FHA Loan Calculator

Understanding FHA Loans

Federal Housing Administration (FHA) loans are government-backed mortgages designed to help first-time homebuyers and borrowers with less-than-perfect credit achieve homeownership. Because the FHA insures the loan against default, lenders are willing to offer more flexible qualification requirements compared to conventional mortgages. Our FHA loan calculator helps you estimate your monthly payment and total cost so you can make an informed borrowing decision.

What Is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). The FHA does not directly lend money; instead, it provides insurance to approved lenders, protecting them against losses if the borrower defaults. This government backing allows lenders to offer FHA loans with lower credit score requirements, smaller down payments, and more flexible debt-to-income ratios than conventional loans. FHA loans are available for purchasing a primary residence, and certain FHA programs also allow for refinancing or buying properties that need rehabilitation through the FHA 203(k) program.

FHA Mortgage Insurance Premium (MIP)

All FHA loans require mortgage insurance, which is a key factor in the total cost of the loan. FHA mortgage insurance comes in two parts. The upfront mortgage insurance premium (UFMIP) is 1.75% of the loan amount and is typically rolled into the loan balance. For a $300,000 loan, this adds $5,250 to your total loan amount. The annual mortgage insurance premium (MIP) is paid monthly as part of your mortgage payment and ranges from 0.15% to 0.75% of the loan balance depending on your loan term, loan amount, and loan-to-value ratio. For most borrowers with a 30-year FHA loan and less than 5% down, the annual MIP rate is 0.55%. On a $300,000 loan, this translates to approximately $137.50 per month. Unlike conventional PMI, which can be removed once you reach 20% equity, most FHA loans originated after June 2013 require MIP for the entire life of the loan if your down payment was less than 10%.

FHA Credit Score Requirements

One of the biggest advantages of FHA loans is the lower credit score threshold. The FHA requires a minimum credit score of 580 to qualify for the 3.5% down payment option. Borrowers with scores between 500 and 579 can still qualify but must make a down payment of at least 10%. Individual FHA-approved lenders may set their own credit score minimums, which are often higher than the FHA floor. Many lenders require a score of 620 or above. While FHA loans are more accessible to borrowers with lower credit scores, having a higher score can still help you secure a lower interest rate, which significantly reduces your total cost over the life of the loan.

FHA Down Payment Requirements

FHA loans are well known for their low down payment requirement. Borrowers with a credit score of 580 or higher can purchase a home with as little as 3.5% down. On a $300,000 home, that means a down payment of just $10,500. This low entry point makes FHA loans particularly attractive for first-time homebuyers who may not have substantial savings. The down payment can come from your own savings, a gift from a family member, or a down payment assistance program. Unlike some conventional loan programs, FHA allows the entire down payment to be gifted, which further reduces the barrier to homeownership for buyers with limited funds.

FHA Loan Limits

FHA loan limits set the maximum amount you can borrow with an FHA-insured mortgage, and they vary by county based on local home prices. In 2026, the FHA floor limit for a single-family home is $541,287 in low-cost areas, while high-cost areas have limits up to $1,249,125. The limit for a two-unit property, three-unit property, and four-unit property are progressively higher. These limits are updated annually and are calculated at 115% of the median home price in each area, subject to the national floor and ceiling. You can check the specific FHA loan limit for your county on the HUD website. If the home you want to purchase exceeds the FHA loan limit in your area, you may need to make a larger down payment to bridge the gap or consider a different loan program such as a construction loan for new builds or a HELOC for existing homeowners.

FHA MIP vs PMI — Don't Confuse Them

Many borrowers search for an "FHA FHA loan calculator with PMI" or an "FHA mortgage insurance FHA loan calculator" — but FHA loans don't have PMI (private mortgage insurance). They have MIP (Mortgage Insurance Premium), which serves a similar purpose but is structured differently. Conventional loans use PMI; FHA loans use MIP. The key difference: conventional PMI cancels automatically at 78% LTV, while FHA MIP on loans originated after June 3, 2013 with less than 10% down lasts for the life of the loan. Our FHA MIP calculator above calculates both the upfront MIP (1.75% of loan amount) and the annual MIP (0.55% for most 30-year loans with under 5% down) so you see the true total cost. To compare against conventional loans with PMI, see our FHA vs Conventional loan guide.

FHA 203(k) Rehab Mortgage

The FHA 203(k) mortgage is a special program that wraps the purchase price and renovation costs into a single FHA-insured loan. There are two versions: the Standard 203(k) for renovations over $35,000 (structural work, major systems), and the Limited 203(k) for renovations up to $35,000 (cosmetic work, roofing, HVAC). Both use the same MIP structure as a regular FHA loan, but the loan amount is based on the as-completed appraised value rather than the purchase price. The FHA calculator above estimates base FHA payments; for 203(k), enter the combined purchase + renovation amount as the "Loan Amount." For non-FHA renovation financing, compare against Fannie Mae HomeStyle® Renovation or Freddie Mac CHOICEHome®.

