Mortgage Calculator — FHA Loan

How FHA mortgage insurance works

An FHA loan is government-insured and lets qualified buyers put down as little as 3.5%, which makes it a common path for first-time buyers. The low down payment comes with mortgage insurance in two parts: an upfront premium added to the loan, and an annual premium charged monthly. This page pre-fills a 3.5% down payment and an annual insurance premium so the all-in monthly cost is realistic.

Unlike conventional PMI, FHA annual mortgage insurance does not automatically fall off at 20% equity on most low-down-payment FHA loans — it can last the life of the loan unless you later refinance into a conventional mortgage. Factor that ongoing cost in when you compare an FHA loan against a conventional loan that carries PMI.

When an FHA loan makes sense

FHA loans are most useful when a low down payment or a more flexible credit profile is the priority, since they accept lower credit scores than many conventional programs. If you can reach a larger down payment or stronger credit, a conventional loan can end up cheaper once mortgage insurance is included — run both scenarios here before deciding.

Questions

Does FHA mortgage insurance ever go away?

On most FHA loans with the minimum 3.5% down, the annual mortgage insurance premium lasts the life of the loan. The usual way to remove it is to refinance into a conventional loan once you have enough equity and qualifying credit. Putting 10% or more down can shorten the insurance period instead.

What down payment does an FHA loan require?

As little as 3.5% of the purchase price for qualified borrowers, which is why this page pre-fills that figure. A larger down payment lowers both the loan amount and the monthly mortgage-insurance cost, so it is worth comparing 3.5% against 10% in the calculator.

More ways to use this calculator

Start with the main mortgage calculator or compare the other published scenarios.