FHA Loan Affordability Calculator
Max home price for FHA buyers: 3.5% down, FHA DTI guidelines (31/43 or 36/50 with compensating factors), and full PITI breakdown.
About this tool
FHA loans allow lower down payments and more flexible DTI ratios than conventional loans — but they come with mortgage insurance premiums (MIP) that increase your effective monthly payment. This calculator models FHA affordability under standard (31/43) and stretch (36/50) DTI guidelines.
How to use it
Quick steps to get the most out of this utility.
- 1
Set down payment to 3.5%
The FHA minimum for borrowers with 580+ credit score. 10% required for 500–579 FICO.
- 2
Select FHA DTI preset
"Standard (31/43)" for straightforward applications; "FHA Stretch (36/50)" if you have compensating factors.
- 3
Enter income and debts
Gross annual income and all monthly non-housing debt minimums.
- 4
Fill rate and property costs
FHA rates are typically 0.25–0.50% lower than conventional for the same borrower profile.
- 5
Read the result
Max home price and PITI — add the FHA upfront MIP (1.75% of loan) to closing costs separately.
FHA vs conventional: which loan gives you more buying power?
At a given income level, FHA stretch DTI (36/50) will produce a higher maximum home price than conventional (28/36), because the income thresholds are looser. However, FHA MIP increases your effective monthly payment — which partially offsets the DTI advantage. At 3.5% down and 7% rate, FHA MIP adds roughly $175–$250/month on a $250k–$350k loan, effectively reducing how much home you can afford by $25,000–$35,000 once you account for the full payment.
Frequently asked questions
What is the FHA loan DTI limit?+
Standard FHA guidelines allow a front-end DTI of 31% and back-end DTI of 43%. With compensating factors (cash reserves, residual income, or strong credit), FHA can approve up to 40% front-end and 50% back-end. This calculator has both presets — "Standard (31/43)" and "FHA Stretch (36/50)".
What is FHA MIP and how does it affect affordability?+
FHA Mortgage Insurance Premium (MIP) has two parts: (1) Upfront MIP: 1.75% of the loan amount, paid at closing or rolled into the loan. (2) Annual MIP: 0.55–1.05% of the remaining loan balance per year, paid monthly. On a $300,000 loan with 3.5% down, annual MIP adds roughly $150–$265/month. This calculator does not yet include MIP separately — add it manually as additional monthly cost.
Is an FHA loan better than conventional for first-time buyers?+
FHA wins when: credit score is under 680, down payment is under 10%, or back-end DTI is above 43%. Conventional wins when: credit score is above 720, down payment is 20%+ (no MIP), or you want to remove MI faster. FHA MIP stays for the loan life if down payment was under 10%; conventional PMI drops at 20% equity.
What credit score do I need for an FHA loan?+
Minimum 500 credit score (10% down required). Minimum 580 credit score (3.5% down allowed). Most FHA lenders prefer 620+ for the best rates. Scores below 580 qualify technically but many lenders will not approve them in practice.
Keep exploring
More utilities and reading from Toolisk.
More views of the same calculator
Open main calculator →Same underlying engine, written for different use cases. Pick the angle that matches your situation.