Advanced FHA Loan Calculator

Calculate your FHA loan payment including mortgage insurance, taxes, and more. See how much you can afford with FHA's low down payment requirements.

Property Details

$300,000
Minimum 580 for 3.5% down payment
Advanced Property Options
Typically 2-6% for FHA loans [[40]]
Taxes, insurance, and interest

Loan Details

4.50%

FHA Down Payment Requirements

Minimum down payment is 3.5% for credit scores of 580+ [[25]]. For credit scores between 500-579, minimum down payment is 10% [[22]].

FHA Mortgage Insurance

Upfront MIP: 1.75% of loan amount [[14]]. Annual MIP: 0.55% for 30-year loans with down payment < 5% [[13]].

Credit cards, auto loans, student loans

Results Summary

FHA Loan Breakdown

$1,592
Principal, Interest, Taxes, Insurance & MIP
Base Loan Amount
$289,500
Purchase price minus down payment
UFMIP (1.75%)
$5,066
Upfront Mortgage Insurance Premium
Total Loan Amount
$294,566
Base loan + UFMIP
MIP Duration
Life of Loan
30 years (down payment < 10%)

Monthly Payment Details

Component Monthly Amount Annual Amount
Principal & Interest $1,489 $17,868
Mortgage Insurance (MIP) $134 $1,608
Property Taxes $300 $3,600
Homeowners Insurance $100 $1,200
HOA Fees $0 $0
Total Monthly Payment $2,023 $24,276
Important Note: FHA mortgage insurance (MIP) remains for the life of the loan when down payment is less than 10% [[12]].

Debt-to-Income Analysis

Front-End DTI Ratio
35.0%
Housing expenses only
Back-End DTI Ratio
45.0%
All debt obligations
FHA Guideline
31%/43%
Max recommended ratios
DTI Status
Needs Improvement
Above FHA guidelines
FHA DTI Guidelines: Maximum 31% front-end DTI (housing expenses) and 43% back-end DTI (total debts). Higher ratios may be approved with compensating factors.

Cash to Close Estimate

Item Amount
Down Payment (3.5%) $10,500
Upfront MIP (1.75%) $0
Closing Costs (3.5%) $10,500
Prepaid Items $3,000
Total Cash Needed $24,000
Tip: FHA closing costs typically range from 2-6% of the loan amount [[40]]. Some closing costs can be rolled into the loan or covered by seller concessions.
Amortization
MIP Details
Savings Analysis
Year Principal Paid Interest Paid MIP Paid Remaining Balance
1 $4,520 $15,934 $1,608 $289,986
5 $6,870 $15,000 $1,608 $269,320
10 $9,520 $12,780 $1,608 $235,780
15 $12,850 $9,950 $1,608 $192,230
20 $16,980 $6,520 $1,608 $135,250
25 $22,100 $2,400 $1,608 $62,150
30 $28,470 $120 $1,608 $0
$179,340
Total Interest Paid Over 30 Years

FHA Mortgage Insurance Details

FHA Mortgage Insurance Premiums

Current Up-Front Mortgage Insurance Premium (UFMIP) is 1.75% of the base loan amount [[14]]. Annual MIP rates vary from 0.15% to 0.75% of the loan amount [[11]].

Upfront MIP (UFMIP)

1.75% of your base loan amount ($289,500)

Amount: $5,066
Financed: Yes (added to your loan amount)

Annual MIP Rate

0.55% for 30-year FHA loans with down payment less than 5% [[13]]

Rate: 0.55% annually
Monthly: $134.47

MIP Duration

Duration of mortgage insurance depends on your down payment

Down Payment: 3.5% (less than 10%)
Duration: Life of the loan (30 years)
Important: With a down payment less than 10%, FHA mortgage insurance remains for the life of the loan [[12]]. To remove MIP earlier, you would need to refinance to a conventional loan once you reach 20% equity.

MIP Comparison: FHA vs Conventional

Loan Type MIP/PMI Rate MIP/PMI Duration Monthly Cost
FHA Loan (3.5% down) 0.55% Life of loan $134
Conventional Loan (3.5% down) 0.50-1.50% Until 20% equity $122
Conventional Loan (20% down) None N/A $0
Note: Conventional loans require Private Mortgage Insurance (PMI) when down payment is less than 20%, but PMI can be removed once you reach 20% equity. FHA MIP typically remains for the life of the loan with less than 10% down payment.

Payment Comparison

Loan Type Down Payment Monthly Payment Total Interest (30y) MIP Duration
FHA Loan 3.5% $1,623 $179,340 Life of loan
Conventional Loan 3.5% $1,501 $155,364 Until 20% equity
Savings with Conventional - $122 $23,976 -
Conventional Loan 20% $1,452 $137,720 None
Savings with 20% Down - $171 $41,620 -

Long-Term Cost Analysis

Total FHA Cost (30y)
$473,906
Loan amount + interest + MIP
Total Conventional Cost (30y)
$450,922
Lower interest + shorter MIP
Potential Savings
$22,984
By choosing conventional loan
Consider: While FHA loans offer lower down payment requirements, they often result in higher long-term costs due to mortgage insurance that remains for the life of the loan when down payment is less than 10%.

FHA Loan Program Information

What is an FHA Loan?

FHA loans are mortgages insured by the Federal Housing Administration, designed to help low-to-moderate income borrowers qualify for a mortgage with more flexible requirements.

Key Point: FHA loans require a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher [[25]].

FHA Mortgage Insurance

FHA loans require both an Upfront Mortgage Insurance Premium (UFMIP) and an Annual Mortgage Insurance Premium (MIP).

  • UFMIP is 1.75% of the base loan amount and can be financed into the loan [[14]]
  • Annual MIP varies based on loan term, amount, and down payment [[11]]
  • With down payment < 10%, MIP lasts for the life of the loan [[12]]
  • With down payment ≥ 10%, MIP lasts for 11 years [[12]]

FHA Loan Benefits

  • Lower down payment requirements (as low as 3.5%)
  • More flexible credit requirements (minimum 580 for 3.5% down)
  • Allows gift funds for down payment and closing costs
  • Easier qualification requirements compared to conventional loans

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