Does FHA MIP ever drop off?

For most FHA loans originated after 2013 with less than 10% down, MIP lasts the life of the loan. Refinancing to a conventional loan is the usual exit.

What credit score do I need for FHA?

580+ qualifies for 3.5% down. Below that, a larger down payment is typically required. Lenders can overlay stricter requirements.

What's the FHA loan limit in my county?

FHA loan limits vary by county based on local home prices. 2024 limits: $498,257 in low-cost areas (most of US), up to $1,149,825 in high-cost areas (San Francisco Bay Area, NYC, parts of Hawaii). Limits are 65% of conforming loan limit. Check HUD's lookup tool by county. If your target home exceeds local FHA limit, you'll need conventional, jumbo, or VA financing instead. Limits adjust annually based on FHFA conforming-loan limit changes.

What's the FHA upfront mortgage insurance premium (UFMIP)?

1.75% of loan amount, due at closing. Can be financed into the loan (added to principal) which is what most borrowers do. On a $290K loan: UFMIP = $5,075. If financed: actual loan balance becomes $295,075, monthly payment slightly higher. The annual MIP is 0.55-0.85% of the loan, paid monthly. So total FHA insurance cost: 1.75% upfront + 0.55-0.85% annually for life of loan (or until refi). Compare to conventional PMI (0.3-1.5% annual, drops at 80% LTV) — conventional is cheaper if you can put 5-10% down.

Can I use FHA for a duplex or multi-unit property?

Yes, FHA allows 1-4 unit properties as long as you live in one unit (owner-occupied requirement). 'House hacking' strategy: buy a 2-4 unit FHA property with 3.5% down, live in one unit, rent the others. Rental income from other units can be 75% counted toward qualifying for the loan. FHA is one of the few low-down-payment options for multi-family. Note: the 1-4 unit structure only applies to FHA; conventional financing for multi-family typically requires 25% down for investment properties.

Should I take FHA or conventional with 3% down?

Conventional 3% down (Fannie Mae HomeReady, Freddie Mac Home Possible) is usually better if you have 680+ credit. PMI on conventional is cheaper than FHA MIP, and PMI drops off at 80% LTV. FHA is better if: credit score is 580-679 (FHA approves; conventional often won't), you have a recent bankruptcy or foreclosure (FHA more lenient on history), or your DTI ratio is high (FHA up to 50% DTI; conventional usually capped at 43-45%). Run both options through your lender; the right answer depends on your specific situation.

Money & Finance · Free tool

FHA Loan Calculator

Calculate monthly payments including mortgage insurance premium instantly. Free first-time buyer tool online with no registration.

Updated June 2026

Home price ($)Down payment (%)Rate (%)Term (years)Property tax (% / yr)Insurance ($ / yr)HOA ($ / mo)PMI (% / yr)

Monthly payment (all in)

$2,460

P&I

$1,926

Property tax

$300

Insurance

$100

PMI (avg)

$134

drops off in ~11 yr

Total cost over 30 years

Down payment: $10,500
Loan amount: $289,500
Total interest: $403,878
Total PMI: $18,224
Total cost of home: $866,102

P&I uses the standard fixed-rate amortization formula. PMI assumes conventional rules (drops off when balance ≤ 80% of original price). Taxes, insurance, and HOA are held flat — in reality they drift up over time.

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What it does

An FHA loan calculator. FHA loans let qualified buyers put as little as 3.5% down, which is the single biggest reason they’re used by first-time homebuyers. The catch is mortgage insurance premium (MIP) — an upfront fee plus an annual premium that stays on the loan for the long term in most cases.

The calculator estimates your PITI payment. Remember to add MIP to your total monthly cost — it’s typically 0.55-0.85% of the loan amount per year. At a $290,000 loan balance, that’s $133-$205/month on top of the PITI this calculator shows.

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Example input & output

Input

Home price: $300,000
Down: 3.5% ($10,500)
Rate: 7.0%
Term: 30 years

Output

P&I: $1,927/mo
Taxes: $300/mo
Insurance: $75/mo
PITI subtotal: $2,302/mo
+ Estimated MIP: ~$180/mo
All-in: ~$2,482/mo

MIP adds roughly $2,160/year to the cost. Refinancing to conventional once you hit 20% equity can drop it.

How to use it

Enter the home price.
Enter 3.5% as the minimum FHA down payment.
Enter the current FHA rate (often slightly below conventional).
Include property taxes and insurance.
Add monthly MIP separately based on your loan balance.

When to use this tool

Buyers with limited down payment savings.
Buyers with lower credit scores (FHA is more lenient).

When not to use it

Buyers with 20%+ down — conventional usually beats FHA on total cost.
Investment or second-home purchases (FHA is owner-occupied only).

Common use cases

First-time homebuyer planning.
Comparing FHA vs conventional 3% down programs.
Assessing the all-in cost including MIP.

Frequently asked questions

Does FHA MIP ever drop off?: For most FHA loans originated after 2013 with less than 10% down, MIP lasts the life of the loan. Refinancing to a conventional loan is the usual exit.
What credit score do I need for FHA?: 580+ qualifies for 3.5% down. Below that, a larger down payment is typically required. Lenders can overlay stricter requirements.
What's the FHA loan limit in my county?: FHA loan limits vary by county based on local home prices. 2024 limits: $498,257 in low-cost areas (most of US), up to $1,149,825 in high-cost areas (San Francisco Bay Area, NYC, parts of Hawaii). Limits are 65% of conforming loan limit. Check HUD's lookup tool by county. If your target home exceeds local FHA limit, you'll need conventional, jumbo, or VA financing instead. Limits adjust annually based on FHFA conforming-loan limit changes.
What's the FHA upfront mortgage insurance premium (UFMIP)?: 1.75% of loan amount, due at closing. Can be financed into the loan (added to principal) which is what most borrowers do. On a $290K loan: UFMIP = $5,075. If financed: actual loan balance becomes $295,075, monthly payment slightly higher. The annual MIP is 0.55-0.85% of the loan, paid monthly. So total FHA insurance cost: 1.75% upfront + 0.55-0.85% annually for life of loan (or until refi). Compare to conventional PMI (0.3-1.5% annual, drops at 80% LTV) — conventional is cheaper if you can put 5-10% down.
Can I use FHA for a duplex or multi-unit property?: Yes, FHA allows 1-4 unit properties as long as you live in one unit (owner-occupied requirement). 'House hacking' strategy: buy a 2-4 unit FHA property with 3.5% down, live in one unit, rent the others. Rental income from other units can be 75% counted toward qualifying for the loan. FHA is one of the few low-down-payment options for multi-family. Note: the 1-4 unit structure only applies to FHA; conventional financing for multi-family typically requires 25% down for investment properties.
Should I take FHA or conventional with 3% down?: Conventional 3% down (Fannie Mae HomeReady, Freddie Mac Home Possible) is usually better if you have 680+ credit. PMI on conventional is cheaper than FHA MIP, and PMI drops off at 80% LTV. FHA is better if: credit score is 580-679 (FHA approves; conventional often won't), you have a recent bankruptcy or foreclosure (FHA more lenient on history), or your DTI ratio is high (FHA up to 50% DTI; conventional usually capped at 43-45%). Run both options through your lender; the right answer depends on your specific situation.

See how this compares

Head-to-headFHA vs conventional loanFHA vs conventional mortgage: down payment, credit score, PMI rules, and total cost. Use our free FHA and mortgage calculators to model your own numbers.

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