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FHA Loan Calculator

Home Price

Down Payment

Term

Years

Interest Rate

Annual MIP

Show Biweekly Payment Results

Include Following Options

Property Tax

Home Insurance

/year

Extra Cost

/year

Calculated Results
Monthly Loan Pay	1,040.54
Monthly Tax	250.00
Monthly Home Insurance	41.67
Monthly MIP	137.30
Monthly Total	1,469.51
Home Price	200,000.00
Upfront MIP	3,333.75
Down Payment	9,500.00
Loan Principal	193,833.75
Total Interest	180,761.18

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Payment schedule

	Year	Beginning Balance	Interest Payment	Principal Payment	Ending Balance
	1	193,833.75	9,626.74	2,859.76	190,973.99
Month	1	193,833.75	807.64	232.90	193,600.85
Month	2	193,600.85	806.67	233.87	193,366.98
Month	3	193,366.98	805.70	234.85	193,132.13
Month	4	193,132.13	804.72	235.82	192,896.31
Month	5	192,896.31	803.73	236.81	192,659.50
Month	6	192,659.50	802.75	237.79	192,421.71
Month	7	192,421.71	801.76	238.78	192,182.92
Month	8	192,182.92	800.76	239.78	191,943.14
Month	9	191,943.14	799.76	240.78	191,702.37
Month	10	191,702.37	798.76	241.78	191,460.58
Month	11	191,460.58	797.75	242.79	191,217.79
Month	12	191,217.79	796.74	243.80	190,973.99
	2	190,973.99	9,480.43	3,006.07	187,967.93
Month	13	190,973.99	795.72	244.82	190,729.18
Month	14	190,729.18	794.70	245.84	190,483.34
Month	15	190,483.34	793.68	246.86	190,236.48
Month	16	190,236.48	792.65	247.89	189,988.59
Month	17	189,988.59	791.62	248.92	189,739.67
Month	18	189,739.67	790.58	249.96	189,489.71
Month	19	189,489.71	789.54	251.00	189,238.71
Month	20	189,238.71	788.49	252.05	188,986.66
Month	21	188,986.66	787.44	253.10	188,733.56
Month	22	188,733.56	786.39	254.15	188,479.41
Month	23	188,479.41	785.33	255.21	188,224.20
Month	24	188,224.20	784.27	256.27	187,967.93
	3	187,967.93	9,326.64	3,159.86	184,808.06
Month	25	187,967.93	783.20	257.34	187,710.59
Month	26	187,710.59	782.13	258.41	187,452.17
Month	27	187,452.17	781.05	259.49	187,192.68
Month	28	187,192.68	779.97	260.57	186,932.11
Month	29	186,932.11	778.88	261.66	186,670.45
Month	30	186,670.45	777.79	262.75	186,407.70
Month	31	186,407.70	776.70	263.84	186,143.86
Month	32	186,143.86	775.60	264.94	185,878.92
Month	33	185,878.92	774.50	266.05	185,612.87
Month	34	185,612.87	773.39	267.15	185,345.72
Month	35	185,345.72	772.27	268.27	185,077.45
Month	36	185,077.45	771.16	269.39	184,808.06
	4	184,808.06	9,164.97	3,321.53	181,486.54
Month	37	184,808.06	770.03	270.51	184,537.56
Month	38	184,537.56	768.91	271.63	184,265.92
Month	39	184,265.92	767.77	272.77	183,993.16
Month	40	183,993.16	766.64	273.90	183,719.25
Month	41	183,719.25	765.50	275.04	183,444.21
Month	42	183,444.21	764.35	276.19	183,168.02
Month	43	183,168.02	763.20	277.34	182,890.68
Month	44	182,890.68	762.04	278.50	182,612.18
Month	45	182,612.18	760.88	279.66	182,332.52
Month	46	182,332.52	759.72	280.82	182,051.70
Month	47	182,051.70	758.55	281.99	181,769.71
Month	48	181,769.71	757.37	283.17	181,486.54
	5	181,486.54	8,995.04	3,491.46	177,995.07
