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Calculate Your FHA Loan Payment Now!
Looking to buy a home in the USA? Use our FHA loan calculator to estimate your monthly payment, including principal, interest, taxes, insurance, and MIP. Pegasus Mortgage makes it easy to explore your options—even with less-than-perfect credit.
Enter your loan amount, interest rate, and down payment to see your estimated payment including taxes, insurance, and FHA mortgage insurance premiums (MIP).
requested loan amount
$750,000
with an interest of
3.38%
with a down payment of
$75,000
with a loan tenure of
25 years
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a government agency. This insurance protects lenders, making them more willing to offer loans to borrowers who may not qualify for a conventional loan. They are a popular choice for first-time homebuyers and those with smaller down payments.
Ideal For:
- First-time homebuyers
- Borrowers with lower credit scores
- Those with a down payment as low as 3.5%
- Individuals with a limited credit history
Unlock Your Homeownership Dream with an FHA Loan
FHA loans are a cornerstone of the American housing market, designed to make homeownership accessible to more people. With backing from the federal government, these loans offer more lenient credit and down payment requirements. If you’re dreaming of owning a home but have been concerned about saving for a large down payment or your credit history, an FHA Loan from Pegasus Mortgage could be the key to unlocking your future home.
Benefits of an FHA Loan
Low Down Payment
Qualify for a home loan with as little as 3.5% down, making it easier to buy a home sooner.
Flexible Credit Requirements
FHA guidelines are more forgiving on credit scores compared to conventional loans, opening the door for more borrowers.
Higher Debt-to-Income (DTI) Ratios Allowed
FHA loans often permit higher DTI ratios, giving you more flexibility in your home search.
Government-Insured
The government’s insurance gives lenders confidence, which translates into better opportunities for you
Assumable Mortgages
An FHA loan can be “assumed” by a qualified buyer, which can be a significant advantage if interest rates rise in the future.
Gift Funds Allowed
You can use gift funds from family or approved sources to cover your down payment and closing costs
Is an FHA Loan Right for You?
An FHA loan is an excellent option for many homebuyers, particularly:
- First-Time Homebuyers: The low down payment and flexible credit requirements make it a popular choice for those new to the housing market.
- Borrowers with Limited Savings: The 3.5% minimum down payment is significantly lower than what is often required for conventional loans.
- Individuals Rebuilding Their Credit: If you have had credit challenges in the past, FHA’s more lenient standards may provide a path to homeownership.
- Buyers of Fixer-Uppers: The FHA 203(k) loan allows you to finance both the purchase and renovation of a home in a single mortgage.
FHA Loan Requirements
While Pegasus Mortgage makes the process as smooth as possible, here are the general FHA loan requirements:
- Credit Score: A minimum credit score of 580 is typically required for the 3.5% down payment option. Borrowers with scores between 500 and 579 may still qualify with a 10% down payment.
- Debt-to-Income (DTI) Ratio: Your DTI ratio should generally be around 43% or less, but in some cases can be higher.
- Down Payment: A minimum of 3.5% of the home’s purchase price is required.
- Income and Employment Verification: Lenders will need to see proof of stable income and employment.
- Property Appraisal: The home must be appraised by an FHA-approved appraiser and meet minimum property standards.
- Mortgage Insurance Premium (MIP): FHA loans require both an upfront and an annual mortgage insurance premium.
Types of FHA Loans We Offer
FHA 203(b) Fixed-Rate Loan
The most common type of FHA loan, offering the stability of a fixed interest rate and predictable monthly payments.
FHA 203(k) Renovation Loan
This loan allows you to finance both the purchase of a home and the cost of its rehabilitation.
FHA Streamline Refinance
Have an FHA loan? Streamline refinancing can lower your rate with less paperwork and a quick appraisal.
How FHA Loans Compare
| Loan Type | Down Payment | Mortgage Insurance | Credit Score | Loan Limits |
|---|---|---|---|---|
| FHA | 3.5% | Yes | 580+ | Up to FHA limits |
| Conventional | 5–20% | Not if 20% down | 620+ | Up to $766,550 standard |
| VA | 0% | No | 620+ | No limits |
| USDA | 0% | Yes | 640+ | USDA area limits |
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Why Choose Pegasus Mortgage for Your FHA Loan?
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FAQs on FHA Loans
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. This government backing allows lenders to offer loans with lower down payments and more flexible credit requirements.
What is the minimum credit score for an FHA loan?
Generally, a credit score of 580 or higher is needed to qualify for an FHA loan with a 3.5% down payment. We may have options for scores as low as 500 with a 10% down payment.
What is MIP?
MIP stands for Mortgage Insurance Premium. It’s a requirement for all FHA loans and comes in two parts: an upfront premium that can be rolled into the loan amount, and an annual premium paid monthly for a specific period, often for the life of the loan.
Can I use an FHA loan for an investment property?
FHA loans are primarily for financing a primary residence. However, you can use an FHA loan to purchase a multi-unit property (up to 4 units) as long as you live in one of the units.
Are FHA loan limits the same everywhere?
No, FHA loan limits vary by county across the USA. These limits are based on the median home prices in a particular area. Our loan experts can provide the specific limits for your desired location.
How is an FHA appraisal different?
An FHA appraisal includes a more thorough inspection to ensure the property meets the Department of Housing and Urban Development’s (HUD) minimum property standards for health and safety.
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