Calculators
FHA Affordability Calculator
How much house you can afford with an FHA loan is the lowest of three separate ceilings: what your debt-to-income ratio allows, what FHA insures in your county, and what cash you have. This calculator works out all three from your own figures and tells you which one is actually stopping you.
To see an estimate
- Choose a county so the correct FHA loan limit applies.
- Enter the interest rate you have been quoted.
Three ceilings, and only one of them binds
FHA affordability is not one calculation. It is the lowest of several independent limits, and knowing which one stops you is the difference between a useful answer and a number.
- Your debt-to-income ratio. HUD measures a Total Mortgage Payment to Effective Income ratio and a Total Fixed Payment to Effective Income ratio — informally front-end and back-end. The payment it measures includes principal, interest, taxes, hazard and flood insurance, mortgage insurance, HOA dues, ground rent, special assessments and any other escrow. A calculator that measures principal and interest alone will always flatter you.
- The FHA loan limit in your county. HUD publishes a separate maximum for every county and every property size from one to four units. In 3,235 counties it ranges from $541,287 to $1,249,125 for a single-family home. If your income supports more than that, the statute stops you, not your finances.
- The cash you have. FHA requires a Minimum Required Investment of 3.5% of the Adjusted Value, so every additional dollar of price needs roughly 3.5 cents of additional cash — before closing costs, which are extra.
The calculator solves each of these on its own and reports the smallest. On the worked example below the binding constraint is Debt-to-income; move the same borrower to a county at the national ceiling and it stays the same, because their income was never the problem.
Worked example
A borrower earning $90,000 a year with $450 of monthly debt, a credit score of 700, putting 3.5% down on a single-family home in a county at the national floor of $541,287. 6.5% over 30 years, $3,600 of annual property tax and $1,500 of insurance, measured against HUD’s 31% / 43% manual-underwriting guideline.
| Step | Result | How |
|---|---|---|
| Maximum purchase price | $285,779 | smallest of the constraint prices below |
| Base FHA loan | $275,776 | price less the 3.5% down payment, capped at 96.5% LTV and the county limit |
| Loan-to-value | 96.4997% | base loan ÷ Adjusted Value |
| Upfront MIP | $4,826.08 | 175 bps of the base loan |
| Upfront MIP financed | $4,826 | whole dollars only; $0.08 paid in cash |
| Total financed mortgage | $280,602 | base loan + financed upfront MIP |
| Principal & interest | $1,773.60 | 6.5% over 30 years on the total financed amount |
| Monthly MIP at 0.55% | $126.40 | charged for the mortgage term at this LTV |
| Taxes, insurance and HOA | $425.00 | annual figures ÷ 12 |
| Total monthly payment | $2,325.00 | P&I + MIP + escrow |
| Front-end ratio (PTI) | 31% | payment ÷ gross monthly income, guideline 31% |
| Back-end ratio (DTI) | 37% | (payment + debts) ÷ gross monthly income, guideline 43% |
| Cash to close | $10,003 | down payment plus the sub-dollar MIP remainder; no closing costs assumed |
Which constraint binds, and at what price
| Constraint | Price it allows | Status |
|---|---|---|
| Debt-to-income | $285,779 | Binding |
| County FHA loan limit | $560,920 | Not binding |
The gap between these rows is the useful information. Raising the county limit would not help this borrower at all, because Debt-to-income binds first — which is why the calculator reports the constraint rather than only the price.
The same borrower at five interest rates
| Interest rate | Maximum price | Monthly payment | Binding constraint |
|---|---|---|---|
| 5% | $332,558 | $2,325.00 | Debt-to-income |
| 6% | $300,196 | $2,325.00 | Debt-to-income |
| 6.5% | $285,779 | $2,325.00 | Debt-to-income |
| 7% | $272,410 | $2,325.00 | Debt-to-income |
| 8% | $248,464 | $2,325.00 | Debt-to-income |
The rate is the single largest lever on the answer, and it is the one input no government source can give you. That is why the rate field on this page ships blank and is required.