Month	49	181,486.54	756.19	284.35	181,202.19
Month	50	181,202.19	755.01	285.53	180,916.66
Month	51	180,916.66	753.82	286.72	180,629.94
Month	52	180,629.94	752.62	287.92	180,342.02
Month	53	180,342.02	751.43	289.12	180,052.90
Month	54	180,052.90	750.22	290.32	179,762.58
Month	55	179,762.58	749.01	291.53	179,471.05
Month	56	179,471.05	747.80	292.75	179,178.31
Month	57	179,178.31	746.58	293.97	178,884.34
Month	58	178,884.34	745.35	295.19	178,589.15
Month	59	178,589.15	744.12	296.42	178,292.73
Month	60	178,292.73	742.89	297.66	177,995.07
	6	177,995.07	8,816.41	3,670.09	174,324.98
Month	61	177,995.07	741.65	298.90	177,696.18
Month	62	177,696.18	740.40	300.14	177,396.04
Month	63	177,396.04	739.15	301.39	177,094.65
Month	64	177,094.65	737.89	302.65	176,792.00
Month	65	176,792.00	736.63	303.91	176,488.09
Month	66	176,488.09	735.37	305.17	176,182.92
Month	67	176,182.92	734.10	306.45	175,876.47
Month	68	175,876.47	732.82	307.72	175,568.75
Month	69	175,568.75	731.54	309.01	175,259.74
Month	70	175,259.74	730.25	310.29	174,949.45
Month	71	174,949.45	728.96	311.59	174,637.87
Month	72	174,637.87	727.66	312.88	174,324.98
	7	174,324.98	8,628.64	3,857.86	170,467.12
Month	73	174,324.98	726.35	314.19	174,010.79
Month	74	174,010.79	725.04	315.50	173,695.30
Month	75	173,695.30	723.73	316.81	173,378.49
Month	76	173,378.49	722.41	318.13	173,060.36
Month	77	173,060.36	721.08	319.46	172,740.90
Month	78	172,740.90	719.75	320.79	172,420.11
Month	79	172,420.11	718.42	322.12	172,097.99
Month	80	172,097.99	717.07	323.47	171,774.52
Month	81	171,774.52	715.73	324.81	171,449.71
Month	82	171,449.71	714.37	326.17	171,123.54
Month	83	171,123.54	713.01	327.53	170,796.01
Month	84	170,796.01	711.65	328.89	170,467.12
	8	170,467.12	8,431.26	4,055.24	166,411.88
Month	85	170,467.12	710.28	330.26	170,136.86
Month	86	170,136.86	708.90	331.64	169,805.22
Month	87	169,805.22	707.52	333.02	169,472.20
Month	88	169,472.20	706.13	334.41	169,137.79
Month	89	169,137.79	704.74	335.80	168,801.99
Month	90	168,801.99	703.34	337.20	168,464.79
Month	91	168,464.79	701.94	338.60	168,126.19
Month	92	168,126.19	700.53	340.02	167,786.17
Month	93	167,786.17	699.11	341.43	167,444.74
Month	94	167,444.74	697.69	342.86	167,101.89
Month	95	167,101.89	696.26	344.28	166,757.60
Month	96	166,757.60	694.82	345.72	166,411.88
	9	166,411.88	8,223.79	4,262.71	162,149.17
Month	97	166,411.88	693.38	347.16	166,064.73
Month	98	166,064.73	691.94	348.61	165,716.12
Month	99	165,716.12	690.48	350.06	165,366.06
Month	100	165,366.06	689.03	351.52	165,014.55
Month	101	165,014.55	687.56	352.98	164,661.57
Month	102	164,661.57	686.09	354.45	164,307.11
Month	103	164,307.11	684.61	355.93	163,951.19
Month	104	163,951.19	683.13	357.41	163,593.77
Month	105	163,593.77	681.64	358.90	163,234.87
Month	106	163,234.87	680.15	360.40	162,874.48
Month	107	162,874.48	678.64	361.90	162,512.58
Month	108	162,512.58	677.14	363.41	162,149.17
	10	162,149.17	8,005.70	4,480.80	157,668.37
Month	109	162,149.17	675.62	364.92	161,784.25
Month	110	161,784.25	674.10	366.44	161,417.81
