FHA Loan Calculator — 3.5% down, MIP included

How it works

Three pieces. The sourced minimum: FHA loans allow down payments as low as 3.5% (CFPB), and the page computes that minimum in dollars for your price. The upfront MIP: a percentage of the base loan — entered as an estimate, 1.75% by default — added to the amount financed, so U = P × u and the amortized amount is P + U. The annual MIP: a percentage of the loan per year — also an estimate, 0.55% by default — divided by 12 and added to every payment. Both MIP rates are deliberately adjustable rather than asserted: HUD sets the actual schedule by loan-to-value, term, and amount, so read your rates off the lender's estimate and enter them; the structure of the computation is what this page fixes.

Worked example

With both MIP rates set to zero the arithmetic is a published pair: a $15,000 loan at 9% over 5 years pays $311.38 a month (LibreTexts) — the same amortization underneath every FHA figure. On the default scenario — a $350,000 home at the 3.5% minimum down (a $12,250 down payment, the CFPB- sourced figure), 6.5% over 30 years, MIP assumed at 1.75% upfront and 0.55% a year — this calculator finances about $5,910 of upfront MIP into a $343,660 loan and adds about $155 of monthly MIP, landing near $2,327 a month all-in: its own composition for these inputs, with only the 3.5% floor and the amortization pair as published values.

Frequently asked questions

What down payment does an FHA loan require?

As low as 3.5 percent of the purchase price (CFPB) — $12,250 on a $350,000 home, which this page computes for any price. Individual lenders may require more depending on credit; the 3.5% is the program's published floor, not a promise of approval.

What is MIP and how is it different from PMI?

Both insure the lender, but the structures differ: FHA's MIP has an upfront premium (commonly financed into the loan) plus an annual premium paid monthly, and mortgage insurance is required on FHA loans regardless of down payment. Conventional PMI is monthly-only, applies at low down payments, and can end once equity is high enough — the PMI calculator models that side and its cancellation thresholds.

Why are the MIP rates adjustable instead of fixed?

Because HUD sets them by a schedule that varies with loan-to-value, term, and loan amount, and this page will not assert a rate its cited sources do not publish. The defaults are common ballpark figures to make the structure visible; replace them with the rates on your Loan Estimate for your actual numbers.

What does financing the upfront MIP do?

It adds the premium to the loan instead of paying it in cash at closing — the common choice. The cost is that the premium then accrues interest for the life of the loan; the benefit is less cash due up front. Setting the upfront rate to zero models paying it in cash instead.

How does an FHA loan compare with a VA loan?

Both are government-backed with low or no down payment. VA loans (for qualifying service members and veterans) charge a one-time funding fee and no monthly insurance; FHA charges upfront and monthly MIP but requires no service eligibility. The VA calculator models that structure for comparison.

Does FHA mortgage insurance ever end?

Its duration depends on the loan's terms and down payment, and for many low-down-payment FHA loans it runs for the life of the loan, unlike conventional PMI's automatic termination. This page models MIP as ongoing; confirm your loan's cancellation terms with the lender or servicer.

How accurate is this, and what does it exclude?

The amortization and the 3.5% floor are exact; the MIP figures are exactly as good as the rates you enter, which is why they are inputs. It excludes property tax, homeowners insurance, closing costs beyond the upfront MIP, FHA loan limits by county, and credit-based pricing. Confirm every rate against your Loan Estimate.