FHA Loan Calculator
Calculate FHA loan payments including mortgage insurance premiums
🏛️ FHA Loan Details
💰 FHA Loan Results
Monthly Payment Summary
Loan Summary
Payment Breakdown
Amortization Schedule
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📋 About FHA Loans
What is an FHA Loan?
FHA loans are mortgages insured by the Federal Housing Administration, the largest mortgage insurer in the world. The FHA was established in 1934 after The Great Depression, and its continuing mission is to create more homeowners in the U.S.
It is important to remember that the FHA doesn't lend money, but insures lenders instead. This insurance protects lenders from losses in instances of defaults on loans.
Key Benefits
- ✓ Low down payment (as little as 3.5%)
- ✓ Lower credit score requirements
- ✓ Competitive interest rates
- ✓ Assumable loans
- ✓ No prepayment penalties
🛡️ Mortgage Insurance Premiums (MIP)
To qualify, the FHA charges a single upfront mortgage insurance payment (MIP) along with annual mortgage insurance premiums. The upfront MIP is the same for all, which is 1.75% of the loan amounts and can be financed directly into the mortgage loans.
The annual MIP varies based on the loan term, loan amount, and loan-to-value (LTV) ratio.
2025 FHA Annual MIP Rates
Loan Term—Longer than 15 Years
| Loan Amount | LTV Ratio | Annual MIP Ratio |
|---|---|---|
| $726,200 or Less | 95% or Less | 0.5% |
| $726,200 or Less | more than 95% | 0.55% |
| More than $726,200 | 95% or Less | 0.7% |
| More than $726,200 | more than 95% | 0.75% |
Loan Term—15 Years or Less
| Loan Amount | LTV Ratio | Annual MIP Ratio |
|---|---|---|
| $726,200 or Less | 90% or Less | 0.15% |
| $726,200 or Less | more than 90% | 0.4% |
| More than $726,200 | 78% or Less | 0.15% |
| More than $726,200 | 78% - 90% | 0.4% |
| More than $726,200 | more than 90% | 0.65% |
⚖️ Pros and Cons of FHA Loans
Pros
- ✓ Lower down payment requirements (3.5% minimum)
- ✓ More lenient credit score requirements
- ✓ Competitive interest rates
- ✓ Assumable loans (buyer can take over payments)
- ✓ No prepayment penalties
- ✓ Down payment can be a gift from family
Cons
- ✗ Mortgage insurance premiums (MIP) required
- ✗ Loan limits vary by location
- ✗ Property must meet FHA standards
- ✗ MIP may be required for the life of the loan
- ✗ Cannot be used for investment properties
- ✗ Upfront MIP increases loan amount