Month	111	161,417.81	672.57	367.97	161,049.85
Month	112	161,049.85	671.04	369.50	160,680.34
Month	113	160,680.34	669.50	371.04	160,309.30
Month	114	160,309.30	667.96	372.59	159,936.72
Month	115	159,936.72	666.40	374.14	159,562.58
Month	116	159,562.58	664.84	375.70	159,186.88
Month	117	159,186.88	663.28	377.26	158,809.62
Month	118	158,809.62	661.71	378.83	158,430.79
Month	119	158,430.79	660.13	380.41	158,050.37
Month	120	158,050.37	658.54	382.00	157,668.37
	11	157,668.37	7,776.45	4,710.05	152,958.33
Month	121	157,668.37	656.95	383.59	157,284.78
Month	122	157,284.78	655.35	385.19	156,899.60
Month	123	156,899.60	653.75	386.79	156,512.80
Month	124	156,512.80	652.14	388.40	156,124.40
Month	125	156,124.40	650.52	390.02	155,734.37
Month	126	155,734.37	648.89	391.65	155,342.73
Month	127	155,342.73	647.26	393.28	154,949.45
Month	128	154,949.45	645.62	394.92	154,554.53
Month	129	154,554.53	643.98	396.56	154,157.96
Month	130	154,157.96	642.32	398.22	153,759.75
Month	131	153,759.75	640.67	399.88	153,359.87
Month	132	153,359.87	639.00	401.54	152,958.33
	12	152,958.33	7,535.48	4,951.02	148,007.31
Month	133	152,958.33	637.33	403.22	152,555.11
Month	134	152,555.11	635.65	404.90	152,150.22
Month	135	152,150.22	633.96	406.58	151,743.64
Month	136	151,743.64	632.27	408.28	151,335.36
Month	137	151,335.36	630.56	409.98	150,925.38
Month	138	150,925.38	628.86	411.69	150,513.70
Month	139	150,513.70	627.14	413.40	150,100.30
Month	140	150,100.30	625.42	415.12	149,685.17
Month	141	149,685.17	623.69	416.85	149,268.32
Month	142	149,268.32	621.95	418.59	148,849.73
Month	143	148,849.73	620.21	420.33	148,429.39
Month	144	148,429.39	618.46	422.09	148,007.31
	13	148,007.31	7,282.17	5,204.32	142,802.98
Month	145	148,007.31	616.70	423.84	147,583.46
Month	146	147,583.46	614.93	425.61	147,157.85
Month	147	147,157.85	613.16	427.38	146,730.47
Month	148	146,730.47	611.38	429.16	146,301.31
Month	149	146,301.31	609.59	430.95	145,870.35
Month	150	145,870.35	607.79	432.75	145,437.60
Month	151	145,437.60	605.99	434.55	145,003.05
Month	152	145,003.05	604.18	436.36	144,566.69
Month	153	144,566.69	602.36	438.18	144,128.51
Month	154	144,128.51	600.54	440.01	143,688.50
Month	155	143,688.50	598.70	441.84	143,246.67
Month	156	143,246.67	596.86	443.68	142,802.98
	14	142,802.98	7,015.91	5,470.59	137,332.40
Month	157	142,802.98	595.01	445.53	142,357.46
Month	158	142,357.46	593.16	447.39	141,910.07
Month	159	141,910.07	591.29	449.25	141,460.82
Month	160	141,460.82	589.42	451.12	141,009.70
Month	161	141,009.70	587.54	453.00	140,556.70
Month	162	140,556.70	585.65	454.89	140,101.81
Month	163	140,101.81	583.76	456.78	139,645.03
Month	164	139,645.03	581.85	458.69	139,186.34
Month	165	139,186.34	579.94	460.60	138,725.74
Month	166	138,725.74	578.02	462.52	138,263.22
Month	167	138,263.22	576.10	464.44	137,798.78
Month	168	137,798.78	574.16	466.38	137,332.40
	15	137,332.40	6,736.03	5,750.47	131,581.93
Month	169	137,332.40	572.22	468.32	136,864.07
Month	170	136,864.07	570.27	470.27	136,393.80
Month	171	136,393.80	568.31	472.23	135,921.57