The same borrower across HUD’s five ratio guidelines
| Guideline (PTI / DTI) | Compensating factors required | Maximum price | Monthly payment |
|---|---|---|---|
| 31% / 43% | None | $285,779 | $2,325.00 |
| 37% / 47% | 1 | $353,465 | $2,775.00 |
| 40% / 40% | 1 | $319,621 | $2,550.00 |
| 40% / 50% | 2 | $387,307 | $3,000.00 |
Read the 40% / 40% row carefully. It raises the housing-payment ceiling but lowers the total-debt ceiling, so for a borrower carrying any non-housing debt it is more restrictive than the 31% / 43% baseline — not a step up. The rows are not a ladder, which is exactly why this page shows all of them instead of picking one.
How FHA county limits work
HUD sets a maximum insurable mortgage for every county and every property size. The limits are not per-county judgements: they are computed from area median house prices and bounded by a national floor and ceiling, so counties in the same metropolitan area share the same figures. Across 3,235 counties in the CY2026 file there are only a few dozen distinct combinations.
The limit applies to the Base Loan Amount — the mortgage before any financed upfront MIP is added. HUD’s glossary is explicit that “all references to maximum mortgage amount or mortgage amount shall refer to the Base Loan Amount”, and the Handbook confirms that upfront MIP “is not considered when calculating the area-based Nationwide Mortgage Limits and LTV limits”. So your total financed mortgage can legitimately exceed the county limit once upfront MIP is rolled in. That is correct, not an error, and this calculator flags it rather than hiding it.
| Property size | CY2026 limit at the national floor |
|---|---|
| 1 unit | $541,287 |
| 2 units | $693,050 |
| 3 units | $837,700 |
| 4 units | $1,041,125 |
A duplex is insurable well above the single-family figure, which is why the calculator asks how many units the property has and refuses to substitute the one-unit limit. Look up any county directly on FHA loan limits by county, or compare against the conforming loan limits that govern conventional financing.
Mortgage insurance, as HUD currently sets it
FHA charges two premiums. An upfront premium of 175 basis points (1.75%) of the base loan, which may be financed into the mortgage, and an annual premium collected monthly. Both come from Handbook 4000.1; the annual rates were set by Mortgagee Letter 2023-05 and took effect for case numbers endorsed on or after 2023-03-20, and the Handbook republished them unchanged.
There is no single annual MIP rate. The rate and how long you pay it depend on the mortgage term, the base loan amount and the LTV — eleven combinations in total. The widely quoted 0.55% is one of them: it applies to a term over 15 years, a base loan at or below the threshold, and an LTV above 95%, which is the common 3.5%-down case. It is wrong for the other ten.
| Term | Base loan amount | LTV | Annual MIP | Charged for |
|---|---|---|---|---|
| Over 15 years | At or below $726,200 | at or below 90% | 0.5% (50 bps) | 11 years |
| Over 15 years | At or below $726,200 | above 90% to 95% | 0.5% (50 bps) | Mortgage term |
| Over 15 years | At or below $726,200 | above 95% | 0.55% (55 bps) | Mortgage term |
| Over 15 years | Above $726,200 | at or below 90% | 0.7% (70 bps) | 11 years |
| Over 15 years | Above $726,200 | above 90% to 95% | 0.7% (70 bps) | Mortgage term |
| Over 15 years | Above $726,200 | above 95% | 0.75% (75 bps) | Mortgage term |
| 15 years or less | At or below $726,200 | at or below 90% | 0.15% (15 bps) | 11 years |
| 15 years or less | At or below $726,200 | above 90% | 0.4% (40 bps) | Mortgage term |
| 15 years or less | Above $726,200 | at or below 78% | 0.15% (15 bps) | 11 years |
| 15 years or less | Above $726,200 | above 78% to 90% | 0.4% (40 bps) | 11 years |
| 15 years or less | Above $726,200 | above 90% | 0.65% (65 bps) | Mortgage term |
One thing the boundary is not. The $726,200 figure that splits the two base-loan tiers is a fixed number written into Appendix 1.0. It is not the conforming loan limit, and it does not move when the conforming limit moves. The two are easy to confuse because they were the same number once: when Mortgagee Letter 2023-05 set this boundary in 2023 it re-based it onto the conforming baseline of that year, which was $726,200. The conforming limit has risen three times since; this boundary has not. It governs which FHA mortgage-insurance rate applies, while the conforming limit governs whether a conventional loan is eligible for purchase by Fannie Mae or Freddie Mac — different rules, in different agencies’ documents.
