FHA Loan Calculator: Calculate Your FHA Mortgage Payment in 2026
Use our FHA loan calculator to estimate your monthly FHA mortgage payment including MIP, property taxes, and insurance. Understand FHA vs conventional loan requirements for 2026.
An FHA loan, backed by the Federal Housing Administration, is the most popular low-down-payment mortgage for first-time homebuyers in the United States. With a minimum 3.5% down payment and credit score requirements as low as 580, FHA loans make homeownership accessible to millions of Americans who cannot qualify for conventional mortgages.
This guide covers how to calculate your FHA loan payment, understand mortgage insurance premiums (MIP), compare FHA vs. conventional loans, and decide which is right for your situation.
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the US Department of Housing and Urban Development (HUD). The FHA does not actually lend money, it insures lenders against borrower default. This insurance allows lenders to offer more flexible qualifying terms.
Key characteristics of FHA loans:
- Minimum down payment: 3.5% with 580+ credit score; 10% with 500 to 579 score
- Credit score minimum: 500 (with 10% down); 580 (with 3.5% down)
- Debt-to-income ratio: Maximum 43% (some lenders allow up to 57% with compensating factors)
- Loan limits (2026): $524,225 in low-cost areas; up to $1,209,750 in high-cost areas (Alaska, Hawaii, Guam, US Virgin Islands)
- Property type: Primary residence only (no investment properties)
- Mortgage insurance: Required for the life of the loan (if less than 10% down)
How to Calculate an FHA Loan Payment
An FHA monthly payment has more components than a conventional mortgage because of the mandatory mortgage insurance premium (MIP).
FHA Monthly Payment Components
1. Principal and Interest (P&I)
The standard amortized loan payment based on the loan amount, interest rate, and term. For a $320,000 loan at 6.8% for 30 years, the P&I payment is approximately $2,089/month.
2. Upfront MIP (UFMIP)
FHA charges 1.75% of the loan amount as an upfront mortgage insurance premium. This is typically rolled into the loan (added to the loan balance), not paid out of pocket.
3. Annual MIP (added to monthly payment)
The ongoing annual MIP depends on loan term, LTV, and loan amount:
For a $343,661 FHA loan balance: Annual MIP = $343,661 × 0.55% = $1,890/year = $157.50/month
4. Property Tax
Your actual property tax rate, varies enormously by location. National average is roughly 1.1% of assessed value annually.
5. Homeowner's Insurance
Required by lender. Typically $100 to $200/month for most homes.
Full FHA Payment Example
Use the mortgage calculator to run your specific scenario, including the impact of MIP on your effective rate.
FHA MIP: The Critical Difference from Conventional PMI
This is where most FHA buyers get surprised. Unlike conventional PMI (private mortgage insurance), which automatically cancels when your equity reaches 20%, FHA annual MIP is permanent for most borrowers.
When Does FHA MIP End?
- If you put 10%+ down (LTV ≤ 90%): MIP cancels after 11 years
- If you put less than 10% down (LTV > 90%): MIP stays for the entire life of the loan (30 years)
This is a fundamental change from the pre-2013 rules, when FHA MIP could be canceled at 78% LTV. For most FHA borrowers today, the only ways to eliminate MIP are:
1. Sell the home
2. Refinance into a conventional loan (requires sufficient equity and credit to qualify)
3. Make the loan balance pay down to 90% of original purchase price (if you put 10% down)
FHA MIP vs. Conventional PMI
The permanent MIP is the main argument for refinancing an FHA loan to conventional once you have 20% equity.
FHA Loan Requirements for 2026
Credit Score Requirements
- 580+ credit score: Qualify with 3.5% minimum down payment
- 500 to 579: Qualify with 10% minimum down payment
- Below 500: Not eligible for FHA loans
Income and Employment
- No minimum income requirement (but payment must be affordable within DTI limits)
- Must document 2 years of stable employment history
- Self-employed borrowers need 2 years of tax returns
- DTI maximum: 43% back-end (total debt/income); up to 50% to 57% with strong compensating factors
Property Requirements
- Must be primary residence (cannot use for investment property)
- Property must meet FHA minimum property standards (MPR)
- Home appraisal required from FHA-approved appraiser
- Condos must be in FHA-approved condo projects
Loan Limits for 2026
FHA loan limits vary by county. The 2026 baseline conforming limit is $524,225 for single-family homes in most US counties. High-cost areas (like San Francisco, New York, Los Angeles, and Hawaii) have limits up to $1,209,750. You can check your county's specific limit at HUD's website.
FHA vs. Conventional Loan: When Each Makes Sense
Choose FHA When:
- Credit score is below 620 (conventional requires 620+)
- You have limited down payment (3.5% FHA vs. 5% conventional minimum for most borrowers)
- You have higher debt-to-income ratio (FHA is more flexible)
- You have had a bankruptcy or foreclosure in the past 2 to 3 years
Choose Conventional When:
- Credit score is 740+ (low-rate pricing beats FHA's MIP cost)
- You have 20%+ down payment (avoid PMI entirely with conventional)
- You plan to stay in the home long-term (permanent FHA MIP adds up)
- Loan amount exceeds FHA limits in your county
- Buying a second home or investment property (FHA is primary only)
The Math: FHA vs. Conventional on a $350,000 Home
FHA (3.5% down, 580 credit, 6.9% rate):
- Down payment: $12,250
- Monthly P&I + MIP: ~$2,407
- MIP duration: Life of loan
Conventional (5% down, 640 credit, 7.2% rate):
- Down payment: $17,500
- Monthly P&I: ~$2,249
- PMI: ~$156/month (until 78% LTV, ~6 years)
- Monthly total initially: ~$2,405
- After PMI removal: ~$2,249
Over 10 years, the conventional loan saves roughly $18,000 in PMI + lower rate, if you qualify.
The FHA Streamline Refinance
If you already have an FHA loan and rates drop, the FHA Streamline Refinance is the fastest and cheapest refinance option available. It requires:
- No appraisal (in most cases)
- Minimal documentation
- No income verification (in some cases)
- No cash out
You must be current on your existing FHA loan (no missed payments in the past 6 months, and no more than 1 in the past 12 months). The streamline typically takes 2 to 4 weeks and closes with lower fees than a standard refinance.
Frequently Asked Questions
What credit score do I need for an FHA loan in 2026?
The minimum is 500 with a 10% down payment. For the standard 3.5% down payment option, you need 580. Individual lenders may impose higher minimums (called "overlays"), commonly 620 or 640, even though FHA guidelines allow 580.
Can I use an FHA loan to buy a second home or investment property?
No. FHA loans are exclusively for primary residences. You must occupy the property as your principal residence within 60 days of closing and for at least one year.
How do I get rid of FHA mortgage insurance?
If you put down less than 10%, the only ways to eliminate FHA MIP are to sell the home or refinance into a conventional loan. Once your equity reaches 20% (through home appreciation, principal paydown, or both), you can refinance to a conventional loan without PMI.
What is the FHA loan limit for 2026?
$524,225 for a single-family home in most counties. Higher limits apply in designated high-cost areas, up to $1,209,750. Some rural areas may have lower limits. Check HUD's FHA Mortgage Limits page for your specific county.
Is an FHA loan better than a conventional loan?
For buyers with credit below 620 or very limited savings, FHA is often the only option. For buyers with 620+ credit and stable income, a conventional loan often costs less long-term because PMI cancels and rates may be lower with stronger credit.
Calculate your FHA monthly payment with the mortgage calculator and compare total costs with the home down payment calculator. Plan your home affordability with the home affordability calculator.