Month	172	135,921.57	566.34	474.20	135,447.36
Month	173	135,447.36	564.36	476.18	134,971.19
Month	174	134,971.19	562.38	478.16	134,493.03
Month	175	134,493.03	560.39	480.15	134,012.87
Month	176	134,012.87	558.39	482.15	133,530.72
Month	177	133,530.72	556.38	484.16	133,046.55
Month	178	133,046.55	554.36	486.18	132,560.37
Month	179	132,560.37	552.33	488.21	132,072.17
Month	180	132,072.17	550.30	490.24	131,581.93
	16	131,581.93	6,441.82	6,044.68	125,537.25
Month	181	131,581.93	548.26	492.28	131,089.64
Month	182	131,089.64	546.21	494.33	130,595.31
Month	183	130,595.31	544.15	496.39	130,098.91
Month	184	130,098.91	542.08	498.46	129,600.45
Month	185	129,600.45	540.00	500.54	129,099.91
Month	186	129,099.91	537.92	502.63	128,597.29
Month	187	128,597.29	535.82	504.72	128,092.57
Month	188	128,092.57	533.72	506.82	127,585.74
Month	189	127,585.74	531.61	508.93	127,076.81
Month	190	127,076.81	529.49	511.05	126,565.75
Month	191	126,565.75	527.36	513.18	126,052.57
Month	192	126,052.57	525.22	515.32	125,537.25
	17	125,537.25	6,132.56	6,353.93	119,183.31
Month	193	125,537.25	523.07	517.47	125,019.78
Month	194	125,019.78	520.92	519.63	124,500.15
Month	195	124,500.15	518.75	521.79	123,978.36
Month	196	123,978.36	516.58	523.96	123,454.40
Month	197	123,454.40	514.39	526.15	122,928.25
Month	198	122,928.25	512.20	528.34	122,399.91
Month	199	122,399.91	510.00	530.54	121,869.37
Month	200	121,869.37	507.79	532.75	121,336.61
Month	201	121,336.61	505.57	534.97	120,801.64
Month	202	120,801.64	503.34	537.20	120,264.44
Month	203	120,264.44	501.10	539.44	119,725.00
Month	204	119,725.00	498.85	541.69	119,183.31
	18	119,183.31	5,807.48	6,679.01	112,504.30
Month	205	119,183.31	496.60	543.94	118,639.37
Month	206	118,639.37	494.33	546.21	118,093.16
Month	207	118,093.16	492.05	548.49	117,544.67
Month	208	117,544.67	489.77	550.77	116,993.90
Month	209	116,993.90	487.47	553.07	116,440.83
Month	210	116,440.83	485.17	555.37	115,885.46
Month	211	115,885.46	482.86	557.69	115,327.78
Month	212	115,327.78	480.53	560.01	114,767.77
Month	213	114,767.77	478.20	562.34	114,205.42
Month	214	114,205.42	475.86	564.69	113,640.74
Month	215	113,640.74	473.50	567.04	113,073.70
Month	216	113,073.70	471.14	569.40	112,504.30
	19	112,504.30	5,465.77	7,020.73	105,483.57
Month	217	112,504.30	468.77	571.77	111,932.53
Month	218	111,932.53	466.39	574.16	111,358.37
Month	219	111,358.37	463.99	576.55	110,781.82
Month	220	110,781.82	461.59	578.95	110,202.87
Month	221	110,202.87	459.18	581.36	109,621.51
Month	222	109,621.51	456.76	583.79	109,037.72
Month	223	109,037.72	454.32	586.22	108,451.51
Month	224	108,451.51	451.88	588.66	107,862.85
Month	225	107,862.85	449.43	591.11	107,271.73
Month	226	107,271.73	446.97	593.58	106,678.16
Month	227	106,678.16	444.49	596.05	106,082.11
Month	228	106,082.11	442.01	598.53	105,483.57
	20	105,483.57	5,106.58	7,379.92	98,103.66
Month	229	105,483.57	439.51	601.03	104,882.55
Month	230	104,882.55	437.01	603.53	104,279.02
Month	231	104,279.02	434.50	606.05	103,672.97
Month	232	103,672.97	431.97	608.57	103,064.40
