FHA loans can be a great asset when purchasing a home. However, it’s important to know how these loans are calculated and what you need to do in order to qualify.

While some may believe that the monthly mortgage payment will be the amount of the home loan divided by the term of the loan (plus interest), in reality it’s slightly more complicated.

FHA loan rules give a list of things that must be included as part of the monthly loan payment calculation.

These include:


–principal and interest;

–real estate taxes;

–hazard insurance;

–flood insurance as applicable;

–mortgage Insurance Premium;

–HOA or condominium association fees or expenses;

–any applicable ground Rent;

–applicable special assessments;

—payments for any acceptable secondary financing; and

–any other escrow payments.


Insurance payments are an important part of the calculation, especially if you’re applying for a home loan in a flood zone or another area that is known to have hazards and requires more insurance.

If you’re not sure which of these apply to you or you’re interested in discussing an FHA loan, come to our mortgage office in Joplin, MO and let us find the plan that is right for you.