FHA Loan Calculator
Calculate your FHA loan payment including mortgage insurance premiums (MIP). See monthly payment, down payment requirements, and total loan costs.
Total purchase price of the home
FHA minimum: 3.5% (580+ credit) or 10% (500-579 credit)
Annual interest rate for the FHA loan
Length of the loan (typically 15 or 30 years)
Your credit score determines minimum down payment
Yearly property taxes (typically 1-2% of home value)
Yearly homeowners insurance premium
Monthly homeowners association fees (if applicable)
What is an FHA loan and who qualifies?
FHA (Federal Housing Administration) loans are government-backed mortgages designed for low-to-moderate income borrowers. Key benefits: Low down payment (3.5% with 580+ credit score, 10% with 500-579 score), easier qualification (lower credit requirements), higher debt-to-income ratios allowed (up to 50% vs 43% conventional). Ideal for first-time homebuyers or those with limited savings. Must be primary residence, limits vary by county ($472,030-$1,089,300 in 2024).
What is FHA mortgage insurance and can I avoid it?
FHA requires two types of mortgage insurance: 1) Upfront MIP (Mortgage Insurance Premium): 1.75% of loan amount, typically rolled into loan. 2) Annual MIP: 0.45-1.05% of loan amount paid monthly. Unlike PMI on conventional loans, FHA MIP lasts the entire loan term (for down payments <10%) or 11 years (for 10%+ down). Only way to remove: refinance to conventional loan once you reach 20% equity and qualify.
FHA vs Conventional loan - which is better?
FHA wins if: Credit score <620, down payment <5%, debt-to-income ratio 43-50%, first-time buyer with limited funds. Conventional wins if: Credit score 700+, 10-20% down payment available, want to avoid lifetime mortgage insurance, buying high-value property above FHA limits. FHA costs more long-term due to mortgage insurance. Run the numbers: FHA with 3.5% down often cheaper short-term, but conventional with 20% down cheaper long-term.
What are FHA loan limits for 2024?
FHA loan limits vary by county: Low-cost areas: $498,257 (floor), High-cost areas: $1,149,825 (ceiling), Most areas: $498,257-$766,550. Check HUD website for your county-specific limit. Limits are for single-family homes; multiply by 1.5x for 2-unit, 1.8x for 3-unit, 2.25x for 4-unit properties. If you need more, consider conventional, jumbo, or VA loans (if veteran).