Home Price & Down Payment
FHA minimum 3.5% down with 580+ credit
FHA minimum: 3.5% with 580+ credit score, 10% with 500-579 credit score
Loan Terms
Interest rate and loan duration
Property Costs
Annual taxes and insurance
FHA Mortgage Insurance (MIP)
Upfront MIP
$5,911
1.75% of base loan amount (financed into loan)
Annual MIP
$1,858/year
$155/month added to payment
Total MIP Over Loan Term
$42,999
This is the total cost of FHA mortgage insurance. Consider refinancing to conventional loan when you have 20% equity.
Monthly Payment Breakdown
Cash Needed at Closing
Note: Upfront MIP ($5,911) is typically financed into the loan, not paid at closing.
Loan Balance Over Time
FHA vs Conventional Loan
| Feature | FHA Loan | Conventional |
|---|---|---|
| Min. Down Payment | 3.5% | 3-5% |
| Min. Credit Score | 500-580 | 620-680 |
| Mortgage Insurance | Required (life of loan) | Until 20% equity |
| Upfront Insurance | 1.75% | None |
| Loan Limits | County-based | Conforming limits |
Adjust Down Payment
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Personalized Insights
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Note
Total FHA mortgage insurance cost: $42,999 over the life of the loan. This includes $5,911 upfront and $37,089 in annual MIP.
Heads Up
With less than 10% down, FHA MIP lasts the entire loan term. Consider saving for 10%+ down to remove MIP after 11 years.
Good News
You could reach 20% equity and refinance to a conventional loan (eliminating MIP) in approximately 8 years if home values remain stable.
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Frequently Asked Questions
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help borrowers who may not qualify for conventional loans. FHA loans require lower down payments (as low as 3.5%), have more flexible credit requirements, and allow higher debt-to-income ratios than conventional loans.
What is the minimum down payment for an FHA loan?
The minimum FHA down payment is 3.5% for borrowers with credit scores of 580 or higher. Borrowers with credit scores between 500-579 must put down at least 10%. The down payment can come from savings, gifts from family, or down payment assistance programs.
What is FHA mortgage insurance premium (MIP)?
FHA MIP consists of two parts: an upfront MIP of 1.75% of the loan amount (can be rolled into the loan), and an annual MIP of 0.45-0.85% depending on loan term and LTV ratio. Unlike PMI on conventional loans, FHA MIP typically lasts the life of the loan for most borrowers.
What are FHA loan limits?
FHA loan limits vary by county and are updated annually. In 2024, limits range from $472,030 in low-cost areas to $1,089,300 in high-cost areas. You can check your county's specific limit on the HUD website. Loans exceeding these limits require conventional financing.
How long do I pay FHA mortgage insurance?
For loans with less than 10% down payment, FHA MIP is required for the entire loan term. With 10% or more down, MIP can be removed after 11 years. To eliminate MIP sooner, borrowers often refinance into a conventional loan once they have 20% equity.
How this works
Calculations are run entirely in your browser. No inputs are sent to our servers and no account is required. Formulas follow standard US definitions from the IRS and the CFPB where applicable; international users should confirm local tax and regulatory rules apply.
What this tool can’t do
When to consult a professional
This is a software engineering tool, not financial advice. Run the math here, then take the result to a certified financial planner, CPA, or your bank before making a decision that materially affects your money.
Sources
- [1]Consumer Financial Protection Bureau (CFPB)Official sourceconsumerfinance.govAccessed Apr 21, 2026
US consumer finance regulator; authoritative on mortgage disclosures, APR rules, credit cards.
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).