FHA Loan Calculator
Calculate FHA loan payments with mortgage insurance and low down payment options
FHA Loan Details
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About FHA Loans
FHA loans are mortgages insured by the Federal Housing Administration. They're designed to help first-time homebuyers and those with lower credit scores or smaller down payments. Key features include:
- Minimum 3.5% down payment (with credit score 580+)
- Lower credit score requirements than conventional loans
- Competitive interest rates
- Upfront mortgage insurance premium (MIP) of 1.75%
- Annual MIP payments (typically 0.55% - 0.85% of loan amount)
FHA Mortgage Insurance
FHA loans require two types of mortgage insurance:
- Upfront MIP: 1.75% of the loan amount, can be rolled into the loan
- Annual MIP: Divided into monthly payments, typically 0.55% to 0.85% of loan amount per year
- MIP Duration: For loans with less than 10% down, MIP lasts the entire loan term
- Cancellation: With 10%+ down on a 30-year loan, MIP can be removed after 11 years
Frequently Asked Questions
What is the minimum down payment for an FHA loan?
The minimum down payment is 3.5% of the home's purchase price if your credit score is 580 or higher. If your credit score is between 500-579, you'll need to put down at least 10%.
How long do I have to pay FHA mortgage insurance?
If you put down less than 10%, you'll pay MIP for the entire loan term. With 10% or more down on a 30-year loan, MIP can be canceled after 11 years. On 15-year loans with 10%+ down, MIP lasts for 11 years or until 78% LTV is reached.
What are FHA loan limits?
FHA loan limits vary by county. For 2024, the floor limit is $498,257 in most areas, with higher limits in high-cost areas up to $1,149,825. Check with your lender for limits in your specific area.
Can I refinance an FHA loan to remove MIP?
Yes, once you have 20% equity in your home, you may be able to refinance to a conventional loan to eliminate mortgage insurance. This is called an FHA-to-conventional refinance.