How it works
FHA rules used (verified with HUD)
- Minimum down payment: 3.5% with a credit score of 580 or higher (maximum 96.5% LTV). 10% with a score of 500–579 (maximum 90% LTV). Scores below 500 are not eligible.
- Upfront MIP (UFMIP): 1.75% of the base loan amount, usually financed into the loan.
- Annual MIP (HUD Mortgagee Letter 2023-05, now in Handbook 4000.1 Appendix 1.0), charged monthly:
| Term | Base loan | LTV | Annual MIP | Duration |
|---|---|---|---|---|
| Over 15 yrs | ≤ $832,750 | ≤ 90% | 0.50% | 11 years |
| Over 15 yrs | ≤ $832,750 | 90–95% | 0.50% | Loan term |
| Over 15 yrs | ≤ $832,750 | > 95% | 0.55% | Loan term |
| Over 15 yrs | > $832,750 | ≤ 90% / 90–95% / > 95% | 0.70% / 0.70% / 0.75% | 11 yrs / term / term |
| 15 yrs or less | ≤ $832,750 | ≤ 90% / > 90% | 0.15% / 0.40% | 11 yrs / term |
| 15 yrs or less | > $832,750 | ≤ 78% / 78–90% / > 90% | 0.15% / 0.40% / 0.65% | 11 / 11 yrs / term |
HUD sets the base-loan threshold at the national conforming loan limit. For 2026 that is $832,750 (FHFA).
The formulas
Base loan = price − down payment · LTV = base loan ÷ price
Total loan = base loan + 1.75% UFMIP
P&I = M = L × r(1 + r)n / ((1 + r)n − 1)
Monthly MIP = annual MIP rate × average scheduled balance for the year ÷ 12
Total monthly payment = P&I + MIP + property tax/12 + insurance/12 + HOA. MIP falls a little each year as the balance falls, and it stops after 11 years when your LTV starts at 90% or less.
Worked examples
$350,000 home, 3.5% down, 6.5%, 30 years, 640 credit score
Down payment $12,250.00, base loan $337,750.00 (LTV 96.5%). UFMIP of 1.75% = $5,910.63, so the total loan is $343,660.63. P&I: $2,172.17. Because the LTV is above 95%, annual MIP is 0.55% for the life of the loan: about $154.80 a month in year 1. With $350.00 tax and $150.00 insurance a month, the estimated total is $2,826.97.
$300,000 home, 10% down, 6.25%, 30 years, 560 credit score
A score of 500–579 requires at least 10% down, so this borrower qualifies. Base loan $270,000.00 (LTV 90%), total loan with UFMIP $274,725.00. P&I $1,691.53, year-1 MIP $112.50 at 0.5% for only 11 years because the LTV is 90% or less. Total with tax and insurance: $2,179.03.
$350,000 home, 3.5% down, 6%, 15 years
On a 15-year term with LTV above 90%, annual MIP is 0.4%. P&I $2,900.00, year-1 MIP $112.58, total $3,512.59.
Is an FHA loan right for you?
FHA loans are insured by the Federal Housing Administration, part of HUD. Because the government insures the lender against loss, FHA allows lower credit scores, higher debt-to-income ratios and smaller down payments than many conventional loans. The trade-off is mortgage insurance. With less than 10% down, the annual MIP lasts for the life of the loan, so many borrowers later refinance into a conventional loan once they reach about 20% equity.
FHA vs. conventional loans
- Down payment. FHA requires 3.5% (580+ score). Some conventional programs allow 3%.
- Credit. FHA is more forgiving of lower scores, and its MIP rate does not rise as your score falls, unlike conventional PMI pricing.
- Mortgage insurance. FHA charges 1.75% upfront plus annual MIP. Conventional PMI has no upfront charge and can be cancelled once you reach 20% equity, and it ends automatically at 22% in most cases.
- Loan limits. FHA limits vary by county. Check HUD's FHA mortgage limits lookup for your area.
- Property standards. FHA appraisals check minimum property standards, which can complicate buying a fixer-upper.
Borrowers with strong credit and 5%–10% down often pay less overall with a conventional loan. Borrowers with lower scores often do better with FHA. Ask lenders for Loan Estimates on both.
Other FHA requirements
- The home must be your primary residence, and you generally must move in within 60 days.
- Your down payment can come from savings, a gift from an eligible donor, or an approved down payment assistance program.
- Lenders review your debt-to-income ratio, employment and credit history. Many lenders also set their own minimum scores above HUD's minimum.
- Sellers may contribute up to 6% of the sale price toward your closing costs.
Lowering your FHA costs
Putting 10% or more down limits annual MIP to 11 years. A 15-year term with 10% or more down qualifies for the lowest 0.15% rate. You can also compare the total cost with a conventional quote using our mortgage calculator, and check your budget with the house affordability calculator.
How to read your FHA results
Estimated monthly payment is the total you would send your servicer each month: principal and interest, year-1 mortgage insurance, and one-twelfth of your annual property tax and insurance, plus HOA dues. Upfront MIP is added to your loan balance, so you pay interest on it. Total MIP over the loan adds up every year's annual premium for as long as MIP lasts. Monthly MIP is figured on the base loan amount (before the upfront premium is added). It is useful for comparing an FHA loan with a conventional loan whose PMI would end sooner.
Your lender may round differently or calculate MIP on a slightly different balance, so expect small differences from your official Loan Estimate.
FHA loan limits and property types
FHA insures loans on one- to four-unit homes, approved condominiums and some manufactured homes, as long as you live in one of the units. Loan limits are set by county and are higher in expensive areas and for multi-unit properties. If the home you want costs more than the local limit allows, you will need a larger down payment or a different loan type. Look up your county on HUD's FHA mortgage limits page before you shop.
Frequently asked questions
What is the minimum down payment for an FHA loan in 2026?
3.5% of the purchase price with a credit score of 580 or higher, or 10% with a score of 500–579, per HUD. Borrowers below 500 are not eligible.
How much is FHA mortgage insurance?
There is an upfront MIP of 1.75% of the base loan amount plus an annual MIP that, for most 30-year loans, is 0.50% or 0.55% of the balance, depending on your loan-to-value ratio. It is paid monthly.
How long do you pay FHA MIP?
If your original LTV is 90% or less (10%+ down), annual MIP lasts 11 years. With less than 10% down it lasts for the full loan term. To remove it you would refinance into a non-FHA loan.
Can I roll the upfront MIP into my loan?
Yes. Most borrowers finance the 1.75% UFMIP into the loan amount, which this calculator assumes. You can also pay it in cash at closing.
What credit score do I need for an FHA loan?
HUD's minimum is 500 (with 10% down) or 580 for 3.5% down. Many lenders set higher minimums, often 600–620.
Are FHA MIP rates different for 2026?
No change was announced. The annual rates in effect are those set by Mortgagee Letter 2023-05 for loans endorsed on or after March 20, 2023. The large-loan threshold follows the national conforming loan limit, $832,750 for 2026.
Does this calculator include FHA loan limits?
No. FHA loan limits vary by county. Check HUD's FHA mortgage limits page to make sure your loan amount is within the limit for your area.