FHA Loan Calculator
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Calculate Your FHA Loan Payment in Seconds
Getting an accurate estimate of your FHA loan payment helps you budget confidently and understand exactly what homeownership costs each month. Here’s how to use this calculator:
Enter your home price.
Input the price of the home you're planning to buy. FHA loans work for primary residences, so this should be the property you'll live in.
Enter your down payment.
FHA loans require a minimum 3.5% down payment if your credit score is 580 or higher. If your score is between 500-579, you'll need at least 10% down. You can enter either a dollar amount or percentage.
Enter your interest rate.
FHA rates are typically competitive with conventional loans. Our calculator uses current average rates, but you can adjust this based on quotes you've received from lenders.
Enter your loan term.
Most FHA loans are 30-year fixed mortgages, but 15-year and other terms are available. Choose the term length that fits your budget and goals.
Your estimated monthly payment appears instantly, broken down by principal, interest, taxes, insurance, and mortgage insurance premiums.
The calculator shows your total monthly payment including FHA mortgage insurance, which is required on all FHA loans regardless of down payment size.
Understanding FHA Mortgage Payment Costs
Your FHA loan payment includes several components that make up your total monthly housing cost. Here’s what you’re paying for:
Principal
The amount you borrowed to purchase your home. Each month, part of your payment reduces this balance, building equity in your property. In the early years, most of your payment goes toward interest. Later, more goes toward principal.
Interest
The cost of borrowing money from your lender, calculated as an annual percentage rate (APR) and divided into monthly payments. Your interest rate depends on credit score, loan type, down payment size, and current market conditions. Even small rate differences significantly impact your monthly payment and total interest paid over the loan’s life.
Property Taxes
The annual tax on your home levied by Los Angeles County and your city. LA County charges approximately 1% of your home’s assessed value annually, though some areas include Mello-Roos taxes or special assessments adding 0.5% to 1% more. Your lender collects monthly portions and pays the bill when due.
Homeowners Insurance
Required coverage protecting your home from fire, theft, weather damage, and liability claims. Annual premiums in Los Angeles typically range from $1,200 to $2,500 depending on location, home value, coverage level, and whether you’re in a fire zone. You pay monthly portions through your mortgage payment.
FHA Mortgage Insurance (MIP)
If you put down less than 20% on a conventional loan, you’ll pay PMI ranging from 0.5% to 1% of your loan amount annually. This insurance protects the lender if you default. Once you reach 20% equity through payments and appreciation, you can request PMI removal. FHA loans require mortgage insurance for the life of the loan with less than 10% down. VA loans never require mortgage insurance.
Additional Costs to Consider:
Down Payment
Your upfront payment toward the home’s purchase price. FHA loans allow as little as 3.5% down, making homeownership more accessible than conventional loans requiring 5-20% down.
Closing Costs
One-time fees including lender origination charges, appraisal fees, title insurance, and recording fees. FHA closing costs typically run 2-5% of your loan amount. The good news? FHA allows sellers to contribute up to 6% toward your closing cost.
How FHA Loan Payments Are Calculated
For those who want to understand the math behind mortgage calculations, here’s the formula lenders use to determine your monthly principal and interest payment:
Let's say you're buying a $600,000 home in Los Angeles with a 3.5% down payment ($21,000). Your base FHA loan amount is $579,000. Add the upfront MIP of 1.75% ($10,133), making your total loan $589,133 with a 6.5% interest rate over 30 years.
- P = $589,133 (base loan + upfront MIP)
- r = 0.00542 (6.5% ÷ 100 = 0.065, then 0.065 ÷ 12 = 0.00542)
- n = 360 (30 years × 12 months)
Your monthly principal and interest payment would be approximately $3,723. Add monthly MIP ($270), property taxes ($500), and homeowners insurance ($150) for a total monthly payment around $4,643.
Benefits of FHA Financing for Los Angeles Buyers
FHA loans help buyers who might not qualify for conventional financing become homeowners. Here’s why FHA loans work well for many Los Angeles buyers:
Lower Down Payment Requirements
Put down just 3.5% instead of the 10-20% many conventional loans require. This gets you into a home faster without waiting years to save a larger down payment.
Flexible Credit Requirements
FHA accepts credit scores as low as 580 for minimum down payment loans, and even 500-579 scores qualify with 10% down. Conventional loans typically require 620+ scores.
Competitive Interest Rates
Because the Federal Housing Administration insures these loans, lenders offer attractive rates even to buyers with less-than-perfect credit or limited savings.
Higher Debt-to-Income Ratios Allowed
FHA loans permit debt-to-income ratios up to 43% (sometimes 50% with compensating factors), helping buyers with student loans, car payments, or other debt still qualify.
Seller Concessions Permitted
Sellers can contribute up to 6% toward your closing costs, reducing the cash you need at closing significantly.
FHA loans are popular with first-time buyers, but you don’t have to be buying your first home to use FHA financing. Anyone purchasing a primary residence can use an FHA loan.