FHA Loan Calculator · Practical guide
FHA Loan Payment with 3.5% Down
Putting the FHA minimum 3.5% down changes your loan amount, upfront MIP, and monthly payment — here is the math.
At a glance
The Short Answer
With 3.5% down on a $300,000 home at 6.5% for 30 years, an FHA loan runs about $1,994.55 per month including mortgage insurance. That total combines $1,861.86 of principal and interest plus $132.69 of monthly MIP, before property taxes and homeowners insurance.
Interactive tool
FHA Loan Calculator
Enter your own values, then compare the result with the examples below.
How the 3.5% Down Payment Flows Through
Three numbers build the payment:
- Base loan: $300,000 minus 3.5% ($10,500) = $289,500
- Upfront MIP: 1.75% of the base loan = $5,066.25, usually rolled into the loan, making the total $294,566.25
- Monthly MIP: 0.55% per year on the base loan, divided by 12 = $132.69
The calculator above runs this full chain for any price, rate, and term.
Monthly Payment by Home Price
Assuming 3.5% down, 6.5% interest, a 30-year term, and standard MIP rates:
| Home Price | Down Payment (3.5%) | Total Loan (with Upfront MIP) | Monthly P&I + MIP |
|---|---|---|---|
| $250,000 | $8,750 | $245,472 | $1,662.12 |
| $300,000 | $10,500 | $294,566 | $1,994.55 |
| $350,000 | $12,250 | $343,661 | $2,326.97 |
| $400,000 | $14,000 | $392,755 | $2,659.40 |
The Trade-Off of the Minimum Down Payment
Putting only 3.5% down keeps cash in your pocket, but it means the largest possible loan, the most interest over 30 years, and annual MIP that lasts for the life of the loan. With 10% or more down, MIP drops off after 11 years instead. On the same $300,000 home, 10% down lowers the payment to about $1,860.20 — roughly $134 less per month.
Frequently Asked Questions
Is 3.5% really the minimum FHA down payment?
Yes, for borrowers with a credit score of 580 or higher. Borrowers with scores between 500 and 579 generally need 10% down to qualify for FHA financing.
Does the 3.5% down payment cover closing costs?
No. Closing costs — lender fees, title, appraisal, prepaid taxes — are separate and typically run another 2% to 5% of the purchase price.
Why is the loan amount bigger than price minus down payment?
Because the 1.75% upfront mortgage insurance premium is usually financed into the loan. On a $289,500 base loan, that adds $5,066.25, bringing the total to $294,566.25.
Are taxes and insurance included in these numbers?
No. These figures cover principal, interest, and MIP only. Property taxes, homeowners insurance, and any HOA dues are added on top by your lender.