{
  "id": "fha-loan",
  "version": "1c45a4367a36",
  "status": "published",
  "name": "FHA Loan Calculator",
  "question": "What will my FHA loan payment be?",
  "summary": "Computes the monthly payment on an FHA mortgage with HUD’s upfront and annual mortgage insurance premiums, property tax, home insurance, and HOA dues, with the full schedule.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/fha-loan-calculator",
  "markdown": "https://www.acalculator.org/finance/fha-loan-calculator.md",
  "kind": "schedule",
  "method": "principal and interest = L × r ÷ (1 − (1 + r)^−n); upfront premium = 1.75% of the base loan; annual premium each year = HUD rate × the average of the year’s 12 scheduled balances, paid in 12 parts; tax, insurance, and HOA dues are added.",
  "assumptions": [
    "FHA premiums follow HUD Mortgagee Letter 2023-05, for loans from March 20, 2023 (checked September 2026).",
    "The rate is fixed, interest is charged monthly at the rate ÷ 12, and the first payment is one month after the start.",
    "FHA loan limits by county are not checked: enter a loan your county’s limit allows.",
    "Tax, insurance, and HOA dues stay the same; closing costs are not included; nothing is rounded between months."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "price": {
        "title": "Home price",
        "description": "The price of the home.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 100000000
      },
      "down": {
        "title": "Down payment",
        "description": "The cash you pay toward the price, at least 3.5% of it. The base loan is the price minus this.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000
      },
      "rate": {
        "title": "Interest rate",
        "description": "The fixed yearly rate. The monthly rate is this ÷ 12.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "years": {
        "title": "Loan term (years)",
        "description": "The length of the mortgage: FHA loans run up to 30 years.",
        "type": "integer",
        "minimum": 1,
        "maximum": 30
      },
      "finance": {
        "title": "Upfront premium",
        "description": "Add the 1.75% upfront premium to the loan, or pay it in cash at closing.",
        "type": "string",
        "enum": [
          "loan",
          "cash"
        ]
      },
      "tax": {
        "title": "Property tax (per year)",
        "description": "The yearly property tax as a percent of the home price.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 10
      },
      "insurance": {
        "title": "Home insurance",
        "description": "The homeowners insurance premium.",
        "type": "number",
        "x-unit": "USD",
        "x-period": "year",
        "minimum": 0,
        "maximum": 1000000
      },
      "hoa": {
        "title": "HOA dues",
        "description": "Homeowners association or condo dues.",
        "type": "number",
        "x-unit": "USD",
        "x-period": "month",
        "minimum": 0,
        "maximum": 100000
      },
      "start": {
        "title": "Loan start date",
        "description": "The day the loan starts. The first payment is one month later.",
        "type": "string",
        "format": "date"
      }
    }
  },
  "outputs": {
    "monthly": {
      "label": "Monthly payment",
      "description": "The first month’s total: principal, interest, FHA premium, tax, insurance, and HOA dues.",
      "format": "money"
    },
    "pi": {
      "label": "Principal and interest",
      "description": "The level monthly payment on the loan.",
      "format": "money"
    },
    "mip": {
      "label": "FHA annual premium (MIP)",
      "description": "The first month’s part of the FHA annual mortgage insurance premium.",
      "format": "money"
    },
    "taxes": {
      "label": "Property tax",
      "description": "The property tax for one month.",
      "format": "money"
    },
    "insurance": {
      "label": "Home insurance",
      "description": "The home insurance for one month.",
      "format": "money"
    },
    "hoa": {
      "label": "HOA dues",
      "description": "The HOA dues for one month.",
      "format": "money"
    },
    "upfront": {
      "label": "Upfront premium (UFMIP)",
      "description": "The FHA upfront premium: 1.75% of the base loan.",
      "format": "money"
    },
    "loan": {
      "label": "Loan amount",
      "description": "The price minus the down payment, plus the upfront premium when it is added to the loan.",
      "format": "money"
    },
    "ltv": {
      "label": "Loan-to-value",
      "description": "The base loan as a percent of the price.",
      "format": "percent"
    },
    "mipRate": {
      "label": "Annual premium rate",
      "description": "The FHA annual premium as a percent of the average balance, from HUD’s table.",
      "format": "percent"
    },
    "mipMonths": {
      "label": "Months of annual premium",
      "description": "132 months (11 years) with 10% or more down, else every month of the loan.",
      "format": "integer"
    },
    "mipTotal": {
      "label": "Total annual premium",
      "description": "All the FHA annual premium paid.",
      "format": "money"
    },
    "interest": {
      "label": "Total interest",
      "description": "All the interest over the loan.",
      "format": "money"
    },
    "total": {
      "label": "Total cost",
      "description": "The down payment, the upfront premium if paid in cash, and everything paid over the loan.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "price": 300000,
      "down": 10500,
      "rate": 6.25,
      "years": 30,
      "finance": "loan",
      "tax": 1.1,
      "insurance": 1500,
      "hoa": 0,
      "start": "2026-09-30"
    },
    "outputs": {
      "monthly": 2345.6779595614285,
      "pi": 1813.6950679010054,
      "mip": 131.98289166042304,
      "taxes": 275,
      "insurance": 125,
      "hoa": 0,
      "upfront": 5066.25,
      "loan": 294566.25,
      "ltv": 96.5,
      "mipRate": 0.55,
      "mipMonths": 360,
      "mipTotal": 30993.641033025993,
      "interest": 358363.9744443624,
      "total": 838423.8654773905
    },
    "text": "An FHA loan of $294,566.25 at 6.25% over 30 years costs $2,345.68 a month, with $131.98 of mortgage insurance."
