How this calculator works
The upfront mortgage insurance premium (UFMIP) is 1.75% of the base loan and is usually added to the loan amount.
Annual MIP for terms over 15 years on loans up to $726,200 is 0.55% with less than 5% down and 0.50% with 5% or more down; loans above $726,200 pay 0.70% to 0.75%. It is paid monthly.
With 10% or more down, annual MIP ends after 11 years; with less, it lasts for the life of the loan.
Property tax and insurance are added to show the full monthly payment. FHA loan limits vary by county.
Worked example
$350,000 home with 3.5% down at 6.25% for 30 years
- Base loan: $337,750. Upfront MIP: $5,911, making a $343,661 loan.
- Annual MIP at 0.55%: about $155 a month.
- With tax and insurance, the monthly payment is about $2,725.
Questions people ask
What credit score do I need for an FHA loan?
HUD allows 3.5% down with a score of 580 or higher and 10% down from 500 to 579, though many lenders set higher minimums.
Can I remove FHA mortgage insurance?
Only by waiting 11 years if you put 10% or more down. Otherwise, most borrowers drop it by refinancing into a conventional loan once they have 20% equity.
FHA or conventional?
FHA is often easier with lower credit scores; conventional loans can be cheaper with good credit because PMI can be removed.
Did FHA premiums change recently?
HUD cut annual MIP by 0.30 percentage points in 2023, to 0.55% for most borrowers, and those rates remain in effect in 2026.
Sources
Last reviewed October 2, 2026