annual MIP, the cumulative cost exceeds $86,000 in MIP payments alone — plus the financed $5,911 UFMIP accruing interest. Compare this to a conventional loan where PMI drops off automatically at 78% LTV, typically after 7–9 years of payments.

*Based on $350,000 home price; MIP rates per HUD 2024 schedule
ScenarioBase LoanUFMIP (1.75%)Annual MIP RateMonthly MIP
3.5% down, 30-yr$337,750$5,9110.85%$239
5% down, 30-yr$332,500$5,8190.80%$222
10% down, 30-yr$247,500$4,3310.80%$165
10% down, 15-yr$247,500$4,3310.45%$93
2

FHA vs. Conventional: Which Mortgage Saves More?

$86,000+ in lifetime MIP costs — that is the price of FHA’s low 3.5% down payment. A conventional loan with 20% down ($70,000 on a $350,000 home) eliminates private mortgage insurance entirely, saving $200–$300/month from day one. The trade-off is stark: FHA requires $12,250 upfront but costs significantly more over 30 years.

For buyers who can’t reach 20% down, the comparison narrows. Conventional loans allow as little as 3–5% down but require a 620+ credit score and impose PMI until the borrower reaches 20% equity — typically 7–9 years. FHA accepts credit scores as low as 580 (or 500 with 10% down) and allows higher debt-to-income ratios of up to 50% versus the conventional limit of 43–45%.

The break-even point for refinancing out of FHA into conventional is typically 18–36 months of MIP savings versus $3,000–$6,000 in refinance closing costs. Once you reach 20% equity through payments or appreciation, a conventional refinance eliminates MIP entirely. Use our mortgage calculator to compare total costs across both loan types.

Tip: If your credit score is above 680 and you can save 10%+ down, run both FHA and conventional scenarios — the lower PMI removal timeline on conventional often wins over 10+ years.

3

FHA Loan Limits and Property Requirements

$472,030 is the 2024 FHA loan floor for low-cost areas, covering approximately 80% of U.S. counties. High-cost areas like San Francisco, New York City, and the Washington D.C. metro push the ceiling to $1,089,300. Alaska, Hawaii, Guam, and the U.S. Virgin Islands receive 150% of the standard ceiling.

FHA-eligible properties must meet HUD’s Minimum Property Requirements (MPR), which go beyond a standard home inspection. The appraisal checks for health and safety hazards, structural soundness, and adequate roofing, plumbing, heating, and electrical systems. Common deal-breakers include peeling lead-based paint (pre-1978 homes), missing handrails on stairs, and inadequate water pressure. Repairs must be completed before closing, which can delay timelines by 2–4 weeks.

Condominiums must be on FHA’s approved condo list, and manufactured homes need a permanent foundation. Investment properties and second homes do not qualify — FHA is strictly for primary residences. Verify your county’s specific limit at the HUD lookup tool before making offers.

  • Low-cost area floor: $472,030 — covers ~80% of U.S. counties
  • High-cost area ceiling: $1,089,300 — SF, NYC, LA, DC metro zones
  • Alaska/Hawaii/territories: 150% of standard ceiling ($1,633,950)
  • Property must pass HUD MPR appraisal — no peeling paint, adequate systems
  • Condos require FHA-approved status; manufactured homes need permanent foundation
4

Credit Score Tiers and Their Impact on FHA Rates

580 is the minimum credit score for a 3.5% down FHA loan, but most lenders impose their own overlays requiring 620–640. Borrowers scoring 500–579 must put down 10%, which significantly changes the financial equation. The gap between a 580 and 720 credit score can mean 0.50–0.75% higher interest rates, costing $75–$125 more per month on a $337,750 loan.

FHA uses the middle score from all three bureaus (Equifax, Experian, TransUnion). If your scores are 610, 635, and 650, the qualifying score is 635. Improving from 620 to 680 before applying could save $50–$100/month in interest and unlock better lender options. Common quick-win strategies include paying credit card balances below 30% utilization and disputing inaccurate late payments.

The combination of credit score and down payment determines total loan costs. A buyer with a 580 score putting 3.5% down on a $350,000 home pays roughly $50,000 more over 30 years compared to a 720-score buyer with the same down payment — entirely from the rate difference. A credit score calculator can help estimate how specific actions affect your score.

FHA Interest Rate by Credit Score8.0%7.5%7.0%6.5%6.0%7.75%7.25%6.75%6.50%500–579580–619620–679680+Credit Score RangeHigher Rate TierLower Rate Tier
5

Step-by-Step: Using the FHA Loan Calculator

$2,911/month — that is the total FHA payment on a $350,000 home with 3.5% down at 6.5% interest, including P&I, MIP, property tax, and insurance. This calculator breaks down every component so you see exactly where each dollar goes. Start by entering the home price and down payment percentage to generate the base loan amount and upfront MIP.

The calculator automatically determines the correct annual MIP rate based on your LTV and loan term: 0.85% for 30-year loans above 95% LTV, 0.80% for 30-year loans at or below 95% LTV, and 0.45% for 15-year loans at or below 90% LTV. Add your property tax rate (1.0–1.5% typical) and annual home insurance ($1,200–$2,400) for a complete monthly picture.

Run at least three scenarios: minimum 3.5% down, 10% down (to enable MIP removal after 11 years), and your maximum comfortable down payment. The difference between 3.5% and 10% down on a $350,000 home saves $74/month in MIP and removes the insurance obligation 19 years earlier.

  1. 1

    Enter home price and down payment

    Input the purchase price ($350,000) and down payment percentage (3.5% = $12,250 or 10% = $35,000). The calculator computes the base loan and upfront MIP automatically.

  2. 2

    Set interest rate and term

    Enter the current FHA rate (check Freddie Mac for weekly averages) and choose 15 or 30 years. The MIP rate adjusts automatically based on LTV and term.

  3. 3

    Add property tax and insurance

    Input your county’s property tax rate (1.0–1.5% typical) and annual home insurance ($1,200–$2,400). These are escrowed into your monthly payment.

  4. 4

    Compare scenarios

    Run at least 3.5% down vs. 10% down scenarios. The 10% option costs $22,750 more upfront but saves $74/month in MIP and enables removal after 11 years.

Related Calculators

Mortgage Calculator

Calculate mortgage

VA Loan Calculator

Calculate VA loan

Closing Cost Calculator

Enter your home price, down payment, and loan type to estimate closing costs. See lender fees, title fees, government fees, and prepaid items broken out.

HELOC Calculator

Enter your home value and mortgage balance to see how much HELOC you qualify for. Shows draw period and repayment payments plus total interest over the life.

RV Loan Calculator \u2014 Monthly Payment & Total Interest

Calculate RV loan monthly payments, total interest, and amortization schedule. Compare 10, 12, 15, and 20-year terms with your down payment and trade-in.

Auto Loan Calculator

Calculate car loan payments, total interest, and total cost. Factor in down payment, trade-in value, and loan terms to find your ideal car financing. Compare.

Related Resources

Mortgage Calculator: Complete Guide to Calculating Your Home Loan

Read our guide

First-Time Homebuyer Guide: Complete Step-by-Step Process

Read our guide

Down Payment Guide: How Much You Need and How to Save It

Read our guide

Mortgage Calculator

Calculate monthly mortgage payments

Compound Interest Calculator

See the power of compound growth

Budget Calculator

Plan your monthly budget

More Finance Calculators

Compare loan options

View All

Last Updated: Mar 26, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

UseCalcPro
FinanceHealthMath

© 2026 UseCalcPro