FHA Loan Calculator
Calculate your FHA loan payment including Upfront MIP (1.75%) and Annual MIP. Compare FHA vs Conventional and check DTI qualification instantly.
3.5%
Min Down Payment
580+
Credit Score (3.5% down)
43%
Max DTI
1.75%
Upfront MIP
FHA Loan Details
Home purchase with FHA financing
HOME & FINANCING
MIP SETTINGS (AUTO-CALCULATED)
OPTIONAL MONTHLY COSTS
Total Monthly Payment
$2,446
$1,911
P&I
$135
Annual MIP
$300
Tax
$100
Insurance
Mortgage Insurance Premium (MIP) Details
- Base Loan Amount
- $289,500
- Upfront MIP (UFMIP) — 1.75%
- $5,066
- Total Financed Amount
- $294,566
- Annual MIP Rate (life of loan)
- 0.55%/yr
- Monthly MIP Payment
- $135
- Total MIP over loan life
- $48,603
FHA vs Conventional Loan Comparison
| Metric | FHA Loan | Conventional (3%) | Conventional (20%) |
|---|---|---|---|
| Down Payment | $10,500 | $9,000 | $60,000 |
| Loan Amount | $294,566 | $291,000 | $240,000 |
| Monthly P&I | $1,911 | $1,887 | $1,557 |
| Monthly MIP/PMI | $135 (permanent) | $206 (removable) | $0 |
| Total Monthly | $2,446 | $2,494 | $1,957 |
| LTV | 96.5% | 97.0% | 80.0% |
FHA DTI Qualification Check
Front-end: 40.8% (limit: 31%) · Back-end: 45.8% (FHA limit: 43%)
Monthly Payment Breakdown
- Principal & Interest
- FHA MIP
- Property Tax
- Home Insurance
Understanding FHA Loans and MIP
FHA loans are government-insured mortgages that let buyers with lower credit scores or smaller savings still qualify for a home. Our FHA loan calculator shows the full monthly payment — including Upfront MIP and Annual MIP — a step many quick-estimate tools skip. Compare it side by side with a conventional loan using our mortgage calculator and check whether you qualify with our house affordability calculator.
What is an FHA Loan?
- 3.5% minimum down payment for credit scores of 580 or higher.
- 10% down required for scores between 500 and 579.
- Standard terms of 15 or 30 years.
- Must be used to finance your primary residence only.
- Subject to county-based FHA loan limits.
FHA MIP vs Conventional PMI
- FHA UFMIP: 1.75% upfront — can be financed into the loan.
- FHA Annual MIP: 0.50–0.55%/yr, paid monthly, often for the life of the loan.
- Conventional PMI: roughly 0.5–1.5%/yr, but removable once equity clears 20%.
- To drop FHA MIP entirely, most borrowers refinance into a conventional loan once equity allows.
FHA Pros & Cons
Advantages
- Low 3.5% down payment
- Flexible credit requirements
- Higher allowable DTI (up to 43–57%)
- Assumable loans — a buyer can take over your rate
Disadvantages
- MIP for life of loan on high-LTV loans
- Lower county loan limits than conventional
- Stricter property condition requirements
When to Refinance Out of FHA
- Home equity reaches 20%+ (LTV below 80%)
- Your credit has improved enough to qualify for conventional rates
- Conventional PMI would cost less than your ongoing FHA MIP
- The rate environment is favorable
Use our refinance calculator to model the exact break-even point.
— FAQ