State Variations: FHA Loans in Florida, Texas, California

FHA loan rules are federal, but state-specific factors affect the calculation. Florida FHA loans carry the highest mortgage doc stamp tax in the U.S. ($0.35 per $100 of loan amount, or $1,400 on a $400,000 loan) plus intangible tax ($0.002 per dollar). Texas FHA loans cap cash-out refinances at 80% LTV (state law, more conservative than federal). California FHA loans benefit from the high-cost-area loan limit ceiling ($1,249,125 in 2026) — useful in coastal markets where median prices push the local limit to the ceiling. Enter your specific loan amount and rate into the FHA calculator above; closing cost differences are state-specific and not modeled here. For full closing cost breakdowns, see our closing costs guide.

FHA Loan with Credit Score Below 620

FHA is one of the few programs that works for borrowers with credit scores between 500 and 619. The FHA itself allows scores as low as 580 with 3.5% down, or 500 with 10% down. Individual lenders set "overlays" — most require 620+, but specialized FHA lenders accept scores down to 580. With a 580 – 619 score, expect your FHA interest rate to be 0.5% – 1.0% higher than the rate a 720-score borrower would pay. On a $300,000 30-year loan, that adds roughly $100 – $200 per month. The FHA calculator above lets you model multiple rate scenarios to see the impact. Improving your score from 619 to 680 typically unlocks the conventional market — see our FHA vs conventional comparison to estimate the savings.

FHA Amortization Schedule

The amortization table above shows every monthly payment for the life of your FHA loan, broken into principal, interest, and MIP. Early payments are heavily interest-weighted — on a $300,000 loan at 6.5%, month 1 sends ~$1,625 to interest and only ~$236 to principal. By year 15 the split is roughly 50/50, and by year 25 principal dominates. Because FHA MIP lasts the life of the loan for under-10%-down borrowers, the amortization schedule includes MIP in every month — useful when comparing against conventional loans where PMI drops off at year 8 or so. Export the schedule as CSV and bring it to your lender to compare against their Loan Estimate. For the underlying math, see our amortization guide.

FHA MIP Rate History (2008–2026)

FHA mortgage insurance premium rates have changed significantly over the past two decades. Understanding this history helps explain why current FHA MIP rules exist — particularly the "life of loan" MIP requirement that began in 2013. Below are the key MIP policy changes that affect today's FHA borrowers:

The 2023 MIP reduction from 0.85% to 0.55% saves FHA borrowers roughly $800 per year on a $300,000 loan. Combined with the 2015 cut, FHA has reduced annual MIP by over 50% since the peak in 2013. However, the life-of-loan MIP requirement for loans with less than 10% down remains the single largest cost disadvantage vs conventional loans — making it essential to compare total costs using our FHA vs conventional guide before committing.

FHA Energy Efficient Mortgage (EEM) Program

The FHA Energy Efficient Mortgage (EEM) allows borrowers to finance energy-saving improvements into their FHA loan — above and beyond the standard loan limit — without a larger down payment. This program is often overlooked but can significantly reduce your total cost of homeownership. Eligible improvements include solar panels, high-efficiency HVAC, insulation, double-pane windows, tankless water heaters, and smart thermostats. The maximum EEM add-on is the lesser of 5% of the FHA loan limit (up to ~$27,000 in most areas) or the documented cost of the improvements, and the energy savings must exceed the cost over the improvement's useful life — verified by a HERS (Home Energy Rating System) or similar energy audit. For example, on a $300,000 FHA loan in a standard-cost county, a borrower could add up to $27,064 in solar panel costs (5% of the $541,287 floor limit), bringing the total FHA-insured loan to $327,064 — all with the same 3.5% down payment. The EEM is not a separate loan; it rides on top of a standard FHA purchase or refinance. (Source: HUD Handbook 4000.1, Section II.A.7.)

FHA vs Conventional vs VA: 6-Dimension Decision Matrix

Choosing between FHA, conventional, and VA isn't just about credit score. The table below compares the three programs across the six factors that most affect your total cost of homeownership. Use this matrix alongside the FHA loan calculator above to identify the right program for your specific situation:

If your credit score is below 680 and your down payment is under 5%, FHA is often the only viable path. If you have 20% down and a 740+ score, conventional wins decisively — no MIP, no PMI, and the lowest rate. If you are VA-eligible, the VA loan almost always beats both FHA and conventional on total monthly cost because it has no monthly mortgage insurance at all. Use each program's calculator above to run your exact numbers — the FHA calculator, the conventional calculator, and the VA loan calculator all use the same underlying math so comparisons are apples-to-apples.

