FHA Loan Calculator
Calculate FHA mortgage payments with MIP, compare FHA vs conventional loans, and check 2026 loan limits.
- Upfront MIP: 1.75% of loan amount (can be financed)
- Annual MIP: 0.55% for most loans (paid monthly)
- Duration: MIP is required for the life of the loan (if down payment < 10%)
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About This Calculator
The FHA Loan Calculator estimates your monthly payments including principal, interest, and the required mortgage insurance premiums for FHA-backed mortgages. For 2026, FHA loan limits increased to $541,287 for most areas and up to $1,249,125 for high-cost markets—calculated as 65% and 150% of the national conforming limit of $832,750 (HUD). With down payments as low as 3.5% for credit scores 580+, FHA loans remain the most accessible path to homeownership. This calculator factors in the 1.75% upfront MIP and 0.55% annual MIP that most borrowers pay, giving you accurate payment estimates before you apply.
How to Use the FHA Loan Calculator
- 1Enter the home purchase price you are considering based on your local market.
- 2Input your down payment amount—minimum 3.5% for credit scores 580+, or 10% for scores 500-579.
- 3Enter the current FHA interest rate from your lender quote or use market averages.
- 4Select your loan term (typically 30 years for FHA loans, though 15-year options exist).
- 5Review your estimated monthly payment including principal, interest, and MIP.
- 6Examine the upfront MIP (1.75%) which is typically financed into your loan amount.
- 7Compare total costs to conventional loan options to determine the best fit for your situation.
2026 FHA Loan Limits
FHA loan limits for 2026 increased to reflect rising home values. HUD announced these limits on December 4, 2025:
2026 FHA Single-Family Loan Limits (HUD):
| Area Type | 2026 Limit | 2025 Limit | Change |
|---|---|---|---|
| Floor (Low-Cost Areas) | $541,287 | $524,225 | +$17,062 |
| Ceiling (High-Cost Areas) | $1,249,125 | $1,209,750 | +$39,375 |
| National Conforming Limit | $832,750 | $806,500 | +$26,250 |
How Limits Are Calculated:
- Floor = 65% of national conforming limit ($832,750 × 0.65 = $541,287)
- Ceiling = 150% of national conforming limit ($832,750 × 1.50 = $1,249,125)
- High-cost areas = 115% of county median home price, capped at ceiling
2026 High-Cost Area Examples:
| Location | FHA Limit |
|---|---|
| San Francisco Bay Area, CA | $1,249,125 |
| New York City Metro, NY | $1,249,125 |
| Los Angeles County, CA | $1,209,750 |
| Seattle Metro, WA | $1,037,250 |
| Denver Metro, CO | $862,500 |
| Miami-Dade County, FL | $657,000 |
| Boston Metro, MA | $1,017,750 |
| Washington DC Metro | $1,089,300 |
Floor Limit Areas ($541,287): Most of the country uses the floor limit, including most of the Midwest, South, and rural areas nationwide. Check your specific county at HUD.gov.
FHA Mortgage Insurance Premium (MIP) Rates
FHA loans require two types of mortgage insurance. Understanding these costs is essential:
1. Upfront Mortgage Insurance Premium (UFMIP)
| Loan Type | UFMIP Rate |
|---|---|
| All FHA Purchase Loans | 1.75% |
| All FHA Refinance Loans | 1.75% |
UFMIP Calculation:
UFMIP = Base Loan Amount × 1.75%
Example: $350,000 home, 3.5% down ($12,250)
- Base loan: $337,750
- UFMIP: $337,750 × 0.0175 = $5,911
- Total loan with UFMIP: $343,661
2. Annual MIP Rates (2026) (NeighborsBank):
| Term | LTV | Annual MIP |
|---|---|---|
| >15 years | >95% | 0.55% |
| >15 years | 90.01-95% | 0.50% |
| >15 years | ≤90% | 0.50% |
| ≤15 years | >90% | 0.40% |
| ≤15 years | ≤90% | 0.15% |
Most Borrowers Pay 0.55% (30-year term with <10% down)
Monthly MIP Calculation:
Monthly MIP = (Loan Balance × Annual MIP Rate) ÷ 12
Example: $343,661 loan at 0.55%
- Annual MIP: $343,661 × 0.0055 = $1,890
- Monthly MIP: $1,890 ÷ 12 = $157.50/month
MIP Duration:
- Down payment <10%: MIP lasts life of the loan
- Down payment ≥10%: MIP drops off after 11 years
FHA Loan Requirements (2026)
FHA loans have more flexible requirements than conventional mortgages:
Credit Score Requirements:
| Credit Score | Down Payment Required | Notes |
|---|---|---|
| 580+ | 3.5% minimum | Standard FHA requirement |
| 500-579 | 10% minimum | Limited lender availability |
| Below 500 | Not eligible | FHA not available |
Note: Many lenders require 620-640 even though FHA allows lower. Shop multiple lenders if your score is 580-620.
