FHA Loan Calculator

Calculate your monthly FHA mortgage payment, upfront mortgage insurance premium (UFMIP), annual MIP, property taxes, and complete 30-year or 15-year amortization schedule with co-borrowing fraction arithmetic.

Modify the values and click the Calculate button to use
$
% $
years
%
%
%
%/year $ /year
$ /year
$ /year
$ /year
+ More Options
Latest Mortgage Rates:
30 Years: 6.968%    15 Years: 6.164%    10 Years: 6.085%

Amortization schedule

Year Date Interest Principal Ending Balance
Loan Balance, Cumulative Interest & Payments ($)
Balance
Interest
Payment

Fraction Arithmetic & Co-Borrowing Equity Solver

Calculate exact fractional ownership shares, down payment contributions, and debt splits for joint co-borrowers or family real estate partnerships.

Exact Fraction Result 5/6
Decimal Value 0.8333
Step calculation: (1 × 3 + 1 × 2) / (2 × 3) = 5/6 (Decimal: 0.8333)
Fraction Visual Proportion & Number Line:

Understanding FHA Loans & Mortgage Insurance

FHA loans are mortgages insured by the Federal Housing Administration, the largest mortgage insurer in the world. The FHA was established in 1934 after The Great Depression, and its continuing mission is to create more homeowners in the U.S. Therefore, it is plainly obvious that the popularity of FHA loans comes from their ability to extend mortgage loans to most people trying to buy a home. It is important to remember that the FHA doesn't lend money, but insures lenders instead.

Mortgage Insurance Premiums

To qualify, the FHA charges a single upfront mortgage insurance payment (MIP) along with annual mortgage insurance premiums. The mortgage insurance payments from borrowers are mandatory in order to protect lenders from losses in instances of defaults on loans. The upfront MIP is the same for all, which is 1.75% of the loan amounts and can be financed directly into the mortgage loans. The annual MIP varies based on the loan term, loan amount, and loan-to-value (LTV) ratio. If a borrower makes a down payment of 10% or more (LTV ≤ 90%), the annual MIP can be canceled after 11 years. Otherwise, the annual MIP remains in effect for the life of the loan. Use the tables below to figure out proper MIP rates.

2026 FHA Annual MIP Rates

Loan Term—Longer than 15 Years

Loan Amount LTV Ratio Annual MIP Ratio
$726,200 or Less 95% or Less 0.5%
$726,200 or Less more than 95% 0.55%
More than $726,200 95% or Less 0.7%
More than $726,200 more than 95% 0.75%

Loan Term—15 Years or Less

Loan Amount LTV Ratio Annual MIP Ratio
$726,200 or Less 90% or Less 0.15%
$726,200 or Less more than 90% 0.4%
More than $726,200 78% or Less 0.15%
More than $726,200 78% - 90% 0.4%
More than $726,200 more than 90% 0.65%

FHA Loan Eligibility, Underwriting & Down Payment Criteria

Federal Housing Administration underwriting rules provide some of the most accessible borrowing avenues in modern real estate financing. The cornerstone of FHA financing is low down payment accessibility:

Comparing FHA Loans vs. Conventional Mortgages

Prospective homeowners frequently weigh FHA loans against conventional conforming mortgages backed by Fannie Mae or Freddie Mac:

Loan Feature FHA Loan Program Conventional Conforming Loan
Minimum Down Payment 3.5% (with 580+ credit score) 3.0% (HomeReady/Home Possible) or 5% standard
Upfront Mortgage Insurance 1.75% mandatory (can be financed) None required
Annual Mortgage Insurance 0.15% to 0.75% based on LTV & term Private Mortgage Insurance (PMI) based on credit score
Insurance Cancellation Permanent (if <10% down) or 11 yrs (if ≥10% down) Cancels automatically at 78% LTV or requested at 80%
Minimum Credit Score 500 (with 10% down), 580 (with 3.5% down) Typically 620 minimum

Co-Borrowing, Non-Occupying Co-Signers & Fraction Equity Math

One of the biggest strengths of FHA financing is allowing non-occupying co-borrowers (such as parents, siblings, or domestic partners) to co-sign the loan. The co-borrower’s income and assets are blended with the primary occupant’s to satisfy debt-to-income requirements.

When purchasing jointly, co-borrowers often contribute unequal down payments or agree on custom equity splits. Using the built-in Fraction Arithmetic & Co-Borrowing Solver above, buyers can resolve exact fractional ownership allocations (such as 1/2 + 1/3 = 5/6 combined equity pools), verify proportional debt responsibilities, and calculate fractional mortgage payoffs down to the exact decimal dollar.

Frequently Asked Questions (FAQ)

Upfront MIP is a mandatory one-time charge equal to 1.75% of your base loan amount, charged at closing and almost always rolled directly into the financed loan balance. Annual MIP is an ongoing insurance fee ranging from 0.15% to 0.75% per year, divided into 12 equal monthly installments added directly onto your monthly mortgage statement.
Yes! If your home has appreciated or you have paid down your loan balance such that you now hold at least 20% equity (loan-to-value ratio of 80% or lower), you can refinance your FHA loan into a conventional loan. Conventional loans do not require any mortgage insurance once you reach 20% equity, potentially saving hundreds of dollars per month.
FHA loan limits are adjusted annually based on median home prices across counties. In 2026, the nationwide baseline floor is $498,257 for low-cost markets, and the high-cost ceiling is $1,149,825 for major metropolitan areas.
Yes. The FHA allows 100% of your down payment and closing costs to be covered by gift funds from family members, employers, labor unions, or recognized charitable homebuyer assistance programs, provided a signed gift letter and proof of funds transfer are provided.