What your result means
The total combines principal and interest on the base loan plus financed upfront mortgage insurance, monthly FHA mortgage insurance, estimated property tax, homeowners insurance, and HOA dues.
Formula and assumptions
Base loan = price − down payment. Financed loan = base loan + upfront MIP. Monthly principal and interest uses the standard fixed-rate amortization formula. Monthly MIP is estimated as financed loan × annual MIP rate ÷ 12.
- Upfront MIP is financed rather than paid in cash.
- The 0.55% default commonly applies to a greater-than-15-year loan above 95% LTV at or below the applicable loan-size tier; verify the actual HUD tier.
- The calculator uses a simplified monthly MIP estimate rather than HUD's annual-average scheduled-balance method.
- Taxes, insurance, and HOA costs do not increase during the loan term.
Worked example
For a $350,000 home with 3.5% down, the base loan is $337,750. At a 1.75% upfront MIP rate, $5,910.62 is added if financed under HUD's no-rounding instruction. The calculator then applies the entered rate and annual MIP assumption.
Limitations
Actual FHA eligibility, loan limits, MIP duration, premium amount, interest rate, taxes, insurance, and closing costs depend on the property, case assignment, lender, borrower, and current HUD rules.