How to use this calculator
- Home price and down payment. FHA requires at least 3.5% down with a credit score of 580 or higher. The calculator will tell you if your down payment is below the minimum.
- Credit score. Choose 500 to 579 if that’s your range; the minimum down payment rises to 10%.
- Interest rate and loan term. Terms over 15 years and terms of 15 years or less use different MIP tables.
- Upfront MIP. Add the 1.75% premium to the loan (the usual choice) or pay it at closing.
- Taxes, insurance and HOA. Enter your property tax rate, homeowners insurance and any HOA dues.
You’ll see your first-year monthly payment broken into principal and interest, taxes, insurance, MIP and HOA, how long MIP lasts, and a chart of the annual MIP you’ll pay each year.
FHA mortgage insurance: two premiums
Every FHA loan carries two kinds of mortgage insurance premium (MIP):
- Upfront MIP (UFMIP): 1.75% of the base loan amount, paid at closing or financed into the loan.
- Annual MIP: a yearly rate charged in monthly installments with your mortgage payment.
In March 2023, HUD cut annual MIP by 30 basis points across the board (Mortgagee Letter 2023-05, for loans endorsed on or after March 20, 2023). The rate most borrowers pay fell from 0.85% to 0.55%. Those rates still apply in 2026:
Loan term over 15 years
| Base loan amount | Loan-to-value | Annual MIP | How long |
|---|---|---|---|
| $726,200 or less | 90% or less | 0.50% | 11 years |
| $726,200 or less | Over 90% to 95% | 0.50% | Life of loan |
| $726,200 or less | Over 95% | 0.55% | Life of loan |
| Over $726,200 | 90% or less | 0.70% | 11 years |
| Over $726,200 | Over 90% to 95% | 0.70% | Life of loan |
| Over $726,200 | Over 95% | 0.75% | Life of loan |
Loan term of 15 years or less
| Base loan amount | Loan-to-value | Annual MIP | How long |
|---|---|---|---|
| $726,200 or less | 90% or less | 0.15% | 11 years |
| $726,200 or less | Over 90% | 0.40% | Life of loan |
| Over $726,200 | 78% or less | 0.15% | 11 years |
| Over $726,200 | Over 78% to 90% | 0.40% | 11 years |
| Over $726,200 | Over 90% | 0.65% | Life of loan |
How monthly MIP is calculated
Annual MIP isn’t simply your loan times the rate. HUD’s method averages the scheduled balance over each 12-month period, multiplies by the annual rate, and divides by 12. When the upfront premium is financed, the result is divided by 1.0175 so you aren’t charged annual MIP on the upfront premium itself. The premium is recalculated every year, so it shrinks as you pay the loan down.
- B̄ is the average scheduled balance over the 12 months of that loan year
- m is the annual MIP rate (0.55% = 0.0055)
- u is the upfront factor (0.0175 if the UFMIP is financed, 0 if paid in cash)
This calculator reproduces HUD’s own worked example to the cent ($43.26 in year one, $42.85 in year two). Principal and interest use the standard amortization formula on the full loan, including any financed UFMIP.
Worked example
You buy a $350,000 home with the minimum 3.5% down ($12,250), at 6.25% for 30 years, and finance the upfront premium.
- Base loan: $337,750
- Upfront MIP: 1.75% × $337,750 = $5,910.63, added to the loan
- Total loan: $343,660.63
- Principal and interest: $2,115.98
- Annual MIP at 0.55%, first year: $153.98 a month
- Property tax (1.1%): $320.83; insurance: $150.00
- First-year payment: $2,740.79
The MIP falls to $152.11 a month in year two and $128.87 in year eleven. Because the down payment is under 10%, it lasts all 30 years. Upfront and annual premiums together come to about $42,070 over the life of the loan.
Paying the upfront premium in cash instead lowers principal and interest to $2,079.58. The annual MIP stays $153.98, since it’s figured on the base loan either way.
How down payment and term change your MIP
Same $350,000 home at 6.25%:
| Down payment | Term | Annual MIP | MIP lasts | First-year MIP | First-year payment | Total MIP (upfront + annual) |
|---|---|---|---|---|---|---|
| 3.5% ($12,250) | 30 years | 0.55% | Life of loan | $153.98 | $2,740.79 | $42,070 |
| 5% ($17,500) | 30 years | 0.50% | Life of loan | $137.81 | $2,691.73 | $38,180 |
| 10% ($35,000) | 30 years | 0.50% | 11 years | $130.55 | $2,574.83 | $21,471 |
| 3.5% ($12,250) | 15 years | 0.40% | 15 years | $110.46 | $3,527.91 | $17,656 |
| 10% ($35,000) | 15 years | 0.15% | 11 years | $38.63 | $3,257.61 | $9,256 |
Going from 3.5% to 10% down roughly halves the lifetime cost of FHA insurance, because MIP stops after 11 years instead of running for the full term.
