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FHA MIP rates
Upfront MIP: 1.75% of the base loan. Annual MIP for loans longer than 15 years:
| Loan-to-value | Loan ≤ $726,200 | Loan > $726,200 |
|---|---|---|
| LTV ≤ 95% | 0.5% | 0.7% |
| LTV 95–100% | 0.55% | 0.75% |
Example: $300,000 home with 3.5% down → base loan $289,500, upfront MIP $5,066, annual MIP 0.55% ($132.02/month in year 1), total payment $2,418.88/month at an example 6.5% rate.
Rates effective 2023-03-20. Sources: HUD Mortgagee Letter 2023-05 (annual MIP) — archived HUD copy · HUD — FHA Announces 2026 Loan Limits (No. 25-145). Last checked 2026-10-15.
FHA loan limits for 2026
- Floor (most counties)
- $541,287
- Ceiling (high-cost areas)
- $1,249,125
- AK, HI, Guam, USVI
- Higher — HUD lookup →
One-unit limits on the base loan. Your county's exact limit is in HUD's loan limit lookup. Sources: HUD — FHA Announces 2026 Loan Limits (No. 25-145) · HUD — Single Family Lender page (CY 2026 floor and ceiling).
Assumptions
- Home price is used as the appraised value for the loan-to-value ratio.
- Annual MIP is recalculated each loan year on the average scheduled balance and gets slightly smaller over time.
- Checks the base loan against the nationwide FHA one-unit range ($541,287–$1,249,125), not your exact county limit. Doesn't check credit-score rules (580+ for 3.5% down).
- MIP rates are from HUD's current schedule; confirm on your Loan Estimate.
Frequently asked questions
What is the minimum down payment for an FHA loan?+
3.5% with a credit score of 580 or higher. Borrowers with scores of 500–579 generally need 10% down.
How much is FHA mortgage insurance?+
There are two parts: an upfront premium of 1.75% of the loan (usually added to the loan) and an annual premium paid monthly — 0.5% to 0.55% a year for most 30-year loans up to $726,200.
Does FHA mortgage insurance ever go away?+
With 10% or more down it ends after 11 years. With less than 10% down it lasts for the life of the loan — the usual way out is refinancing to a conventional loan once you have about 20% equity.
What is the FHA loan limit in 2026?+
For a one-unit home, FHA limits run from $541,287 in most counties up to $1,249,125 in the highest-cost areas (higher in Alaska, Hawaii, Guam and the US Virgin Islands — see HUD's lookup). The limit applies to the base loan, before the upfront MIP is added.
FHA or conventional — which is cheaper?+
FHA often wins for lower credit scores or small down payments; conventional usually wins with good credit and 5%+ down because PMI can be removed. Compare both payments with our mortgage calculator.
Related calculators
Uses 2026 rules and limits. Last reviewed October 15, 2026. Calculator version 1.0.0. Sources: HUD Mortgagee Letter 2023-05 (annual MIP) — archived HUD copy · HUD — FHA Announces 2026 Loan Limits (No. 25-145). Results are estimates for educational purposes, not financial, tax or lending advice. How we check our numbers.