FHA Loan Mortgage Calculator
Considering an FHA loan for your home purchase? Use our FHA Loan Mortgage Calculator to estimate your monthly mortgage payments, including the FHA mortgage insurance premium (MIP). Enter your loan amount, interest rate, loan term, and the upfront MIP to calculate your FHA loan payments.
FHA Loan Mortgage Calculator
The Federal Housing Administration (FHA) offers a loan program to help individuals with lower credit scores and smaller down payments qualify for homeownership. One of the key features of an FHA loan is the mortgage insurance premium (MIP), which is required for all FHA loans. This calculator helps you estimate your monthly FHA mortgage payments by factoring in your loan amount, interest rate, loan term, and MIP.
How to Use the FHA Loan Mortgage Calculator
Using our FHA Loan Mortgage Calculator is simple:
- Enter your loan amount (the total amount you are borrowing for your mortgage).
- Input the interest rate on your FHA loan.
- Enter the loan term (typically 15 or 30 years).
- Provide the upfront MIP (usually 1.75% of the loan amount) to include this cost in your total loan balance.
- Click "Calculate FHA Loan Payment" to get your estimated monthly mortgage payment.
Understanding Your FHA Loan Payment Results
After calculating your FHA loan payments, the calculator will provide:
- Your estimated monthly mortgage payment, including principal and interest.
- The monthly mortgage insurance premium (MIP) added to your payment.
- The total cost of your loan over the life of the loan.
Why Choose an FHA Loan?
An FHA loan offers several advantages for homebuyers:
- Lower Down Payment: FHA loans typically require as little as 3.5% down, making homeownership more accessible for first-time homebuyers.
- Lower Credit Score Requirements: FHA loans are often available to borrowers with lower credit scores, making them a popular choice for individuals with less-than-perfect credit histories.
- Competitive Interest Rates: FHA loans offer competitive interest rates, which can help reduce the cost of borrowing over time.
- Mortgage Insurance: While FHA loans require mortgage insurance, the premiums are typically lower than those for conventional loans with similar terms.
Mortgage Insurance Premium (MIP) for FHA Loans
FHA loans require two types of mortgage insurance:
- Upfront MIP: This is a one-time premium that is typically rolled into your loan amount. It is calculated as 1.75% of the loan amount.
- Annual MIP: This is the ongoing monthly premium that is included in your mortgage payment. The rate varies based on the size of your loan, your loan term, and the size of your down payment.
Benefits of Using the FHA Loan Mortgage Calculator
Using our FHA Loan Mortgage Calculator gives you several advantages:
- Accurate Monthly Payment Estimate: Quickly see how much your monthly mortgage payments will be with an FHA loan, including the cost of mortgage insurance.
- Understand Your Loan Costs: The calculator provides you with a breakdown of your monthly payment, including principal, interest, and MIP.
- Plan Your Budget: With the calculator, you can better plan for the total cost of your FHA loan and understand your financial obligations over time.
- Make Informed Decisions: The results allow you to compare different FHA loan terms and mortgage insurance options to find the best loan for your situation.
FHA Loan Mortgage Calculator FAQs
What is the minimum credit score needed for an FHA loan?
The FHA requires a minimum credit score of 580 to qualify for the 3.5% down payment option. Borrowers with scores between 500-579 may qualify with a 10% down payment. However, individual lenders may have higher minimum requirements.
How long do I have to pay FHA mortgage insurance?
For loans with less than 10% down, MIP lasts for the entire loan term. With 10% or more down, MIP is required for 11 years. The only way to remove MIP is to refinance to a conventional loan once you reach 20% equity.
What is the current FHA MIP rate?
As of 2025, the upfront MIP is 1.75% of the loan amount. Annual MIP rates range from 0.45% to 1.05% depending on loan term (15 vs 30 years) and loan amount (below or above $726,200). These rates are subject to change by HUD.
Can I use gift funds for my FHA down payment?
Yes, the entire down payment and closing costs can come from gift funds from family members, employers, or charitable organizations. The funds must be properly documented with a gift letter and paper trail showing transfer of funds.
What types of properties qualify for FHA loans?
FHA loans can be used for 1-4 unit primary residences, including single-family homes, condos (must be FHA-approved), manufactured homes (if on permanent foundation), and multi-unit properties (must live in one unit).
How does FHA debt-to-income ratio differ from conventional loans?
FHA allows higher DTI ratios than conventional loans - typically up to 43% back-end ratio (all debts) and 31% front-end ratio (housing only). With strong compensating factors, FHA may approve up to 50% DTI in some cases.
Are FHA interest rates higher than conventional loans?
FHA rates are typically very competitive with conventional rates, sometimes even lower. However, the required mortgage insurance makes the overall cost higher in most cases, especially for borrowers with good credit (680+ scores).
Can I get an FHA loan after bankruptcy or foreclosure?
Yes, with waiting periods: 2 years after Chapter 7 bankruptcy discharge, 1 year after Chapter 13 (with court approval), and 3 years after foreclosure. These periods may be shortened with extenuating circumstances.
What are the FHA loan limits for my area?
FHA loan limits vary by county and are based on local home prices. In 2025, the standard limit ranges from $498,257 to $1,149,825 for high-cost areas. You can check current limits at HUD's website or our loan limit calculator.
How do I cancel FHA mortgage insurance?
The only way to cancel FHA MIP is to refinance to a conventional loan once you have at least 20% equity. Unlike conventional PMI, FHA MIP doesn't automatically cancel based on equity unless you refinance.