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FHA Loan Calculator (3.5% Down + MIP)

Estimate FHA mortgage with UFMIP financed into the loan, monthly MIP, and a side-by-side comparison to conventional 20% down.

FINANCE

Estimate FHA mortgage payment including Upfront Mortgage Insurance Premium (UFMIP, 1.75% financed into the loan) and monthly Mortgage Insurance Premium (MIP, ~0.55% annual). FHA loans allow 3.5% down with 580+ FICO and are popular for first-time buyers. Compares against a conventional 20%-down scenario so you see the FHA trade-off.

FHA = government-insured (Federal Housing Administration) mortgage for buyers with low down payment or weaker credit. Min 3.5% down at 580+ FICO; 10% down at 500-579 FICO. UFMIP is 1.75% of base loan amount, typically financed into the loan. Monthly MIP runs 0.55% APR-equivalent on loans with under 10% down. MIP for life when down is under 10% - the only way out is refinancing into a conventional loan once you hit 20% equity. The calculator computes principal + interest, MIP, taxes, insurance, HOA, and a conventional 20% comparison.

Disclaimer: Estimate only. Actual FHA rates and MIP depend on lender, FICO, LTV, term, and loan amount. UFMIP and MIP rates set by HUD periodically.

FHA Loan Calculator (3.5% Down + UFMIP + Monthly MIP)

Estimate FHA mortgage payment including Upfront Mortgage Insurance Premium (UFMIP) financed into the loan and monthly Mortgage Insurance Premium (MIP). Compares against a conventional 20% down scenario to show the FHA trade-off.

Home Price ($)

Down Payment (%)FHA minimum is 3.5% with 580+ FICO, 10% with 500-579 FICO.

Term (years)

Mortgage APR (%)FHA rates are typically 0.25-0.5% lower than conventional for the same credit profile.

UFMIP Rate (% of loan)Currently 1.75% of base loan amount, financed into the loan by default.

Annual MIP Rate (%)Currently 0.55% for >$726,200 base / 0.55% for loans over 15 yr / 0.45% for 15-yr terms with LTV <= 78%. The calculator uses 0.55% as default.

Annual Property Tax ($)

Annual Home Insurance ($)

Monthly HOA ($)

Total PITI + MIP + HOA

$3,184.40

Principal & Interest$2,482.48

Monthly MIP$176.92

Property Tax$400.00

Home Insurance$125.00

Upfront Costs

Down Payment$14,000

UFMIP (financed)$6,755

Estimated Closing Costs (3% of home price)$12,000

Total Upfront$26,000

vs Conventional 20% Down

Conventional Down$80,000

Conventional Monthly Payment$2,547.62/mo

FHA Monthly Premium vs Conv+$636.78/mo

How much extra you pay each month with FHA - this is the price of putting only 3.5% down and qualifying with lower credit.

FHA vs Conventional - Should You Go FHA?

An FHA loan is government-insured (Federal Housing Administration) and designed for buyers with lower down payments or weaker credit. Minimum down is 3.5% with a 580+ FICO; some lenders accept 10% down with FICO as low as 500. The trade-off is mortgage insurance: a 1.75% upfront premium (UFMIP) added to the loan plus a monthly MIP of about 0.55% APR-equivalent for the life of the loan when down payment is under 10%.

The "MIP for life" rule is the biggest FHA gotcha. Conventional PMI drops automatically at 78% LTV under the Homeowners Protection Act. FHA MIP continues for the full term if you put less than 10% down, and lasts 11 years if you put 10%+ down. The only way to remove MIP is to refinance into a conventional loan once you hit ~20% equity.

Use FHA when you cannot afford 5%+ down OR your credit is below 680. Switch to conventional with PMI when your credit is good and you can put 5-10% down - conventional PMI ends at 22% equity and costs less long-term. Use VA or USDA loans if you qualify (0% down, no MIP).

Estimate only. Actual FHA rates and MIP vary by lender, FICO, LTV, term, and loan amount. UFMIP and MIP rates set by HUD and adjust periodically. Closing costs vary widely by state and lender.

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Frequently Asked Questions

What is the minimum down payment for an FHA loan?

3.5% of the home price with a FICO of 580 or higher. Between 500 and 579 FICO you need 10% down. Below 500 you do not qualify. The 3.5% can come from your savings, gifts from family, or down-payment assistance programs. The seller can contribute up to 6% of the purchase price toward your closing costs - a common buyer-friendly arrangement when supply outpaces demand.

Do FHA loans require mortgage insurance forever?

If your down payment is under 10%, yes - MIP runs for the entire loan term. At 10%+ down, MIP drops off after 11 years. The only way out at sub-10% down is to refinance into a conventional loan once you reach about 20% equity. Conventional PMI cancels automatically at 78% LTV under federal law (Homeowners Protection Act), which is the biggest structural advantage of conventional over FHA long-term.

Is FHA better than conventional?

FHA wins for buyers with sub-680 FICO or under 5% saved for a down payment. Conventional wins for everyone else, especially long-term, because PMI cancels at 78% LTV while FHA MIP runs for the life of the loan with low down payments. A common path: use FHA to get into your first home, build equity for 3-5 years, then refinance into a conventional loan to drop MIP.

What is UFMIP and why is it added to my loan?

Upfront Mortgage Insurance Premium - 1.75% of the base loan amount, paid at closing. Almost everyone finances it into the loan rather than paying out of pocket, so your starting loan balance is 101.75% of (home price minus down payment). On a $200,000 base loan, UFMIP is $3,500 added to the financed amount, costing you about $20/month in extra principal-and-interest at typical rates. It is partly refundable if you refinance within 3 years.

FHA Loan Calculator (3.5% Down + MIP)

FHA Loan Calculator (3.5% Down + UFMIP + Monthly MIP)

Upfront Costs

vs Conventional 20% Down

FHA vs Conventional - Should You Go FHA?

Frequently Asked Questions

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FHA Loan Calculator (3.5% Down + UFMIP + Monthly MIP)

Upfront Costs

vs Conventional 20% Down

FHA vs Conventional - Should You Go FHA?