FHA Loan Calculator: 2026 Limits & MIP Strategy
Calculate your FHA mortgage payment with 2026 loan limits. Estimate UFMIP, monthly MIP, and total cash-to-close with 3.5% down payment options.
FHA Mortgage Insurance Structure
Upfront MIP (UFMIP)
- Rate:1.75% of base loan amount
- Example:$350,000 loan = $6,125 UFMIP
- Financing:Added to loan balance, increasing monthly payment slightly
- Refund:Partial refund available if you refinance within 3 years
A one-time premium due at closing, typically financed into the loan:
Annual MIP (Monthly Premium)
- LTV > 95%:0.55% annual rate (most 3.5% down buyers)
- LTV โค 95%:0.50% annual rate (5%+ down buyers)
- Duration:Life of loan (<10% down) or 11 years (โฅ10% down)
- Monthly Cost:$350K loan at 0.55% = ~$160/month
Ongoing insurance paid monthly as part of your mortgage payment:
FHA vs. Conventional Comparison
When FHA Wins
- Credit Score 580-619:FHA accepts lower scores; conventional requires 620+
- Limited Savings:3.5% down vs. conventional's 5% minimum
- Higher DTI:FHA allows up to 50% DTI with compensating factors
- Recent Credit Events:Shorter waiting periods after bankruptcy/foreclosure
When Conventional Wins
- Credit Score 700+:Lower PMI rates than FHA MIP
- 20% Down Available:No mortgage insurance at all
- Long-Term Hold:PMI cancels at 78% LTV; FHA MIP may be permanent
- Higher Loan Amounts:No FHA ceiling limits on conventional/jumbo
MIP Removal Strategies
The Refinance Exit
- Target:Reach 20% equity (80% LTV) to qualify for conventional
- Timeline:Typically 3-7 years with appreciation + payments
- Costs:Refinance closing costs ($3-6K) vs. lifetime MIP savings
- Rate Environment:Wait for rates at/below your current rate
The most common way to eliminate FHA mortgage insurance:
FHA Loan Calculator FAQ
What is the minimum down payment for an FHA loan in 2026?
FHA requires 3.5% down with a credit score of 580 or higher. Borrowers with scores between 500-579 must put 10% down. Unlike conventional loans, FHA has no income limits, making it accessible to first-time buyers with limited savings.
What are the 2026 FHA loan limits?
FHA loan limits in 2026 range from $541,288 (floor in low-cost areas) to $1,249,125 (ceiling in high-cost areas like San Francisco or NYC). Limits are set by county based on median home prices. If your loan exceeds the local limit, you'll need a conventional jumbo loan.
What is UFMIP and how much does it cost?
UFMIP (Upfront Mortgage Insurance Premium) is 1.75% of your base loan amount, due at closing. Most borrowers finance it into the loan rather than paying cash. On a $300,000 loan, UFMIP is $5,250. This is in addition to the monthly MIP.
Will my FHA mortgage insurance ever go away?
It depends on your down payment. With 10% or more down, MIP cancels after 11 years. With less than 10% down (including the popular 3.5%), MIP continues for the entire loan termโ30 years on a 30-year mortgage. The only way to remove it is refinancing to a conventional loan once you have 20% equity.
What is the difference between FHA MIP and conventional PMI?
FHA MIP has two parts (upfront 1.75% + annual 0.50-0.55%) and may last the life of the loan. Conventional PMI has no upfront fee, rates vary by credit score (0.2-1.5%), and automatically cancels at 78% LTV. For borrowers with 700+ credit scores, conventional loans often have lower total insurance costs.
Can I use an FHA loan for a fixer-upper?
Standard FHA loans require the home to meet minimum property standards (safety, structure, utilities). Homes needing significant repairs may not qualify. However, FHA 203(k) loans allow you to finance both the purchase and renovation costs in one loan, with the repairs completed after closing.