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FHA 203(k) Calculator: Estimate How Much You Could Borrow to Buy and Renovate
Enter the price, your repair budget and the expected value after improvements to see an illustrative 203(k) base loan and the cash you may need to bring.
An FHA 203(k) calculator adds repairs, a contingency reserve and allowable fees to the purchase price, compares that total with 110% of the after-improved value, and applies FHA's 96.5% loan-to-value to the lower figure. The result is an illustrative base loan before upfront mortgage insurance.
- ✓203(k) combines purchase and renovation into one FHA loan.
- ✓Limited 203(k) covers smaller, non-structural repairs up to a HUD cap.
- ✓Standard 203(k) handles larger or structural work and uses a 203(k) consultant.
- ✓A contingency reserve of 10–20% is typically required.
- ✓County FHA loan limits still apply.
What this means for you: a realistic repair bid and appraisal drive the 203(k) number, so get contractor estimates early.
Written by
Simply Approved Mortgages Team
Licensed Loan Officers · NMLS# 2620881
Get your personalized scenario summary
Complete the short request and a Simply Approved Mortgages Loan Officer sends back a written summary built from your own numbers: estimated payment breakdown, estimated cash to close, the loan structures that fit your file, and what documentation the file will need.
- Estimated monthly payment with taxes and insurance
- Estimated cash to close for your scenario
- Loan options your profile may fit
- Document checklist for your file
Takes about 3 minutes · Summary shown on screen and emailed to you
Illustration only, generated from the information you enter. Not a rate quote, lock, loan estimate, pre-qualification, offer, approval, or commitment to lend. Figures are subject to credit, income, asset and property review and full lender underwriting; binding numbers appear on your Loan Estimate.
Scenario summary
- Purchase price entered
- $412,000
- Down payment entered
- $20,600
- Estimated loan amount
- $391,400
- Estimated cash to close
- $14,300
- Programs reviewed
- 4
Sample layout with example figures — your own numbers replace these. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
How the 203(k) maximum is estimated
HUD looks at two figures: what the project costs (price plus repairs, reserve and eligible fees) and what the home is expected to be worth when the work is done. The calculator uses the lower of total cost or 110% of the after-improved value, then applies the 96.5% FHA loan-to-value used for most buyers. Upfront mortgage insurance is added on top and is not shown here.
Limited vs. standard 203(k)
A limited 203(k) suits cosmetic and minor projects such as flooring, appliances or a roof replacement, up to HUD's repair cap. A standard 203(k) is for larger or structural projects and requires a HUD-approved 203(k) consultant to write up the work and oversee draws. Learn more on our FHA 203(k) renovation loan and 203(k) consultant pages.
Want these numbers built around your file?
A short request is all it takes to get a written scenario summary back from a Simply Approved Mortgages Loan Officer. Binding figures appear on your Loan Estimate.
Budgeting tips
- Get written contractor bids before you finalize your offer.
- Older homes often need a larger contingency reserve.
- Ask whether you will need to live elsewhere during the work.
- Check your county's FHA loan limit on our FHA loan limits page.
Compare loan officer compensation on your mortgage quote
Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.
Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
FHA 203(k) Renovation Loan Calculator
Results
- Contingency reserve
- $5,500
- Total rehabilitation budget
- $64,500
- Lesser of total cost or 110% of after-improved value
- $344,500
- Illustrative base loan at 96.5%
- $332,443
- Estimated cash needed beyond base loan
- $12,058
Uses a simplified version of the HUD 203(k) maximum mortgage approach (HUD Handbook 4000.1). Excludes upfront MIP, closing costs and county FHA loan limits; contingency reserves typically run 10–20% based on the property's age and condition. Limited 203(k) repairs are capped by HUD. Illustrative only, not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.
Next steps
Emailing your FHA 203(k) calculator scenario opens our secure request form so a Simply Approved Mortgages Loan Officer can review those numbers. Estimates are illustrative and are not a quote, lock, offer, or commitment to lend.
Assumptions, methodology, and limitations
Contingency reserve equals repair costs times the percentage you enter. Total rehabilitation budget is repairs plus reserve plus fees. The base loan is 96.5% of the lesser of purchase price plus rehabilitation budget, or 110% of the after-improved value.
Simplified from HUD Handbook 4000.1. Excludes upfront MIP, closing costs, county loan limits, mortgage payment reserves and lender overlays. Illustrative only, not a quote, lock, offer, or commitment to lend.
Results are illustrative estimates only and are not a quote, lock, offer, or commitment to lend. No rate, APR, or program approval is implied. Binding figures appear on your Loan Estimate. Eligibility, terms, and availability vary by borrower, property, lender, loan program, and state.
Talk through your scenario today
A Simply Approved Mortgages Loan Officer can confirm which of these paths actually fits your credit, income, and property. Educational only, no obligation.