FHA Streamline Refinance: Lower Your Rate Without a Full Application

If you already have an FHA loan, the FHA Streamline Refinance lets you refinance to a lower rate with minimal paperwork — no new appraisal, no income verification, no credit check (in most cases), and reduced documentation requirements. To qualify, the refinance must produce a "net tangible benefit" — typically a rate reduction of at least 0.5% or a switch from an ARM to a fixed rate. The existing loan must be current (no 30-day late payments in the last 6 months, no more than one 30-day late in the last 12 months), and you must have made at least 6 monthly payments on the current FHA loan. The new loan's MIP follows current rates — the 0.55% annual MIP applies, and the UFMIP is refunded on a pro-rata basis from your old loan. For borrowers whose homes have lost value, the Streamline's no-appraisal feature is critical — it means you can refinance even if you are underwater. Use our refinance calculator to compare your current FHA payment against a new lower rate, but note that the FHA Streamline process is simpler and cheaper than the FHA loan calculator's generic closing cost estimate (typically $2,000–$4,000 vs $5,000+ for a conventional refinance).

How this FHA loan calculator Works

Last updated: June 28, 2026

This FHA calculator uses the same standard amortization formula that lenders, the CFPB, and major bank calculators use. There is no proprietary or hidden math — every step is reproducible in a spreadsheet.

The four-step calculation

FHA loans differ from conventional mortgages because they include two forms of mortgage insurance: an upfront premium (UFMIP) of 1.75% of the base loan amount, and an annual premium (MIP) paid monthly. the FHA loan calculator walks through these four steps for every input you change:

1. Base loan = home price − down payment. For a $300,000 home with the FHA minimum 3.5% down, the base loan is $300,000 − $10,500 = $289,500.
2. Add UFMIP if rolled in. UFMIP = 1.75% × $289,500 = $5,066.25. With "Roll Upfront MIP into Loan" enabled, the effective principal becomes $289,500 + $5,066.25 = $294,566.25.
3. Compute monthly P&I using the standard amortization formula.

   M = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ]

   where P = effective principal ($294,566.25), r = monthly rate (0.065 ÷ 12 = 0.005417), n = 360. Plugging in: M ≈ $1,861.86.
4. Add monthly MIP. Annual MIP for 30-year loans with less than 5% down is 0.55% of the effective principal: $294,566.25 × 0.0055 ÷ 12 ≈ $135.01. Total monthly payment = $1,861.86 + $135.01 = $1,996.87.

Verify it yourself in 10 seconds

Open Excel, Google Sheets, or Apple Numbers and paste this exact formula:

=PMT(0.065/12, 360, -294566.25)

The result is $1,861.86 — the same number our FHA loan calculator shows for "P&I Only." Add the $135.01 monthly MIP and you get the $1,996.87 total. (Source: HUD Mortgagee Letters on MIP rates — HUD Mortgagee Letter archive; formula matches the standard fixed-rate amortization used by the CFPB Loan Estimate tool.)

Assumptions & limitations

• UFMIP rate is fixed at 1.75%. This has been the HUD statutory rate since 2012 and is not expected to change without congressional action.
• Annual MIP uses three tiers based on down payment percentage: 0.55% (under 5% down), 0.50% (5–10% down), 0.40% (10%+ down). These rates apply to 30-year FHA loans on amounts below the conforming limit. Loans above $832,750 (2026 high-balance limit) use different tiers — check HUD for details.
• MIP is calculated on the effective principal (base loan + financed UFMIP), reflecting the actual outstanding balance you owe each month after closing. Some calculators compute MIP on the base loan only — that approach under-states MIP by ~$2–3/month on a typical loan.
• Property taxes and homeowners insurance are not included. Real PITI will be $300–$600 higher in most U.S. markets. Estimate these separately using your local tax assessor's rate (typically 0.5%–2.0% of home value) and an insurance quote.
• Rate does not include discount points or origination fees. The "interest rate" input should be the annual rate your lender quotes, not the APR.

Sources & Editorial Standards

This FHA calculator is maintained by the LoanCalculatorPro engineering team. We are not lenders or mortgage brokers — our role is to provide accurate, transparent calculation tools. The figures and rules cited on this page come from the following official sources:

• U.S. Department of Housing and Urban Development (HUD) — FHA Programs
• CFPB Loan Estimate Explanation Tool
• Freddie Mac Primary Mortgage Market Survey®
• Federal Reserve H.15 Selected Interest Rates

We periodically cross-check our FHA loan calculator outputs against these sources and against published examples from major U.S. lenders. Advertising — if any appears on this page in the future — never influences calculation results or the educational content above. See our full editorial standards for details.

Found an error? Email admin@loancalculatorpro.online with the inputs you used and the result you expected. We acknowledge verified error reports within 48 hours and treat calculation bugs as the highest priority. Read our correction policy.