Debt-to-Income (DTI) Requirements:
| DTI Ratio | Approval Likelihood |
|---|---|
| ≤43% | Standard approval |
| 43-50% | Manual underwriting, strong compensating factors |
| 50%+ | Possible with excellent compensating factors |
Compensating Factors:
- Large cash reserves (3+ months PITI)
- Minimal payment increase from current housing
- Significant additional income not counted
- Residual income meeting VA guidelines
Property Requirements:
- Must be primary residence (owner-occupied)
- Occupancy within 60 days of closing
- FHA-approved appraiser required
- Property must meet FHA minimum standards
- 1-4 unit properties allowed (you must live in one unit)
Down Payment Sources:
- Personal savings
- Gift funds (100% allowed from family, employer, union, charity)
- Down payment assistance programs
- Grants
- Seller credits (up to 6% for closing costs)
FHA vs. Conventional Loan Comparison
Choosing between FHA and conventional depends on your financial profile:
2026 Comparison: $400,000 Home Purchase
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Down Payment | 3.5% ($14,000) | 3-20% ($12,000-$80,000) |
| Credit Score Required | 580+ | 620+ (3% down requires 680+) |
| Upfront MIP/PMI | 1.75% ($6,755) | $0 |
| Annual MIP/PMI | 0.55% ($2,123/yr) | 0.3-1.5% ($1,200-$6,000/yr) |
| PMI Cancellation | Never (if <10% down) | At 20% equity |
| DTI Limit | Up to 50%+ | Usually 45% max |
| Gift Funds | 100% allowed | Some own funds required |
Monthly Payment Comparison ($386,000 loan at 6.5%):
| Component | FHA | Conventional (5% down) |
|---|---|---|
| Principal & Interest | $2,440 | $2,402 |
| Monthly MIP/PMI | $177 | $190 |
| Total P&I + Insurance | $2,617 | $2,592 |
FHA Wins When:
- Credit score below 680
- Down payment under 5%
- High DTI ratio (45%+)
- Recent bankruptcy or foreclosure (2-3 year wait vs. 4-7 years)
- 100% gift funds needed for down payment
Conventional Wins When:
- Credit score 700+
- Can put 10%+ down
- Want to remove PMI at 20% equity
- Buying investment property or second home
- Loan exceeds FHA limits
FHA Loan Payment Examples (2026)
Real-world examples using current 2026 rates and limits:
Example 1: First-Time Buyer - National Median
- Home price: $425,000
- Down payment: 3.5% ($14,875)
- Base loan: $410,125
- UFMIP (1.75%): $7,177
- Total loan: $417,302
- Interest rate: 6.25%
- Term: 30 years
| Component | Monthly Amount |
|---|---|
| Principal & Interest | $2,569 |
| Monthly MIP (0.55%) | $191 |
| Property Taxes (est.) | $354 |
| Homeowners Insurance | $175 |
| Total PITI + MIP | $3,289 |
Example 2: High-Cost Area (California)
- Home price: $850,000
- Down payment: 3.5% ($29,750)
- Base loan: $820,250
- UFMIP: $14,354
- Total loan: $834,604
- Interest rate: 6.25%
- Term: 30 years
| Component | Monthly Amount |
|---|---|
| Principal & Interest | $5,136 |
| Monthly MIP | $383 |
| Property Taxes (est.) | $885 |
| Homeowners Insurance | $300 |
| Total PITI + MIP | $6,704 |
Example 3: Low Down Payment, Rebuilding Credit
- Home price: $300,000
- Down payment: 10% ($30,000) - required for 550 score
- Base loan: $270,000
- UFMIP: $4,725
- Total loan: $274,725
- Interest rate: 7.0%
- Term: 30 years
| Component | Monthly Amount |
|---|---|
| Principal & Interest | $1,828 |
| Monthly MIP (11 years only) | $126 |
| Property Taxes (est.) | $250 |
| Homeowners Insurance | $125 |
| Total PITI + MIP | $2,329 |
Note: With 10%+ down, MIP is removed after 11 years, dropping payment to $2,203.
