FHA loan calculator

It is insurance the government requires on every FHA loan, an upfront premium of 1.75% of the loan paid once, plus an annual premium, typically around 0.55% a year for most 30 year FHA loans, paid monthly as part of your payment. Unlike conventional PMI, FHA MIP usually cannot be removed just by reaching 20% equity.

Most borrowers finance it, since it only slightly raises the loan amount and the monthly payment, and preserves cash for moving and closing costs. Paying it in cash lowers your total loan amount and lifetime interest slightly, worth doing if you comfortably have the cash on hand.

3.5%, as long as your credit score meets the FHA minimum, typically 580. Below that credit threshold, FHA guidelines usually require at least 10% down. This is one of the lowest minimum down payments available on any standard loan program.

FHA loan limits vary by county, from about $541,287 in most areas up to $1,249,125 in the highest cost counties, and they cap how large an FHA loan can be in that county. This calculator estimates your payment at any price you enter, confirm your county limit separately before assuming eligibility.

It depends on your credit and down payment. FHA often wins for lower credit scores or a smaller down payment, since conventional PMI at those same terms can cost more than FHA MIP. With strong credit and 20% down, a conventional loan usually costs less overall since it has no mortgage insurance at all.