FHA Loan Calculator

2026 FHA Loan Overview

FHA loans are insured by the Federal Housing Administration, a division of HUD. Because the government backs lenders against default losses, FHA loans allow lower down payments and more flexible credit requirements than conventional mortgages. They are particularly popular with first-time homebuyers and borrowers with limited savings or imperfect credit histories.

2026 FHA Loan Limits

FHA loan limits are updated annually. For 2026, the national floor (minimum) limit for a single-family home is $541,287 — this applies to most lower-cost counties across the U.S. In high-cost areas, the ceiling reaches $1,249,125 for a single-family property. Loans above these limits cannot be insured by FHA and would need to be structured as jumbo or conventional financing.

Upfront Mortgage Insurance Premium (UFMIP)

All FHA purchase loans require an Upfront Mortgage Insurance Premium of 1.75% of the base loan amount, regardless of loan term, LTV, or credit score. This premium can be paid in cash at closing or financed into the loan — which is what most borrowers do. Financing the UFMIP increases the total loan balance slightly but avoids a large out-of-pocket cost at closing.

Annual MIP — 2026 Rates (Mortgagee Letter 2023-05)

For loans with terms greater than 15 years, annual MIP rates range from 0.50% to 0.75% of the loan balance depending on LTV and loan amount. Loans at or below $726,200 with LTV at or below 95% pay 0.50%, while those with LTV above 95% pay 0.55%. Jumbo FHA loans above $726,200 pay 0.70% at or below 95% LTV or 0.75% above 95%. For 15-year loans, annual MIP is significantly lower — ranging from 0.15% to 0.65%.

How Long Does MIP Last?

For FHA loans originated after June 3, 2013: if your original LTV was 90% or below, annual MIP cancels after 11 years. If your original LTV exceeded 90% — which is the case for most buyers putting 3.5% down — MIP continues for the full mortgage term. This is a key distinction from conventional PMI, which automatically cancels at 78% LTV. Borrowers who reach 20% equity may consider refinancing into a conventional loan to eliminate MIP.

Down Payment Requirements

With a credit score of 580 or higher, the minimum FHA down payment is 3.5% of the purchase price. If your credit score is between 500 and 579, FHA requires a 10% minimum down payment. Credit scores below 500 are not eligible for FHA financing. Down payment funds may come from savings, gifts from family members, or eligible down payment assistance programs.

FHA vs. Conventional

FHA loans offer easier qualification but carry mandatory MIP for the life of the loan in most cases. Conventional loans require no upfront MIP, allow PMI cancellation at 80% LTV, and can be more cost-effective for borrowers with strong credit and larger down payments. Borrowers who start with an FHA loan and later build equity often refinance into a conventional mortgage to shed MIP.