Credit score, down payment and the ratio rules
HUD states maximum loan-to-value ratios by credit band, not down payments. A Minimum Decision Credit Score at or above 580 is eligible for maximum financing — 96.5% on a purchase. From 500 to 579 the LTV is capped at 90%. Below 500 the borrower is not eligible for FHA-insured financing at all.
The familiar “3.5% down” and “10% down” figures are the arithmetic complements of those two caps. The 3.5% also stands on its own as the Minimum Required Investment. The 10% does not appear anywhere in HUD policy as a down-payment rule, which is why this page describes it as a 90% LTV cap.
| Credit score band | Maximum PTI / DTI | Compensating factors | Energy-efficient stretch |
|---|---|---|---|
| 500–579 | 31% / 43% | Not permitted | 33% / 45% |
| 580 and above | 31% / 43% | None required | 33% / 45% |
| 580 and above | 37% / 47% | 1 required | — |
| 580 and above | 40% / 40% | 1 required | — |
| 580 and above | 40% / 50% | 2 required | — |
Note the first row. A borrower between 500 and 579, or with no credit score at all, shares the baseline ratios but cannot use compensating factors at all — HUD states they “may not exceed” those ratios. The stretch rows are available only above 580. Advice that compensating factors can always stretch your ratios is wrong for exactly the borrowers who most need it.
Compensating factors: what actually stretches the ratios
The 580+ stretch rows above are not available on request. Each one requires a specific number of documented compensating factors, and HUD defines exactly what counts. A calculator can test the arithmetic ones; the rest are documentary, which is why no tool — including this one — can tell you whether you have them.
| Compensating factor | What HUD requires | Limits |
|---|---|---|
| Energy Efficient Homes | New Construction must meet or exceed the higher of the latest HUD-adopted energy code, the applicable IECC year used by the state or local building code, or ENERGY STAR certification for a Manufactured Home. Existing Construction must score 6 or higher on the Home Energy Score scale, or complete documented cost-effective improvements reaching a 6, or be an ENERGY STAR certified Manufactured Home. | — |
| Verified and Documented Cash Reserves | Reserves equal to or exceeding three total monthly Mortgage Payments (one and two units), or six total monthly Mortgage Payments (three and four units). | — |
| Minimal Increase in Housing Payment | The new total monthly Mortgage Payment does not exceed the current total monthly housing payment by more than $100 or 5 percent, whichever is less; AND there is a documented 12 month housing payment history with no more than one 30 Day late payment. | If the Borrower has no current housing payment, Mortgagees may not cite this compensating factor. |
| No Discretionary Debt | The Borrower's housing payment is the only open account with an outstanding balance that is not paid off monthly; the credit report shows established credit lines in the Borrower's name open for at least six months; and the Borrower can document those accounts have been paid off in full monthly for at least the past six months. | Borrowers with no established credit other than their housing payment, no other credit lines in their own name open at least six months, or who cannot document all other accounts paid in full monthly for the past six months, do not qualify. Authorized-user lines do not qualify. |
| Significant Additional Income Not Reflected in Effective Income | Additional income from Overtime, Bonuses, Part-Time or Seasonal Employment not reflected in Effective Income, received for at least one year and likely to continue, and sufficient - if included in gross Effective Income - to reduce the qualifying ratios to not more than 37/47. | May be cited only in conjunction with another compensating factor when qualifying ratios exceed 37/47 but are not more than 40/50. Income from non-borrowing spouses or other parties not obligated for the Mortgage may not be counted. |
| Residual Income | Residual income must be at least equal to the applicable amount for household size and geographic region in the VA table. Residual income is Effective Income of all occupying Borrowers less: state income taxes; federal income taxes; municipal or other income taxes; retirement or Social Security; total fixed payment; estimated maintenance and utilities; job related expenses; and the amount of the Gross Up of any Nontaxable Income. | Values not in HUD source |
Two of these deserve emphasis. Residual income has no dollar threshold in HUD policy at all: Handbook 4000.1 incorporates a table from a Department of Veterans Affairs handbook by reference, so any site publishing residual-income figures as FHA requirements is quoting a different agency’s document. This page does not publish those figures, because that VA source has not been verified here. Significant additional income can only be cited alongside another factor, and only to bridge the gap between the 37% / 47% and 40% / 50% rows.
