FHA Mortgage Calculator
FHA loan payment with 3.5% down and FHA MIP
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- PMI
- Down payment
- Loan payoff date
- Total interest paid
- Property tax
- Home insurance
- Annual payment
- Total of all payments
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| # | Date | Principal | Interest | Balance |
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How an FHA loan payment works
FHA loans are insured by the Federal Housing Administration, which lets lenders accept smaller down payments and lower credit scores than many conventional loans. The minimum down payment is 3.5% for borrowers with a credit score of 580 or higher. In exchange, FHA loans charge mortgage insurance, called MIP.
With the example numbers, a $400,000 home with 3.5% down means a $386,000 loan. At 6.5%, principal and interest come to about $2,440 a month. Annual MIP of 0.55% adds about $177 a month, and with property tax and insurance the total is about $3,133.
FHA mortgage insurance (MIP)
- Annual MIP is charged monthly. For most 30-year FHA loans it's about 0.50–0.55% of the loan a year.
- How long it lasts: with less than 10% down, for the life of the loan. With 10% or more down, 11 years.
- Upfront MIP of 1.75% of the loan is also charged at closing, usually added to the loan. It isn't included in this estimate.
Because MIP often lasts for the life of the loan, many FHA borrowers later refinance into a conventional loan once they have 20% equity. Compare with a conventional loan by switching the loan type above, or see thePMI calculator.
Is an FHA loan right for you?
An FHA loan can make sense if your credit score or savings would make a conventional loan expensive or out of reach. If you have good credit and 5–10% down, a conventional loan with PMI may cost less over time because PMI drops off and MIP may not. FHA loans also have loan limits that vary by county. Compare quotes for both to see which costs less for you.
Frequently asked questions
What is an FHA loan?
A mortgage insured by the Federal Housing Administration. The insurance lets lenders accept lower down payments and credit scores, in exchange for FHA mortgage insurance (MIP). FHA loans are for homes you'll live in.
How do I qualify for an FHA loan?
FHA allows 3.5% down with a credit score of 580 or higher, and 10% down with scores from 500 to 579, though individual lenders may set higher minimums. Lenders also look at your debt-to-income ratio, steady income and that the home is your primary residence.
How long does FHA mortgage insurance last?
With less than 10% down, annual MIP lasts for the life of the loan. With 10% or more down, it lasts 11 years. There's also an upfront premium of 1.75% of the loan, usually added to the loan amount.
What are FHA loan limits?
FHA sets a maximum loan amount for each county, updated every year and higher in expensive areas. Check the limit for your county on HUD's website before you shop.
Can I remove FHA mortgage insurance?
Only if you put 10% or more down, after 11 years. Otherwise the usual route is refinancing into a conventional loan once you have about 20% equity. The refinance calculator shows whether it pays off.
Is an FHA or conventional loan better?
FHA can be cheaper with lower credit scores or a small down payment. With good credit and 5% or more down, a conventional loan is often cheaper over time because PMI drops off and FHA MIP may not. Switch the loan type above to compare.