What is the difference between FHA Upfront MIP and Annual MIP?

FHA loans carry two layers of mortgage insurance. The Upfront Mortgage Insurance Premium (UFMIP) is 1.75% of the base loan amount, charged at closing and typically financed into your loan balance — so you don't pay it in cash. The Annual MIP is paid monthly as part of your mortgage payment and ranges from 0.15%–0.75% depending on your loan term, LTV, and loan size.

When does FHA mortgage insurance cancel?

It depends on your down payment. If you put down less than 10%, FHA MIP lasts the life of the loan and never cancels. If you put down 10% or more, MIP cancels after 11 years. This is a key difference from conventional PMI, which cancels based on your LTV reaching 78%. Many borrowers with equity eventually refinance into a conventional loan to eliminate FHA MIP.

Is FHA or a conventional loan better for me?

FHA has lower minimum credit score requirements (580 for 3.5% down, 500 for 10% down) and more flexible DTI guidelines, making it accessible to borrowers with challenged credit. However, if your credit score is above 680–700 and you have some down payment saved, conventional may be cheaper — especially once you factor in FHA's lifetime MIP vs. conventional PMI that cancels at 80% LTV.

Can I refinance out of an FHA loan to remove MIP?

Yes. Once you've built enough equity — typically 20% or more — you can refinance into a conventional loan, which eliminates FHA MIP entirely. This is often called an FHA-to-conventional refinance. Use our Refinance Break-Even Calculator to model whether the savings justify the closing costs before making the switch.

Why do FHA loan limits vary by county?

FHA limits are set as a percentage of each area's median home price, then bounded by a national floor and ceiling. Counties with higher median prices get higher limits — which is why a Bay Area county's FHA limit can be more than double a rural county's. HUD publishes the figures each year; they can be revised as local median prices change.

What's the difference between the one-unit and multi-unit FHA limits?

The one-unit limit applies to a single-family home. FHA also insures two-, three-, and four-unit properties at progressively higher limits, as long as you occupy one of the units as your primary residence. That makes FHA a common path for house-hacking a duplex, triplex, or fourplex with as little as 3.5% down.

Can I borrow more than the FHA loan limit in my county?

The county limit is the maximum base loan amount FHA will insure. If you need to finance more, you'd typically move to a conventional or jumbo loan — which have their own down payment and credit requirements. We can compare an FHA loan against conventional and jumbo options side by side so you can see the real tradeoff for your price point.

Free Calculator

FHA Loan Calculator

Calculate your full FHA loan payment — principal, interest, upfront MIP (1.75%, financed into the loan), monthly mortgage insurance, taxes and insurance — and see precisely how your down payment affects your MIP rate, duration, and total lifetime cost.

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Get Started in 3 Steps

How to Use the FHA Loan Calculator

Set Your Purchase Price & Down Payment

Enter the home price and your down payment (minimum 3.5%). The calculator automatically sets the 1.75% upfront MIP and selects the correct annual MIP rate tier.

Review All-In Monthly Cost

See your P&I payment plus monthly MIP in one figure. Add taxes and insurance to get your full PITIA housing budget.

Compare Down Payment Scenarios

Toggle between 3.5% and 10%+ down to see how the MIP rate, monthly cost, and cancellation timeline change.

FHA Loan & MIP Calculator

Upfront & annual MIP · financed into loan · 2025 rates

Live

Purchase Price

$100K$1.5M

Down Payment

3.5%MIP: life of loan — put 10%+ to cancel30%

≥ 10% down → MIP cancels after 11 years · < 10% down → MIP for life of loan

Loan Term

Interest Rate

3%12%

How FHA MIP Works

Upfront MIP (UFMIP)1.75% of base loan

Annual MIP (monthly)0.55% / yr → $221.15/mo

UFMIP financed into loan?Yes — adds $8,444

Total Monthly Payment

$2,932/mo

P&I 92%MIP 8%

P&I Payment

$2,710.71

Monthly MIP

$221.15

Loan Breakdown

Purchase Price

$500,000

Down Payment

$17,500 (3.5%)

Base Loan Amount

$482,500

Upfront MIP (1.75%)

Financed into loan

+ $8,444

Total Financed Loan

$490,944

MIP Lasts the Life of the Loan

At 3.5% down (LTV 96.5%), FHA requires MIP for the full 30-year term. Estimated total MIP cost: $88,056.

