FHA Loan Down Payment Calculator
Calculate your required down payment for an FHA loan and understand your options
Calculate Your FHA Down Payment
Required Down Payment
$12,250
3.50% of purchase price
Loan Amount
$337,750
Loan-to-Value
96.50%
How FHA Down Payments Work
FHA loans are government-backed mortgages that offer flexible qualification requirements. The down payment requirement depends on your credit score:
Credit Score ≥ 580
Minimum down payment: 3.5%
This is the most common scenario for FHA borrowers.
Credit Score 500-579
Minimum down payment: 10%
Requires manual underwriting approval.
Note: FHA loans require mortgage insurance premiums (MIP) regardless of down payment amount.
FHA Down Payment Example
Example: $350,000 Home Purchase
Home Price
$350,000
Credit Score
620
Required Down Payment
$12,250
Loan Amount
$337,750
Upfront MIP: $5,810.63 (1.75% of loan amount)
FHA vs. Conventional Loan Comparison
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Minimum Credit Score | 500 | 620 |
| Minimum Down Payment | 3.5% (580+ credit) | 3% |
| Mortgage Insurance | Required (MIP) | Only if <20% down (PMI) |
| Loan Limits | Set by county | Conforming limits apply |
| Debt-to-Income Ratio | Up to 57% | Typically 43% |
Frequently Asked Questions
What is the minimum down payment for an FHA loan in 2026?
As of 2026, the minimum down payment for an FHA loan is 3.5% of the purchase price if you have a credit score of 580 or higher. If your credit score is between 500-579, you need a 10% down payment.
Can I use gift funds for FHA down payment?
Yes, FHA loans allow gift funds for the down payment from family members, employers, or charitable organizations. The donor must provide a gift letter confirming the funds are not a loan.
Is PMI required on FHA loans?
Yes, FHA loans require both an upfront mortgage insurance premium (UFMIP) of 1.75% and an annual MIP that ranges from 0.45% to 1.05% depending on the loan term and LTV ratio.
What is the FHA loan limit for 2026?
FHA loan limits vary by county. In most areas, the 2026 limit is $498,257 for a single-family home. High-cost areas have higher limits up to $1,149,825.
How does FHA compare to conventional loans?
FHA loans have lower credit score requirements and lower down payments but require MIP. Conventional loans require higher credit scores (typically 620+) and 3-20% down but may have lower overall costs for qualified borrowers.
What credit score do I need for an FHA loan?
FHA loans require a minimum credit score of 580 for the 3.5% down payment option. If your score is between 500-579, you may still qualify but will need a 10% down payment.
How long does FHA MIP last?
For FHA loans with less than 10% down, MIP lasts the entire loan term. With 10% or more down, MIP can be removed after 11 years.
Can I refinance an FHA loan?
Yes, you can refinance an FHA loan through the FHA Streamline Refinance program or into a conventional loan if you have enough equity.
What is the FHA upfront MIP?
The upfront MIP is 1.75% of the loan amount and is typically rolled into the loan. For a $350,000 loan, that would be $6,125.
Can I use FHA for investment properties?
No, FHA loans are only for owner-occupied primary residences. You cannot use FHA financing for investment properties or second homes.
What are FHA loan requirements?
FHA requirements include minimum credit score (580+), maximum DTI ratio (43-57%), steady employment history, and completion of a housing counseling course for some borrowers.
What happens if I default on an FHA loan?
Defaulting on an FHA loan can lead to foreclosure. The FHA insurance protects the lender, but you will lose your home and damage your credit score.
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Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. Please consult with a qualified mortgage professional for personalized guidance.