FHA Loan Calculator 2026
Monthly payment with UFMIP, MIP, taxes, and insurance
Last updated: November 2025 · UFMIP 1.75% · Annual MIP 0.50%-0.55% (post-2023 reduction)
Home & Loan Details
3.5% of home price
FICO Score (informational)
Other Costs
MIP is Permanent (down payment < 10%)
Annual MIP of 0.55% ($157.51/mo) stays for the life of the loan. To remove it, refinance into a conventional loan once you reach 20% equity.
Monthly Payment Breakdown
Loan Summary
Loan Balance Over Time
Understanding FHA Loans
Who FHA Loans Are For
The Federal Housing Administration insures mortgages made by approved lenders to borrowers with limited down payments or moderate credit. FHA was created in 1934 to make homeownership accessible to working families. With a FICO score of 580+, you can put down as little as 3.5 percent; with scores between 500 and 579, the minimum jumps to 10 percent. FHA also accepts higher debt-to-income ratios than conventional loans and is friendlier to borrowers with recent credit issues such as a discharged bankruptcy or foreclosure.
UFMIP and Annual MIP
FHA loans carry two mortgage insurance charges. The Upfront Mortgage Insurance Premium (UFMIP) is 1.75 percent of the base loan and is typically rolled into the loan balance, so you finance it over the life of the mortgage. The Annual MIP is collected monthly and is currently 0.55 percent of the loan balance for high-LTV loans (above 95% LTV) and 0.50 percent for LTVs of 95% or less. These rates reflect the post-March 2023 reduction. If your original down payment was 10 percent or more, annual MIP drops off after 11 years; with less than 10 percent down, it is permanent.
Loan Limits and County Variation
FHA sets loan limits county by county each year. The 2026 nationwide floor is approximately $524,225 for a single-family home, and the ceiling in high-cost areas reaches roughly $1,209,750. Multi-unit limits (2-4 units) are higher. Always confirm the exact limit for your county on the HUD or FHA website before committing, as figures can be adjusted after the FHFA conforming-loan-limit announcement.
When FHA Beats Conventional
FHA wins when your FICO is below 680, when you have a recent (but resolved) credit event, when your DTI is above 43 percent, or when you cannot reach a 5 percent conventional down payment. Conventional wins when your credit is strong (740+), you can put down 5 percent or more, and you want to eliminate mortgage insurance at 20 percent equity. Many buyers start with FHA and refinance into conventional within 5-10 years once they build equity and improve their credit.
Frequently Asked Questions
What is the difference between an FHA loan and a conventional loan?
FHA loans are insured by the Federal Housing Administration and allow down payments as low as 3.5% with a FICO score of 580+, or 10% down with scores 500-579. They typically have looser credit requirements but require both upfront mortgage insurance (UFMIP) of 1.75% and an ongoing annual MIP. Conventional loans allow as little as 3% down for first-time buyers but generally require a FICO of 620+ and have stricter debt-to-income limits. Conventional PMI can be cancelled at 20% equity; FHA MIP is permanent if you put down less than 10%.
When can FHA mortgage insurance (MIP) be removed?
For FHA loans originated after June 3, 2013: if your original down payment was 10% or more, MIP automatically drops off after 11 years of payments. If your down payment was less than 10%, MIP is permanent for the life of the loan, the only way to remove it is to refinance into a conventional loan once you have at least 20% equity.
What are the FHA loan limits for 2026?
The Federal Housing Administration sets county-by-county loan limits each year. For 2026, the FHA floor (low-cost areas) is approximately $524,225 for a single-family home, and the ceiling (high-cost metro areas) is approximately $1,209,750. Special limits apply in Alaska, Hawaii, Guam, and the U.S. Virgin Islands. Limits are higher for 2 to 4-unit properties. Verify the exact limit for your county at hud.gov before applying, as numbers can be revised after FHFA conforming-limit updates.
How flexible is FHA on debt-to-income ratio?
FHA loans are more flexible on DTI than conventional loans. The standard guideline is 43% total DTI, but many FHA lenders will approve up to 50% (or higher in rare cases) when compensating factors are present, such as a large cash reserve, strong credit, or significant non-taxable income. The front-end ratio (housing payment / gross income) ideally stays below 31%, but can stretch with compensating factors.
What is an FHA streamline refinance?
An FHA Streamline Refinance lets existing FHA borrowers refinance into a new FHA loan with minimal documentation, no appraisal in most cases, and reduced credit overlays. The goal is a "net tangible benefit" such as lowering the rate by at least 0.5% or reducing the monthly payment. Streamline refis still require an upfront MIP of 1.75% (which can be partially refunded if the original loan is less than 3 years old) and continued annual MIP.
Can I use an FHA loan to buy a manufactured home?
Yes. FHA Title II loans cover manufactured homes (and the land they sit on) that meet HUD standards (built after June 15, 1976, on a permanent foundation, double-wide minimum in most cases). FHA Title I covers manufactured-only loans without the land. Loan limits are lower than for site-built homes, and lenders that originate manufactured-home FHA loans are less common, but the program makes ownership accessible with low down payments and competitive rates.