How to use this FHA loan calculator
- Enter the home price and your down payment as a percentage or a dollar amount, and pick your credit score range. FHA requires at least 3.5% down with a score of 580 or higher and 10% with a score of 500 to 579.
- Choose the term and rate. The rate shown is only an example; use the one on your Loan Estimate.
- Decide how to pay the upfront MIP. Leave “Finance the upfront MIP” checked to add it to the loan, or clear it to pay it at closing.
- Add property tax, insurance and HOA dues to see the full monthly payment, then read the note under the results to see when the annual MIP ends and what your payment becomes.
FHA loan requirements
An FHA loan is made by a private lender and insured by the Federal Housing Administration. The main rules that shape the payment are below, from HUD’s Handbook 4000.1.
- Credit score. A score of 580 or higher qualifies for maximum financing, which on a purchase is a 96.5% loan-to-value ratio. A score of 500 to 579 limits you to a 90% loan-to-value ratio (10% down). Below 500 you are not eligible. With three scores, the lender uses the middle one.
- Down payment. At least 3.5% of the property’s adjusted value, which is the lower of the purchase price (less any seller inducements) and the appraised value.
- Mortgage insurance. Standard FHA purchase loans carry an upfront premium and an annual premium (below); a few special programs, such as Hawaiian Home Lands loans, are charged differently.
- Occupancy. At least one borrower must move in within 60 days of signing the mortgage and intend to live there for at least one year.
- Property standards. HUD requires homes it insures to be safe, sound and secure. The appraiser notes repairs needed to meet those requirements, and the lender may approve the property only after reported defects are corrected.
- Term and size. The maximum term is 30 years, and the base loan cannot exceed your county’s FHA limit (see FHA loan limits for 2026).
FHA mortgage insurance premium (MIP) explained
FHA charges two premiums, and both protect the lender, not you.
Upfront MIP (UFMIP) is 1.75% of the base loan amount, the price minus your down payment. It must be financed entirely or paid entirely in cash. On the example loan it is $6,755.
Annual MIP is a yearly rate charged on your loan balance and collected in twelve monthly installments. HUD sets the rate by three things: the loan term (15 years or less versus more than 15), the base loan amount (up to or over $726,200) and the loan-to-value ratio (LTV) at closing. Your credit score does not change it. These are the rates in HUD Handbook 4000.1 Appendix 1.0, which took effect for loans endorsed on or after March 20, 2023 under Mortgagee Letter 2023-05 and were still in the Handbook when it was updated on August 12, 2026.
| Loan term | Base loan amount | Loan-to-value | Annual MIP | Charged for |
|---|---|---|---|---|
| More than 15 years | $726,200 or less | 90% or less | 0.50% | 11 years |
| More than 15 years | $726,200 or less | Over 90% to 95% | 0.50% | Full loan term |
| More than 15 years | $726,200 or less | Over 95% | 0.55% | Full loan term |
| More than 15 years | Over $726,200 | 90% or less | 0.70% | 11 years |
| More than 15 years | Over $726,200 | Over 90% to 95% | 0.70% | Full loan term |
| More than 15 years | Over $726,200 | Over 95% | 0.75% | Full loan term |
| 15 years or less | $726,200 or less | 90% or less | 0.15% | 11 years |
| 15 years or less | $726,200 or less | Over 90% | 0.40% | Full loan term |
| 15 years or less | Over $726,200 | 78% or less | 0.15% | 11 years |
| 15 years or less | Over $726,200 | Over 78% to 90% | 0.40% | 11 years |
| 15 years or less | Over $726,200 | Over 90% | 0.65% | Full loan term |
Streamline and simple refinances of loans endorsed on or before May 31, 2009, and Hawaiian Home Lands loans, follow different rules and are not covered here. Mortgagee Letter 2023-05 says it set this threshold at the national conforming loan limit, which was $726,200 in 2023 and is $832,750 for 2026, but the Handbook table (last revised August 12, 2026) still prints $726,200, so this calculator uses that figure. If your base loan falls between the two amounts, ask your lender which annual MIP rate applies.
How HUD calculates the monthly MIP
HUD’s method uses the average outstanding balance for each loan year, taken from the original amortization schedule. The premium is that average balance times the annual rate, divided by 1.0175 when the upfront MIP is financed, divided by 12, and rounded to the cent. Because the balance falls, the monthly MIP steps down each year. This calculator follows the same steps and repeats them for every year the MIP is charged.
