Basic FHA Loan Calculator

What is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). These loans are designed to help low-to-moderate income borrowers who may have lower credit scores or smaller down payments.

FHA Loan Requirements

• Minimum Credit Score: 580 for a 3.5% down payment, 500-579 for a 10% down payment
• Down Payment: As low as 3.5% of the purchase price
• Debt-to-Income Ratio: Typically 43%, but can be higher with compensating factors
• Property Requirements: Must be your primary residence and meet FHA property standards
• Mortgage Insurance: Required for all FHA loans

FHA Mortgage Insurance

All FHA loans require mortgage insurance, which protects lenders if you default on your loan. There are two types:

Upfront Mortgage Insurance Premium (UFMIP)

A one-time payment of 1.75% of your loan amount, typically financed into the loan.

Annual Mortgage Insurance Premium (MIP)

An annual premium divided into monthly payments, ranging from 0.15% to 0.75% of the loan amount. The rate depends on your loan term, loan amount, and down payment.

For loans with less than 10% down payment, MIP is required for the life of the loan. For loans with 10% or more down payment, MIP can be removed after 11 years.