Month	233	103,064.40	429.44	611.11	102,453.29
Month	234	102,453.29	426.89	613.65	101,839.64
Month	235	101,839.64	424.33	616.21	101,223.43
Month	236	101,223.43	421.76	618.78	100,604.65
Month	237	100,604.65	419.19	621.36	99,983.30
Month	238	99,983.30	416.60	623.94	99,359.36
Month	239	99,359.36	414.00	626.54	98,732.81
Month	240	98,732.81	411.39	629.15	98,103.66
	21	98,103.66	4,729.01	7,757.49	90,346.17
Month	241	98,103.66	408.77	631.78	97,471.88
Month	242	97,471.88	406.13	634.41	96,837.47
Month	243	96,837.47	403.49	637.05	96,200.42
Month	244	96,200.42	400.84	639.71	95,560.71
Month	245	95,560.71	398.17	642.37	94,918.34
Month	246	94,918.34	395.49	645.05	94,273.29
Month	247	94,273.29	392.81	647.74	93,625.56
Month	248	93,625.56	390.11	650.43	92,975.12
Month	249	92,975.12	387.40	653.15	92,321.98
Month	250	92,321.98	384.67	655.87	91,666.11
Month	251	91,666.11	381.94	658.60	91,007.51
Month	252	91,007.51	379.20	661.34	90,346.17
	22	90,346.17	4,332.12	8,154.38	82,191.79
Month	253	90,346.17	376.44	664.10	89,682.07
Month	254	89,682.07	373.68	666.87	89,015.20
Month	255	89,015.20	370.90	669.64	88,345.56
Month	256	88,345.56	368.11	672.43	87,673.12
Month	257	87,673.12	365.30	675.24	86,997.88
Month	258	86,997.88	362.49	678.05	86,319.83
Month	259	86,319.83	359.67	680.88	85,638.96
Month	260	85,638.96	356.83	683.71	84,955.25
Month	261	84,955.25	353.98	686.56	84,268.69
Month	262	84,268.69	351.12	689.42	83,579.26
Month	263	83,579.26	348.25	692.29	82,886.97
Month	264	82,886.97	345.36	695.18	82,191.79
	23	82,191.79	3,914.93	8,571.57	73,620.22
Month	265	82,191.79	342.47	698.08	81,493.71
Month	266	81,493.71	339.56	700.98	80,792.73
Month	267	80,792.73	336.64	703.91	80,088.82
Month	268	80,088.82	333.70	706.84	79,381.99
Month	269	79,381.99	330.76	709.78	78,672.20
Month	270	78,672.20	327.80	712.74	77,959.46
Month	271	77,959.46	324.83	715.71	77,243.75
Month	272	77,243.75	321.85	718.69	76,525.06
Month	273	76,525.06	318.85	721.69	75,803.37
Month	274	75,803.37	315.85	724.69	75,078.68
Month	275	75,078.68	312.83	727.71	74,350.96
Month	276	74,350.96	309.80	730.75	73,620.22
	24	73,620.22	3,476.39	9,010.11	64,610.11
Month	277	73,620.22	306.75	733.79	72,886.43
Month	278	72,886.43	303.69	736.85	72,149.58
Month	279	72,149.58	300.62	739.92	71,409.66
Month	280	71,409.66	297.54	743.00	70,666.66
Month	281	70,666.66	294.44	746.10	69,920.56
Month	282	69,920.56	291.34	749.21	69,171.36
Month	283	69,171.36	288.21	752.33	68,419.03
Month	284	68,419.03	285.08	755.46	67,663.57
Month	285	67,663.57	281.93	758.61	66,904.96
Month	286	66,904.96	278.77	761.77	66,143.19
Month	287	66,143.19	275.60	764.94	65,378.24
Month	288	65,378.24	272.41	768.13	64,610.11
	25	64,610.11	3,015.42	9,471.08	55,139.03
Month	289	64,610.11	269.21	771.33	63,838.78
Month	290	63,838.78	265.99	774.55	63,064.23
Month	291	63,064.23	262.77	777.77	62,286.46
Month	292	62,286.46	259.53	781.01	61,505.44
Month	293	61,505.44	256.27	784.27	60,721.17
Month	294	60,721.17	253.00	787.54	59,933.64
Month	295	59,933.64	249.72	790.82	59,142.82
