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FHA vs Conventional Loan Calculator

Compare FHA and conventional mortgage costs to find the best option.

Loan Details

Home Price:$ 250000
Down Payment:$ 12500 (5.0%)
Credit Score:680
FHA Eligible:Yes
Conv Eligible:Yes

FHA Insurance Costs

Upfront MIP (1.75%):$ 4156
FHA Loan Amount:$ 241656
Annual MIP Rate:0.50%
Monthly MIP:$ 100.69
Total MIP (30 yrs):$ 40405
FHA MIP is permanent for loans with less than 10% down. Can be canceled after 11 years if 10% or more down.

Conventional PMI Costs

PMI Rate:0.60%
Monthly PMI:$ 118.75
PMI Duration:150 months
Total PMI:$ 17813
Conventional PMI cancels at 20% equity. PMI rate varies by credit score and down payment.

Monthly Payment Comparison

Conventional:$ 1619.91
FHA:$ 1588.61
Difference:$ 31.30

Total Cost Over 30 Years

Conventional Total:$ 338231
FHA Total:$ 354399

Recommendation

CONVENTIONAL: Lower total cost by $16169 over 30 years.

FHA vs Conventional Key Points

  • FHA: lower credit score requirement (500 min), accepts 3.5% down
  • Conventional: 620+ credit score, 5% min down (often 3% for first-time)
  • FHA MIP: 1.75% upfront + 0.45-1.35% annual (permanent if less than 10% down)
  • Conventional PMI: cancels at 20% equity, varies by credit score
  • Higher credit score means lower conventional PMI rate
  • FHA often better for lower credit scores or smaller down payments
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