FHA Loan Calculator (3.5% Down Payment)

Key Considerations

• With 3.5% down, the $289,500 base loan at 7.40% over 30 years produces about $2,004 in monthly P&I before FHA mortgage insurance -- the same figure the pre-filled calculator shows because it uses price minus down payment.
• HUD charges an upfront MIP of 1.75% on the base loan ($5,066 on $289,500). Most buyers finance it into the note, raising the balance to $294,566 and P&I to about $2,040 per month at 7.40%.
• Annual MIP on a 30-year FHA loan with less than 5% down is 0.55% of the base loan amount, adding about $133 per month on $289,500 for the life of the loan unless you refinance out.
• FHA forward limits for 2026 range from a $541,287 floor to a $1,249,125 ceiling for one-unit homes, so a $300,000 purchase is eligible in standard counties -- confirm your county on HUD's mortgage limits lookup.
• State down payment assistance programs often pair with FHA, covering part or all of the 3.5% ($10,500) requirement through grants or silent second liens with income and purchase-price caps.

Quick Numbers

How This Compares

Frequently Asked Questions

What are the FHA loan limits for a $300,000 purchase?

For case numbers assigned on or after January 1, 2026, FHA's nationwide floor for a one-unit home is $541,287 and the ceiling is $1,249,125 in high-cost counties. A $300,000 price falls comfortably within standard limits. Alaska, Hawaii, Guam, and the U.S. Virgin Islands use higher special exception ceilings published in HUD Mortgagee Letter 2025-23.

Can FHA mortgage insurance (MIP) ever be removed?

With less than 10% down, annual MIP generally lasts the full 30-year term with no cancellation based on equity alone. Put 10% or more down and MIP may cancel after 11 years on loans with terms over 15 years. Most borrowers with 3.5% down eventually refinance into a conventional loan once they reach 20% equity and can drop FHA insurance entirely.

What credit score do I need for an FHA loan on a $300,000 home?

FHA requires at least 580 for 3.5% down ($10,500 here). Scores from 500 to 579 need 10% down ($30,000). Many lenders impose overlays near 620 for smoother underwriting even though FHA's minimum is lower. Your rate still tracks market averages such as the 7.40% PMMS benchmark unless you buy discount points.

How does the upfront MIP affect my FHA loan balance?

Upfront MIP is 1.75% of the $289,500 base, or $5,066. Financed into the loan, the balance becomes $294,566 (rounded per FHA rules) and P&I at 7.40% rises from about $2,004 to about $2,040 per month -- roughly $35 more than the base-loan payment shown in the calculator. Paying UFMIP in cash at closing avoids increasing the amortized balance but raises cash-to-close.