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Category Mortgage & Loans

Loan Program

Home Price ($)

Down Payment (%)

Interest Rate (%)

Loan Term (Years)

Monthly Payment -

Includes Principal, Interest, & MIP

Base Loan Amount: -

Upfront Fee (Financed): -

          Total Financed Loan:
          -
        

Principal & Interest: -

Monthly MIP/PMI: -

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About

Government-backed mortgages offer distinct advantages regarding down payment requirements and credit flexibility, but they introduce complex fee structures that standard calculators often omit. This tool specifically targets the nuances of Federal Housing Administration (FHA) and Veterans Affairs (VA) loans. Crucially, it calculates the Upfront Mortgage Insurance Premium (UFMIP) and the VA Funding Fee, which are typically financed into the loan balance, accruing interest over the life of the mortgage.

For FHA loans, the tool applies the 1.75% upfront premium and the varying annual MIP rates (typically 0.55% for most modern originations). For VA loans, it validates the loan amount against county-level limits (conforming vs. jumbo logic) and applies the tiered funding fee structure based on the borrower's service history and down payment amount.

Formulas

The Total Loan Amount L_total typically includes the financed upfront fee:

L_total = L_base × (1 + Fee_upfront)

Monthly MIP calculation for FHA:

MIP_mo = L_base × Rate_annual12

Reference Data

Loan Type	Upfront Fee	Annual Insurance (MIP)	Min Down Payment
FHA (Standard)	1.75%	0.55% (LTV > 90%)	3.5%
VA (First Use)	2.15% (0% Down)	None	0%
VA (Subsequent Use)	3.30% (0% Down)	None	0%
USDA	1.00%	0.35%	0%
Conventional	None	0.2% - 1.5% (PMI)	3%

Frequently Asked Questions

FHA and VA loans often finance the upfront fees. For example, on a &dollar;200,000 FHA loan, the 1.75% UFMIP (&dollar;3,500) is added to the principal, making your starting balance &dollar;203,500.

For FHA loans originated after 2013 with a down payment less than 10%, MIP is permanent for the life of the loan. If you put down 10% or more, it remains for 11 years. Refinancing into a conventional loan is the primary way to remove it.

Yes, if you select the "Exempt" status. Veterans with a service-connected disability rating are typically exempt from paying the VA Funding Fee, which significantly lowers the monthly APR.

The database uses the standard 2024 floor (&dollar;498,257) and ceiling (&dollar;1,149,825) for high-cost areas. While specific county lookups are not granularly simulated, the tool warns if you exceed the general conforming limit.