What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, popular with buyers who have smaller down payments or lower credit scores. FHA loans require both an upfront and an ongoing annual Mortgage Insurance Premium (MIP).
The Formula
Loan Amount = Home Price – Down Payment. Monthly Principal & Interest uses the standard amortization formula. Monthly MIP = (Loan Amount × Annual MIP Rate) ÷ 12. The total estimated payment adds these together (excluding taxes, insurance, and any upfront MIP financed into the loan).
Note: This is an estimate for general planning purposes only; actual FHA terms, MIP rates, and eligibility depend on current guidelines and lender criteria.
Last reviewed August 2026