FHA Loan Calculator
Calculate FHA mortgage payments, MIP costs, and loan requirements. Understand FHA loan limits, down payment options, and qualification criteria for first-time home buyers.
FHA Loan Requirements
- Minimum 3.5% down payment for credit scores 580+
- Minimum 10% down payment for credit scores 500-579
- Mortgage Insurance Premium (MIP) required
- Debt-to-income ratio typically under 43%
- Property must meet FHA standards
- Primary residence only (no investment properties)
| Loan Details | Amount |
|---|---|
| Loan Amount | $289,500 |
| Down Payment | $10,500 (3.5%) |
| Upfront MIP (1.75%) | $5,070 |
| Monthly MIP (0.55%) | $196 |
| Principal & Interest | $1,830 |
| Taxes & Insurance | $400 |
| Total Monthly Payment | $2,189 |
| Year | Payment | Principal | Interest | Balance |
|---|
Frequently Asked Questions
- Upfront MIP: 1.75% of the loan amount, paid at closing (can be financed into the loan)
- Annual MIP: 0.45% to 1.05% of the loan balance, paid monthly
- Down payment ≥10%: MIP for 11 years
- Down payment <10%: MIP for the entire loan term
- Loan term 15 years: MIP for 11 years regardless of down payment
- Low-cost areas: $498,257 for single-family homes
- High-cost areas: Up to $1,149,825 for single-family homes
- 2-unit properties: $637,950 to $1,472,250
- 3-unit properties: $771,125 to $1,779,525
- 4-unit properties: $958,350 to $2,211,600
- Family members (parents, grandparents, siblings)
- Close friends with a clearly defined and documented relationship
- Employers or labor unions
- Charitable organizations
- Government assistance programs
- 580+ credit score: Minimum 3.5% down payment required
- 500-579 credit score: Minimum 10% down payment required
- Below 500: Typically not eligible for FHA financing
Understanding FHA Loans and Mortgage Insurance
FHA loans are government-backed mortgages insured by the Federal Housing Administration, designed to help first-time homebuyers and those with lower credit scores achieve homeownership. Our comprehensive FHA loan calculator helps you understand the complete costs of an FHA mortgage, including mandatory mortgage insurance premiums and other FHA-specific requirements.
Key FHA Loan Features and Benefits
FHA loans offer several advantages over conventional mortgages:
- Lower Down Payment: As low as 3.5% with a 580+ credit score
- Flexible Credit Requirements: Minimum 500 credit score (with 10% down)
- Higher Debt-to-Income Ratios: Up to 50% DTI in some cases
- Gift Funds Allowed: Entire down payment can be gift money
- Assumable Loans: Future buyers can assume your FHA loan
- Streamline Refinance: Easier refinancing with reduced documentation
FHA Mortgage Insurance Premium (MIP) Structure
Understanding MIP costs is crucial for FLA loan planning:
- Upfront MIP: 1.75% of loan amount, paid at closing (can be financed)
- Annual MIP: 0.45% to 1.05% based on loan term and LTV ratio
- MIP Duration: 11 years for loans with ≥10% down, entire term for <10% down
- MIP Calculation: Based on average loan balance, not declining balance
- MIP Removal: Only through refinancing to conventional loan
FHA Loan Requirements and Qualifications
FHA loans have specific eligibility criteria:
- Credit Score: Minimum 500 (580 for 3.5% down payment)
- Down Payment: 3.5% with 580+ score, 10% with 500-579 score
- Debt-to-Income Ratio: Typically 43% maximum, up to 50% with compensating factors
- Property Standards: Home must meet FHA minimum property standards
- Occupancy: Must be primary residence (no investment properties)
- Loan Limits: Subject to FHA county loan limits
Conclusion: Making Informed FHA Loan Decisions
Using an FHA loan calculator is essential for understanding the true costs of FHA financing, particularly the impact of mortgage insurance premiums on your monthly payments. While FHA loans offer excellent benefits for first-time homebuyers and those with credit challenges, it’s important to weigh the long-term costs of MIP against the advantages of lower down payments and more flexible qualification requirements.
Our comprehensive FHA loan calculator provides detailed analysis of your potential mortgage payments, MIP costs, and overall loan structure. However, remember that actual loan terms may vary based on your specific financial situation, lender requirements, and current FHA guidelines. Always consult with multiple FHA-approved lenders and consider speaking with a HUD-approved housing counselor before making final decisions.
FHA loans can be an excellent path to homeownership for many buyers, but they work best when you fully understand the costs and requirements. By using our calculator and educating yourself about FHA programs, you can make informed decisions that align with your financial goals and homeownership timeline.