Use this calculator to determine your FHA loan amount and how much cash needed for to complete the home purchase. It will also create an estimate of your closing costs and required upfront Mortgage Insurance Premium (MIP). This calculator is designed to determine the FHA mortgage limit for a particular purchase, not the maximum allowed for any home in your state and county. To determine the maximum purchase price for your area you should use https://entp.hud.gov/idapp/html/hicostlook.cfm at the HUD.gov. Then use the calculator below to determine the required down payment, FHA mortgage limit and required upfront Mortgage Insurance Premium (MIP).
FHA Loan Calculator
FHA Loan Calculator Definitions
- FHA down payment required
- Percentage of your contract sales price plus required adjustments that you are required to pay and not borrow. If the appraised value of your home is less than the sales price, the required down payment will be the appraised value plus required adjustments X the required percentage, plus the difference between the sales price and the appraised value. This is designed to require at least a small down payment from the purchaser. The minimum downpayment percent is 3.5%.
- Contract sales price
- Actual price to be paid for the home. This does not include any closing costs paid by the borrower.
- Borrower-paid closing costs
- Any closing costs paid by the borrower. Closing costs paid by the borrower do not count troward the FHA required down payment.
- Required adjustments
- This amount will decrease (or increase if negative amounts are entered) the contract sales price before calculating the required minimum down payment. A common required adjustment would be for gift funds that do not meet FHA requirements. Additionally, this would also include, seller paid financing fees over 3% of the sale price in seller paid closing costs, or any other financial inducements to by the seller.
- Appraised value of home
- If this plus any required adjustments is lower than the contract sales price, the appraised value is used to calculate the maximum mortgage instead of the contract sales price.
- Prepaid expenses, points, non-financeable repairs/improvements, MIP, other items
- Any other items required at closing that are not able to be financed into the mortgage. These items plus your down payment is your total cash required to close this mortgage.