Estimate your FHA payment
Runs in your browser — nothing you enter is sent or stored. Uses standard FHA MIP factors (1.75% upfront, 0.55% annual) — your lender confirms exact figures.
Key takeaways
- FHA = 3.5% minimum down with qualifying credit, in exchange for mortgage insurance: 1.75% upfront (usually financed) plus an annual premium (~0.55% for typical 30-year loans).
- Under 10% down, the annual MIP lasts the whole loan — the common exit is refinancing to conventional once you have 20% equity.
- FHA is a tool for getting in the door, not a life sentence — plan the exit when you plan the entry.
Table of contents
How FHA loans work
FHA loans are made by regular lenders and insured by the Federal Housing Administration, which is why lenders accept smaller down payments and lower credit scores. The trade is MIP: an upfront premium of 1.75% of the loan (almost always rolled into the balance) and an annual premium paid monthly. Official program details live at HUD.gov, and a free HUD-approved counselor can tell you whether FHA, conventional, or a state first-time-buyer program fits you best.
FHA vs. conventional, in one paragraph
With strong credit and 10–20% down, conventional usually wins on total cost (its insurance cancels at 20% equity automatically). With thin credit or 3.5% down, FHA usually wins on approachability. Since the honest comparison depends on your DTI and rate quotes, run the DTI calculator and compare both quotes side by side — the PITI calculator makes them comparable.
Frequently asked questions
What credit score do I need for an FHA loan?
FHA's floor is 580 for 3.5% down (500–579 requires 10% down), but individual lenders often set higher minimums — and your rate always follows your score.
What is FHA MIP and how much does it cost?
Mortgage Insurance Premium: 1.75% of the loan upfront (usually financed) plus an annual premium around 0.55% for typical 30-year loans, paid monthly.
Can I remove FHA mortgage insurance?
With less than 10% down, annual MIP lasts the loan's life — borrowers typically remove it by refinancing to a conventional loan after reaching about 20% equity.
Estimates are informational only, not financial advice or an offer of credit — see our disclaimers.