FHA Loan Calculator
FHA loans are very popular because they require just a 3.5% down payment. Use this calculator to determine how much your estimated mortgage payment will be. For a more accurate estimate enter your credit score below.
- Principal and Interest
- FHA Mortgage Insurance
- Property Tax
- Homeowners Insurance
Rates can vary depending on the lender. Shop for the lowest interest rates.Compare Rates
Calculator Terms and Definitions
FHA home loans have low credit and down payment requirements. Which is why they are one of the more popular types of mortgage loans used. Here are the definitions of the terms.
Principal and Interest
The principal and interest is the amount of the payment applied to the principal balance, and the interest charged by the lender.
FHA Mortgage Insurance
FHA mortgage insuranceis the fee the FHA charges for guaranteeing the mortgage loan. Rates are generally between 0.80% – 0.85% of the loan amount. MIP is broken down into 12 payments, and included in your monthly mortgage payments.
Homeowners are required to pay property taxes each year based on the city/county appraisal of the home. Property taxes will vary based on the county and state the property is located in. This FHA mortgage calculator takes the average property tax rate in each state to figure the rate. Real estate taxes are usually included in your monthly payment, and go into an escrow account set up by the lender.
Homeowners insurance is hazard insurance on the home itself. It covers things like hail and fire damage. The insurance rates will vary, but are typically between $600-$2000 per year. Your mortgage payment will include homeowners insurance, and is deposited into your escrow account so your lender can pay the insurance company annually.
A homeowners associationis a committee that takes steps to ensure the neighborhood is clean and uniform. If you live in a community that has an HOA, you will be required to pay an HOA fee annually. This fee is not included in your monthly payment, you will be required to pay it out of your pocket.
Who is Eligible for an FHA Loan?
- 500 credit score with 10% down payment
- 580 credit score with 3.5% down payment
- Employed for the past 2 years
- Tax returns showing sufficient income for a mortgage
- 43% maximum debt-to-income ratio
FHA loans require a down payment of 3.5%, assuming you have at least a 580 credit score. If your score is below 580 you need 10% down, please enter 10% for the down payment.
There is down payment assistance programs and grants available for qualifying homebuyers. Check if there are any homebuyer programs in your state on the HUD website.
This calculator is assuming you have good credit. If your credit score is below 680, please increase the interest rate for a more accurate calculation.
Mortgage insurance premiums (MIP) is required on all FHA mortgages regardless of loan-to-value ratio. Typically, the FHA MIP rate is 0.85% of the loan amount, it drops to 0.80% with a 10% down payment. But, mortgage insurance is required for the life on the loan, in most cases.
How Much House Can You Afford?
This FHA loan calculator will give you the breakdown of the monthly payment you can expect. However, it does not tell you how much of a loan you will get. To see how much house you can afford check out our home affordability calculator.