FHA loans, insured by the Federal Housing Administration within HUD, let buyers purchase with as little as 3.5% down and with credit scores that conventional lenders often turn away. The trade-off is mortgage insurance. There is an upfront premium at closing and an annual premium built into every monthly payment, sometimes for the life of the loan. This FHA loan calculator estimates the full payment using HUD’s current premium rates. It also shows how long the MIP lasts and what it adds up to.
How to use the FHA loan calculator
- Enter the home price and your down payment. The minimum is 3.5% with a score of 580+, or 10% with a score from 500 to 579.
- Choose your credit score band, the interest rate and the loan term.
- Leave add the upfront MIP to the loan checked if you will finance it, as most borrowers do. Uncheck it to pay the premium in cash.
- Enter yearly property tax and insurance and any HOA dues.
FHA mortgage insurance premiums
The upfront MIP is 1.75% of the base loan. The annual MIP depends on the term, the loan size and your loan-to-value ratio. HUD set these rates in Mortgagee Letter 2023-05, and they still apply to new loans in 2026:
| Term | Base loan | LTV | Annual MIP | Lasts |
|---|---|---|---|---|
| Over 15 years | ≤ $726,200 | ≤ 90% | 0.50% | 11 years |
| Over 15 years | ≤ $726,200 | 90–95% | 0.50% | Life of loan |
| Over 15 years | ≤ $726,200 | > 95% | 0.55% | Life of loan |
| Over 15 years | > $726,200 | ≤ 95% / > 95% | 0.70% / 0.75% | 11 years if LTV ≤ 90%, else life |
| 15 years or less | ≤ $726,200 | ≤ 90% / > 90% | 0.15% / 0.40% | 11 years / life |
The monthly charge uses HUD’s method:
Worked example
A $350,000 home with 3.5% down at 6.25% for 30 years:
- Base loan: $350,000 × 96.5% = $337,750, an LTV of 96.5%.
- Upfront MIP: $337,750 × 1.75% = $5,910.63, financed for a total loan of $343,660.63.
- Principal and interest: $2,115.98.
- Annual MIP rate: 0.55%, because the LTV is over 95%. The year-one average balance is $341,836, so the monthly MIP is $341,836 × 0.55% ÷ 1.0175 ÷ 12 = $153.98.
- With $350 of property tax and $125 of insurance, the payment is $2,744.96 a month.
- MIP lasts the life of the loan and totals about $36,159 over 30 years, plus the upfront premium.
With 10% down instead, the annual rate drops to 0.50%, it ends after 11 years, and the payment falls to $2,579.00.
FHA vs. conventional
FHA can be the better fit when your credit score is below about 680 or your debt-to-income ratio is high. HUD’s standard guidelines are 31% for housing and 43% for total debt, and automated underwriting can approve more. Conventional loans with private mortgage insurance often cost less for borrowers with strong credit. Their PMI can also be canceled once you reach 20% equity, while FHA MIP with less than 10% down cannot. Compare the two with the mortgage calculator. Eligible veterans and service members should also check the VA loan calculator, since VA loans have no monthly mortgage insurance.
FHA loans have other requirements too: the home must be your primary residence and meet HUD’s property standards, and the base loan must be within your county’s FHA limit. Plan your cash with the down payment calculator and the closing costs calculator.
Estimates only. Lenders may add their own credit overlays, and HUD can change premium rates. Your Loan Estimate shows the exact MIP for your case.
Frequently asked questions
How much is FHA mortgage insurance in 2026?
FHA loans charge an upfront MIP of 1.75% of the base loan, usually added to the loan, plus an annual MIP paid monthly. For terms over 15 years with a base loan up to $726,200, HUD's annual rate is 0.55% with less than 5% down and 0.50% with 5% or more down. These are the rates HUD set in 2023, and they still apply in 2026.
How long do I pay FHA MIP?
If you put down at least 10% (LTV of 90% or less), annual MIP ends after 11 years. With less than 10% down it lasts for the life of the loan. Many borrowers remove it by refinancing into a conventional loan once they have about 20% equity.
What is the minimum down payment for an FHA loan?
3.5% with a credit score of 580 or higher, and 10% with a score from 500 to 579. Below 500, FHA financing generally isn't available. The down payment can come from savings, a documented gift or an approved assistance program.
What are the 2026 FHA loan limits?
For a one-unit home, HUD's 2026 limits range from a floor of $541,287 in lower-cost counties to a ceiling of $1,249,125 in high-cost areas. Limits are higher in Alaska, Hawaii, Guam and the U.S. Virgin Islands. Check your county's figure with HUD's loan-limit lookup.
How is the monthly MIP calculated?
HUD averages the 12 scheduled loan balances for each loan year and multiplies by the annual MIP rate. If the upfront premium was financed, the result is divided by 1.0175, and then by 12 for the monthly amount. Because the balance falls each year, the monthly MIP falls slightly every year.