Month	296	59,142.82	246.43	794.11	58,348.71
Month	297	58,348.71	243.12	797.42	57,551.28
Month	298	57,551.28	239.80	800.74	56,750.54
Month	299	56,750.54	236.46	804.08	55,946.46
Month	300	55,946.46	233.11	807.43	55,139.03
	26	55,139.03	2,530.86	9,955.64	45,183.39
Month	301	55,139.03	229.75	810.80	54,328.23
Month	302	54,328.23	226.37	814.17	53,514.06
Month	303	53,514.06	222.98	817.57	52,696.49
Month	304	52,696.49	219.57	820.97	51,875.52
Month	305	51,875.52	216.15	824.39	51,051.13
Month	306	51,051.13	212.71	827.83	50,223.30
Month	307	50,223.30	209.26	831.28	49,392.02
Month	308	49,392.02	205.80	834.74	48,557.28
Month	309	48,557.28	202.32	838.22	47,719.06
Month	310	47,719.06	198.83	841.71	46,877.35
Month	311	46,877.35	195.32	845.22	46,032.13
Month	312	46,032.13	191.80	848.74	45,183.39
	27	45,183.39	2,021.51	10,464.99	34,718.40
Month	313	45,183.39	188.26	852.28	44,331.11
Month	314	44,331.11	184.71	855.83	43,475.28
Month	315	43,475.28	181.15	859.39	42,615.89
Month	316	42,615.89	177.57	862.98	41,752.91
Month	317	41,752.91	173.97	866.57	40,886.34
Month	318	40,886.34	170.36	870.18	40,016.16
Month	319	40,016.16	166.73	873.81	39,142.35
Month	320	39,142.35	163.09	877.45	38,264.90
Month	321	38,264.90	159.44	881.10	37,383.80
Month	322	37,383.80	155.77	884.78	36,499.02
Month	323	36,499.02	152.08	888.46	35,610.56
Month	324	35,610.56	148.38	892.16	34,718.40
	28	34,718.40	1,486.10	11,000.40	23,718.00
Month	325	34,718.40	144.66	895.88	33,822.51
Month	326	33,822.51	140.93	899.61	32,922.90
Month	327	32,922.90	137.18	903.36	32,019.54
Month	328	32,019.54	133.41	907.13	31,112.41
Month	329	31,112.41	129.64	910.91	30,201.50
Month	330	30,201.50	125.84	914.70	29,286.80
Month	331	29,286.80	122.03	918.51	28,368.29
Month	332	28,368.29	118.20	922.34	27,445.95
Month	333	27,445.95	114.36	926.18	26,519.77
Month	334	26,519.77	110.50	930.04	25,589.72
Month	335	25,589.72	106.62	933.92	24,655.81
Month	336	24,655.81	102.73	937.81	23,718.00
	29	23,718.00	923.30	11,563.20	12,154.80
Month	337	23,718.00	98.82	941.72	22,776.28
Month	338	22,776.28	94.90	945.64	21,830.64
Month	339	21,830.64	90.96	949.58	20,881.06
Month	340	20,881.06	87.00	953.54	19,927.52
Month	341	19,927.52	83.03	957.51	18,970.01
Month	342	18,970.01	79.04	961.50	18,008.51
Month	343	18,008.51	75.04	965.51	17,043.01
Month	344	17,043.01	71.01	969.53	16,073.48
Month	345	16,073.48	66.97	973.57	15,099.91
Month	346	15,099.91	62.92	977.63	14,122.28
Month	347	14,122.28	58.84	981.70	13,140.59
Month	348	13,140.59	54.75	985.79	12,154.80
	30	12,154.80	331.70	12,154.80	0.00
Month	349	12,154.80	50.64	989.90	11,164.90
Month	350	11,164.90	46.52	994.02	10,170.88
Month	351	10,170.88	42.38	998.16	9,172.72
Month	352	9,172.72	38.22	1,002.32	8,170.39
Month	353	8,170.39	34.04	1,006.50	7,163.90
Month	354	7,163.90	29.85	1,010.69	6,153.20
Month	355	6,153.20	25.64	1,014.90	5,138.30
Month	356	5,138.30	21.41	1,019.13	4,119.17
Month	357	4,119.17	17.16	1,023.38	3,095.79
Month	358	3,095.79	12.90	1,027.64	2,068.15
Month	359	2,068.15	8.62	1,031.92	1,036.22
Month	360	1,036.22	4.32	1,036.22	0.00

