FHA Loan Calculator - Calculate FHA Mortgage Payments
Free FHA loan calculator with 2025 mortgage insurance rates. Calculate FHA payments, down payment needs, and total costs for first-time homebuyers
FHA Loan Calculator
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What is an FHA Loan Calculator?
An FHA Loan Calculator is a specialized financial tool that helps you calculate monthly payments for FHA (Federal Housing Administration) loans, including the required Mortgage Insurance Premium (MIP). It determines your total monthly cost including principal, interest, MIP, taxes, and insurance.
This calculator is essential for:
- First-time homebuyers - Understand FHA loan costs with low down payments
- Lower credit score borrowers - Calculate payments with 500-580 credit scores
- Budget planning - Include both upfront and monthly MIP costs
- Loan comparison - Compare FHA vs conventional loan costs
- Down payment planning - See how 3.5% vs 10% down affects payments
For comparing different mortgage options, check out our mortgage calculator to see how conventional loans compare to FHA loans for your situation.
If you qualify for military benefits, our VA mortgage calculator can help you explore VA loans which often have better terms than FHA loans with no down payment required.
Planning your home purchase? Use our down payment calculator to determine how much you need to save for your FHA loan down payment and closing costs.
How FHA Loans Work (MIP Requirements)
FHA loans are government-backed mortgages with unique requirements:
Upfront MIP (2025 Rate)
1.75% of the loan amount due at closing. Can be financed into the loan amount.
Annual MIP (2025 Rates)
0.55% for LTV > 95% or 0.50% for LTV ≤ 95%. Paid monthly as part of your mortgage payment.
MIP Duration
With less than 10% down: Life of the loan. With 10%+ down: 11 years.
FHA Loan Limits
Vary by county. 2025 limits range from $498,257 (low-cost areas) to $1,149,825 (high-cost areas).
Key Concepts
MIP vs PMI
MIP (FHA) cannot be canceled except through refinancing. PMI (conventional) can be removed at 80% LTV.
Minimum Down Payment
3.5% with 580+ credit score. 10% with 500-579 credit score. Lower than conventional loans.
Credit Score Requirements
Minimum 500 credit score. Better rates with 580+. More lenient than conventional loans.
Debt-to-Income Ratio
Maximum 43-50% DTI typically allowed. More flexible than conventional loans.
How to Use This Calculator
Enter Home Price
Input the purchase price of the home (e.g., $250,000)
Set Down Payment %
Enter 3.5% (580+ credit) or 10% (500-579 credit)
Enter Interest Rate
Input the annual interest rate from your lender (e.g., 6.5%)
Select Loan Term
Choose 30 or 15 years (30 years is most common)
Choose Credit Score
Select 580+ or 500-579 to determine minimum down payment
Add Taxes & Insurance
Enter annual property tax and homeowners insurance
View Complete Costs
See monthly payment including MIP, upfront MIP, and total costs
Benefits of FHA Loans
- • Low Down Payment: Only 3.5% down with 580+ credit score, making homeownership accessible.
- • Flexible Credit Requirements: Accept credit scores as low as 500, helping those with credit challenges.
- • Higher DTI Ratios: Allow debt-to-income ratios up to 50%, more lenient than conventional loans.
- • Gift Funds Allowed: Down payment and closing costs can come from family gifts.
- • Assumable Loans: FHA loans can be assumed by future buyers, potentially valuable if rates rise.
- • Competitive Rates: Government backing often results in competitive interest rates.
FHA Loan Requirements
Employment & Income
Steady employment history for 2+ years. Sufficient income to cover mortgage and debts.
Property Standards
Must meet FHA minimum property standards. Property appraisal required.
Primary Residence
Must be your primary residence. Cannot be used for investment properties.
Bankruptcy & Foreclosure
2 years after bankruptcy, 3 years after foreclosure. More lenient than conventional.
Frequently Asked Questions (FAQ)
Q: What is FHA MIP?
A: FHA Mortgage Insurance Premium includes 1.75% upfront and 0.50-0.55% annual premiums. It protects lenders and is required on all FHA loans.
Q: What down payment do I need for FHA?
A: 3.5% minimum with 580+ credit score, or 10% minimum with 500-579 credit score. Significantly lower than conventional loans.
Q: What credit score for FHA loan?
A: Minimum 500 credit score, but 580+ gets you the 3.5% down payment option. Most lenders prefer 620+ for best terms.
Q: Can I cancel FHA MIP?
A: With less than 10% down, MIP lasts for the life of the loan. With 10%+ down, it's removed after 11 years. Refinancing is the only way to eliminate it early.