FHA vs. Conventional Loan Calculator
Compare down payment rules, FHA mortgage insurance (MIP) and conventional PMI side by side, and see when each one goes away.
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Rates are examples only. Use quotes from your lender.
FHA vs. conventional in plain English
FHA loans are insured by the government. You can put down as little as 3.5% with a 580+ credit score (10% with 500–579). You pay a 1.75% upfront premium, usually added to the loan, and an annual premium. If you put down less than 10%, the annual premium lasts for the life of the loan. With 10% or more, it ends after 11 years.
Conventional loans usually need a 620+ score. Some programs allow 3% down, and 5% is typical. If you put down less than 20%, you pay private mortgage insurance (PMI). The price depends heavily on your credit score. You can ask to cancel PMI once your balance reaches 80% of the original value, and it ends automatically at 78%.
FAQ
Which is cheaper, FHA or conventional?
With strong credit (720+), conventional is usually cheaper because PMI is low and goes away. With lower scores, FHA often wins on monthly cost, but its MIP can last the whole loan unless you refinance.
Can I get rid of FHA mortgage insurance?
Only if you put down 10% or more, in which case it ends after 11 years. Otherwise, most borrowers remove it by refinancing into a conventional loan once they have about 20% equity.
Why is PMI marked as an estimate?
PMI rates vary by insurer, lender, debt-to-income ratio and other factors. The calculator uses typical ranges by credit score and LTV, so your quote may differ.
What are the 2026 loan limits?
The 2026 one-unit FHA limits range from $541,287 (floor) to $1,249,125 (high-cost ceiling). The baseline conforming limit is $832,750. Limits for your county may be higher. Check HUD or FHFA lookup tools.
Sources & assumptions (checked Oct 11, 2026)
- HUD Mortgagee Letter 2023-05: upfront MIP 1.75%. Annual MIP for terms over 15 years with base loan ≤ $726,200: 0.50% (LTV ≤ 95%), 0.55% (LTV > 95%). For base loans over $726,200: 0.70% / 0.75%. For terms of 15 years or less: 0.15% (LTV ≤ 90%) and 0.40% (> 90%), with higher tiers for larger loans. Duration is 11 years if LTV ≤ 90%, otherwise the full term.
- HUD Mortgagee Letter 2025-23 / HUD No. 25-145: 2026 FHA one-unit limits are $541,287 (floor) to $1,249,125 (ceiling).
- FHFA, Nov 25, 2025: the 2026 baseline conforming limit is $832,750, and the high-cost ceiling is $1,249,125.
- Conventional PMI uses illustrative annual rates of about 0.19% to 1.95% of the loan, depending on LTV and credit. These are estimates, not insurer quotes. PMI can be cancelled on request at 80% of the original value and ends automatically at 78% (Homeowners Protection Act), based on the scheduled balance.
- Annual MIP and PMI are calculated on the scheduled outstanding balance and reset yearly. Totals include down payment, principal and interest, mortgage insurance, taxes, insurance and HOA. Closing costs are not included.
Disclaimer: These calculators give estimates for education only and are not financial, legal or tax advice. Interest rates shown are examples, not offers. PMI figures are rough estimates. Talk to a licensed loan officer for real quotes.