Renovation loans
FHA 203(k) Calculator: How much can you actually borrow
Most “203(k) calculators” are just a mortgage calculator with a renovation box bolted on. They tell you a monthly payment. They don’t tell you the one thing that decides your project: the maximum mortgage FHA will actually insure on the property — and which limit is capping you.
This tool runs the real HUD maximum-mortgage worksheet for all three renovation programs (FHA 203(k) Standard, FHA 203(k) Limited, and Fannie Mae HomeStyle), shows you the full itemized math, and tells you plainly which of four ceilings is holding your loan down.
No email required. Not a commitment to lend — a real estimate you can take to your agent and your contractor.
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Guideline figures verified July 14, 2026 · HUD Handbook 4000.1, form HUD-92700, Fannie Mae Selling Guide B5-3.2.
How the 203(k) maximum mortgage is actually calculated
This is the part where no editorial, content generator or mortgage lead generator site gets it right – it’s underwriting.
Here is the exact formula, with every threshold, straight from the source as if an FHA or Conventional underwriter had calculated themselves.
Better yet, we put this power at your fingertips.
the core formula: FHA 203(k) standard and Limited
Your maximum FHA 203(k) mortgage is the LTV factor multiplied by the lesser of two ceilings, then capped by your county’s FHA loan limit:
Maximum mortgage = LTV factor × the lesser of:
(A) Adjusted As-Is Value + Total Rehabilitation Cost, or
(B) 110% of the After-Improved Value (100% for condos)
— then capped at the FHA loan limit for your county.
The LTV factor is 96.5% on a purchase and 97.75% on a rate-and-term refinance for borrowers with a credit score of 580 or above. Scores from 500 to 579 are capped at 90% LTV. Below 500 is not eligible for FHA financing.
(Source: HUD Handbook 4000.1, II.A.8; form HUD-92700.)
Adjusted As-Is Value on a purchase is the lesser of the contract price (minus any inducements to purchase) or the as-is appraised value. On a refinance, it’s the as-is appraised value.
After-Improved Value — which appraisers and lenders write as the “as-completed” value — is what the home is expected to be worth once the work is done. The 110% multiplier on ceiling (B) is the single most misunderstood number in the program: FHA lets you borrow against 110% of the finished value, not just 100%. That’s how a 203(k) can finance more than the house is currently worth.
But it’s also a hard ceiling — if your rehab is ambitious relative to what it adds in appraised value, this is usually the limit that catches you.
What counts as "Total Rehabilitation Cost"
Total Rehabilitation Cost is not just the contractor’s bid.
Per form HUD-92700, it’s the full financeable package — and getting this right is the difference between a real estimate and a wrong one:
- Renovation hard costs — the contractor’s bid for labor and materials
- Contingency reserve — a required buffer for the unexpected (see below)
- Architectural and engineering fees — plans and drawings, financeable (common on additions and structural work)
- Financeable mortgage payment reserve — up to 12 months of payments if the home is uninhabitable during the work (Standard only — not allowed on Limited)
- 203(k) consultant fee — required on every Standard 203(k), optional on Limited (see the fee schedule below)
- Inspection and draw fees, permits, title update fees
- Supplemental origination fee — the HUD ceiling is the greater of $350 or 1.5% of the rehab subtotal
One thing worth stating plainly, because it’s exactly the kind of insider detail an underwriter knows and an editorial writer doesn’t: the consultant fee and the supplemental origination fee are maximums, and real loans usually come in lower.
On a recent Standard 203(k) with $215,000 in repairs, the consultant charged a flat $1,000 (the HUD schedule would have allowed $2,000), and the lender charged a $150 supplemental origination fee, not the ~$3,700 the 1.5% formula would produce.
So when a competitor’s calculator bakes in the maximum, it overstates your costs.
This tool defaults to the ceiling but lets you enter the actual figures.
The contingency reserve — where honesty separates lenders
The contingency reserve is a mandatory cushion for problems discovered mid-project.
On a Standard 203(k), HUD requires 10% to 20% of repair costs.
For a structure 30 years or older it’s a 10% minimum; when the utilities are shut off and can’t be tested at inspection, the minimum jumps to 15%.
On a Limited 203(k) it’s optional and at the lender’s discretion. (Source: HUD Handbook 4000.1, II.A.8.)
Why this matters:
Most calculators either ignore the contingency or hard-code a single number. This tool asks whether the utilities are on, because that one fact can move your reserve — and your cash to close — by thousands. That’s not a detail. On a real file, it’s the surprise that blows up a buyer’s budget or in some cases, a borrower may not qualify anymore because the contingency fund was more than what was expected.