FHA payment formula
The principal and interest payment uses the standard amortization formula on the total loan, which is the base loan plus the financed upfront MIP:
M = L × r(1 + r)^n / ((1 + r)^n − 1), where L = B × 1.0175 when the upfront MIP is financed
- M
- monthly principal and interest
- L
- total loan: base loan B plus the financed upfront MIP
- r
- monthly interest rate = annual rate ÷ 12
- n
- number of monthly payments = years × 12
The monthly annual-MIP for loan year y is:
MIP_y = m × A_y / (12 × 1.0175), rounded to the cent (drop the 1.0175 if the upfront MIP is paid in cash)
- m
- annual MIP rate from the table
- A_y
- average of the 12 monthly loan balances in year y
Worked example
A $400,000 home with $14,000 down (3.5%) leaves a base loan of B = $386,000. The upfront MIP is 1.75% × $386,000 = $6,755, so the financed loan is L = $392,755. At 7.03% the monthly rate is r = 0.005858 and there are n = 360 payments, so (1 + r)n = 8.1894 and M = $2,620.93.
With a 96.5% loan-to-value ratio, the annual MIP rate is 0.55%. The year-1 average balance is A1 = $390,959.97, so the annual MIP is $390,959.97 × 0.0055 = $2,150.28, divided by 1.0175 = $2,113.30, divided by 12 = $176.11 a month. Over 30 years you would pay $42,349 in annual MIP plus the $6,755 upfront premium.
How your down payment changes the MIP
A larger down payment lowers the loan-to-value ratio, and at 90% or below the annual MIP is charged for 11 years instead of the whole term. For the $400,000 example at 7.03% for 30 years:
| Down payment | Loan-to-value | Annual MIP | MIP charged for | Monthly MIP (year 1) | Total MIP incl. upfront |
|---|---|---|---|---|---|
| 3.5% ($14,000) | 96.5% | 0.55% | 30 years | $176.11 | $49,104 |
| 5% ($20,000) | 95% | 0.50% | 30 years | $157.61 | $44,552 |
| 10% ($40,000) | 90% | 0.50% | 11 years | $149.31 | $24,716 |
| 15% ($60,000) | 85% | 0.50% | 11 years | $141.02 | $23,343 |
| 20% ($80,000) | 80% | 0.50% | 11 years | $132.72 | $21,969 |
FHA monthly payment by price and down payment
Principal, interest and year-1 MIP for a 30-year loan at 7.03% with the upfront MIP financed, for a credit score of 580 or higher (taxes and homeowners insurance not included):
| Home price | 3.5% down | 5% down | 10% down | 15% down | 20% down |
|---|---|---|---|---|---|
| $200,000 | $1,399 | $1,369 | $1,297 | $1,225 | $1,153 |
| $250,000 | $1,748 | $1,711 | $1,621 | $1,531 | $1,441 |
| $300,000 | $2,098 | $2,053 | $1,945 | $1,837 | $1,729 |
| $350,000 | $2,447 | $2,396 | $2,269 | $2,143 | $2,017 |
| $400,000 | $2,797 | $2,738 | $2,594 | $2,450 | $2,306 |
| $450,000 | $3,147 | $3,080 | $2,918 | $2,756 | $2,594 |
| $500,000 | $3,496 | $3,422 | $3,242 | $3,062 | $2,882 |
How to get rid of FHA mortgage insurance
- Let it expire. If your loan-to-value ratio at closing was 90% or less, the annual MIP stops after 11 years. In the example, 10% down would cut the MIP to 11 years and the total MIP (upfront plus annual) to $24,716, versus $49,104.
- Refinance into a conventional loan. If you paid MIP for the whole term, you can replace the FHA loan with a conventional one. The CFPB says the requirement to buy private mortgage insurance usually applies when you refinance a conventional loan with less than 20% equity in the home, so having 20% or more equity usually lets you skip it. You will have to qualify again and pay closing costs, so test the numbers with our refinance calculator.
- Choose a larger down payment up front if you can. The table above shows how much it changes the total.
FHA vs. conventional loan
The CFPB says that for borrowers with good credit and a 10% to 15% down payment, FHA loans tend to be more expensive than conventional loans, while for borrowers with lower credit scores or a smaller down payment they can often be the cheapest option. FHA mortgage insurance is priced by term, loan size and down payment rather than by your credit score, while the CFPB says other loan types can cost more or less than a conventional loan with private mortgage insurance depending on your credit score, down payment amount, the lender and market conditions. Run both through this calculator and our mortgage calculator, and ask lenders for quotes on each. Veterans and service members can also compare our VA loan calculator.