Year	Principal	Interest	MIP	Balance
1	$6,924	$25,605	$2,654	$484,020
2	$7,296	$25,232	$2,654	$476,724
3	$7,688	$24,840	$2,654	$469,035
4	$8,102	$24,427	$2,654	$460,933
5	$8,538	$23,991	$2,654	$452,396
6	$8,997	$23,532	$2,654	$443,399
7	$9,480	$23,048	$2,654	$433,919
8	$9,990	$22,538	$2,654	$423,929
9	$10,527	$22,001	$2,654	$413,402
10	$11,093	$21,435	$2,654	$402,308
11	$11,690	$20,839	$2,654	$390,618
12	$12,318	$20,210	$2,654	$378,300
13	$12,981	$19,548	$2,654	$365,319
14	$13,679	$18,850	$2,654	$351,640
15	$14,414	$18,114	$2,654	$337,226
16	$15,189	$17,339	$2,654	$322,036
17	$16,006	$16,522	$2,654	$306,030
18	$16,867	$15,662	$2,654	$289,163
19	$17,774	$14,755	$2,654	$271,389
20	$18,730	$13,799	$2,654	$252,660
21	$19,737	$12,792	$2,654	$232,923
22	$20,798	$11,731	$2,654	$212,125
23	$21,916	$10,612	$2,654	$190,209
24	$23,095	$9,434	$2,654	$167,114
25	$24,337	$8,192	$2,654	$142,777
26	$25,645	$6,883	$2,654	$117,132
27	$27,024	$5,504	$2,654	$90,108
28	$28,477	$4,051	$2,654	$61,631
29	$30,009	$2,520	$2,654	$31,622
30	$31,622	$906	$2,654	Paid off
Total	$490,944	$484,910	$79,613	paid off

2026 County Limits

FHA Loan Limits by County — Oregon & California

State

County

Multnomah County, OR · PORTLAND-VANCOUVER-HILLSBORO

One-unit FHA limit · effective 2026 (HUD last revised 2026)

$701,500

Max single-family FHA base loan

1 Unit

$701,500

2 Units

$898,050

3 Units

$1,085,550

4 Units

$1,349,050

Median sale price (HUD)$610,000

Common Questions About FHA Loan Limits

What is the 2026 FHA loan limit in Multnomah County, OR?

The 2026 FHA loan limit in Multnomah County is $701,500 for a one-unit home, $898,050 for a duplex, $1,085,550 for a triplex, and $1,349,050 for a fourplex (owner-occupied). These are the maximum FHA base loan amounts; HUD last revised this county's figure in 2026.

For 2026, the FHA "floor" (standard low-cost-area limit) for a one-unit home is $541,287, and the "ceiling" for the highest-cost counties is $1,249,125. Most Oregon counties sit at or near the floor; the Portland metro (Multnomah, Washington, Clackamas) is higher, and California's high-cost coastal and Bay Area counties reach the ceiling. Use the county lookup above for your exact one- to four-unit limits.

Source: HUD FHA Mortgage Limits (FHA Forward), effective 2026. Figures are maximum base loan amounts and may be revised by HUD as local median home prices change. Covers all Oregon and California counties; questions about your county's limit? Call us at 503-966-9255. Lumen Mortgage Corporation · NMLS #1498678.

Quick Answer

How much is FHA mortgage insurance?

FHA loans carry two insurance layers: an Upfront MIP of 1.75% of the loan amount (typically financed) and an Annual MIP of 0.55% for most borrowers (30-year term, LTV > 95%). With less than 10% down, MIP lasts the life of the loan; with 10%+ down, it cancels after 11 years.

Upfront MIP: 1.75% of loan amount (financed into loan)

Annual MIP: 0.15%-0.75% depending on term, LTV, and size

Minimum 3.5% down with 580+ credit score

MIP cancels at 11 years only with 10%+ down

Less than 10% down = MIP for life of loan

Many borrowers refi to conventional to remove MIP

Best for: Buyers with credit scores 580-700, first-time buyers with limited down payment savings

How It Works

Understanding the FHA Loan Calculator

FHA loans are designed for borrowers who may not qualify for conventional financing due to lower credit scores or limited down payment. The trade-off is mortgage insurance: a 1.75% Upfront MIP rolled into your loan balance at closing, plus an Annual MIP paid monthly.

Worked example: You're buying a $375,000 home with 3.5% down ($13,125). Your base loan is $361,875. Add the 1.75% upfront MIP ($6,333) and your total loan becomes $368,208. At 6.50% for 30 years, P&I is $2,327. The annual MIP of 0.55% adds $166/month, bringing your total mortgage payment to $2,493 before taxes and insurance. Because your down payment is under 10%, MIP stays for the life of the loan — unless you refinance to conventional once you reach 20% equity.

Compare the 3.5%-down and 10%-down scenarios side by side: at 10% down, MIP cancels after 11 years. Use this alongside our USDA Calculator if your property may be in a rural-eligible area — USDA fees are significantly lower than FHA.

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About This Calculator

What the FHA Loan Calculator is For

FHA loans come with two layers of mortgage insurance — an upfront premium financed into your loan balance, and a monthly premium that may cancel at 11 years or run for the life of the loan depending on your down payment. This calculator handles both. Choose any down payment from 3.5% to 20%, adjust your rate and loan term, and instantly see your complete monthly payment including MIP. Add property taxes and homeowners insurance to get a true all-in PITIA budget.

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