Rate Scenarios
Bear (+0.75%)
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Monthly Total
Base (Current)
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Bull (−0.75%)
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Down Payment % vs Interest Rate → Monthly Total Payment
FHA vs Conventional — 30-Year Total Cost Comparison
| Item | FHA Loan | Conventional (3.5% down) | Conventional (20% down) |
| Calculate to see comparison |
Down Payment Strategy — How Much Down Changes Everything
| Item | 3.5% Down (FHA Min) | 5% Down | 10% Down | 20% Down |
| Calculate to see comparison |
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78% LTV
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FHA auto-cancel threshold
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Refi Window
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20% equity — refi to conventional
Equity & Balance Growth Over Time
View Full Amortization Schedule
How to Use This Calculator
1
Enter Property Details
Input the home price and your planned down payment (minimum 3.5%).
2
Review FHA Costs
See upfront MIP, annual MIP, and total monthly payment including taxes and insurance.
3
Compare to Conventional
View a side-by-side comparison of FHA vs. conventional loan costs.
Key Terms
- FHA Loan
- A mortgage insured by the Federal Housing Administration, designed for borrowers with lower credit scores or smaller down payments.
- MIP
- Mortgage Insurance Premium — FHA's version of PMI, including both an upfront fee (1.75%) and annual premiums.
- UFMIP
- Upfront Mortgage Insurance Premium — a one-time 1.75% fee on the base loan amount, typically financed into the loan.
- FHA Loan Limit
- The maximum loan amount FHA will insure, varying by county. Check HUD's website for your area's limit.
Real-World Examples
Example 1
Minimum Down Payment
Home: $300,000, Down: 3.5% ($10,500), Rate: 6.5%, 30 years
Result: UFMIP = $5,066, Monthly MIP = $133, Total payment (PITI + MIP) = $2,150. MIP required for life of loan.
Example 2
10% Down FHA
Home: $250,000, Down: 10% ($25,000), Rate: 6.25%, 30 years
Result: UFMIP = $3,938, Monthly MIP = $103, MIP drops off after 11 years. Lower total cost than 3.5% down.
FHA Loans: Pros, Cons, and Alternatives
When FHA Makes Sense
FHA loans are ideal for first-time buyers with credit scores between 580-680 and limited savings. The 3.5% minimum down payment is the lowest available for buyers without military service eligibility.
The Hidden Cost of MIP
Unlike conventional PMI that drops at 80% LTV, FHA MIP lasts the entire loan life when putting less than 10% down. This makes refinancing to a conventional loan attractive once you reach 20% equity.
FHA vs. Conventional Break-Even
With credit scores above 700 and 5% or more down, a conventional loan often costs less over time. The break-even point depends on your credit score, down payment, and how long you plan to keep the loan.