If your credit score is below 620 or you have a high DTI ratio, an FHA loan may be your best option. Conventional loan requirements set a minimum 620 credit score, which is significantly higher than the 500 minimum score for FHA loans.
Our FHA loan calculator provides a quick and easy way to estimate your monthly FHA mortgage payment. Just plug in the following seven pieces of information:
Read more about how to choose between a 15- vs. 30-year mortgage.Lender | User ratings | LendingTree rating | Min. credit score (FHA loans) | Min. down payment (FHA loans) | Rate spread
Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan.
| Avg. loan costs
Average total loan costs include origination fees and are based on 2023 data from the Federal Financial Institutions Examination Council (FFIEC).
|
|---|---|---|---|---|---|---|
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | 580 | 3.5% | 0.97% | $8,512 | ||
User reviews coming soon | 580 | 3.5% | 1.11% | $8,073 | ||
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | 600 | 3.5% | 0.40% | $11,690 | ||
User reviews coming soon | 500 | 3.5% | 0.49% | $8,170 | ||
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | 500 | 3.5% | 1.46% | $9,079 |
Learn more about how we chose our best FHA lenders.Follow the five steps below to get an FHA loan:
The “monthly payment breakdown” itemizes your total PITI (principal, interest, taxes and insurance) payment and includes:
This part of your monthly payment varies based on your FHA base loan amount, interest rate and loan term. For a fixed-rate loan, the payment doesn’t change, but each month you pay more principal and less interest until you pay off the balance. This process is known as amortization.
FHA loans require you to pay a portion of your property taxes as part of your monthly payment. The lender divides your annual tax bill into 12 monthly installments and saves them in an escrow account until they’re due.
Home InsuranceHomeowners insurance pays for losses from unexpected damage to your home from a fire, theft or other covered event. Like your property taxes, the premium is divided by 12 and becomes part of your monthly mortgage payment. The lender pays the annual premium through your escrow account.
Monthly FHA Mortgage Insurance PremiumThe annual mortgage insurance premium (MIP) is one of two types of FHA mortgage insurance you’re required to pay. The fee ranges from 0.15% to 0.75% of your loan amount, depending on the loan term, loan amount and down payment. MIP is charged annually, divided by 12 and added to your monthly payment.
There are more costs built into an FHA mortgage loan than other types of mortgage loans. You’ll also notice the calculator shows your FHA base loan amount, upfront MIP and total loan amount. Here’s why these items are important:
Use our refinance calculator to estimate your monthly payment today.
One drawback to FHA loans is you pay FHA mortgage insurance regardless of your down payment percentage. That may make the monthly payment too expensive. However, there are a few FHA affordability benefits worth knowing:
If your credit score is below 620 or you have a high DTI ratio, an FHA loan may be your best option. Conventional loan requirements set a minimum 620 credit score, which is significantly higher than the 500 minimum score for FHA loans.
The 2025 limit is $524,225 for single-family homes in most parts of the country, but may be as high as $1,209,750 for single-family homes in higher-priced areas.
The mortgage process for an FHA loan is similar to any other type of mortgage loan. You’ll fill out an application and provide financial documents like pay stubs, a W-2 and bank statements. One you find a home, the lender orders an FHA appraisal. If the appraisal supports your sales price, the lender issues a closing disclosure three business days before your closing. Once you review the figures, you can sign your final paperwork, get your loan funds and own your new home.
Yes, but you’ll still have to pay both types of mortgage insurance. However, the MIP will automatically drop off after 11 years.
You can ask for a gift or closing cost assistance if you’re short on funds. FHA guidelines allow the home seller to pay up to 6% of your loan amount toward closing costs. You can also ask the lender for a no-cost loan — the lender pays the costs on your behalf and increases your interest rate instead.
No. Anyone who meets FHA loan requirements can qualify for an FHA loan through an FHA-approved lender.
The minimum down payment is 3.5% for an FHA mortgage with a 580 credit score.
No, the FHA doesn’t set income restrictions. However, if you’re applying for down payment assistance (DPA), income limits may apply.