FHA Loan Calculator Estimate FHA mortgage payments, compare with conventional loans, and plan for MIP — with 2025 HUD rul...
FHA Loan Calculator
Estimate FHA mortgage payments, compare with conventional loans, and plan for MIP — with 2025 HUD rules and realistic benchmarks.
FHA Loan Formula** (same as conventional + MIP):
$$PMT = P \frac{r(1+r)^n}{(1+r)^n - 1} + \text{MIP} + \text{Tax} + \text{Insurance}$$
Example** ($300K loan, 3.5% down, 6.7% rate, 30 yr):
- Base P&I = $1,942
- Upfront MIP = $5,250 (1.75% × $300K)
- Annual MIP = $2,100 (0.70% × $300K) → **$175/mo**
- + Tax ($300) + Insurance ($100) = **$2,517/mo PITI**
✅ FHA Advantages**:
- Low down: **3.5%** (vs. 5–20% conventional)
- Credit flexibility: **580+ FICO** (vs. 620+ conventional)
- Higher DTI allowed: **31/43** (vs. 28/36 conventional)
⚠️ Avoid these FHA pitfalls:
- MIP for life** — If ≤10% down and loan closed after June 3, 2013, MIP never cancels (even at 20% equity)
- Inflated appraisals** — FHA appraisers flag repairs → deal delays or cancellations
- “Streamline” refi traps** — Lower rate but extend term → more interest long-term
- Non-HUD lenders** — Verify lender is HUD-approved (search HUD Lender List)
✅ Pro Tips**:
- Put **10% down** to qualify for lower MIP (0.55% vs. 0.85%) and possible cancellation
- Request **MIP cancellation** if loan closed *before* June 2013 + 78% LTV reached
- Compare total 5-yr cost — FHA often wins for short-term ownership
| Scenario | Loan | Payment | 5-Yr Cost |
|---|---|---|---|
| FHA 3.5% down | $300K | $2,517/mo | $151,020 |
| FHA 10% down | $270K | $2,240/mo | $134,400 |
| Conventional 5% down | $294.5K | $2,300/mo* | $138,000 |
*No PMI if 20% equity achieved (e.g., via appraisal)
📉 MIP Rules (2025)**:
- Upfront MIP**: 1.75% (financed or paid cash)
- Annual MIP**: • ≤90% LTV, >15 yr: 0.55% • ≤90% LTV, ≤15 yr: 0.70% • >90% LTV: 0.85%
- Cancellation**: Only if loan closed **before June 3, 2013** and LTV ≤ 78%
➡️ Standard FHA
Get full PITI breakdown — including upfront and annual MIP.
➡️ FHA vs. Conventional
See 5-yr/10-yr/30-yr total cost — find the breakeven point.
➡️ MIP Cancellation
Check if you qualify to drop MIP based on LTV and closing date.
➡️ Affordability
“$6,500 income, $800 debt — how much house?” (FHA 31/43 rule)
Note: Uses 2025 HUD MIP tables, FHA loan limits, and DTI standards.