What is a FHA Loan?

An FHA loan, Federal Housing Administration Loan, is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA), which is part of HUD (United States Department of Housing and Urban Development). FHA loan is designed for low-to-moderate income borrowers, FHA loans require lower minimum down payments and credit scores than many conventional loans.

Low down payments: Your down payment can be as low as 3.5% of the purchase price. Available on 1-4 unit properties. Your down payment can come from savings, a financial gift from a family member or a grant for down-payment assistance.
Easy credit qualifying: You’ll need a credit score of at least 580. If your credit score falls between 500 and 579, you can still get an FHA loan provided you can make a 10% down payment.
Low closing costs: When you buy a home, you may be responsible for certain out-of-pocket expenses such as loan origination fees, attorney fees and appraisal costs. One of the advantages of an FHA mortgage is that the seller, home builder or lender can pay some of these closing costs on your behalf. Especially if the seller is having a hard time finding a buyer, they might just offer to help you out at closing time as a deal sweetener.

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How FHA Loans Work?

The Federal Housing Administration doesn’t actually lend you money for the mortgage. Instead, you get a loan from an FHA-approved lender, like a bank or lending institutions. They will evaluate your qualifications for the loan and the FHA guarantees the loan. You pay for that guarantee through mortgage insurance premium payments to the FHA. Your lender bears less risk because the FHA will pay a claim to the lender if you default on the loan.

An FHA loan requires you pay two types of mortgage insurance premiums – an Upfront Mortgage Insurance Premium (UFMIP) and an Annual MIP (paid monthly).

The Upfront MIP is equal to 1.75% of the base loan amount (as of 2019). You pay this at the closing or it can be rolled into the loan. The payments are deposited into an escrow account set up by the U.S. Treasury Department, and the funds are used to make mortgage payments in case you default on the loan.
The Annual MIP payments range from 0.45% to 1.05% of the base loan amount, depending on the loan amount, the loan length, and the original loan-to-value ratio (LTV). The typical Annual MIP cost is usually 0.85% of the loan amount.

Types of FHA Loans

In addition to FHA traditional loans popular with first-time home buyers for a primary residence. The FHA offers a few other loans programs, including:

Home Equity Conversion Mortgage (HECM): A reverse mortgage program that helps seniors aged 62 and above convert the equity in their homes to cash. You choose how to withdraw the funds, either as a fixed monthly amount or a line of credit, or a combination of both.
FHA 203K Renovation Loan: The FHA 203k Loan helps home loan customers who want to repair or remodel a primary residence at the time of purchase or refinance. The lender rolls the money to finance (or refinance) a home and complete repairs into a single home loan. You can get a fixed rate with only a 3.5% down payment. It can make a big difference if you don’t have a lot of cash on hand after making a down payment.
FHA EEM Loan: FHA’s Energy Efficient Mortgage is a similar concept to renovation loan, but it is aimed at upgrades that can lower your utility bills, such as new insulation or the installation of new solar or wind energy systems. The idea is that energy-efficient homes have lower operating costs, which lower bills and make more income available for mortgage payments.
Section 245 (a) loan: Also named as FHA Graduated Payment Mortgage(GPM) Loans for borrowers with rising incomes. The loans that are tailored for first time home buyers or young families. These likely homebuyers are often not in a position that would warrant them being able meet the many upfront and monthly costs that are involved. Under the Section 245(a) program, the Graduated Payment Mortgage starts with lower initial monthly payments that gradually increase over time, and the Growing Equity Mortgage has scheduled increases in monthly principal payments that result in shorter loan terms.

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