FHA Loan Calculator

Understanding FHA Loans

Our FHA Loan Calculator helps you estimate your monthly mortgage payment, including mortgage insurance, taxes, and insurance. FHA loans are government-insured mortgages that have more flexible qualification requirements than conventional loans.

What is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. These loans are popular with first-time homebuyers because they allow down payments as low as 3.5% and have more flexible credit requirements than conventional loans.

FHA Loan Requirements

• Minimum Credit Score: 580 for 3.5% down payment, 500-579 for 10% down
• Down Payment: As low as 3.5% with a 580+ credit score
• Mortgage Insurance: Upfront and annual mortgage insurance premiums required
• Debt-to-Income Ratio: Typically must be 43% or less
• Property Requirements: Must meet HUD guidelines and be your primary residence
• Loan Limits: Vary by county and are updated annually

FHA Mortgage Insurance Premium (MIP)

FHA loans require two types of mortgage insurance:

• Upfront MIP: 1.75% of the loan amount, paid at closing (can be financed)
• Annual MIP: 0.55% to 0.85% of the loan amount, paid monthly

The annual MIP duration depends on your down payment and loan term. For loans with less than 10% down, MIP typically lasts for the entire loan term.

FHA Loan Limits

FHA loan limits vary by county and are based on local housing costs. For 2023, the standard limit for a single-family home ranges from $472,030 in lower-cost areas to $1,089,300 in high-cost areas.

Benefits of FHA Loans

• Lower down payment requirements (as low as 3.5%)
• More flexible credit requirements
• Competitive interest rates
• Allow higher debt-to-income ratios than conventional loans
• Gift funds can be used for down payment and closing costs

Drawbacks of FHA Loans

• Mortgage insurance premiums (both upfront and annual)
• Loan limits may be lower than conventional loans in some areas
• Property must meet certain standards
• Mortgage insurance may last for the life of the loan

FHA vs. Conventional Loans

Feature	FHA Loan	Conventional Loan
Minimum Down Payment	3.5%	3-5%
Minimum Credit Score	500-580	620-640
Mortgage Insurance	Required (UFMIP + annual MIP)	PMI if down payment < 20%
Mortgage Insurance Duration	11 years or life of loan	Until 20% equity
Debt-to-Income Ratio	Up to 50% in some cases	Typically 43-45%

Frequently Asked Questions

Q: How much is FHA mortgage insurance?
A: FHA charges an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, plus an annual MIP of 0.55% to 0.85% depending on loan term and amount.

Q: Can I remove FHA mortgage insurance?
A: For loans with less than 10% down, MIP lasts for the entire loan term. For loans with 10% or more down, MIP can be removed after 11 years.

Q: What is the minimum credit score for an FHA loan?
A: The minimum credit score is 500 with 10% down, or 580 with 3.5% down. However, individual lenders may have higher requirements.

Q: Are FHA loans only for first-time homebuyers?
A: No, FHA loans are available to all qualified borrowers, not just first-time homebuyers.

Q: Can I use gift funds for my FHA down payment?
A: Yes, the entire down payment can come from gift funds from a family member, employer, or charitable organization.