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FHA Loan Calculator Guide
FHA loans let you buy with as little as 3.5% down, but they carry mortgage insurance that conventional loans don't. This FHA loan calculator includes both the upfront and annual premiums so you see the real monthly cost.
FHA adds an upfront premium of 1.75% of the loan (usually financed into it) plus an annual premium charged monthly. Miss those and you'll underestimate the payment badly.
What Is an FHA Loan?
It's a mortgage insured by the Federal Housing Administration, aimed at buyers with smaller deposits or lower credit scores. You can put down 3.5% with a credit score of 580 or above, or 10% with a score between 500 and 579. On a $300,000 home at 3.5% down, that's $10,500 upfront.
The Two Mortgage Insurance Premiums
FHA charges upfront MIP at 1.75% of the base loan — about $5,066 on a $289,500 loan — which is almost always rolled into the mortgage rather than paid in cash. On top of that, annual MIP is charged monthly, currently around 0.55% of the loan for typical 30-year loans above 95% LTV, and about 0.50% at or below 95%.
MIP Usually Lasts the Whole Loan
This is the big catch. On a 30-year FHA loan with less than 10% down, MIP stays for the life of the loan — you can't cancel it at 20% equity the way conventional PMI drops off. Putting 10% or more down limits MIP to 11 years. Many buyers eventually refinance into a conventional loan to escape it once they have enough equity.
FHA vs Conventional
FHA wins on access: lower credit score requirements and a smaller deposit. Conventional wins on long-run cost if you qualify, because PMI is cancellable and often cheaper. Compare both with our mortgage calculator before deciding.
This calculator uses the upfront premium of 1.75% and annual premiums of 0.55%/0.50%. FHA sets these rates and changes them from time to time, and loan limits vary by county — confirm current figures with a lender before relying on them.
These results are estimates for education and planning, not financial advice. Actual returns, rates, and terms vary — check with a qualified professional before making decisions.
Related: Mortgage Calculator, DTI Calculator, and Down Payment Calculator.
Frequently Asked Questions
What is the minimum down payment for an FHA loan?
3.5% with a credit score of 580 or higher, or 10% with a score between 500 and 579.
What is FHA mortgage insurance?
FHA charges an upfront premium of 1.75% of the loan, usually financed into it, plus an annual premium paid monthly, typically around 0.55% for 30-year loans.
Can I remove FHA mortgage insurance?
Not usually. With less than 10% down on a 30-year loan, MIP lasts the life of the loan; with 10% or more down it drops after 11 years. Many buyers refinance to conventional to remove it.
Is an FHA loan better than conventional?
FHA is easier to qualify for with a low score or small deposit, while conventional usually costs less long term because its mortgage insurance can be cancelled.
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