And the constraint that catches most people: a borrower between 500 and 579, or with no credit score, may not use compensating factors at all. For them the baseline ratios are a hard ceiling, not a starting point.
Before you rely on any of this
- This is an estimate, not an approval. Only a lender can underwrite you, and the automated system most FHA loans go through has no published ratio threshold to check yourself against.
- Effective Income is a defined term. HUD counts income a lender can document and expect to continue. Overtime, bonuses, self-employment and variable income are all treated under specific rules this page does not model — enter what you believe a lender would count, not your gross pay.
- Taxes and insurance vary by parcel. The defaults in those fields are placeholders so the page is usable on arrival, not estimates for your address.
- Closing costs are yours to supply. HUD publishes no percentage and this page refuses to invent one. Use a Loan Estimate.
- Compare the total interest against a conventional loan with the amortization calculator. Above the FHA limit in your county, the conforming limits are what matter.
Methodology
Every FHA rule applied here is transcribed from HUD Handbook 4000.1 Update 18 and the Mortgagee Letter that set the current MIP rates, both stored in this repository and listed below. Everything else is arithmetic over the figures you enter. No agency publishes an affordability number for you, and nothing on this page is an approval.
- County, units, income, monthly debts, credit band, down payment, interest rate, term, property tax, insurance, HOA, closing costs, prepaids, creditsYour input
- CY2026 FHA forward mortgage limits for all 3,235 countiesOfficial sourcePublished by HUD. National floor $541,287, ceiling $1,249,125, both read from the source file's own header records.
- Upfront MIP of 175 basis pointsOfficial sourceHandbook 4000.1 § II.A.2.e.i(A) and Appendix 1.0.
- Annual MIP rate and durationOfficial sourceHandbook 4000.1 Appendix 1.0, effective 2023-03-20, as set by Mortgagee Letter 2023-05. Eleven cells keyed on term, base loan amount and LTV.
- Maximum LTV by credit band (96.5% / 90%) and the 500 eligibility floorOfficial sourceHandbook 4000.1 § II.A.2.b.i and § II.A.1.b.ii(3)(b).
- Minimum Required Investment of 3.5% of Adjusted ValueOfficial sourceHandbook 4000.1 § II.A.2.c.ii, per § 203(b)(9) of the National Housing Act.
- Approvable Ratio Requirements for manually underwritten mortgagesOfficial sourceHandbook 4000.1 § II.A.5.d.viii. Five rows, not one rule.
- Base loan amount, LTV, upfront MIP amount, monthly payment, cash to closeCalculated on this pagebase loan = least of (price − down payment), max LTV × Adjusted Value, and the county limit, floored to whole dollars; LTV = base loan ÷ Adjusted Value; P&I from the shared amortization engine on base loan + financed UFMIP
- Maximum purchase price and the binding constraintDerived by DotGovSourceeach constraint is solved independently for its own maximum price by integer bisection over the payment formula; the binding one is the smallest
- Monthly MIP amountEstimate by DotGovSourceHUD publishes the annual rate and its duration but not the balance the rate is applied to, and servicers recompute it on the declining balance. This page applies the rate to the base loan amount — the conventional first-year approximation, not a published figure.
