Calculate FHA loan payments with upfront and monthly MIP, closing costs, and affordability analysis. See DTI ratios and compare FHA vs conventional loans for Texas, California, Florida, and all states.
About FHA Loans
FHA loans are government-backed mortgages with lower down payment requirements (3.5% for credit scores 580+) but require Mortgage Insurance Premium (MIP) for the life of the loan.
Enter your income and debts to see if you qualify for FHA loan guidelines.
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FHA loans make homeownership accessible with lower down payments and credit requirements. Our FHA loan calculator shows your complete monthly payment including the required Mortgage Insurance Premium (MIP), helping first-time buyers and those rebuilding credit plan their home purchase with confidence.
FHA loans are mortgages insured by the Federal Housing Administration, designed to help first-time buyers and those with lower credit scores achieve homeownership. Key features include 3.5% minimum down payment (for credit scores 580+), flexible credit requirements (scores as low as 500 with 10% down), and competitive interest rates. Whether you're in Texas, California, Florida, or any state, FHA loan limits are set by county. The trade-off is paying MIP (Mortgage Insurance Premium) for the life of the loan.
FHA Monthly Payment Formula
Payment = P&I + Monthly MIP + Taxes + Insurance + HOAJust 3.5% down with a 580+ credit score—much lower than the typical 20% for conventional loans. On a $350,000 home, that's $12,250 vs $70,000.
Credit scores as low as 500 can qualify (with 10% down). Perfect for first-time buyers or those rebuilding credit after bankruptcy or foreclosure.
Government backing often means lower rates than conventional loans for borrowers with fair credit, saving thousands over the loan term.
Lower down payment and credit requirements help you buy your first home sooner. FHA affordability makes homeownership realistic.
Recent bankruptcy or foreclosure? FHA may approve you 2-3 years sooner than conventional lenders.
FHA loan limits in Texas, California, Florida, and other states go up to $1,149,825 in high-cost metro areas like San Francisco and New York.
Looking at fixer-uppers? The FHA 203(k) construction loan combines purchase and renovation costs in one mortgage.
For a $300,000 home with 3.5% down ($10,500), your loan would be about $289,500. At 6.5% interest, your monthly payment including MIP, taxes, and insurance would be roughly $2,300. Using the FHA guideline of 43% back-end DTI, you'd need approximately $5,350 gross monthly income, or $64,200 annual salary. However, with compensating factors, you might qualify with less.
Your FHA loan qualification depends on: 1) Credit score (580+ for 3.5% down), 2) Debt-to-income ratio (43% standard, up to 57% with compensating factors), 3) Employment history (2 years preferred), and 4) FHA county loan limits. Use our calculator's DTI section to see if your income and debts qualify for your desired home price.
No, FHA down payment depends on your credit score. With 580+ credit score, minimum is 3.5%. With 500-579 credit score, you must put 10% down. Some lenders may require higher down payments based on their own risk assessment, even if FHA allows less.
For a $400,000 home with 3.5% down ($14,000), your loan would be about $386,000. At 6.5% interest, monthly payment including MIP, taxes, and insurance would be approximately $3,050. Using FHA's 43% DTI guideline, you'd need about $7,100 gross monthly income, or $85,200 annual salary.
MIP (Mortgage Insurance Premium) protects the lender if you default. FHA loans require two types: Upfront MIP (1.75% of loan, usually rolled into the loan) and Annual MIP (0.15%-0.75% depending on loan term and LTV, paid monthly). Unlike conventional PMI, FHA MIP typically lasts the life of the loan unless you refinance.
For most FHA loans made after 2013, MIP lasts the entire loan term. To eliminate it, you must refinance into a conventional loan once you have 20% equity. For loans with 10%+ down payment on 15-year terms, MIP may cancel after 11 years.
Minimum 580 for 3.5% down payment, or 500-579 with 10% down. However, many lenders require 620+, so shop around. Higher scores get better interest rates.
FHA loan limits vary by county. In 2025, the floor is $498,257 (low-cost areas) and ceiling is $1,149,825 (high-cost areas like San Francisco, parts of Texas, California, and Florida). Check HUD.gov for your county's specific limit.
FHA: Lower down payment (3.5% vs 5-20%), lower credit requirements (580 vs 620+), but requires MIP for loan life. Conventional: Higher down payment, stricter credit, but PMI cancels at 20% equity. For excellent credit (740+), conventional may be cheaper long-term.
Standard FHA guidelines allow 31% front-end DTI (housing only) and 43% back-end DTI (all debts). With compensating factors like cash reserves or higher credit score, lenders may approve up to 57% back-end DTI.
FHA closing costs typically range from 2-5% of the loan amount. This includes: origination fees, appraisal ($400-700), title insurance, attorney fees, and prepaid items (taxes, insurance). The 1.75% upfront MIP is usually rolled into the loan. Sellers can contribute up to 6% of sale price toward your closing costs.
An FHA 203(k) construction loan combines purchase and renovation financing in one mortgage. Great for buying fixer-uppers. There's a Limited 203(k) for repairs up to $35,000 and a Standard 203(k) for larger renovations requiring a contractor and HUD consultant.