FHA Mortgage Qualification Calculator
Use our FHA Mortgage Qualification Calculator to determine what size FHA mortgage you qualify for and what price home you can afford to buy based on your monthly gross income, debt payments and other factors including your down payment, loan term and mortgage rate. We recommend that you use our calculator to understand the FHA mortgage you can afford and to determine if the FHA program is right for you.
How Our FHA Mortgage Qualification Calculator Works
To qualify for the FHA Program you must earn enough income to afford the mortgage amount you want. This is because FHA program guidelines apply a maximum debt-to-income ratio to determine what size loan you qualify for.
In short, the debt-to-income ratio means that you can only spend a certain percentage of your income on monthly debt expenses including your mortgage payment and other debts. Our FHA Mortgage Qualification Calculator applies this ratio to determine your estimated loan amount. Our calculator uses the following inputs to determine the FHA mortgage and property purchase price you can afford:
Monthly Gross Income. This is your monthly income before deductions such as taxes, social security, medicare and retirement account contributions. The more money you earn, the higher the FHA loan you can afford.
Total Monthly Debt Payments. This is your total monthly debt payments for debts such as credit cards, car, personal and student loans. Please input your monthly payment and not your outstanding loan balance. For example, if you make a $250 monthly payment on a $3,000 personal loan, you include $250 in your debt payment and not $3,000.
Interest Rate. This is the interest rate you pay on your mortgage. The lower your mortgage rate, the higher the loan amount you can afford. FHA mortgage rates are usually lower than the rates for other loan programs which enables you to afford a larger mortgage.
Mortgage Term. This is the length of your mortgage. The longer your loan, the larger the mortgage you qualify for. This is why most applicants select a 30 year mortgage.
Down Payment Percentage. This is what portion of the property purchase price you intend to contribute. The FHA Mortgage Program enables you to buy a home with a down payment as low as 3.5% which makes owning a home more accessible.
Property Location Information. This information is used to determine the FHA loan limit for the county in which the property being financed is located. Loan limits vary by county and the number of units in the property. Select one unit if you are buying a single family home or a condominium.
Our calculator shows you the following information about qualifying for the FHA program:
Estimated FHA Mortgage Amount You Qualify For. This is the FHA loan you can afford based on your monthly gross income and debt payments. The higher your income and lower your monthly debt, the higher the mortgage amount you qualify for.
FHA Mortgage Limit in Your County. The FHA program applies limits that cap your loan amount. You may be able to afford a higher loan amount based on your income but your FHA mortgage cannot exceed the loan limit. Our calculator shows you if the loan amount you qualify for is above or below the loan limit.
Estimated Property You Can Afford to Buy With an FHA Mortgage. How much home you can afford with the FHA program depends on your loan size and how much money you put down. The higher your down payment and mortgage amount, as long as it is below the FHA limit, the higher the price home you can buy.
Monthly Mortgage Payment. This is your payment based on the loan amount you qualify for, your interest rate and loan term.
Monthly Housing Expense Plus Debt. This includes your monthly debt expenses plus your mortgage payment, property tax, homeowners insurance and monthly FHA mortgage insurance premium. Total housing expense plus debt enables you to understand your total monthly debt obligations to make sure your expenses fits within your budget.
FHA Mortgage Insurance Premium. The FHA Program requires you to pay a one-time and ongoing mortgage insurance premium which are additional upfront and monthly costs. The mortgage insurance fees vary depending on your down payment, mortgage amount and term.
Key FHA Mortgage Benefits
Low Down Payment
The FHA mortgage program only requires a down payment of 3.5% of the property purchase price. Saving money to pay for a down payment is one of the biggest obstacles to buying a home so enabling borrowers to qualify for a mortgage with such a low down payment is a huge benefit. The funds for your down payment can come from a gift or down payment assistance program but the FHA program only lends you a maximum of 96.5% of the property purchase price and you are responsible for the rest in addition to closing costs. For example, borrowers can combine an FHA mortgage with a home buyer assistance grant to pay for a down payment or closing costs, enabling you to purchase a home with minimal personal financial contribution. Although borrowers are required to pay an extra upfront and monthly FHA mortgage insurance premium (MIP), the FHA mortgage program makes owning a home possible for more people. Use our FHA Mortgage Qualification Calculator to understand how your down payment impacts your loan amount and monthly payment.
More Flexible Program Eligibility Requirements
The borrower qualification requirements for an FHA mortgage are more flexible than most other low or no down payment programs. For example, the FHA mortgage program requires a minimum borrower credit score of 580 if you make a down payment between 3.5% and 10% of the property purchase price and a score of only 500 if you put at least 10% down. This compares to a minimum credit score of 620 for other programs. Additionally, the FHA program allows lenders to use a higher debt-to-income ratio to determine what size mortgage borrowers qualify for. The higher the debt-to-income ratio the higher the loan amount you can afford. In short, the relatively flexible qualification requirements used by the FHA program enable more borrowers to qualify for FHA mortgages.
Lower Mortgage Rate
The interest rate for FHA mortgages is lower than the rates for many other low down payment home loan programs. FHA mortgages have lower interest rates because borrowers pay FHA mortgage insurance premium (MIP) and because the loans are insured by the U.S. government. Paying a lower mortgage rate reduces your mortgage payment and total monthly housing expense and saves you a significant amount of money in total interest expense over the course of your mortgage. Our FHA Mortgage Calculator shows you how your mortgage amount, monthly payment and how much home you can afford change depending on the mortgage rate.
No Borrower Income Limits
The FHA mortgage program is available to all borrowers that qualify. Unlike some other low or no down payment mortgage programs, the FHA program does not apply borrower income limits. Although the program uses FHA loan limits that cap your mortgage amount, not using income limits makes the FHA mortgage program accessible to more potential home buyers. This can be especially helpful for people that live in more expensive areas that need to make more money to qualify for a mortgage.
The Property You Buy Can Be Located Anywhere
You can use the FHA program to buy a home located anywhere in the United States and its territories including Puerto Rico, Guam and the U.S. Virgin Islands. Some programs limit eligible properties to certain counties or census tracts or offer different mortgage terms depending on where the property is located. FHA guidelines and eligibility requirements are the same regardless of where the property being financed is located. As long as you qualify for the mortgage and your loan amount is less than the applicable loan limit, you can use an FHA loan to buy a home or refinance your mortgage.
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More FREEandCLEAR Mortgage Resources
FHA Mortgage Program Guide
Review our in-depth overview of the FHA mortgage program including borrower qualification requirements and other important program information such as property eligibility, FHA loan limits and FHA mortgage insurance premium (MIP)
Pros and Cons of an FHA Mortgage
Understand the positives and negatives of an FHA mortgage to determine if it the right program for you
FHA Mortgage Rates
Use our FHA mortgage rate table to review updated FHA mortgage rates and fees for lenders in your area. Shopping multiple lenders is the best way to find the FHA home loan that is right for you
Comparison of No and Low Down Payment Mortgage Programs
Review and compare multiple government-backed and conventional low or no down payment mortgage programs to understand borrower benefits, program eligibility requirements and qualification guidelines
How Down Payment Assistance Programs Work
Learn how to use a down payment assistance program to pay for all or part of your down payment including program eligibility and how to apply
Sources
"II.A.4. Underwriting the Borrower Using the TOTAL Mortgage Scorecard." FHA Single Family Housing Policy Handbook 4000.1. Federal Housing Administration, January 2 2020. Web.
"II.A.2.a. Maximum Mortgage Amounts." FHA Single Family Housing Policy Handbook 4000.1. Federal Housing Administration, January 2 2020. Web.