Removing FHA Mortgage Insurance
Unlike conventional PMI, FHA MIP has specific rules for removal:
MIP Duration Rules:
| Scenario | MIP Duration |
|---|---|
| Down payment <10% | Life of loan |
| Down payment ≥10% | 11 years |
| Loans before June 2013 | Cancellable at 78% LTV |
If MIP Lasts Forever, Your Options:
1. Refinance to Conventional Loan
- Most common strategy
- Requires 20% equity for no PMI
- Or accept temporary PMI (cancellable at 20% equity)
- Need 620+ credit score
When to Refinance Analysis:
| Current Situation | Refinance Makes Sense? |
|---|---|
| <5 years into loan, <15% equity | Wait for more equity |
| 5+ years, 15-19% equity | Maybe, compare rates |
| 5+ years, 20%+ equity | Likely yes |
| Rates dropped 0.5%+ | Likely yes |
| 10+ years, rates similar | Definitely yes |
Cost-Benefit Example:
- Current FHA loan: $350,000 balance, $160/mo MIP
- Annual MIP cost: $1,920
- Refinance closing costs: ~$6,000
- Break-even: 3.1 years
2. Make 10%+ Down Payment Initially
- MIP automatically drops after 11 years
- Worth considering if you have the funds
- Saves significant money over 30 years
3. Build Equity Through Principal Paydown
- Extra payments build equity faster
- Reach 20% equity sooner to refinance
- Every extra $100/month counts
FHA Loan Application Process
Step-by-step guide to getting an FHA loan:
Step 1: Check Your Credit (1-3 Months Before)
- Get free reports from AnnualCreditReport.com
- Dispute any errors
- Pay down credit cards to below 30% utilization
- Don't open new accounts
Step 2: Calculate Your Budget
| Monthly Income | Estimated Max Home Price |
|---|---|
| $5,000 | $225,000 - $275,000 |
| $7,500 | $350,000 - $425,000 |
| $10,000 | $475,000 - $575,000 |
| $15,000 | $725,000 - $875,000 |
Based on 43% DTI, 6.5% rate, 30-year term, taxes/insurance estimated
Step 3: Get Pre-Approved
- Shop at least 3 FHA-approved lenders
- Compare Loan Estimates within 3 days (one credit inquiry)
- Pre-approval valid 60-90 days typically
Step 4: Find a Home
- Work with agent experienced with FHA buyers
- FHA has property condition requirements
- Avoid homes needing major repairs
Step 5: Make an Offer
- Include pre-approval letter
- Request up to 6% seller credits for closing costs
Step 6: FHA Appraisal
- FHA-approved appraiser required
- Checks value AND property condition
- May require repairs before closing
Step 7: Close on Your Home
- Sign final documents
- UFMIP financed into loan
- Get your keys!
Timeline: Typically 30-45 days from contract to closing
Pro Tips
- 💡Compare FHA rates from at least 3 lenders on the same day—rates vary by lender and can save thousands over your loan term.
- 💡Consider a 10% down payment if possible. This limits MIP to 11 years instead of the life of the loan, potentially saving $20,000+.
- 💡Get pre-approved before house hunting. FHA pre-approval shows sellers you are a serious, qualified buyer.
- 💡Check your credit reports 3-6 months before applying. Dispute errors and pay down cards below 30% utilization to boost your score.
- 💡Plan your exit strategy: refinance to conventional once you reach 20% equity to eliminate ongoing MIP costs.
- 💡Ask about FHA 203(k) loans if the property needs repairs. This combines purchase and renovation financing in one loan.
- 💡Request seller credits up to 6% for closing costs. This can cover most or all of your out-of-pocket closing expenses.
- 💡The upfront MIP (1.75%) can be financed into your loan—you don't need this cash at closing.
- 💡If your score is 580-620, shop multiple lenders. Some require 620+ while others follow true FHA minimums.
- 💡Consider FHA even with good credit if you have high DTI (45%+). FHA allows higher ratios than conventional loans.
Frequently Asked Questions
The 2026 FHA loan limit is $541,287 for most areas (the floor) and up to $1,249,125 for high-cost areas (the ceiling). These are calculated as 65% and 150% of the national conforming loan limit of $832,750. Most counties use the floor limit, while places like San Francisco, New York City, and Los Angeles use the ceiling. Check your county's specific limit at HUD.gov.
