Introduction
An FHA loan is a mortgage backed by the Federal Housing Administration. It is a popular choice for first-time home buyers because it allows lower down payments and easier credit requirements than most conventional loans. With an FHA loan, you can put down as little as 3.5% of the home price.4 However, you will need to pay mortgage insurance premiums, which protect the lender if you stop making payments.
Our FHA Loan Calculator shows your monthly mortgage payment. Just enter the home price, your down payment, the loan term, and the interest rate. The calculator will show you a clear breakdown of your principal, interest, and FHA mortgage insurance costs. This way, you can plan your budget and know exactly what to expect before you apply for a loan. This tool makes the math simple and fast, for both buying your first home and refinancing an existing FHA loan.
How to Use Our FHA Loan Calculator
Enter your home purchase details below to find out your estimated monthly FHA loan payment, including principal, interest, mortgage insurance, taxes, and insurance costs.
Home Price: Type in the full price of the home you want to buy. This is the total amount the seller is asking for the property.
Down Payment: Enter the amount of money you plan to pay upfront. FHA loans require a minimum down payment of 3.5% of the home price.4 You can enter this as a dollar amount or a percentage.
Loan Term: Choose how many years you want to take to pay back the loan. The most common options are 15 years or 30 years. A shorter term means higher monthly payments but less interest paid overall.
Interest Rate: Enter the annual interest rate your lender is offering you. This is the cost of borrowing the money, shown as a percentage. Check with your lender or use current average FHA rates as a starting point.
Upfront MIP (Mortgage Insurance Premium): FHA loans charge a one-time upfront mortgage insurance premium, typically 1.75% of the loan amount.1 This cost is usually rolled into your loan balance.
Annual MIP: Enter the yearly mortgage insurance premium rate. This is an ongoing cost that FHA borrowers must pay, and it gets split into 12 monthly payments added to your bill.
Property Tax (Annual): Enter the yearly property tax amount for the home. You can find this on the listing or by checking with your local tax office. This cost is divided by 12 and added to your monthly payment.
Homeowners Insurance (Annual): Enter the yearly cost of insuring your home. Your lender will require you to carry homeowners insurance. This amount is also split into monthly payments.
What Is an FHA Loan?
An FHA loan is a mortgage backed by the Federal Housing Administration, a government agency that is part of the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to help people who might not qualify for a conventional mortgage, especially first-time homebuyers, people with lower credit scores, or those who don't have a large down payment saved up. Because the government insures these loans, lenders take on less risk, which means they can offer more flexible approval requirements.
How FHA Loans Work
With an FHA loan, you can put down as little as 3.5% of the home's purchase price.4 Borrowers with a credit score of 580 or higher qualify for that maximum financing; a score between 500 and 579 limits the loan to 90 percent of the home's value.3 That means at least 10% down. The loan itself comes from a private lender like a bank or credit union. The FHA doesn't lend money directly. Instead, the FHA provides insurance that protects the lender if you stop making payments.
FHA Mortgage Insurance Premiums (MIP)
The trade-off for the low down payment and flexible credit requirements is that FHA loans require mortgage insurance premiums (MIP). There are two types:
- Upfront MIP (UFMIP): This is a one-time fee of 1.75% of your base loan amount.1 It's usually rolled into the loan itself, meaning it increases your total loan balance rather than being paid out of pocket at closing.
- Annual MIP: This is an ongoing premium that gets divided into 12 monthly payments and added to your mortgage bill. The rate depends on your loan amount, loan term, and loan-to-value ratio (LTV). With a loan-to-value ratio above 90 percent, annual MIP lasts for the entire mortgage term; at 90 percent or less it ends after 11 years.2 A down payment under 10% puts your LTV above 90%.
This is one of the biggest differences between FHA and conventional loans. With a conventional mortgage, you can ask to cancel private mortgage insurance (PMI) once your balance reaches 80 percent of the home's original value.5 With most FHA loans, the annual MIP stays for the full loan term unless you refinance into a conventional loan later.
FHA Annual MIP Rates
The annual MIP rate isn't the same for everyone. Here's a simplified breakdown of current FHA MIP rates, in basis points. 100 basis points equal 1%, so 50 basis points is 0.50% a year. The rates:
- Loan terms over 15 years, loan amount ≤ $726,200: 50 basis points if LTV is 95% or less; 55 basis points if LTV is above 95%.1
- Loan terms over 15 years, loan amount > $726,200: 70 basis points if LTV is 95% or less; 75 basis points if LTV is above 95%.1
- Loan terms of 15 years or less, loan amount ≤ $726,200: 15 basis points if LTV is 90% or less; 40 basis points if LTV is above 90%.1
- Loan terms of 15 years or less, loan amount > $726,200: 15 basis points if LTV is 78% or less; 40 basis points if LTV is above 78% up to 90%; 65 basis points if LTV is above 90%.1
What's Included in Your Monthly FHA Payment
Your total monthly payment on an FHA loan typically includes several parts.
- Principal: The portion that pays down your loan balance.
- Interest: The cost the lender charges you for borrowing money.
- Monthly MIP: Your annual mortgage insurance premium divided by 12.
- Property taxes: Your local property tax bill divided into monthly installments, usually held in an escrow account.6
- Homeowner's insurance: Your annual insurance premium divided into monthly payments, also typically escrowed.6
- HOA dues: If your home is in a community with a homeowners association, those monthly fees add to your payment as well.
FHA Loan Limits
FHA loans have borrowing limits that vary by county. For 2026, the FHA limit for a one-unit home is $541,287 in low-cost areas and up to $1,249,125 in high-cost areas.7 You can check your county's specific limit on the HUD website. If you're a veteran, you may also want to explore VA loan options, which offer no down payment and no mortgage insurance requirements.
Who Should Consider an FHA Loan?
FHA loans are a strong option if you have a credit score below 700, limited savings for a down payment, or a higher debt-to-income ratio. They're especially popular with first-time buyers. However, because of the required mortgage insurance (particularly the lifetime annual MIP on most 30-year loans), FHA loans can cost more over time than conventional loans for borrowers who could qualify for either. Many homeowners start with an FHA loan and later refinance into a conventional mortgage once they've built enough equity or improved their credit score.