FHA Loan Mortgage Calculator
Federal Housing Administration Loan
FHA loans are government-backed mortgages designed for first-time homebuyers and borrowers with lower credit scores. They offer more flexible qualifying requirements than conventional loans.
= $14,000
Payment Breakdown
FHA Loan Requirements
- •Minimum 580 credit score for 3.5% down
- •Minimum 500 credit score for 10% down
- •Mortgage insurance premium (MIP) required for life of loan
- •Property must be primary residence
- •Must meet FHA appraisal standards
Pros
- +Low 3.5% minimum down payment
- +More flexible credit requirements (580+)
- +Competitive interest rates
- +Gift funds allowed for entire down payment
- +Assumable by qualified buyers
Cons
- −Mortgage insurance required for life of loan
- −Loan limits may be restrictive in high-cost areas
- −Property must meet FHA standards
- −Not available for investment properties
- −Upfront MIP of 1.75% of loan amount
FHA Loan Payments by Home Price
| Home Price | Down (3.5%) | Loan Amount | Monthly P&I | Total Interest |
|---|---|---|---|---|
| $150,000 | $5,250 | $144,750 | $915 | $184,621 |
| $200,000 | $7,000 | $193,000 | $1,220 | $246,161 |
| $250,000 | $8,750 | $241,250 | $1,525 | $307,701 |
| $300,000 | $10,500 | $289,500 | $1,830 | $369,241 |
| $350,000 | $12,250 | $337,750 | $2,135 | $430,782 |
| $400,000 | $14,000 | $386,000 | $2,440 | $492,322 |
| $450,000 | $15,750 | $434,250 | $2,745 | $553,862 |
| $500,000 | $17,500 | $482,500 | $3,050 | $615,402 |
| $600,000 | $21,000 | $579,000 | $3,660 | $738,483 |
| $700,000 | $24,500 | $675,500 | $4,270 | $861,563 |
| $750,000 | $26,250 | $723,750 | $4,575 | $923,103 |
| $800,000 | $28,000 | $772,000 | $4,880 | $984,643 |
| $900,000 | $31,500 | $868,500 | $5,490 | $1,107,724 |
| $1,000,000 | $35,000 | $965,000 | $6,099 | $1,230,804 |
$400,000 FHA Loan by Rate
| Rate | 15-Year | 30-Year | Total Interest (30yr) |
|---|---|---|---|
| 5.5% | $3,154 | $2,192 | $403,000 |
| 6% | $3,257 | $2,314 | $447,135 |
| 6.5% | $3,362 | $2,440 | $492,322 |
| 6.75% | $3,416 | $2,504 | $515,292 |
| 7% | $3,469 | $2,568 | $538,504 |
| 7.25% | $3,524 | $2,633 | $561,952 |
| 7.5% | $3,578 | $2,699 | $585,628 |
| 8% | $3,689 | $2,832 | $633,639 |
True Cost: FHA Loan on a $400,000 Home
Guide to FHA Loan Mortgages
Federal Housing Administration Loan (FHA Loan) loans are designed for specific borrower profiles. Understanding the nuances helps you decide if this loan type fits your situation.
- Down payment flexibility. FHA Loan loans require as little as 3.5% down ($14,000 on a $400,000 home). However, lower down payments mean a larger loan and potentially mortgage insurance.
- Rate considerations. Typical FHA Loan rates around 6.5% are below conventional rates. This lower rate can save thousands over the life of the loan.
- Loan limits matter. FHA Loan loans cap at $498,257 in most areas. Homes above this threshold require a jumbo loan or larger down payment.
- Compare before committing. Even if you qualify for a FHA Loan, compare it against conventional and other loan types. The best loan depends on your down payment, credit score, and long-term plans.
Frequently Asked Questions — FHA Loan Loans
What is a FHA Loan loan?
Federal Housing Administration Loan (FHA Loan) is a mortgage program insured by the Federal Housing Administration, designed for borrowers with lower credit scores or smaller down payments.
What is the minimum down payment for a FHA Loan?
The minimum down payment is 3.5% ($14,000 on a $400,000 home). This low down payment makes homeownership more accessible, though you'll pay mortgage insurance.
What credit score do I need for a FHA Loan?
FHA loans accept credit scores as low as 580 with 3.5% down, or 500 with 10% down. Higher scores generally unlock lower rates.
What is the monthly payment on a FHA Loan?
On a $400,000 home with 3.5% down at 6.5%, the monthly payment is $2,440. This is principal and interest only — taxes, insurance, and any mortgage insurance are additional.
Does a FHA Loan require mortgage insurance?
Yes — FHA loans require both an upfront mortgage insurance premium (1.75% of the loan) and annual premiums (0.55-1.05% of the loan), regardless of down payment.
What is the FHA Loan loan limit?
The FHA Loan loan limit is $498,257 in most areas (higher in high-cost markets). Loans exceeding this amount require a jumbo loan.
How do I apply for a FHA Loan?
Start by getting pre-approved with a lender. You'll need proof of income, tax returns, bank statements, and a credit check. Compare offers from at least 3 lenders to ensure competitive rates.
Is a FHA Loan better than a conventional mortgage?
FHA Loan loans are better if you have a lower credit score or smaller down payment. Otherwise, conventional loans may offer lower overall costs.