FHA Loan Calculator
Calculate your FHA loan payment including upfront MIP, monthly MIP, and total monthly housing cost.
FHA Loans in 2026: Costs and Benefits
FHA loans remain popular for first-time buyers and those with less-than-perfect credit. The 3.5% minimum down payment and more lenient qualifying standards (DTI up to 50%) make FHA accessible. However, FHA's mandatory mortgage insurance premiums (MIP) add significant long-term cost.
The upfront MIP of 1.75% is typically financed into the loan — on a $350,000 purchase with 3.5% down, that's $5,966 added to your loan balance. The annual MIP of 0.55% adds $169/month. Unlike conventional PMI which drops at 80% LTV, FHA MIP lasts the entire loan life for loans with less than 10% down, accumulating $60,000+ in extra cost over 30 years.
FHA vs Conventional for First-Time Buyers
In 2026, borrowers with 680+ credit scores often find conventional financing with 3-5% down is more cost-effective than FHA. Conventional PMI cancels automatically at 78% LTV; FHA MIP does not. The crossover point is typically around 640-660 credit — below that, FHA usually offers better rates and approval odds.