FHA Loan Calculator
Calculate FHA loan payments including mortgage insurance premiums.
FHA Loan Information
FHA minimum down payment is $10,500 (3.5%)
FHA Loan Summary
About This Calculator
The FHA Loan Calculator helps you determine monthly payments for FHA (Federal Housing Administration) loans, including mortgage insurance premiums (MIP). FHA loans are popular for first-time homebuyers because they allow lower down payments (as low as 3.5%) and more flexible credit requirements.
FHA loans require both upfront and annual mortgage insurance premiums. The upfront MIP is typically 1.75% of the loan amount and can be financed into the loan. Annual MIP rates vary based on loan term and down payment percentage.
Formula & Calculation Method
FHA Loan Calculation:
Loan Amount = Home Price - Down Payment
Monthly Payment = [P × R × (1+R)^N] / [(1+R)^N - 1]
Upfront MIP = Loan Amount × 1.75%
Annual MIP = Loan Amount × Annual Rate (0.80% or 0.85%)
Monthly MIP = Annual MIP ÷ 12
Total Payment = (Monthly Payment × Term) + Total MIP
FHA loans require mortgage insurance for the life of the loan if down payment is less than 10%, or for 11 years if down payment is 10% or more. MIP rates are set by the FHA and vary based on loan characteristics.
How to Use This Calculator
- Enter Home Price: Input the purchase price of the home.
- Enter Down Payment: Input your down payment (minimum 3.5% for FHA loans).
- Enter Interest Rate: Input the FHA loan interest rate.
- Enter Loan Term: Input the loan duration (typically 15 or 30 years).
- View Results: See monthly payment (including MIP), total payment, and MIP breakdown.
Frequently Asked Questions
What is the minimum down payment for an FHA loan?
FHA loans require a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher. Borrowers with credit scores between 500-579 need a 10% down payment.
What is FHA MIP?
FHA Mortgage Insurance Premium (MIP) protects lenders against losses. It includes an upfront MIP (1.75% of loan amount) and annual MIP (0.80-0.85% depending on loan term and down payment).
How long do I pay FHA MIP?
If your down payment is less than 10%, you pay MIP for the life of the loan. If your down payment is 10% or more, you pay MIP for 11 years. You can remove MIP by refinancing to a conventional loan.
What are FHA loan limits?
FHA loan limits vary by location and are based on median home prices in the area. Limits range from $472,030 to $1,089,300 for single-family homes in high-cost areas (2023 limits).
NumCalculators Editorial Team
Multi-disciplinary Expert Team
The NumCalculators Editorial Team consists of subject matter experts across various fields who review and verify the accuracy of our calculators. Each calculator undergoes rigorous testing and validation before publication.