FHA Loan Affordability Calculator

Buying a home with an FHA loan starts with knowing your budget. This FHA Affordability Calculator helps you estimate how much house you can comfortably afford based on your income, debt, and down payment. It’s a quick way to see what price range fits your finances before you start shopping for a home.

FHA Mortgage Affordability Calculator

�� Personal Information

Gross Monthly Income ($): Monthly Debt Payments ($): Credit Score:

�� FHA Loan Details

Down Payment: Target DTI Ratio (%): Loan Term: Interest Rate (%):

��️ FHA Insurance & MIP

Current Annual MIP Rate: 0.55%
MIP Duration: Entire loan
Based on 3.5% down payment and 30 year term

FHA Mortgage Insurance Premium (MIP):
All FHA loans require MIP. The rate and duration depend on your down payment, loan amount, and term.

FHA MIP Structure:
• Upfront MIP: 1.75% of loan amount (financed into loan)
• Annual MIP: Varies by down payment and loan amount
• 10%+ down payment: MIP removed after 11 years
• Less than 10% down: MIP for entire loan term

FHA Loan Limits:
• Base loan limit: $766,550 (varies by county)
• High-cost areas: Up to $1,149,825

�� Property Costs

Closing Costs (% of loan amount): Annual Property Taxes (% of home price): Annual Homeowners Insurance (% of home price): Monthly HOA ($):

�� FHA Seller Contribution

Seller Pays Buyer's Closing and Prepaid Expenses up to:

FHA Seller Concession Limits:
• Maximum seller contribution: 6% of sales price
• Covers closing costs, prepaid expenses, and discount points
• Cannot be used for down payment

Debt to Income Ratio Explanation

Mortgages rely heavily on your debt-to-income (DTI) ratio. This ratio measures how much of your income goes toward housing costs and other debts each month.

The first number in the DTI ratio represents your front-end ratio—the portion of your gross monthly income used for your proposed housing payment, including principal, interest, taxes, and insurance. For instance, if your mortgage payment equals 31% of your income, you meet FHA’s front-end guideline.

The second number is your back-end ratio. This figure combines your housing payment with all other monthly debts, such as credit cards, auto loans, and student loans. To qualify, your total monthly obligations must stay at or below the allowed percentage.

Balancing these two ratios can be tricky. Sometimes your housing payment alone may exceed the front-end limit, meaning you’ll need to reduce the loan amount to bring it within range. Other times, your income can handle the housing payment, but your total debts push the back-end ratio too high. In that case, lowering your loan amount, shopping for a better interest rate, or finding a home with lower property taxes can help you qualify.