FHA / VA Loan Calculator

How This Calculator Works

FHA and VA loans each carry their own government-backed insurance fee structure — entirely different from a conventional loan’s PMI. Select your loan program, enter the loan amount, rate, and term, and this calculator estimates your full monthly payment including that program’s specific upfront and ongoing costs.

FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), typically financed directly into the loan, plus an ongoing Annual Mortgage Insurance Premium (MIP) charged monthly — unlike conventional PMI, FHA MIP generally can’t be cancelled once you build enough equity.

VA loans charge no monthly mortgage insurance at all — one of the VA loan program’s headline benefits. Instead, a one-time VA Funding Fee (also typically financed into the loan) covers the program’s cost.

The Formula

$$\vD{\text{Upfront Fee}} = \vA{\text{Loan Amount}} \times \vB{\text{Upfront Fee Rate}}$$ $$\vE{\text{Financed Loan Amount}} = \vA{\text{Loan Amount}} + \vD{\text{Upfront Fee}}$$

From there, principal and interest use the standard fixed-rate amortization formula applied to the financed amount. FHA loans add a monthly MIP charge ($\vE{\text{Financed Loan Amount}} \times \vC{\text{Annual MIP Rate}} \div 12$); VA loans add nothing further.

Worked Example

A $300,000 loan at 6.5% for 30 years:

FHA (1.75% UFMIP, 0.55% annual MIP):

1. Upfront fee: $\vA{300{,}000} \times \vB{1.75\%} = \vD{\$5{,}250}$.
2. Financed loan amount: $\vA{300{,}000} + \vD{5{,}250} = \vE{\$305{,}250}$.
3. Principal and interest on the financed amount: ≈ $1,929/month.
4. Monthly MIP: $\vE{305{,}250} \times \vC{0.55\%} \div 12 \approx \$140/\text{month}$.
5. Total monthly payment: $1{,}929 + 140 \approx \$2{,}069/\text{month}$.

VA (2.15% funding fee, no MIP):

1. Upfront fee: $\vA{300{,}000} \times \vB{2.15\%} = \vD{\$6{,}450}$.
2. Financed loan amount: $\vA{300{,}000} + \vD{6{,}450} = \vE{\$306{,}450}$.
3. Total monthly payment (principal and interest only, no ongoing mortgage insurance): ≈ $1,937/month.