1. What is FHA Loan Amount?

The FHA (Federal Housing Administration) loan amount is the actual amount you borrow to purchase a home, calculated by subtracting your down payment from the purchase price. FHA loans are government-backed mortgages with more flexible qualification requirements.

2. How Does the Calculator Work?

The calculator uses the FHA loan formula:

Where:

• Purchase Price — Total cost of the property in USD
• Down Payment — Initial payment made when purchasing the home (minimum 3.5% for FHA loans)

Explanation: The loan amount represents the principal balance that will be amortized over the loan term.

3. Importance of Loan Amount Calculation

Details: Calculating the exact loan amount helps determine monthly payments, required mortgage insurance, and overall affordability. FHA loans have specific limits that vary by county.

4. Using the Calculator

Tips: Enter the purchase price and planned down payment in USD. The down payment must be less than the purchase price. FHA requires minimum 3.5% down payment for borrowers with credit scores of 580+.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum down payment for FHA loans?
A: 3.5% for credit scores of 580 or higher, 10% for scores between 500-579.

Q2: Are there maximum FHA loan amounts?
A: Yes, FHA has county-specific loan limits that vary based on local housing costs.

Q3: Can the down payment be gifted?
A: Yes, FHA allows the entire down payment to be a gift from family, employer, or charitable organization.

Q4: What costs are included in the purchase price?
A: The base price of the home plus any included upgrades or appliances, but not closing costs.

Q5: How does this differ from conventional loan calculations?
A: FHA loans have different insurance requirements and more flexible qualifying ratios, but the basic loan amount calculation is the same.