FHA Loan Calculator
Price an FHA loan properly: the 3.5% minimum down payment, the 1.75% upfront mortgage insurance premium financed into the loan, and the monthly MIP on top of principal and interest.
Two mortgage insurances, not one
FHA loans carry mortgage insurance twice: an upfront premium (UFMIP) of 1.75% of the loan, usually financed into the balance, and an annual premium (MIP) collected monthly — 0.55% of the loan per year for most borrowers today. Quote an FHA payment without both and you have quoted a fiction.
Loan = (price − down payment) × 1.0175 · Monthly MIP = base loan × 0.55% ÷ 12
Example: a $350,000 home with 3.5% down: down payment $12,250, base loan $337,750, UFMIP $5,910.63 financed — total loan $343,660.63 — plus monthly MIP of about $154.81 on top of principal and interest.
How long MIP lasts
With less than 10% down, today's FHA annual MIP runs for the life of the loan — the common escape is refinancing into a conventional loan once equity reaches 20%. With 10% or more down, MIP drops after 11 years. Rules have changed before and can again; your lender's disclosure governs your loan.
How this is calculated
Base loan = price − down payment (percentage applied to the price). UFMIP = 1.75% of the base loan, added to the balance, per the standard FHA structure. Principal and interest amortize the combined balance at your rate over the term. Monthly MIP = base loan × the annual MIP rate you enter ÷ 12, held at its starting level. Taxes, insurance and HOA are outside this payment — add them mentally or via the mortgage calculator.
Frequently asked questions
What credit score does FHA require?
FHA's floor is 580 for the 3.5% down payment (500–579 requires 10% down), but most lenders set higher overlays. The program is more forgiving than conventional, not unconditional.
Can I remove FHA MIP by reaching 20% equity?
Not on current FHA loans with minimum down payment — the premium is for the loan's life. The standard route is refinancing into a conventional loan once you qualify, which this site's refinance calculator can price.
Is the upfront premium always financed?
It can be paid in cash at closing instead, but financing it is the norm. Financing means you also pay interest on the premium for the life of the loan.
FHA or conventional with 3% down?
Conventional 3%-down loans have cancellable PMI and no upfront premium, but stricter credit requirements. Strong-credit borrowers usually find conventional cheaper overall; FHA often wins on approvability.
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