FHA Loan Calculator 2026 — MIP, Down Payment & Limits

Calculate FHA loan payments including upfront MIP (1.75%) and annual MIP premiums. See when MIP drops off. Free, instant results based on 2026 FHA limits.

By Konstantin Iakovlev · Updated September 2026 · Source: HUD — FHA Loan Requirements

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Loan Term

Monthly P&I

$2,172.17

Monthly MIP

$154.80

Total Monthly Payment

$2,772.80

FHA Loan Breakdown

Home Price$350,000.00
Down Payment (3.5%)- $12,250.00
Base Loan Amount$337,750.00
FHA Upfront MIP (1.75%)+ $5,910.63
Total Loan Amount (with UFMIP)$343,660.63
LTV Ratio96.5%
Principal & Interest$2,172.17
Annual MIP Rate (0.55%)$154.80
Property Tax$320.83
Homeowners Insurance$125.00
Total Monthly Payment$2,772.80
Total Interest Over Life of Loan$438,320.19

FHA MIP Details

  • Upfront MIP (UFMIP) of 1.75% ($5,910.63) is financed into the loan.
  • Annual MIP rate: 0.55% ($154.80/month).
  • MIP is required for the life of the loan (LTV > 90% at origination).

Use the FHA Loan Calculator 2026 — MIP, Down Payment & Limits above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

FHA loans are mortgages insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). They are designed to help borrowers who may not qualify for conventional loans, particularly first-time homebuyers, by offering lower down payment requirements and more flexible credit standards. The minimum down payment is 3.5% for borrowers with a credit score of 580 or higher, or 10% for scores between 500 and 579. This calculator covers 15-year and 30-year fixed-rate FHA loans.

The trade-off for easier qualification is mortgage insurance premiums (MIP). FHA loans require two forms of insurance: an upfront mortgage insurance premium (UFMIP) of 1.75% of the base loan amount, which is typically rolled into the loan balance, and an annual MIP that is paid monthly. For most borrowers putting down less than 5% on a 30-year loan, the annual MIP rate is 0.55% of the outstanding loan balance. Unlike conventional PMI, FHA annual MIP generally remains for the life of the loan unless you made a down payment of at least 10%, in which case MIP drops off after 11 years.

FHA loan limits vary by county and are based on local median home prices. In 2026, the floor limit (for low-cost areas) is $541,287, while the ceiling (for high-cost areas) is $1,249,125. Most counties fall somewhere between these figures. Borrowers must also meet FHA debt-to-income requirements: a front-end ratio (housing costs / gross income) of no more than 31% and a back-end ratio (total debts / gross income) of no more than 43%, though compensating factors may allow higher ratios.

When comparing FHA to conventional loans, the key considerations are total cost and break-even points. FHA loans are generally cheaper in the early years for borrowers with lower credit scores because the interest rate tends to be lower than what a conventional lender would offer for the same credit profile. However, the permanent MIP on FHA loans can make them more expensive over the full 30-year term. Many borrowers use FHA financing initially, then refinance into a conventional loan once they have 20% equity and stronger credit, eliminating the ongoing MIP.

Example: $350,000 home, 3.5% down, FHA 30-year at 6.5%

  1. 1 Step 1: Down payment = $350,000 x 3.5% = $12,250. Base loan amount = $350,000 - $12,250 = $337,750.
  2. 2 Step 2: Upfront MIP (UFMIP) = $337,750 x 1.75% = $5,910.63. This is typically financed into the loan, making the total loan amount $337,750 + $5,910.63 = $343,660.63.
  3. 3 Step 3: Monthly P&I on $343,660.63 at 6.5% for 30 years: the monthly rate is 0.065 / 12 = 0.00541667 and (1.00541667)^360 = 6.991798, so the payment is $343,660.63 x 0.00541667 x 6.991798 / 5.991798 = $2,172.17.
  4. 4 Step 4: With 3.5% down the loan-to-value ratio is 96.5%, above 95%, so the annual MIP rate is 0.55%. The calculator applies it to the base loan: $337,750 x 0.55% = $1,857.63 a year, or $154.80 a month. Because the LTV is above 90%, this MIP lasts for the life of the loan. HUD recalculates the premium each year on the average balance scheduled for that year, so the real charge drifts down slowly; the calculator keeps it level.
  5. 5 Step 5: P&I plus MIP = $2,172.17 + $154.80 = $2,326.97. Adding the calculator's default property tax (1.1% of the price, $320.83 a month) and homeowners insurance ($1,500 a year, $125.00 a month) gives a total monthly payment of $2,772.80.

Source: HUD — FHA Loan Requirements · Last updated: September 2026

Frequently Asked Questions

What credit score do I need for an FHA loan?
FHA loans require a minimum credit score of 580 for a 3.5% down payment, or 500-579 for a 10% down payment. These are FHA minimums; individual lenders may set higher thresholds, commonly 620. FHA loans are specifically designed for borrowers who may not qualify for conventional financing.
What is FHA mortgage insurance and how long do I pay it?
FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount (usually rolled into the loan) plus an annual MIP of 0.55% paid monthly. If you put down less than 10%, MIP lasts the entire loan term. With 10% or more down, MIP drops off after 11 years. This differs from conventional PMI, which ends at 80% LTV.
What are FHA loan limits for 2026?
FHA loan limits for 2026 range from a floor of $541,287 in low-cost areas to a ceiling of $1,249,125 in high-cost areas. Limits vary by county and are based on local median home prices. You can look up your county-specific limit on HUD's website.
Can I use an FHA loan for a second home or investment property?
No. FHA loans are restricted to primary residences only. You must move into the property within 60 days of closing and live there as your main home. FHA loans cannot be used for vacation homes, rental properties, or house-flipping. However, you can purchase a multi-unit property (up to 4 units) if you live in one of the units.
Is an FHA loan better than a conventional loan?
FHA loans are generally better for buyers with lower credit scores (below 680) or smaller down payments because they offer lower rates for those profiles. Conventional loans are usually better for buyers with good credit (700+) and at least 5% down, because conventional PMI is cheaper and can be removed sooner. Many borrowers start with FHA and refinance to conventional once they build equity and credit.
Can I roll the FHA upfront mortgage insurance premium into the loan?
Yes, the 1.75% UFMIP is almost always financed into the loan balance rather than paid at closing. On a $300,000 base loan, the UFMIP of $5,250 is added to make a total loan of $305,250. This increases your monthly payment slightly but avoids a large upfront cost.

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