Use Our FHA Loan Calculator to Estimate Your Monthly Payments
Quickly estimate your monthly payment, including principal, interest, FHA mortgage insurance, property taxes, and homeowner’s insurance. Enter your number and see what you can afford with a low down payment.
How to Use the FHA Loan Calculator
- Enter Purchase Price
- Enter Down Payment – Either by percentage or dollar amount. As you adjust the purchase price, the percentage locks and the down payment automatically updates.
- Adjust Interest Rate – FHA loan rates are generally lower than conventional.
- Select Loan Term – Most of our clients choose a 30 year loan, which is the maximum FHA allows.
- Enter Annual Taxes, Insurance, and monthly HOA fees (if applicable)
- The calculator automatically factors in the required FHA Mortgage Insurance Premium (MIP). This percentage changes based on different down payment amounts and loan terms.
FHA Loan Requirements & Key Benefits
FHA loans are government-backed mortgages designed to help more people become homeowners, especially those with lower credit scores or smaller down payments. Check out FHA Home Loans for Buying a Home. Here’s why FHA loans are popular:
- Low Down Payment: The down payment requirement is minimal, and most down payment assistance programs, like Utah Housing, use FHA loans.
- Flexible Credit Requirements: The minimum credit score for FHA loans is 500 with a higher down payment, and 580 with a lower down payment.
- Competitive Interest Rates: Because FHA loans are insured by the government, rates are typically 0.5% less than traditional conventional loans
- Standardized Mortgage Insurance: The FHA Mortgage Insurance (MIP) rate is based on your loan amount, down payment, and loan term. Your credit score doesn’t change the MIP, and it has a much lower effect on the interest rate. This is why FHA loans make more sense for lower credit score buyers.
How does FHA Mortgage Insurance work?
FHA loans require two types of mortgage insurance, which covers losses through the program.
- Annual Mortgage Insurance Premium (MIP): This is added to your monthly payment and decreases overtime. The rate (0.55% for example) is multiplied by the base loan amount to find the annual premium, and then divided by 12 to find the monthly payment amount. This rate varies by down payment, loan term, and loan amount.
- Upfront Mortgage Insurance Premium (UFMIP): This is a 1.75% fee that FHA charges on all FHA loans, and it is usually rolled into the loan. If you refinance to another FHA loan within 36 months, FHA will credit a portion of the UFMIP back towards your new loan.
Frequently Asked Questions
How do FHA loan limits work?
FHA sets loan limits by county and property type each year. Use HUD’s lookup tool or ask your lender to find your local limit.
Can I use gift funds for my down payment?
Yes! FHA allows the entire down payment and closing costs to come from eligible gift funds. FHA specifies who is eligible to gift money towards your down payment.
Can I refinance my FHA loan?
Absolutely. FHA offers streamline refinance programs to lower your rate and payment with minimal paperwork.
Does FHA require mortgage insurance?
Yes. All FHA loans require both upfront and annual mortgage insurance premiums.