Purchase market update
What buyers should know this month
30-Yr Fixed · national avg
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15-Yr Fixed · national avg
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2026 buying power
Conforming baseline: $832,750
FHA floor / ceiling: $541,287 – $1,249,125
Cost and payment tools
Run your payment, affordability, closing cost and refinance numbers
Monthly payment, affordability, closing costs, refinance break-even and early payoff, all on one screen. This page is not written for one state, so property tax, insurance and transfer or recording charges start at neutral placeholder assumptions rather than published averages — Transfer, documentary-stamp and recording charges are set by your state and county — enter your own figure, or open the state page for a sourced seed. Insurance and tax assumptions vary widely by state, county and property, so replace these starting values with quotes for your address. Every figure is an illustrative estimate, not a quote, lock, offer, approval, or commitment to lend.
Your inputs
Estimated result
- Down payment
- $20,000
- Loan amount
- $380,000
- Principal & interest
- $2,402
- Property tax
- $333/mo
- Homeowners insurance
- $167/mo
- Estimated total monthly
- $2,902/mo
Reference sources: Tax Foundation — property taxes paid as a percentage of owner-occupied housing value, NAIC — Homeowners Insurance Report, CFPB — Understanding your Loan Estimate.
Assumptions, methodology, and limitations
Principal and interest use the standard amortization formula on the loan amount you enter. This page does not target a single state, so the property tax and insurance fields start at neutral placeholder assumptions rather than published averages — replace them with figures for your own address, or open the matching state page for sourced seeds. Closing costs apply your state's transfer / documentary-stamp practice (0.00% of price used as the buyer-side seed) plus typical title, recording, appraisal, credit and prepaid escrow lines. Refinance break-even divides your entered costs by the monthly payment difference. Early payoff runs a month-by-month amortization with your extra principal.
These tools do not include mortgage insurance, funding or guarantee fees, HOA special assessments, flood or windstorm premiums, seller credits, lender credits, discount points, or county and municipal charges specific to your parcel. Statewide averages will not match any individual property. Figures are estimates only.
Illustrative only. Binding figures appear on your Loan Estimate, and terms vary by borrower, property, lender, program, and state.
Turn these estimates into real numbers
Send your scenario to a Simply Approved Mortgages Loan Officer and get a written summary back, or compare where rates sit today. Educational only — not a quote, lock, offer, approval, or commitment to lend.
FHA 203(k) calculator: common questions
Answers to the most common FHA 203(k) calculator: common questions, written by licensed loan officers.
Ask SAM anything about mortgages
SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.
Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.
Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Trusted government resources
These independent government resources can help you research mortgage programs, rates, and your rights before you apply.
U.S. Department of Housing and Urban Development
HUD — 203(k) Rehabilitation Mortgage Insurance
U.S. Department of Housing and Urban Development
HUD — FHA Single Family Housing Policy Handbook 4000.1
Consumer Financial Protection Bureau
CFPB — Buying a house
Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.
How this page connects
Where this fits in the FHA lending library
This page sits inside our FHA lending coverage.
What most readers open next
- The FHA loan guideBecause the program rules every FHA page below builds on.
- FHA loan limits by countyBecause the county ceiling decides the largest FHA loan a property can carry.
- How FHA mortgage insurance worksBecause upfront and annual MIP change the monthly payment and how long it lasts.
- FHA credit score requirementsBecause the score band drives the minimum down payment.
- The FHA debt-to-income toolBecause to see how your existing payments affect the loan amount.
- The FHA cash-to-close estimatorBecause to separate down payment from closing costs and prepaids.
Explore the full guide
Keep reading — the rest of the buying playbook
Each of these is a deep-dive on one piece of the purchase mortgage process. Bookmark whichever you need next.
Guide
FHA 203(k) Renovation Loan
How the program works step by step.
Read the guide →Guide
FHA 203(k) Consultant
What the consultant does on a standard 203(k).
Read the guide →Guide
FHA Loan Calculator
Estimate a standard FHA payment.
Read the guide →Guide
FHA MIP Calculator
Upfront and annual mortgage insurance.
Read the guide →Guide
FHA Loan Rates
How FHA pricing is set.
Read the guide →Guide
HomeStyle Renovation
A conventional renovation alternative.
Read the guide →Internal library
Related mortgage guides across our library
Follow the next relevant guide for your scenario.
FHA loans
FHA loan library
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Complete this short request and a Simply Approved Mortgages Loan Officer will personally review your scenario. The form only asks what your program actually needs. Submitting it is not an application for credit and is not a commitment to lend.
Tell us about your scenario
The form below is tailored to FHA loan — only the questions and documents your program needs.
Simply Approved Mortgages LLC is licensed to arrange residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.
FHA allows 3.5% down at 580+ FICO, or 10% down at 500–579 FICO.
A range is enough here — no credit report is pulled and your credit is not affected.
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Submitting this form is not an application for credit and is not a commitment to lend. No credit report is pulled at this step.
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Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party wholesale lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado. Business-purpose mortgage products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
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