🏛️ FHA Insured Loan
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%)
43%
Max DTI
1.75%
Upfront MIP
Upfront MIP:1.75% of loan
Annual MIP (30yr, LTV>95%):0.55%/yr
Annual MIP (30yr, LTV≤95%):0.50%/yr
MIP Duration (LTV>90%):Life of loan
FHA Loan Details
Home purchase with FHA financing
Home & Financing
$
$
%
MIP Settings (auto-calculated)
%
%
Optional Monthly Costs
$
$
Total Monthly Payment
$2,347
Principal & Interest + MIP + Tax + Insurance
$1,893
P & I
$134
Annual MIP
$300
Tax
$100
Insurance
⚠️ Mortgage Insurance Premium (MIP) Details
Base Loan Amount
Purchase price − down payment
$289,500
Upfront MIP (UFMIP) — 1.75%
Rolled into loan balance
$5,066
Total Financed Amount
Base loan + financed UFMIP
$294,566
Annual MIP Rate
Life of loan (LTV > 90%)
0.55%/yr
Monthly MIP Payment
Annual MIP ÷ 12
$135/mo
Total MIP over loan life
UFMIP + all annual MIP payments
$53,671
⚖️ FHA vs Conventional Loan Comparison
| Metric | FHA Loan | Conventional (3%) | Conventional (20%) |
|---|
📊 FHA DTI Qualification Check
Gross Monthly Income
$
Other Monthly Debts (car, student, credit cards)
$
37.4%
✅ Qualifies (under 43% limit)
Front-end: 29.3% — Back-end: 37.4%
📊 Monthly Payment Breakdown
Understanding FHA Loans and MIP
FHA loans are government-insured mortgages that allow buyers with lower credit scores or smaller down payments to qualify for a home loan. Our FHA loan calculator shows the full monthly payment including Upfront MIP (1.75%) and Annual MIP — costs that standard mortgage calculators often miss. Compare FHA vs conventional and check DTI qualification all in one place. For conventional mortgage comparison, use our mortgage calculator and house affordability calculator.
🏛️ What is an FHA Loan?
An FHA loan is insured by the Federal Housing Administration and issued by approved private lenders. The insurance reduces lender risk, enabling loans to buyers who might not qualify for conventional financing:
- 3.5% minimum down payment (credit score 580+)
- 10% down for scores 500–579
- Standard loan terms: 15 or 30 years
- Must be primary residence only
- County-based FHA loan limits apply
⚠️ FHA MIP vs Conventional PMI
- FHA UFMIP: 1.75% upfront — can be financed into loan
- FHA Annual MIP: 0.50–0.55%/yr, paid monthly, often for life of loan
- Conventional PMI: ~0.5–1.5%/yr but removable at 80% LTV
- FHA MIP is permanent if LTV > 90% at origination
- To remove FHA MIP: must refinance to conventional once equity allows
✅ FHA Pros & Cons
Advantages:
- Low 3.5% down payment
- Flexible credit requirements (500+)
- Higher allowable DTI (up to 43–57%)
- Assumable loans — buyer can take over your rate
Disadvantages:
- MIP for life of loan (high LTV loans)
- Lower county loan limits than conventional
- Stricter property condition requirements
🔄 When to Refinance Out of FHA
FHA MIP adds hundreds per month to your payment. Refinancing to conventional makes sense when:
- Home equity reaches 20%+ (LTV ≤ 80%)
- Credit score improved to qualify for conventional rates
- Conventional PMI cost is lower than ongoing FHA MIP
- Rate environment is favorable
Use our refinance calculator to model the break-even point.
Frequently Asked Questions
FHA MIP has two components: Upfront MIP (UFMIP) of 1.75% of the loan amount, paid at closing or rolled into the loan; and Annual MIP, a yearly premium (typically 0.50–0.55% for 30-year loans) paid monthly. Unlike conventional PMI, FHA annual MIP often lasts the life of the loan for borrowers with less than 10% down, regardless of how much equity you build. To eliminate MIP, you typically need to refinance to a conventional loan once you have 20% equity.
With a credit score of 580 or higher, you qualify for the minimum 3.5% down payment. Scores between 500 and 579 still qualify but require a 10% down payment. Scores below 500 generally do not qualify for FHA financing. Individual lenders may set stricter requirements (called overlays), so some FHA lenders may require 620+ even though FHA guidelines allow 580. Always check with multiple lenders.
FHA is better if your credit score is below 680 or you can only put 3.5% down. Conventional loans (especially 3% down options) can be cheaper long-term if you have good credit (700+) because conventional PMI is removable when you reach 20% equity, while FHA MIP often lasts the loan's lifetime. Use our comparison section above to see the exact difference for your loan scenario, then decide based on total cost over your expected holding period.
FHA MIP cancellation rules depend on when your loan was taken out and your LTV at origination. For loans originated after June 2013 with LTV above 90% at origination, annual MIP lasts the entire loan term. The only way to remove it is to refinance into a conventional loan once you have sufficient equity (typically 20%). Use our refinance calculator to model when refinancing becomes cost-effective.
FHA guidelines allow a back-end DTI of up to 43% as the standard limit, but can stretch to 57% with strong compensating factors (substantial cash reserves, stable employment, minimal credit obligations). The front-end DTI (housing only) standard is 31%. Our DTI check section above calculates both ratios based on your income and debts. For a detailed DTI analysis, use our DTI calculator.