Down payment and credit score rules
FHA’s minimum down payment depends on your credit score (HUD Handbook 4000.1, II.A.2.b):
- 580 or higher: eligible for maximum financing, a 96.5% loan-to-value, so 3.5% down.
- 500 to 579: maximum loan-to-value of 90%, so 10% down.
- Below 500: not eligible for FHA-insured financing.
Mortgagee Letter 2026-11 adds alternative credit-score models for case numbers assigned on or after January 1, 2027, and keeps these thresholds unchanged.
2026 FHA loan limits
FHA limits are set by county. For case numbers assigned on or after January 1, 2026, a one-unit home’s limit runs from a floor of $541,287 in lower-cost areas to a ceiling of $1,249,125 in the most expensive ones. Alaska, Hawaii, Guam and the U.S. Virgin Islands have higher limits. The limit applies to the base loan, before any financed upfront premium. If your base loan is above the floor, the calculator reminds you to check your county’s limit.
Getting rid of FHA MIP
- Put 10% or more down so MIP ends after 11 years.
- Refinance into a conventional loan once your balance is around 80% of the home’s value. Conventional PMI isn’t required at that point. Run the numbers with the refinance calculator.
- Compare programs first. The down payment calculator shows FHA next to conventional, VA and USDA loans at different down payments, and the VA loan calculator covers loans with no monthly insurance at all.
Assumptions and limitations
- Fixed-rate loan; taxes, insurance and HOA dues stay constant.
- MIP follows the ML 2023-05 table and HUD’s average-balance method. Streamline refinances of loans endorsed before June 2009 and Hawaiian Home Lands loans have different premiums and aren’t modeled.
- Closing costs other than the upfront MIP aren’t included; estimate them with the closing cost calculator. To check what price fits your income, use the home affordability calculator or the mortgage calculator.
Sources
- HUD Mortgagee Letter 2023-05: Reduction of FHA annual MIP rates
- HUD: Monthly (periodic) mortgage insurance premium calculation
- HUD: FHA announces 2026 loan limits (HUD No. 25-145)
- HUD Mortgagee Letter 2026-11: Minimum Decision Credit Score methodology
- HUD FHA Resource Center: Does FHA require a minimum credit score?
This calculator gives estimates for planning, not a loan offer. Your lender’s Loan Estimate will show your actual rate, premiums and costs.
Frequently asked questions
What is the FHA MIP rate in 2026?
Most FHA buyers pay 0.55% a year. That's the rate for a term over 15 years, a base loan of $726,200 or less and a down payment under 5%, which includes the 3.5% minimum. With 5% or more down it's 0.50%, and larger loans pay 0.70% to 0.75%. Every FHA loan also has a 1.75% upfront premium.
How much is the upfront MIP on an FHA loan?
It's 1.75% of the base loan amount, due at closing, and most borrowers add it to the loan. On a $350,000 home with 3.5% down, the base loan is $337,750 and the upfront premium is about $5,911.
When does FHA mortgage insurance go away?
If your original loan-to-value was 90% or less (at least 10% down), annual MIP ends after 11 years. With less than 10% down, it lasts for the life of the loan. The usual way to drop it sooner is to refinance into a conventional loan once you have about 20% equity.
What's the minimum down payment for an FHA loan?
3.5% of the price if your credit score is 580 or higher, which is a maximum loan-to-value of 96.5%. With a score from 500 to 579, you need at least 10% down. Scores below 500 aren't eligible for FHA-insured financing.
What are the FHA loan limits for 2026?
For a one-unit home, FHA limits range from $541,287 in lower-cost counties to $1,249,125 in the highest-cost areas, for case numbers assigned on or after January 1, 2026. Alaska, Hawaii, Guam and the U.S. Virgin Islands have higher limits. Your county's exact limit is on HUD's FHA mortgage limits page.
Is an FHA loan cheaper than a conventional loan?
It depends on your credit and down payment. FHA's annual MIP rate doesn't depend on your credit score, while conventional PMI and pricing do, so FHA is often cheaper for borrowers with lower scores. With strong credit, conventional PMI can cost less and, unlike most FHA MIP, it ends on its own once you reach 22% equity on schedule.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.