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FHA purchase planning tool

The FHA down payment is only one line of cash to close.

Model the down payment, settlement charges, prepaids, escrow, UFMIP choice, assistance, credits, and deposits in one transparent estimate.

Calculate estimated cash to close

Build the FHA transaction

The values shown are examples, not a quote. Replace them with the contract, approved assistance, insurance quote, and Loan Estimate.

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3.5% is a common FHA scenario, not universal eligibility.
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Enter $0 when modeling eligible UFMIP as financed.
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Assistance is not automatic: enter gifts, grants, or subordinate financing only after confirming the source, amount, documentation, repayment terms, property limits, occupancy rules, and compatibility with the first mortgage.

Minimum investment is not the final wire amount

Borrowers often multiply the price by a down-payment percentage and stop there. Cash to close is broader: down payment plus closing costs, prepaids, initial escrow, and applicable adjustments, minus permitted credits, verified assistance, earnest money, and other eligible funds already paid. The CFPB Loan Estimate explainer shows how these categories reconcile.

Use two separate numbers: “amount still due at closing” helps plan the wire or cashier’s check; “total purchase cash budget” adds back earnest money and other out-of-pocket funds already spent.

Keep UFMIP separate from ordinary costs

HUD states that upfront mortgage insurance is required for most FHA single-family programs. HUD’s program information explains that the premium may be financed in an eligible FHA mortgage. Enter zero in the cash-paid UFMIP field when modeling it as financed; enter the disclosed cash amount when it will not be financed. Financing the premium reduces cash due but increases the loan balance.

Do not count unverified help

Potential sourceWhat to verifyPlanning mistake
Seller creditContract language, permitted uses, transaction limit, appraisal supportAssuming every unused dollar becomes cash back
Lender creditRate tradeoff and exact amount on the Loan EstimateComparing cash today without comparing total loan cost
Gift fundsEligible donor, transfer, documentation, and lender instructionsMoving funds before knowing the paper trail
Down-payment assistanceIncome, property, occupancy, area, repayment, lien, and first-loan rulesTreating marketing language as an approval
Earnest moneyCleared funds and documented sourceForgetting it already reduced the remaining amount due

Insurance changes both cash and monthly payment

The first-year homeowners premium may be prepaid and additional months may fund the initial escrow account. A rough allowance can therefore distort both estimated cash due and the projected payment. Use a property-specific quote and follow the before-closing insurance checklist from Valley West Insurance before the Closing Disclosure is prepared.

A clean verification sequence

  1. Enter the contract price, exact down-payment plan, and cleared earnest money.
  2. Use the lender and settlement figures, not a generic closing-cost percentage.
  3. Confirm whether UFMIP is financed and verify every gift or assistance source.
  4. Replace the rough insurance allowance with the selected policy quote.
  5. When the final document arrives, use the FHA Closing Disclosure reconciliation checklist to compare the two documents, test verified funds, and identify missing credits or deposits.

Educational estimate: This tool does not determine FHA eligibility, required investment, acceptable funds, assistance eligibility, seller-contribution limits, property eligibility, rate, payment, or approval. Requirements and lender overlays vary. The Loan Estimate and Closing Disclosure control the disclosed figures.

Connect every FHA cash decision

Move from a rough percentage to documents and eligibility checks.

FHA closing costsReview line items and the difference between costs and cash due.FHA down paymentUnderstand minimum investment and source documentation.Assistance screeningCheck whether a program actually fits the borrower and property.Gift-fund paper trailPrepare donor and transfer documentation before underwriting.FHA payment calculatorConnect upfront cash with the projected monthly payment.Scenario reviewAsk a licensed loan officer to reconcile the working estimate.

FHA cash-to-close questions

Is the FHA down payment the same as cash to close?

No. The amount due can also include closing costs, prepaids, initial escrow, cash-paid UFMIP, and adjustments, minus eligible credits and funds already paid.

Can FHA upfront mortgage insurance be financed?

HUD explains that upfront MIP may be financed in an eligible FHA mortgage. Confirm the exact amount and treatment for the transaction.

Can a gift or assistance cover everything?

Do not assume so. Eligible sources, permitted uses, documentation, repayment, program compatibility, and limits must be reviewed.

Does this calculate my FHA approval?

No. It does not test credit, income, debts, property, appraisal, occupancy, fund sourcing, or lender overlays.

Replace the percentage shortcut with a complete file

Bring the contract, Loan Estimate, assistance approval, gift documentation, insurance quote, and deposit receipts together before setting the closing budget.

Review my FHA cash-to-close plan