Use the calculator above to estimate your FHA loan payment by entering your home price, down payment, loan term, and interest rate. The result shows your estimated monthly principal & interest payment plus mandatory mortgage insurance (MIP) – the key components of an FHA mortgage payment.

How FHA Loans Are Calculated

FHA loan payments use the same standard mortgage formula as conventional loans, with two key differences: mandatory mortgage insurance and lower down payment requirements. The basic calculation is:

• Loan Amount = Home Price – Down Payment (minimum 3.5%)
• Base Payment = [Loan Amount × (Interest Rate/12)] / [1 – (1 + Interest Rate/12)^(-Term in Months)]
• Total Payment = Base Payment + Annual MIP (divided into 12 monthly payments)

For 2026, FHA loan limits range from $498,257 to $1,149,825 depending on your county’s housing costs.

What Affects Your Payment

• Down Payment: 3.5% minimum, but putting down 10%+ reduces MIP duration
• Loan Term: 15-year loans have higher payments but save on interest
• Interest Rate: FHA rates typically run 0.25-0.5% higher than conventional
• Mortgage Insurance (MIP): 0.55% annual fee for most loans + 1.75% upfront fee
• Property Taxes & Insurance: Usually escrowed and added to monthly payments

Tips to Lower Your Payment

• Improve your credit score – Scores below 580 face higher rates and require 10% down
• Shop multiple lenders – FHA rates can vary more than conventional loans
• Consider a 30-year term – Reduces monthly payment (but increases total interest)
• Ask about MIP reductions – Some lenders offer slight MIP discounts
• Time your purchase – Rates often dip during slower winter months

Common Questions

How long do I pay FHA mortgage insurance?

For loans with less than 10% down, MIP lasts the entire loan term. With 10%+ down, MIP drops after 11 years. The only way to remove it completely is to refinance to a conventional loan.

Can I use gift money for the down payment?

Yes – FHA allows 100% of the down payment to come from gift funds if properly documented. The donor must be a family member, employer, or close friend (not the seller).

Are FHA loans only for first-time buyers?

No – While popular with first-timers, FHA loans have no income limits or first-time buyer requirements. You can use them multiple times as long as you intend to occupy the property.