FHA Loan Calculator with MIP
Calculate your exact FHA monthly payment including the upfront mortgage insurance premium (1.75%) and annual MIP. See how FHA compares to a conventional loan for your specific situation.
FHA Loan Details
Uses 2026 FHA MIP rates. All math runs in your browser.
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What Makes FHA Loans Different
An FHA loan is a mortgage backed by the Federal Housing Administration, a division of HUD. The FHA does not lend money directly — it insures loans made by approved private lenders, protecting them against borrower default. Because the lender's risk is reduced, they can offer more favorable terms to borrowers who might not qualify for conventional financing.
The trade-off is mortgage insurance. Every FHA loan carries two types of MIP — an upfront premium paid at closing and an annual premium collected monthly. Understanding these costs is essential to evaluating whether FHA is actually the right choice for your situation, because in many cases a conventional loan with PMI ends up being cheaper over time.
FHA Upfront MIP: The 1.75% Fee Explained
The upfront mortgage insurance premium (UFMIP) is 1.75% of the base loan amount and is charged at closing on every FHA loan, regardless of your down payment percentage or credit score. On a $280,500 loan, that is $4,909. Almost no borrower pays this in cash — instead, it is rolled into the loan balance, increasing what you owe from day one.
Rolling the UFMIP into the loan means you pay interest on it for the life of the loan. On a 30-year loan at 6.75%, that $4,909 in UFMIP costs you roughly an additional $6,800 in interest by payoff — bringing the true cost of the UFMIP closer to $11,700. This is the hidden long-term cost that most FHA calculators fail to show clearly.
FHA Annual MIP: 2026 Rate Schedule
The annual MIP is charged monthly as a percentage of the outstanding loan balance. The rate depends on your loan term, loan amount, and loan-to-value ratio at origination.
| Loan Term | Loan Amount | LTV | Annual MIP Rate (2026) |
|---|---|---|---|
| 30 years | > $150,000 | ≤ 95% (DP ≥ 5%) | 0.50% |
| 30 years | > $150,000 | > 95% (DP < 5%) | 0.55% |
| 30 years | ≤ $150,000 | ≤ 95% | 0.15% |
| 30 years | ≤ $150,000 | > 95% | 0.40% |
| 15 years | > $150,000 | ≤ 90% (DP ≥ 10%) | 0.15% |
| 15 years | > $150,000 | > 90% (DP < 10%) | 0.40% |
How Long Do You Pay FHA MIP?
This is the most critical FHA cost question and the answer surprises many borrowers. For loans originated after June 2013:
If your original down payment was under 10%, you pay annual MIP for the entire life of the loan. It never cancels, regardless of how much equity you build. The only way to eliminate it is to refinance into a conventional loan once your equity reaches 20%.
If your original down payment was 10% or more, MIP cancels automatically after 11 years.
Compare this to conventional PMI, which cancels automatically once your loan-to-value ratio reaches 78% of the original purchase price — typically in 8 to 12 years on a standard payment schedule. On a $300,000 home, you might pay FHA MIP for 30 years versus conventional PMI for 10 years, representing tens of thousands of dollars in additional cost.
FHA vs Conventional: When Is FHA Actually Better?
FHA wins in specific scenarios. Conventional wins in others. Here is the honest breakdown:
FHA is likely better when:
Your credit score is below 680. FHA rates are largely insensitive to credit score within the 580–680 range. Conventional rates, on the other hand, are highly tiered by credit — a 640 score might face a 0.5% to 0.75% higher rate on a conventional loan compared to a 740 score. When you factor in that FHA rates at 640 are often competitive with conventional rates at 740, FHA can win on the interest rate even before considering the lower down payment requirement.
Your down payment is exactly 3.5% and you want to keep cash reserves. FHA accepts 3.5% down at 580+ credit. Conventional technically offers 3% down but requires stronger credit and often results in higher PMI rates at lower credit scores.
Conventional is usually better when:
Your credit score is 700 or higher and your down payment is 5% or more. At these parameters, conventional PMI is less expensive than FHA MIP, and more importantly, conventional PMI cancels at 78% LTV while FHA MIP stays for life. The long-term cost advantage of conventional compounds significantly over a 30-year loan.
You plan to build equity quickly. If you expect your home to appreciate significantly or plan to make extra payments, you will hit 20% equity faster with conventional — triggering PMI cancellation. FHA MIP doesn't respond to equity growth.
Frequently Asked Questions
What is the FHA upfront mortgage insurance premium?
The UFMIP is 1.75% of the base FHA loan amount, charged at closing. On a $285,000 loan it equals $4,988. Almost all borrowers roll this into the loan balance rather than paying cash, which means the total loan amount — and therefore your monthly payment — is slightly higher than your base purchase loan would be.
How long do you pay FHA mortgage insurance?
For loans with less than 10% down (the most common scenario), you pay annual MIP for the entire loan term — 30 years. It never cancels regardless of your equity position. For loans with 10% or more down, MIP cancels after 11 years. This is a fundamental difference from conventional PMI, which cancels automatically once your balance reaches 78% of the original home value.
What is the minimum down payment for an FHA loan?
3.5% of the purchase price for borrowers with a credit score of 580 or higher. Borrowers with scores between 500 and 579 must put down 10%. FHA loans are not available to borrowers with scores below 500. Gift funds are allowed for the entire down payment — a unique FHA advantage compared to conventional, which typically limits gift fund usage.
What is the FHA MIP rate in 2026?
For most 30-year FHA loans with a down payment under 5% and a loan amount above $150,000, the annual MIP rate is 0.55%. For down payments of 5% or more on the same loan size, it drops to 0.50%. Rates vary further based on loan amount and term — the full table is shown in the content section above. The calculator automatically applies the correct 2026 rate based on your inputs.
Can I remove MIP from an FHA loan?
If you put down less than 10%, no — MIP stays for the life of the loan. The only way to eliminate it is to refinance into a conventional loan once you have at least 20% equity. If you put down 10% or more, MIP cancels automatically after 11 years. Many borrowers plan from the start to refinance out of FHA once their equity reaches 20%, effectively treating FHA as a temporary bridge to conventional financing.
Is FHA or conventional better for first-time buyers?
Depends on your credit score and down payment. FHA is typically better for scores below 680 and down payments under 5%. Conventional is usually better for scores above 700 and down payments of 10% or more, because conventional PMI is cheaper and cancels automatically. Use the comparison table in the calculator above — it shows your specific numbers side by side.
What are the FHA loan limits for 2026?
FHA loan limits vary by county and are updated annually. For 2026, the standard single-family FHA loan limit (floor) is $524,225 in low-cost areas. In high-cost areas (such as parts of California, New York, and Hawaii), the limit (ceiling) reaches $1,209,750. To find your specific county limit, check the HUD FHA mortgage limits lookup tool at hud.gov.