FHA Loan Calculator Texas

7 Expenses That You Need to Familiar with before Using an FHA Loan Calculator Texas


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Are you about to apply for an FHA loan to fulfill your dream of homeownership? Well, guaranteed by the Federal Housing Administration, an FHA loan will be an apt choice for you. As it is a government-backed home loan, the loan requirements are more lenient than traditional home loan programs.

But before you apply for the loan, you may want to know about your home loan affordability. Wondering how to know this? An FHA loan calculator Texas can help you with this. Before you use this online calculator, you need to familiar with some expenses. Here are the ones –

Principal and interest:

The principal refers to the main amount while interest refers to the rate of interest that you have to pay over the life of the loan. The lower the interest rate the more you can save over the life of the loan.

FHA mortgage insurance

FHA requires a monthly fee that is a lot like private mortgage insurance. Known as FHA Mortgage Insurance Premium (MIP), this fee is a type of insurance. It protects the lenders against loss in case the home buyer can’t make the payment. Generally, the FHA MIP rate is 0.85% of the loan amount per year; however, it can vary from 0.45% to 1.05% per year based on your loan amount and down payment.

Property tax

The county or municipality, where you want to buy the home, charges a certain amount per year as taxes. Generally, this cost is split into 12 installments and collected each month with your mortgage payment. Your mortgage lender collects this fee as the county can seize a home in case the property taxes are not paid.

Homeowners insurance

Mortgage lenders require you to insure your home from fire and other damages. Basically, this fee is collected with your mortgage payment. Besides, the lender sends the payment to your insurance company every year.


Are you planning to buy a condo or a home in a Planned Unit Development (PUD), then you may need to pay homeowners assistance (HOA) dues. The home lenders factor in this cost when deciding your ratios. You may put in other home-related fees, including flood insurance in this field, however, don’t include things such as utility costs.

Down payment

This is the basic payment that you need to make to the mortgage lender when you buy a home on credit. The down payment requirement for an FHA loan is much lenient than the traditional home loan program. Even with a 3.5% down payment, you can get approval for an FHA loan. However, the higher the down payment amount you can come with, the better it would be for you. If you find it difficult to save the down payment, you can opt for a down payment assistance program to arrange it. 

Upfront MIP

The FHA requires an upfront fee that is wrapped into the loan amount (not paid in cash). Like a monthly MIP, it insures the mortgage lenders so that they can approve the home loans at FHA’s lenient standards.

As you are now familiar with the key expenses that are related to using an online FHA calculator, now, you could use it and know your home affordability easily.

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