How much can I borrow on an FHA loan in 2026?

Between $541,287 and $1,249,125 for a one-unit home, depending on the county — the floor applies in low-cost areas, the ceiling in high-cost ones, and everywhere else sits between them. Both took effect for case numbers assigned on or after 1 January 2026. The threshold on this page is a different number: it decides the MIP rate, not how much FHA will insure.

Does FHA mortgage insurance ever go away?

Only if you started at 90% loan-to-value or below, in which case it stops after eleven years. On a loan above 90% — which includes every 3.5%-down purchase — it runs for the entire term. Paying the balance down does not end it; the only exit is refinancing into a conventional loan, which needs 20% equity to avoid PMI.

How much is FHA mortgage insurance?

1.75% of the loan upfront, plus an annual premium of 50 to 75 basis points depending on loan size and loan-to-value. On a $308,800 loan at 96.5%, that is $5,404 financed into the loan and $142 a month for thirty years — around $56,000 in total, which is the number to weigh against a conventional loan with PMI that cancels.

Is an FHA loan cheaper than a conventional one?

It is easier to qualify for and often more expensive to keep. FHA accepts lower credit scores and higher debt ratios, and its rate is frequently lower — but conventional PMI cancels automatically at 78% loan-to-value while FHA insurance does not. Over a full term the permanent premium usually outweighs the rate advantage.

What is the difference between MIP and PMI?

MIP is the government programme’s insurance on an FHA loan; PMI is private insurance on a conventional one. PMI has to be cancelled at 78% loan-to-value under the Homeowners Protection Act and can be requested at 80%. MIP has no equivalent right — the eleven-year rule applies only to loans that started at 90% or less.

FHA Loan Calculator

With purchase price 320000 usd, down payment 11200 usd, interest rate 6.25 percent, term, years 30 and 3 more fields, fha loan comes to $2,519.47 — monthly payment. It is reached in 13 steps, the last of which is 1934.6081 + 293.33333 + 1800 / 12 + 141.53333, and each one is printed on the page with its numbers filled in. The formula is the one published by HUD Mortgagee Letter 2023-05, not an approximation fitted to it.

An FHA payment with both mortgage insurance premiums at the published rates — and whether the annual one ever ends.

Formula and sources checked 27 August 2026 · How we check

Purchase price 320000, Down payment 11200, Interest rate 6.25, Term, years 30

$2,519.47

Monthly payment for the example below. Editing a field recomputes the calculator below; this figure holds the answer the page was loaded with.

It is written into the HTML rather than drawn by a script, so a search engine reading this page without running JavaScript still finds an answer.

Purchase priceusdDown paymentusdFHA allows 3.5% down at a credit score of 580 or above, and 10% below it.Interest ratepercentTerm, yearsProperty tax ratepercentHome insurance a yearusdLoan amount threshold for the MIP rateusdAbove this base loan amount the annual premium is higher. It is the fixed figure in Mortgagee Letter 2023-05, and it is not the FHA loan limit — that is a different number, and it does change every year.

Monthly payment

$2,519.47

Base loan amount: max(0, 320000 - 11200)$308,800
Loan-to-value: 308800 / 320000 * 10096.5 %
Upfront MIP, 1.75%: 308800 * 0.0175$5,404
Loan including upfront MIP: 308800 + 5404$314,204
Annual MIP rate: (0.55)0.55 %
Annual MIP: 308800 * 0.55 / 100$1,698
MIP a month: 1698.4 / 12$141.53
Years the annual MIP runs: 30
Annual MIP paid over that time: 1698.4 * 30$50,952
Principal and interest: 314204 * 0.0052083 / (1 - pow(1 + 0.0052083, -360))$1,935
Property tax a month: 320000 * 1.1 / 100 / 12$293.33
Monthly payment: 1934.6081 + 293.33333 + 1800 / 12 + 141.53333$2,519
Payment once MIP ends, if it does: $2,519

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Worked example

A $320,000 house with 3.5% down is a $308,800 loan at 96.5% loan-to-value. The upfront premium of $5,404 is financed, the annual premium is 55 basis points — $142 a month — and because the loan is above 90% loan-to-value, that premium runs for the full thirty years rather than falling off at eleven. Over the term it comes to $50,952.

How to work it out yourself

1.Check the loan-to-value line first. At or below 90% the annual premium stops after eleven years; above it, the premium lasts as long as the mortgage does.
2.Note that both premiums are charged: 1.75% upfront, normally financed into the loan, plus the annual one spread across twelve monthly payments.
3.To escape the annual premium on a high-LTV FHA loan you have to refinance out of FHA entirely — paying the balance down below 80% does not remove it the way cancelling conventional PMI does.

The formula

Base loan amountmax(0, 320000 - 11200)
Loan-to-value308800 / 320000 * 100
Upfront MIP, 1.75%308800 * 0.0175
Loan including upfront MIP308800 + 5404
Annual MIP rate(0.55)
Annual MIP308800 * 0.55 / 100
MIP a month1698.4 / 12
Years the annual MIP runs
Annual MIP paid over that time1698.4 * 30
Principal and interest314204 * 0.0052083 / (1 - pow(1 + 0.0052083, -360))
Property tax a month320000 * 1.1 / 100 / 12
Monthly payment1934.6081 + 293.33333 + 1800 / 12 + 141.53333
Payment once MIP ends, if it does

Source: HUD Mortgagee Letter 2023-05 — reduction of FHA annual mortgage insurance premium rates, HUD Handbook 4000.1 — FHA Single Family Housing Policy Handbook, HUD — FHA announces 2026 loan limits (floor $541,287, ceiling $1,249,125), FHFA — conforming loan limit values for 2026 ($832,750 baseline)

Questions people actually ask

How much can I borrow on an FHA loan in 2026?: Between $541,287 and $1,249,125 for a one-unit home, depending on the county — the floor applies in low-cost areas, the ceiling in high-cost ones, and everywhere else sits between them. Both took effect for case numbers assigned on or after 1 January 2026. The threshold on this page is a different number: it decides the MIP rate, not how much FHA will insure.
Does FHA mortgage insurance ever go away?: Only if you started at 90% loan-to-value or below, in which case it stops after eleven years. On a loan above 90% — which includes every 3.5%-down purchase — it runs for the entire term. Paying the balance down does not end it; the only exit is refinancing into a conventional loan, which needs 20% equity to avoid PMI.
How much is FHA mortgage insurance?: 1.75% of the loan upfront, plus an annual premium of 50 to 75 basis points depending on loan size and loan-to-value. On a $308,800 loan at 96.5%, that is $5,404 financed into the loan and $142 a month for thirty years — around $56,000 in total, which is the number to weigh against a conventional loan with PMI that cancels.
Is an FHA loan cheaper than a conventional one?: It is easier to qualify for and often more expensive to keep. FHA accepts lower credit scores and higher debt ratios, and its rate is frequently lower — but conventional PMI cancels automatically at 78% loan-to-value while FHA insurance does not. Over a full term the permanent premium usually outweighs the rate advantage.
What is the difference between MIP and PMI?: MIP is the government programme’s insurance on an FHA loan; PMI is private insurance on a conventional one. PMI has to be cancelled at 78% loan-to-value under the Homeowners Protection Act and can be requested at 80%. MIP has no equivalent right — the eleven-year rule applies only to loans that started at 90% or less.

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