How this calculator works
The 1.75% upfront mortgage insurance premium is added to the base loan. The annual premium depends on term, loan size and loan-to-value, and is divided into monthly payments. With less than 10% down, FHA mortgage insurance lasts for the life of the loan; with 10% or more, it ends after 11 years.
Worked example
With the example values below: Monthly payment, $2,680 (MIP for the life of the loan). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Home price | $350,000 |
| Down paymentMinimum 3.5% with a 580+ score | 3.5% |
| Interest rate | 6% |
| Loan term | 30 years |
| Property tax rate | 1.1% |
| Homeowners insurance / yr | $1,700 |
Who FHA loans are for
FHA loans are insured by the Federal Housing Administration, which lets lenders accept smaller down payments and lower credit scores than most conventional loans. With a credit score of 580 or higher you can put down 3.5%; with a score from 500 to 579, the minimum is 10%. Debt-to-income ratios up to about 43%, and higher with compensating factors, are common.
They're popular with first-time buyers, but anyone can use one for a primary residence. Gift funds can cover the entire down payment.
FHA mortgage insurance (MIP)
FHA loans carry two kinds of mortgage insurance premium. The upfront premium is 1.75% of the base loan and is usually added to the loan. The annual premium is charged as a percentage of the balance and paid monthly; for most 30-year loans it's 0.50% to 0.55%.
How long you pay depends on your down payment. With less than 10% down, annual MIP lasts for the life of the loan. With 10% or more down, it ends after 11 years. Many borrowers later refinance into a conventional loan once they have 20% equity to drop it.
2026 FHA loan limits and property rules
FHA loan limits are set by county. For a one-unit home in 2026 they range from $541,287 in most of the country up to $1,249,125 in high-cost areas. The home must be your primary residence and pass an FHA appraisal, which checks that the property is safe and livable.
FHA loans can be used for one- to four-unit properties if you live in one unit, and the loans are assumable, which can be valuable to a buyer if rates have risen since you bought.
FHA vs. conventional
Get quotes for both FHA and conventional and compare them in the mortgage comparison calculator.
- Credit below about 680, or debt ratios near the top of conventional limits: FHA is often cheaper overall.
- Credit of 720 or more with 5% or more down: conventional PMI is usually cheaper and can be removed.
- Eligible veterans: a VA loan usually beats both.
- Rural or suburban buyers within income limits: compare a USDA loan.
Frequently asked questions
What is the minimum down payment for an FHA loan?
3.5% of the purchase price with a credit score of 580 or higher, or 10% with a score between 500 and 579. The down payment can come entirely from a documented gift.
How much is FHA mortgage insurance?
An upfront premium of 1.75% of the loan, usually financed, plus an annual premium of about 0.50% to 0.55% for most 30-year loans, paid monthly. On a $300,000 loan, 0.55% is about $138 a month.
Can you remove FHA mortgage insurance?
If you put down 10% or more, annual MIP ends after 11 years. With less than 10% down it lasts for the life of the loan, so the usual way to remove it is refinancing into a conventional loan once you have about 20% equity.
What credit score do I need for an FHA loan?
FHA allows scores as low as 500 with 10% down and 580 with 3.5% down. Many lenders set their own minimum around 580 to 620.
What is the FHA loan limit for 2026?
For a one-unit home, from $541,287 in most counties up to $1,249,125 in the highest-cost areas. Limits are higher for two- to four-unit properties.
Grow what this calculator projects.
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Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.