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FHA Loan Calculator

Property Information

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Minimum 3.5% required for FHA loans

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Additional Monthly Costs

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Understanding FHA Loans

FHA loans are government-backed mortgages designed to help first-time homebuyers and those with lower credit scores or smaller down payments purchase a home.

Key Features of FHA Loans

  • Lower down payment requirements (minimum 3.5%)
  • More flexible credit score requirements
  • Competitive interest rates
  • Available for 15 or 30-year terms
  • Requires mortgage insurance premiums

FHA Mortgage Insurance

FHA loans require two types of mortgage insurance:

  • Upfront MIP: 1.75% of the base loan amount
  • Annual MIP: 0.85% for most loans (paid monthly)
  • MIP required for the life of the loan if down payment < 10%
  • MIP can be removed after 11 years if down payment ≥ 10%

FHA Loan Requirements

  • Minimum credit score of 580 for 3.5% down payment
  • Minimum credit score of 500 for 10% down payment
  • Debt-to-income ratio typically below 43%
  • Property must meet FHA standards
  • Must be primary residence

Additional Costs

  • Property taxes
  • Homeowners insurance
  • HOA fees (if applicable)
  • Closing costs (2-6% of loan amount)
  • Home inspection and appraisal fees