FHA Loan Calculator: MIP & Down Payment

FHA notes (2026)

Limits

Floor $541,288 to ceiling $1,249,125 in high-cost areas.

MIP duration

10%+ down: MIP can end after 11 years. Under 10%: MIP often runs for the life of the loan unless you refinance.

Appraisals

FHA appraisals emphasize safety and habitability. Heavy fixers may need FHA 203(k) or repairs before closing.

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.

What This Calculator Does

This FHA loan calculator estimates monthly mortgage payments including both the upfront mortgage insurance premium (UFMIP) and the annual MIP specific to FHA-backed loans. Enter a home price, down payment, interest rate, and loan term to see the base loan amount, financed UFMIP, total loan balance, monthly principal and interest, monthly MIP, property tax, homeowner’s insurance, and the full PITI payment. The tool also shows total cash needed at closing and how long MIP lasts based on your down payment. It is designed for first-time buyers considering FHA’s low 3.5% entry, borrowers with credit scores between 580 and 700 comparing FHA against conventional options, and anyone evaluating the true lifetime cost of FHA mortgage insurance. The calculator does not cover FHA 203(k) renovation loans or streamline refinance scenarios.

How to Use This Calculator

Enter the home purchase price and your down payment—FHA requires a minimum of 3.5% with a credit score of 580 or higher, or 10% with a score between 500 and 579. Input the interest rate from your lender quote and select the loan term (typically 30 years). Add your annual property tax rate and homeowner’s insurance premium to include escrow in the monthly total. The results break down the base loan, UFMIP amount (1.75% added to the balance), total financed loan, monthly P&I, monthly MIP, tax and insurance escrow, and the combined PITI+MIP payment. Review the MIP duration: with less than 10% down, MIP lasts the life of the loan; with 10% or more down, it cancels after 11 years.

FHA Mortgage Insurance Structure

Upfront MIP (UFMIP)

A one-time premium due at closing, typically financed into the loan:

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

Annual MIP (Monthly Premium)

Ongoing insurance paid monthly as part of your mortgage payment:

LTV > 95%:

0.55% annual rate (most 3.5% down buyers)
LTV ≤ 95%:

0.50% annual rate (5%+ down buyers)
Duration:

Life of loan (<10% down) or 11 years (≥10% down)
Monthly Cost:

$350K loan at 0.55% = ~$160/month

How the Math Works

FHA Loan Amount and UFMIP

The FHA base loan amount is the home price minus your down payment. The Upfront Mortgage Insurance Premium (UFMIP) is then added:

\text{Base Loan} = \text{Price} - \text{Down Payment}

\text{Total Loan} = \text{Base Loan} \times (1 + 0.0175)

The 1.75% UFMIP is almost always financed into the loan, increasing the principal you pay interest on.

Price:

Purchase price of the home
Down Payment:

Minimum 3.5% (credit score 580+) or 10% (score 500–579)
UFMIP (1.75%):

One-time upfront premium; on a $350,000 base loan this adds $6,125 to the balance

Monthly Payment (PITI + MIP)

The monthly mortgage payment uses the standard amortization formula on the total loan (including financed UFMIP):

M = L \frac{r(1+r)^n}{(1+r)^n - 1}

where L is the total loan amount, r is the monthly interest rate, and n is the total number of payments. The full monthly obligation adds annual MIP, property tax, and insurance:

\text{PITI} = M + \frac{L \times \text{MIP Rate}}{12} + \frac{\text{Annual Tax}}{12} + \frac{\text{Annual Insurance}}{12}

L (Total Loan):

Base loan + financed UFMIP
r (Monthly Rate):

Annual interest rate ÷ 12
MIP Rate:

0.55% annually for LTV > 95%; 0.50% for LTV ≤ 95%

Worked Example

Home price: $400,000, 3.5% down ($14,000), 6.5% rate, 30-year term.

Base loan: $400,000 − $14,000 = $386,000
UFMIP: $386,000 × 0.0175 = $6,755
Total loan: $386,000 + $6,755 = $392,755
Monthly P&I: $392,755 at 6.5%/12 for 360 months = $2,483
Monthly MIP: $392,755 × 0.0055 / 12 = $180
Property tax ($5,000/yr) + insurance ($1,800/yr) = $567/mo
Total PITI + MIP: $3,230/month

With 3.5% down, MIP continues for the life of the 30-year loan. Total MIP paid over 30 years: roughly $64,800.

10% Down Escape:

Putting 10% down ($40,000) cancels MIP after 11 years, saving ~$34,000 in total MIP over the loan life
LTV at Closing:

LTV = Total Loan / Home Price. FHA LTV can exceed 96.5% because UFMIP is financed into the loan

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

The most common way to eliminate FHA mortgage insurance:

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

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 term, 30 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.

Sources & citations

References used for the calculation method and definitions. Links open in a new tab when available.

[1]

CFPB – FHA loans (MIP overview)

CFPB summary of FHA mortgage insurance requirements, low down payment options, and how MIP differs from conventional PMI.

[2]

HUD – FHA Mortgage Limits

HUD lookup tool for FHA loan limits by county, updated annually based on median home prices and conforming loan limit changes.

[3]

CFPB – What is mortgage insurance and how does it work?

CFPB explainer of FHA vs. conventional mortgage insurance, including upfront and monthly costs, directly relevant to FHA MIP.

Property

Down payment

Credit score

Loan terms

Upfront MIP (1.75%)

Annual costs

DTI check

Monthly payment split

Refinance target