Is a FHA loan right for you?
If you’re exploring home financing options with flexible qualification standards, an FHA loan could be worth considering.
FHA loans are backed by the Federal Housing Administration and are often used by first-time homebuyers or those looking for options that allow for lower credit scores or smaller down payments.
Benefits of a FHA loan
FHA loans offer several features that may make them an accessible choice for many buyers:
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More flexible credit guidelines than many other loan types
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Down payment assistance options, including the use of gift funds
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Designed to support homeownership for a broad range of buyers
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Available for various property types, including single-family homes and approved condo
FHA loan eligibility requirements
While requirements can vary by lender and change over time, here are some general factors that may be considered for FHA loan approval:
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A qualifying credit score
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The ability to meet minimum down payment requirements
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Verifiable income and employment
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Debt-to-income ratio within acceptable limits
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The property must typically be used as your primary residence
Still have questions? We can walk you through your options and help you decide what works best for your situation.
Check out what your monthly payment could be by using our FHA Mortgage Calculator…
The results provided by this mortgage calculator are for informational and illustrative purposes only. They do not constitute a commitment to lend or an offer of credit. Actual loan terms, interest rates, and monthly payments may vary based on factors such as credit profile, loan product, property location, and other considerations. All estimates are subject to underwriting approval and may not include additional costs. Borrowers should carefully review their financial situation and consult with a licensed mortgage professional before making any loan decisions.
Principal & Interest (P&I)
$
MIP
$
Taxes & HOA
$
Homeowners Insurance
$
Purchase Price
Home Value
$
- Down Payment
$
Current Mortgage Balance
$
+ Cash Out
$
+ Upfront MIP
$
Total Loan Amount
New Loan Amount
$
Home Equity After Cash Out
$
Upfront MIP
$
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Annual MIP
The Annual MIP ranges from 0.15% to 0.75% depending on loan term, loan amount and down payment. However, for most FHA borrowers, the Annual MIP is 0.75% of the loan amount. The Annual MIP can last for the life of the loan, or be removed after 11 years if the original down payment is 10% or more.
Upfront MIP
The Upfront MIP, sometimes referred to as the FHA funding fee, is 1.75% of the loan amount. This fee is due at closing and is typically financed into the entire loan amount to reduce out of pocket costs.
Amount Financed
Purchase Price (-) Down Payment (+) Upfront MIP
Estimated Payment
$ /mo
Loan amount
$
Down payment
$
Cash Out
$
Home Equity After Cashout
$
Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
$
Upfront MIP
$
Annual MIP rate
$
Monthly MIP
$
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $$240,000 (the amount borrowed)
- Interest payments: $$297,554 (the cost of borrowing)
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