FHA Loan Calculator
Calculate your FHA loan monthly payment with 2026 loan limits and current MIP rates. Includes upfront mortgage insurance (UFMIP 1.75%), annual MIP (0.55% for most borrowers), and the 11-year vs life-of-loan MIP duration rules.
Last updated: April 2026 · Source: HUD Mortgagee Letter 2025-23, FHA MIP unchanged since ML 2023-05
FHA minimum: 3.5% (credit 580+), 10% (credit 500-579)
FHA rates typically 0.25%-0.50% below conventional
2026 FHA loan limits
HUD announced 2026 FHA loan limits in Mortgagee Letter 2025-23 on December 11, 2025. The new limits took effect for FHA case numbers assigned on or after January 1, 2026. The floor increased by $17,032 from 2025 — a 3.26% jump matching national home price appreciation between Q3 2024 and Q3 2025.
| Area type | 1-unit limit | 2-unit | 3-unit | 4-unit |
|---|---|---|---|---|
| Low-cost (floor) | $541,287 | $693,050 | $838,100 | $1,041,575 |
| High-cost (ceiling) | $1,249,125 | $1,599,325 | $1,933,825 | $2,402,625 |
| AK/HI/Guam/USVI | $1,873,687 | $2,398,987 | $2,900,737 | $3,603,925 |
Source: HUD Mortgagee Letter 2025-23 (December 11, 2025). Floor = 65% of 2026 conforming baseline ($832,750). Ceiling = 150% of baseline.
2026 FHA MIP rates
FHA MIP rates have been unchanged since HUD Mortgagee Letter 2023-05 (March 20, 2023), which reduced annual MIP rates by 30 basis points for most borrowers — estimated to save new FHA homebuyers an average of $876 per year. The rates below apply to all FHA loans in 2026.
| Loan term | Loan amount | LTV | Annual MIP |
|---|---|---|---|
| 30-year | ≤ $726,200 | ≤ 90% | 0.50% |
| 30-year | ≤ $726,200 | > 95% | 0.55% (most common) |
| 30-year | > $726,200 | ≤ 90% | 0.70% |
| 30-year | > $726,200 | > 95% | 0.75% |
| 15-year | ≤ $726,200 | ≤ 90% | 0.15% |
| 15-year | ≤ $726,200 | > 90% | 0.40% |
UFMIP: 1.75% of base loan amount, same for all FHA loans regardless of credit, LTV, or term. Financed into loan by default. Source: HUD ML 2023-05, unchanged for 2026.
Frequently asked questions
What are the 2026 FHA loan limits?
For FHA case numbers assigned on or after January 1, 2026, the floor limit for a single-family home in low-cost areas is $541,287 (up from $524,225 in 2025). The ceiling limit for high-cost areas is $1,249,125. The floor applies to most counties nationwide, while the ceiling applies in designated high-cost areas like San Francisco, NYC, and parts of Hawaii. These limits were announced by HUD in Mortgagee Letter 2025-23 on December 11, 2025. Special exception areas (Alaska, Hawaii, Guam, US Virgin Islands) can go up to $1,873,687 for single-family homes.
How much down payment do I need for an FHA loan?
FHA requires a minimum down payment of 3.5% if your credit score is 580 or higher. On a $350,000 home, that is $12,250. If your credit score is between 500 and 579, FHA requires 10% down ($35,000 on a $350,000 home). Credit scores below 500 are not eligible for FHA financing. Down payment funds can come from savings, gifts from family members, down payment assistance programs, and certain grants — FHA is more flexible than conventional loans on down payment sources.
What is FHA mortgage insurance premium (MIP)?
FHA MIP is mandatory mortgage insurance charged on every FHA loan, regardless of down payment. It has two components: (1) Upfront MIP (UFMIP) of 1.75% of the base loan amount, paid at closing or financed into the loan balance, and (2) Annual MIP, which ranges from 0.15% to 0.75% depending on your loan term, loan-to-value ratio, and loan amount. Most 30-year FHA borrowers with 3.5% down pay 0.55% annual MIP. The MIP protects the lender in case the borrower defaults and lets FHA back loans to borrowers with lower credit scores and smaller down payments.
Can FHA MIP be removed?
It depends on your down payment. If you put less than 10% down (LTV greater than 90%), you pay MIP for the life of the loan — it never cancels automatically. If you put 10% or more down (LTV 90% or lower), MIP cancels after 11 years. The only way to remove MIP from a less-than-10%-down FHA loan is to refinance into a conventional loan once you have at least 20% equity. Most FHA borrowers with appreciating home values eventually refinance to a conventional loan to eliminate MIP.