FHA loan limits for 2026
FHA sets limits by county. Nationwide, the 2026 limit for a one-unit home runs from a floor of $541,287 to a ceiling of $1,249,125, which are 65% and 150% of the $832,750 national conforming limit. Counties in higher-cost areas fall between the two. The limit applies to your base loan, not the financed upfront MIP. Look up your county on HUD’s loan limit lookup.
| Property | Floor (low-cost areas) | Ceiling (high-cost areas) | Ceiling in AK, HI, GU, VI |
|---|---|---|---|
| One unit | $541,287 | $1,249,125 | $1,873,625 |
| Two units | $693,050 | $1,599,375 | $2,399,050 |
| Three units | $837,700 | $1,933,200 | $2,899,800 |
| Four units | $1,041,125 | $2,402,625 | $3,603,925 |
What this calculator does not model
- County loan limits. It warns against the national floor and ceiling for a one-unit home only.
- Appraisal and value. It assumes the home’s value equals the price. FHA uses the lower of the price (less any inducements) and the appraised value, which can change your required down payment and loan-to-value ratio.
- Rounding. FHA rounds the mortgage amount down to a whole dollar; this calculator does not, so figures can differ from your lender’s by a few cents.
- Condo and HOA approvals, seller concessions and closing costs. Use our closing cost calculator for the cash you need beyond the down payment.
- Other FHA products. Refinances, streamline refinances, 203(k) renovation loans, adjustable rates and two- to four-unit homes can follow different rules.
- Qualifying. Credit, income and debt ratios decide whether a lender approves you; check yours with our debt-to-income calculator and house affordability calculator.
Frequently asked questions
What is the minimum down payment for an FHA loan?
The minimum is 3.5% of the purchase price (or the appraised value, if lower) with a credit score of 580 or higher, and 10% with a score of 500 to 579. On a $400,000 home that is $14,000 or $40,000. Scores below 500 are not eligible for FHA financing. Closing costs are separate from the down payment.
How much is FHA mortgage insurance?
FHA charges an upfront premium of 1.75% of the base loan plus an annual premium between 0.15% and 0.75%, depending on the term, loan amount and down payment. In the example above, the upfront MIP is $6,755 and the annual MIP is 0.55%, or $176.11 a month in year one, falling slowly as the balance shrinks.
How long do you pay FHA mortgage insurance?
You pay annual MIP for 11 years if your loan-to-value ratio at closing is 90% or less (10% or more down), and for the whole loan term if it is higher. HUD applies this to loans with FHA case numbers assigned on or after June 3, 2013. In the example, 3.5% down means MIP runs all 30 years; with 10% down it would stop after 11.
How do I get rid of FHA mortgage insurance?
You can wait for the MIP period to end or refinance into a loan without FHA insurance. If you put 10% or more down, the annual MIP ends after 11 years. With less down, it lasts for the loan term, so refinancing into a conventional loan is one way out. The CFPB says the requirement to buy private mortgage insurance usually applies when you refinance a conventional loan with less than 20% equity, so aim for at least 20% equity first.
What are the FHA loan limits for 2026?
For 2026, the FHA limit for a one-unit home is $541,287 in low-cost areas (the floor) and $1,249,125 in the highest-cost areas (the ceiling). Each county’s limit falls between the two. Alaska, Hawaii, Guam and the U.S. Virgin Islands have a higher ceiling of $1,873,625. The limit applies to the base loan, before any financed upfront MIP.
Is an FHA loan cheaper than a conventional loan?
It depends on your credit score and down payment. According to the CFPB, FHA loans tend to cost more than conventional loans for borrowers with good credit and a 10% to 15% down payment, but can often be the cheapest option with a lower credit score or a smaller down payment. Get quotes for both and compare total costs. Our mortgage calculator models a conventional loan with PMI.
Can I pay the upfront MIP in cash instead of financing it?
Yes, but HUD requires the upfront MIP to be either financed entirely or paid entirely in cash. In the example, financing the $6,755 adds it to the loan and costs about $9,473 in extra interest over 30 years. The upfront premium is not refundable, except when you refinance into a new FHA-insured loan.