What this page will not tell you
It will not tell you whether you qualify. Most FHA loans are underwritten through the TOTAL Mortgage Scorecard, and HUD publishes no debt-to-income limit for it — no numeric threshold appears anywhere in the 1,872 pages of Handbook 4000.1 for automated underwriting. Any calculator that tells you a ratio “passes FHA” is inventing the threshold it is testing against.
The ratio guidelines this page does use are HUD’s Approvable Ratio Requirements for manually underwritten mortgages. They are real, published and specific — and they are a different path from the one most borrowers take. The stretch rows also require documented compensating factors that no calculator can verify.
Money arithmetic
All money is computed in whole cents, so the base loan and the down payment reconcile exactly to the price and the payment breakdown sums to the total without rounding slack. HUD requires the mortgage amount to be rounded down to the nearest whole dollar, and financed upfront MIP to be financed in whole dollars with any remainder under one dollar paid in cash — both rules are applied literally, which is why a few cents of upfront MIP can appear in the cash column.
What is deliberately absent
No closing-cost percentage. HUD publishes none, so the field starts blank and stays at zero until you enter a figure from a lender’s Loan Estimate. No residual income test: HUD incorporates that table by reference from a Department of Veterans Affairs handbook this site has not ingested, so no dollar threshold for it exists here. No interest-rate default, because HUD does not set rates. No property tax or insurance estimate, because HUD publishes neither and both vary by parcel.
Government sources
U.S. Department of Housing and Urban Development (HUD) — FHA Single Family Housing Policy Handbook 4000.1
Fields used: UFMIP rate in basis points and its exceptions; Annual MIP rate, LTV band, Base Loan Amount tier and duration for all 11 forward-mortgage cells plus the pre-June-2009 streamline/simple table and the Section 247/248 program rules; Minimum Decision Credit Score bands and the LTV or eligibility outcome of each; Purchase maximum LTV, identity-of-interest and non-occupying-borrower LTV restrictions; Minimum Required Investment as a percentage of Adjusted Value; Maximum mortgage term in years; Manual-underwriting PTI/DTI matrix: five rows plus the Energy Efficient Home stretch; Compensating factor definitions and their numeric thresholds where HUD states any
https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18.pdf
U.S. Department of Housing and Urban Development (HUD) — Mortgagee Letter 2023-05 - Reduction of Federal Housing Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates
Fields used: Effective date basis for the annual MIP rates in force; Statement that the Base Loan Amount threshold used to establish MIP rates was amended `to the national conforming loan limit`; Confirmation that the tables were to be incorporated into Handbook 4000.1
https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-05hsgml.pdf
U.S. Department of Housing and Urban Development (HUD) — FHA Single Family Housing Policy Handbook 4000.1 - Glossary and Acronyms
Fields used: Definition of Base Loan Amount, and the rule that all references to maximum mortgage amount mean the Base Loan Amount; Definition of LTV as Base Loan Amount divided by Adjusted Value; Definition of Adjusted Value for purchase transactions
https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18-Glossary.pdf
U.S. Department of Housing and Urban Development (HUD) — FHA Single Family Forward Mortgage Limits
Fields used: cols 073-079: one-unit forward mortgage limit; cols 080-086: two-unit forward mortgage limit; cols 087-093: three-unit forward mortgage limit; cols 094-100: four-unit forward mortgage limit; cols 101-102: state postal code; cols 103-105: county FIPS code; cols 000-009: CBSA/metro code (9999900000 = non-metro)
Federal Housing Finance Agency (FHFA) — Conforming Loan Limits by County (HERA-based)
Fields used: FIPS State Code; FIPS County Code; County Name; State; CBSA Number; One-Unit Limit; Two-Unit Limit; Three-Unit Limit; Four-Unit Limit