🏡 FHA Loan Calculator
Estimate your FHA mortgage payment including MIP
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📊 Your FHA Loan Results
Total Monthly Payment
$0.00
P&I + Monthly MIP
Principal & Interest
$0.00
Monthly MIP
$0.00
Annual MIP ÷ 12
Loan Amount
$0.00
Upfront MIP (1.75%)
$0.00
Can be rolled into loan
Total Interest Paid
$0.00
Total Cost of Loan
$0.00
Principal + Total Interest + Total MIP
⚠️ Estimate Only: This calculator provides an estimate for educational purposes. Actual FHA loan terms, rates, and MIP may vary. Consult a qualified mortgage lender for a personalized quote.
📅 Amortization Schedule (First 5 Years)
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📋 Real-World FHA Loan Examples
📐 FHA Loan Formula & Complete Guide
FHA Mortgage Payment Formula
An FHA loan monthly payment consists of three components:
Total Monthly Payment = P&I + Monthly MIP
P&I = P × [r(1+r)^n] / [(1+r)^n - 1]
where:
P = Loan Amount (Home Price − Down Payment)
r = Monthly Interest Rate (Annual Rate ÷ 12)
n = Total Months (Loan Term × 12)
Upfront MIP = Base Loan Amount × 0.0175
Annual MIP Rate = 0.50% (most scenarios)
Monthly MIP = (Base + Upfront MIP) × Annual MIP Rate ÷ 12
P&I = P × [r(1+r)^n] / [(1+r)^n - 1]
where:
P = Loan Amount (Home Price − Down Payment)
r = Monthly Interest Rate (Annual Rate ÷ 12)
n = Total Months (Loan Term × 12)
Upfront MIP = Base Loan Amount × 0.0175
Annual MIP Rate = 0.50% (most scenarios)
Monthly MIP = (Base + Upfront MIP) × Annual MIP Rate ÷ 12
2025 FHA MIP Rates
The annual Mortgage Insurance Premium (MIP) rates for FHA loans in 2025 depend on your down payment and loan term:
- ≤15% down payment, ≤30-year term: 0.50% annual MIP
- ≤15% down payment, >30-year term: 0.55% annual MIP
- >15% down payment: 0.50% annual MIP
All FHA loans require a one-time Upfront MIP of 1.75% of the base loan amount, which can be rolled into the loan balance.
What Is FHA MIP?
FHA Mortgage Insurance Premium (MIP) is insurance that protects lenders against losses if a borrower defaults on an FHA loan. It consists of two parts:
- Upfront MIP (UFMIP): 1.75% of the loan amount, paid at closing or financed into the loan.
- Annual MIP: 0.50%–0.55% of the loan balance, paid monthly as part of your mortgage payment.
Unlike conventional PMI, FHA MIP generally stays for the life of the loan if your down payment is less than 10%. With 10% or more down, MIP is removed after 11 years.
FHA vs. Conventional Loans
Understanding the key differences between FHA and conventional loans:
- Down Payment: FHA requires as little as 3.5% (with 580+ credit score); conventional typically requires 5–20%.
- Credit Score: FHA is more lenient (minimum 500 with 10% down, 580 with 3.5% down); conventional typically requires 620+.
- Mortgage Insurance: FHA has both upfront (1.75%) and annual MIP (0.50%–0.55%). Conventional PMI can be removed once you reach 20% equity.
- Loan Limits: FHA has maximum loan limits that vary by county (typically $498,257–$1,149,825 in 2025).
- Property Standards: FHA requires an appraisal with minimum property standards; conventional loans are less strict.
When to Refinance an FHA Loan
Consider refinancing your FHA loan in these scenarios:
- Rate Reduction: If current rates are at least 0.75%–1% lower than your existing rate.
- FHA Streamline Refinance: A simplified refinance with reduced documentation and no appraisal required (must already have an FHA loan).
- Remove MIP: If you put less than 10% down originally, you'll need to refinance to a conventional loan to eliminate MIP.
- Switch Loan Term: Refinance from a 30-year to a 15-year term to build equity faster (if you can afford higher payments).
- Equity Building: Once you have 20%+ equity, refinancing to conventional removes FHA MIP permanently.
FHA Loan Requirements (2025)
- Minimum down payment: 3.5% (with credit score ≥ 580); 10% (with credit score 500–579)
- Maximum loan amount: Varies by county ($498,257–$1,149,825 for 1-unit properties)
- Debt-to-Income (DTI) ratio: Typically max 43% (up to 50% with compensating factors)
- Property must be primary residence — FHA loans are not for investment or vacation properties
- Mortgage Insurance Premium (MIP): Upfront 1.75% + annual 0.50%–0.55%
- Employment history: 2+ years steady employment preferred
❓ Frequently Asked Questions About FHA Loans
What is the minimum down payment for an FHA loan? ▼
The minimum down payment for an FHA loan is 3.5% of the purchase price if you have a credit score of 580 or higher. If your credit score is between 500 and 579, you'll need a 10% down payment. FHA loans are known for their low down payment requirements compared to conventional loans.
How is FHA MIP different from PMI? ▼
FHA MIP (Mortgage Insurance Premium) is specific to FHA-insured loans and includes both an upfront premium (1.75%) and an annual premium (0.50%–0.55% paid monthly). PMI (Private Mortgage Insurance) applies to conventional loans with less than 20% down. Key differences: FHA MIP generally lasts the life of the loan if you put down less than 10%, while conventional PMI can be canceled once you reach 22% equity. FHA MIP rates are standardized by the government, while PMI rates vary by lender and credit score.
Can I roll the upfront MIP into my loan? ▼
Yes, the FHA Upfront MIP (UFMIP) of 1.75% can be financed into the loan amount rather than paid out-of-pocket at closing. This means your total loan balance will be higher (base loan amount + upfront MIP), and you'll pay interest on it over time. This option helps reduce your upfront closing costs but increases your monthly payment slightly.
How long do I have to pay FHA MIP? ▼
For most FHA loans with a down payment of less than 10%, MIP lasts for the entire life of the loan — you'll pay it for as long as you have the mortgage. If your down payment is 10% or more, MIP is removed after 11 years. The only way to eliminate FHA MIP earlier is to refinance into a conventional loan once you have at least 20% equity in your home.
What is the maximum FHA loan amount in 2025? ▼
The FHA loan limit in 2025 varies by county. For most areas (low-cost counties), the limit is $498,257 for a single-family home. In high-cost areas, the limit can go up to $1,149,825. The exact limit depends on the median home price in your county. You can check FHA loan limits on the HUD website for your specific area.
Can I use an FHA loan for an investment property? ▼
No, FHA loans are only available for owner-occupied primary residences. You cannot use an FHA loan to purchase an investment property, vacation home, or second home. However, you can purchase a multi-unit property (up to 4 units) with an FHA loan as long as you live in one of the units. This is a popular strategy for first-time home buyers looking to offset their mortgage with rental income.