FHA Loan Calculator
Estimate your monthly FHA mortgage payment and total financing cost. Adjust the loan amount, interest rate, and term to compare different FHA loan scenarios and see how extra payments can reduce your interest expenses over the life of the loan.
Upfront MIP is 1.75% of the loan amount. When rolled in, it increases your loan balance.
Amortization Schedule
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 2025, the FHA floor limit for a single-family home is $498,257 in low-cost areas, while high-cost areas have limits up to $1,149,825. 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.
Frequently Asked Questions
What credit score do you need for an FHA loan?
FHA loans require a minimum credit score of 580 to qualify for the 3.5% down payment option. Borrowers with credit scores between 500 and 579 may still qualify but must make a down payment of at least 10%. Many FHA lenders set their own minimum credit score requirements above the FHA floor, commonly at 620 or higher. A higher credit score can help you secure a better interest rate on your FHA loan.
How much is the FHA mortgage insurance premium?
FHA loans require two types of mortgage insurance premiums. The upfront MIP (UFMIP) is 1.75% of the loan amount and can be rolled into the loan balance. The annual MIP ranges from 0.15% to 0.75% of the loan balance depending on the loan term, loan amount, and loan-to-value ratio. For most FHA loans with less than 5% down on a 30-year term, the annual MIP is 0.55%. The annual MIP is paid monthly as part of your mortgage payment.
Can you remove MIP from an FHA loan?
For FHA loans originated after June 3, 2013, the annual MIP cannot be canceled if the original loan-to-value ratio was 90% or higher. For these loans, MIP must be paid for the entire life of the loan. If your original LTV was below 90%, MIP can be canceled after 11 years. The only way to eliminate MIP on most FHA loans is to refinance into a conventional mortgage once you have built enough equity to reach 20% loan-to-value.
What are the FHA loan limits?
FHA loan limits vary by county and are updated annually. In 2025, the national floor limit for a single-family home is $498,257 in low-cost areas, while high-cost areas have limits up to $1,149,825. These limits are based on the median home price in each area and are set at 115% of the local median home price, subject to the floor and ceiling. You can look up the specific FHA loan limit for your county on the HUD website.
Is an FHA loan better than a conventional loan?
It depends on your financial situation. FHA loans are better for borrowers with lower credit scores (below 680) or smaller down payments (as low as 3.5%). Conventional loans are typically better for borrowers with credit scores above 700 and a down payment of at least 5%, as they avoid the ongoing mortgage insurance premiums that FHA loans require. Conventional loans also allow PMI to be removed once you reach 20% equity, while most FHA loans require MIP for the life of the loan.