Calculate FHA loan payments, mortgage insurance premium (MIP), and true monthly cost. Compare FHA vs conventional. Free calculator, no signup.
An FHA loan lets first-time homebuyers purchase with as little as 3.5% down — on a $350,000 home that's just $12,250 vs $70,000 for a conventional 20% down payment. The trade-off: FHA requires mortgage insurance premium (MIP) for the life of the loan in most cases. This calculator shows your full monthly payment including MIP so you know the true cost.
FHA loan limits for 2026: $524,225 in standard cost areas. High-cost areas (Hawaii, Alaska, certain metros) up to $1,209,750. Find your county limit at HUD.gov. Loans above the FHA limit require a jumbo loan or piggyback structure. The mortgage calculator above works for any loan amount — confirm your county limit first.
FHA MIP has two components: (1) Upfront MIP: 1.75% of the loan amount, added to the loan balance at closing. On a $335,000 loan (3.5% down on $350k home), that's $5,863. (2) Annual MIP: 0.55% for 30-year loans with LTV above 95% — about $153/month on a $335k loan. MIP stays for the life of the loan if you put less than 10% down, unlike conventional PMI which drops at 20% equity.
FHA wins when: credit score 580-679, down payment under 10%, or DTI 43-50%. Conventional wins when: credit 720+, 10%+ down, or plan to build 20% equity quickly. With a 760 credit score, a conventional loan with 5% down often beats FHA by $200-300/month once PMI vs MIP costs are compared.
3.5% down requires a minimum 580 credit score. If your score is 500-579, FHA allows 10% down. Below 500, you don't qualify for FHA. Most FHA lenders add overlays requiring 620+ — shop at least 3-4 lenders to find one that approves lower scores.
Yes. Putting 10%+ down reduces annual MIP and means MIP cancels after 11 years instead of lasting the life of the loan. If you have 10%+ to put down and a 620+ credit score, compare conventional loan costs — you may pay less overall with conventional PMI that drops at 20% equity.
FHA allows a back-end DTI up to 43%. With compensating factors, some lenders approve up to 50% DTI. This is more lenient than conventional loans, which typically cap at 43% without exceptions.
Yes — FHA covers 1-4 unit properties as long as you occupy one unit as your primary residence. Rental income from other units counts toward qualifying income (typically 75% of the lease amount).
FHA loan processing typically takes 30-60 days from application to closing. The FHA appraisal also checks property condition — peeling paint, broken windows, or safety hazards must be repaired before closing, which can delay timelines.
Yes — every FreeFixo tool, including the FHA Loan Calculator 2026 — Payment, MIP & Qualification Guide, is 100% free with no paywall, no premium tier, and no usage limits. You do not need to create an account, enter a credit card, or share an email.