  },
  "examples": [
    {
      "given": {
        "price": 300000,
        "down": 10500,
        "rate": 6.25,
        "years": 30,
        "finance": "loan"
      },
      "expect": {
        "upfront": 5066.25,
        "loan": 294566.25,
        "pi": 1813.6950679010142,
        "mip": 131.98289166042292,
        "mipRate": 0.55,
        "mipMonths": 360
      },
      "source": "HUD Mortgagee Letter 2023-05 premium table; hand calculation in content.mdx (the same inputs as the WP-31 mortgage calculator’s FHA example); Python 3 in docs/progress/WP-48/python/fha.py"
    },
    {
      "given": {
        "price": 300000,
        "down": 30000,
        "rate": 6,
        "years": 30,
        "finance": "cash",
        "tax": 1.2,
        "insurance": 1200
      },
      "expect": {
        "upfront": 4725,
        "loan": 270000,
        "pi": 1618.7864179124438,
        "mip": 111.87364855418069,
        "mipRate": 0.5,
        "mipMonths": 132,
        "mipTotal": 13633.234601674381,
        "monthly": 2130.6600664666244
      },
      "source": "HUD Mortgagee Letter 2023-05 premium table; hand calculation in content.mdx; Python 3 in docs/progress/WP-48/python/fha.py"
    },
    {
      "given": {
        "price": 1000000,
        "down": 200000,
        "rate": 6,
        "years": 15,
        "finance": "loan"
      },
      "expect": {
        "mipRate": 0.4,
        "mipMonths": 132,
        "upfront": 14000,
        "loan": 814000,
        "mip": 261.5384260818763
      },
      "source": "HUD Mortgagee Letter 2023-05: a 15-year term with a base loan above $726,200 and LTV over 78% up to 90% pays 40 basis points for 11 years"
    },
    {
      "given": {
        "price": 300000,
        "down": 30000,
        "rate": 0,
        "years": 30,
        "finance": "loan"
      },
      "expect": {
        "upfront": 4725,
        "loan": 274725,
        "pi": 763.125,
        "mip": 110.78125,
        "mipMonths": 132,
        "mipTotal": 12148.125
      },
      "source": "hand calculation in content.mdx: at 0% the base loan falls $750 a month, so year y averages 270,000 − 750 × (12y − 6.5); Python 3 in docs/progress/WP-48/python/fha.py"
    }
  ],
  "sources": [
    "U.S. Department of Housing and Urban Development, Mortgagee Letter 2023-05, Reduction of FHA Annual Mortgage Insurance Premium Rates (February 22, 2023; loans endorsed on or after March 20, 2023). https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-05hsgml.pdf",
    "U.S. Department of Housing and Urban Development, Monthly (Periodic) Mortgage Insurance Premium Calculation. https://www.hud.gov/hud-partners/housing-premium-calculation",
    "U.S. Department of Housing and Urban Development, What is the minimum down payment requirement for FHA? https://answers.hud.gov/FHA/s/article/What-is-the-minimum-down-payment-requirement-for-FHA",
    "Amortized loan payment (annuity) formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3."
  ],
  "related": [
    "mortgage",
    "va-loan",
    "pmi",
    "home-affordability"
  ],
  "changelog": []
}