FHA Loan Calculator

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. Because the FHA insures the loan, lenders can offer more flexible qualifying requirements — including lower down payments (as low as 3.5%) and more lenient credit score minimums. In exchange, borrowers pay mortgage insurance premiums (MIP), both upfront and annually.

The minimum down payment for an FHA loan is 3.5% of the purchase price, provided your credit score is 580 or higher. If your credit score is between 500 and 579, you'll need at least a 10% down payment. Borrowers with scores below 500 are generally not eligible for FHA financing.

FHA loans require two types of mortgage insurance: an upfront MIP of 1.75% of the base loan amount (added to your loan balance at closing) and an annual MIP paid monthly, typically around 0.55% of the loan amount. Unlike conventional PMI, FHA MIP is often required for the life of the loan if your down payment is less than 10%.

FHA loan limits vary by county and are updated annually. For 2026, the baseline limit for a single-family home in most areas is around $524,225, while high-cost areas can have limits up to $1,209,750. You can check the exact limit for your county on the HUD website.

An FHA loan calculator helps you estimate your true monthly housing costs before you commit to a purchase. Beyond principal and interest, it factors in FHA mortgage insurance premiums, property taxes, and homeowners insurance — giving you a realistic picture of what homeownership will cost each month and helping you determine how much home you can afford.

FHA loans are government-backed and have lower down payment and credit score requirements, making them ideal for first-time buyers or those with limited credit history. Conventional loans are not government-insured and typically require higher credit scores and larger down payments, but they can be more cost-effective if you qualify — especially because PMI can be removed once you reach 20% equity, unlike FHA MIP.

Down payment assistance (DPA) programs are offered by state and local housing agencies, nonprofits, and some lenders to help eligible buyers cover the 3.5% FHA down payment. These programs may provide grants, forgivable loans, or deferred-payment loans. Eligibility requirements vary by program and location.

The most common mistakes include forgetting to include MIP in your monthly payment estimate, underestimating property taxes and insurance, and not accounting for HOA fees or maintenance costs. Make sure you enter realistic values for all optional fields so the calculator reflects your true total monthly housing expense.