What credit score is needed for an FHA loan?
The absolute FHA minimum is 500, but with restrictions: scores between 500 and 579 require 10% down payment. Scores of 580 or higher qualify for the 3.5% minimum down. However, most FHA lenders set their own minimums ("lender overlays") above the FHA floor — typically 580, 600, 620, or even 640. Finding a lender willing to approve at the FHA minimum of 500 is difficult and usually comes with higher interest rates. Practically, plan for a 580+ credit score to access FHA financing in 2026.
Is an FHA loan better than a conventional loan?
It depends on your credit score and down payment. FHA wins when: your credit score is below 680 (FHA MIP is usually cheaper than conventional PMI at those scores), you have 3.5%-5% down, or you need FHA's flexible underwriting for DTI or employment history. Conventional wins when: your credit score is 700+ (conventional PMI is cheaper than FHA MIP and cancels at 80% LTV), you plan to stay long-term (no MIP after 80% equity), or you want to avoid the upfront 1.75% UFMIP fee. Run both scenarios before deciding.
Can I use an FHA loan for a duplex or multi-unit property?
Yes — FHA allows loans on 2-, 3-, and 4-unit properties as long as you live in one unit as your primary residence. This is called "house hacking" and is a popular FHA strategy. The 2026 limits for multi-unit properties in low-cost areas are higher than single-family: 2-unit $693,050, 3-unit $838,100, 4-unit $1,041,575. You can rent out the other units and use the rental income to help qualify for the loan. Many first-time investors start with an FHA multi-unit purchase because of the low 3.5% down requirement.
What are FHA loan requirements in 2026?
Key FHA requirements: credit score 580+ for 3.5% down (500-579 for 10% down), debt-to-income ratio typically under 43% (up to 50% with compensating factors), steady employment for 2+ years, the property must be your primary residence (no investment properties), the home must meet FHA minimum property standards (verified by FHA appraiser), and you cannot have a recent bankruptcy (2 years post-Chapter 7) or foreclosure (3 years). The borrower must be a US citizen or lawful permanent resident.
How is FHA MIP calculated on my monthly payment?
Take the total loan amount (base loan + financed UFMIP), multiply by the annual MIP rate (typically 0.55% for 3.5%-down 30-year FHA loans), and divide by 12 for the monthly amount. Example: $350,000 home, 3.5% down = $337,750 base loan + $5,911 UFMIP = $343,661 total loan. Annual MIP = $343,661 × 0.0055 = $1,890. Monthly MIP = $157.50. This is added to your principal and interest payment every month. The calculation repeats each year based on the current outstanding balance.
Should I finance the upfront MIP or pay it at closing?
Most borrowers finance it into the loan. The upfront MIP is 1.75% of the base loan — $6,125 on a $350,000 loan. Paying it in cash at closing saves you interest over the life of the loan (roughly $8,000-$12,000 depending on your rate). But most FHA borrowers use FHA specifically because they have limited cash, so they finance it anyway. If you have extra funds, paying it upfront is mathematically better; if you need every dollar for closing costs and moving expenses, financing it is fine.
What is the maximum FHA loan amount in 2026?
The national maximum for a single-family home is $1,249,125 (the ceiling limit in high-cost areas). In low-cost areas, the limit is $541,287. Most counties fall between these two — counties with higher median home prices have limits calculated as 115% of the median home price, up to the ceiling. Alaska, Hawaii, Guam, and the US Virgin Islands have higher exception limits of $1,873,687. To find your specific county limit, visit HUD's FHA Loan Limits page and enter your state and county.
Does FHA have minimum property standards?
Yes. FHA appraisers verify that the property meets HUD's Minimum Property Standards (MPS), which cover health, safety, structural integrity, and overall condition. Common FHA deal-breakers: peeling paint on homes built before 1978 (lead paint concern), broken windows, missing handrails on stairs, exposed wiring, active roof leaks, foundation damage, or inoperable HVAC systems. These issues must be repaired before closing — often the seller is required to fix them. This makes FHA loans harder to use on fixer-upper properties without pursuing an FHA 203(k) rehab loan.
Data sources: HUD Mortgagee Letter 2025-23 (December 11, 2025) for 2026 FHA loan limits; HUD Mortgagee Letter 2023-05 (March 20, 2023) for current MIP rates; FHFA 2026 conforming loan limit announcement (November 25, 2025).
Last updated: April 2026. FHA loan limits are updated annually each December; MIP rates are reviewed periodically by HUD and last changed in March 2023.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial advice. Actual FHA loan terms depend on your specific situation, lender, and property. Consult an FHA-approved lender for personalized information.