FHA Loan Calculator (3.5% Down Payment)
Calculate FHA loan payments with just 3.5% down. Understand how mortgage insurance premiums affect your monthly cost on an FHA mortgage.
FHA loans backed by the Federal Housing Administration let buyers enter the market with as little as 3.5% down and more lenient credit requirements (minimum 580 score for 3.5% down). This makes homeownership accessible for first-time buyers, those rebuilding credit, or anyone who hasn't been able to save a traditional 20% down payment. The trade-off is mandatory mortgage insurance -- both an upfront premium and an ongoing annual premium.
$
$
years
%
Monthly Payment
$1,829.84
Total Interest
$369,241
Total Cost
$658,741
Payment Breakdown
Principal: $289,500Interest: $369,241
Key Considerations
- With 3.5% down on a $300,000 home, your loan amount is $289,500 -- monthly P&I at 6.5% over 30 years comes to about $1,830, but FHA mortgage insurance adds roughly $160-$190 per month.
- FHA requires an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount ($5,066 on a $289,500 loan), which is typically rolled into the loan balance.
- Unlike conventional PMI, FHA annual mortgage insurance premiums (MIP) cannot be removed for the life of the loan if you put less than 10% down -- the only way to eliminate it is to refinance into a conventional loan once you reach 20% equity.
- FHA loan limits vary by county: the floor is $498,257 and the ceiling is $1,149,825 in high-cost areas (2024 figures) -- check your county's specific limit before house-hunting.
- Many first-time buyers pair FHA loans with state down payment assistance programs that provide grants or forgivable second mortgages covering part or all of the 3.5% requirement.
See also: