FHA Loan Calculator

MIP is mortgage insurance required on FHA loans, in two parts: an upfront premium of 1.75% of the base loan amount (usually financed into the loan), and an annual premium charged monthly, typically 0.50%–0.75% a year depending on your down payment, loan term, and loan amount. Unlike conventional PMI, FHA MIP doesn't depend on your credit score.

3.5% of the purchase price with a credit score of 580 or higher. Borrowers with a score of 500–579 can still qualify for FHA financing but must put down at least 10%; FHA loans generally aren't available below a 500 score.

It depends on your loan-to-value (LTV) at closing. If your LTV was 90% or below (roughly a 10%+ down payment), annual MIP is charged for 11 years. If your LTV was above 90% (roughly under 10% down, including the common 3.5%-down scenario), MIP is charged for the entire loan term — there's no automatic cancellation once you reach a certain equity level, unlike conventional PMI.

If your loan qualifies for the 11-year MIP period, it ends automatically. Otherwise, the main way to remove FHA MIP is to refinance into a conventional loan once you have enough equity (typically 20%) to avoid PMI — compare that scenario with the Refinance calculator.

It depends on your credit score and down payment. FHA MIP rates don't vary by credit score, which can make FHA cheaper for borrowers with lower scores; conventional PMI is priced by credit score and LTV and can be cheaper for borrowers with strong credit and a slightly larger down payment. The comparison card here uses a planning-estimate PMI rate — get an actual conventional quote to compare precisely.

For 2026, the national FHA loan limit for a one-unit home is $541,287 in most areas, up to $1,249,125 in high-cost areas, with higher limits in Alaska, Hawaii, Guam, and the U.S. Virgin Islands. The exact limit for your specific county can be higher than the floor — look it up at HUD's mortgage limits tool before assuming a price qualifies.

Most borrowers finance it into the loan, which this calculator does by default, since it avoids adding to closing costs. Paying it in cash lowers your loan amount (and slightly lowers total interest and your payment) but requires more cash upfront — run the numbers both ways if you have the cash available.

No. Unlike conventional PMI, which conventional loans cancel once the scheduled balance reaches 78% of the original value, FHA's MIP duration is fixed by your original loan-to-value at closing — extra payments that pay the loan down faster don't shorten the MIP period. Refinancing to a conventional loan is the usual path once you have enough equity.

Yes, generally. HUD's annual MIP table charges a lower rate for loans with an original term of 15 years or less at the same loan-to-value, since a shorter loan represents less risk over time. A 15-year term also builds equity faster, which can shorten how long MIP applies if it brings your loan-to-value to 90% or below at closing.

No. FHA loans are open to repeat buyers too, as long as it will be your primary residence — they're not restricted to first-time buyers, though their low down payment and flexible credit requirements make them especially popular for a first purchase.