FHA Loan Calculator
Estimate an FHA mortgage payment with its mortgage insurance premiums, tax and insurance.
What makes an FHA loan different
FHA loans are insured by the Federal Housing Administration, so lenders accept smaller down payments and lower credit scores. In return you pay a mortgage insurance premium: an upfront premium, usually 1.75% of the loan, and an annual premium that is paid monthly.
Example
A 300,000 home with 3.5% down at 6.5% has a base loan of 289,500. With the 1.75% upfront premium the loan is about 294,566, and principal and interest are about 1,862. Adding 133 of mortgage insurance, 275 of property tax and 100 of insurance gives about 2,370 a month.
The annual premium rate depends on the loan size, the term and the down payment. The default of 0.55% is common for 30-year loans with a down payment under 5%, but check the current HUD schedule. With less than 10% down, the premium usually lasts for the life of the loan, so you may need to refinance to remove it. FHA loan limits vary by county.
FHA loan basics
- Down payment: as little as 3.5% with a credit score of 580 or higher, or 10% with a score from 500 to 579.
- Upfront mortgage insurance premium: usually 1.75% of the loan, which can be added to the loan.
- Annual mortgage insurance premium: paid monthly, often 0.55% of the loan on a 30-year loan with under 5% down.
- Loan limits are set by county, and are higher in expensive areas.
Example: a $300,000 home with 3.5% down
The base loan is $289,500. Adding the 1.75% upfront premium makes the loan about $294,566. At 6.5% over 30 years, principal and interest are about $1,862 a month, and the monthly mortgage insurance is about $133. With property tax and insurance, the total comes to roughly $2,370 a month.
FHA or conventional?
FHA loans are easier to qualify for, which helps buyers with smaller down payments or lower credit scores. But with less than 10% down, the annual premium lasts for the life of the loan, so many borrowers later refinance. A conventional loan with a good credit score and a larger down payment can be cheaper, because private mortgage insurance can be removed once your equity reaches 20%.
Check the current premium rates and your county's loan limit with HUD or your lender, since these can change.
Next steps: VA Mortgage Calculator, Mortgage Calculator, Real Estate Calculator (Monthly Home Cost).
Frequently asked questions
How much is FHA mortgage insurance?
Typically an upfront premium of 1.75% of the loan plus an annual premium, often about 0.55%, paid monthly. The exact rate depends on the loan size, term and down payment.
What credit score do I need for an FHA loan?
A score of 580 qualifies for the 3.5% down payment, and scores of 500 to 579 can qualify with 10% down. Lenders may set higher minimums.
Can I remove FHA mortgage insurance?
If you put down less than 10%, it usually lasts for the life of the loan. Refinancing into a conventional loan can remove it.
Can I use an FHA loan for any home?
It must be your primary residence and meet FHA property standards, so some homes need repairs before approval.
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