The 203(k) consultant Fee schedule (Updated as of 2026)
A HUD-approved 203(k) consultant is required for every Standard 203(k) loan. While not required on a Limited 203(k) transaction, a Consultant is permitted should the buyer or homeowner choose to have one.
The consultant inspects the property against a 35-point checklist, writes the scope of work, and signs off on each draw. These are the current maximum fees, effective for case numbers assigned on or after November 4, 2024 (current as of the 11/26/2025 handbook revision):
|
Service
|
Maximum Fee
|
|---|---|
|
Feasibility Study
|
$375
|
|
Work write-up — repairs ≤ $50,000
|
Up to $1,000
|
|
Work write-up — $50,001 to $85,000
|
Up to $1,200
|
|
Work write-up — $85,001 to $140,000
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up to $1,400
|
|
Work write-up — over $140,000
|
1% of repairs or $2,000, whichever is lower
|
|
Each additional dwelling unit
|
+$25
|
|
Draw inspection (per draw)
|
up to $375
|
|
Change order
|
$129
|
|
Reinspection
|
$225
|
|
Mileage (property more than 15 miles from consultant)
|
current IRS mileage rate
|
(Source: HUD Handbook 4000.1, II.A.9.c.) The calculator fills this in for you based on your repair amount, so you don’t have to guess. (For the full picture, see when you need a 203(k) consultant and what they inspect.)
FHA Mortgage Insurance Premium (MIP)
Every FHA 203(k) carries mortgage insurance.
There’s an upfront premium (UFMIP) of 1.75% of the base loan amount — financed into the loan, not paid out of pocket — and an annual premium of 0.55% for most borrowers (loans at or below $726,200; the annual rate rises to 0.70% above that threshold).
With less than 10% down, FHA mortgage insurance stays for the life of the loan. (Source: HUD Handbook 4000.1, Appendix 1.0.)
The Limited 203(k) $75,000 ceiling — the trap to know about
The Limited 203(k) is capped at $75,000 in total rehabilitation cost.
The critical, widely-missed detail: that $75,000 is the entire financeable rehab package — hard costs plus contingency, fees, permits, and the supplemental origination fee — not just the contractor’s bid. (Source: form HUD-92700, line B14.)
A $70,000 bid with a 15% contingency is already over the limit before you add a single fee.
When your project crosses $75,000, or involves any structural work, you belong on a Standard 203(k) — and this calculator will tell you so and switch you over, instead of quietly handing you a number that won’t survive underwriting.
HomeStyle Renovation (the conventional alternative)
Fannie Mae’s HomeStyle works differently.
Renovation costs cannot exceed 75% of the as-completed appraised value.
The maximum loan is the LTV factor times the lesser of (purchase price + total renovation costs) or the as-completed value on a purchase; on a refinance it’s based on the as-completed value.
Maximum Loan-to-Value (LTV) runs up to 97% for first-time buyers (95% for repeat buyers) on a one-unit primary residence.
Unlike FHA, HomeStyle has no upfront mortgage insurance and follows the higher conforming loan limit — which is why borrowers who bump into the FHA county ceiling often move here.
HomeStyle also allows second homes and investment properties, which 203(k) does not. (Source: Fannie Mae Selling Guide B5-3.2-02 and B5-3.2-04.)
On contingency, there’s a nuance worth stating plainly, because it’s exactly the kind of thing that gets reported as if it were one rule: Fannie Mae does not require a contingency reserve on a one-unit property — it’s the lender’s option.
A 10% reserve is required on 2-to-4-unit properties, and the lender may raise it to 15%.
But, you need to be ready for a contingency fund on a HomeStyle mortgage. Because in practice, most lenders will require a 10% minimum contingency fund on everything and require 15% when utilities are off.
So when you read “HomeStyle requires a 10% contingency,” understand that’s usually a lender overlay, not the agency guideline. We tell you which is which — because that distinction is worth real money on your down payment.
Three worked examples from real FHA 203(k) customers of Andes Mortgage
Every project hits a different ceiling.
Two of these 203(k) loans were clients of Andes Mortgage in the Atlanta-metro area originated in 2026 (figures rounded, borrower details removed), reconciled against the actual HUD maximum-mortgage worksheet. The third one was a client in the South Florida area and this example shows the constraint that surprises people most.
Example 1 — Limited 203(k) purchase, capped by cost basis (a real deal)
A buyer purchased a $220,000 home in Cobb County and planned $20,000 in cosmetic and non-structural work. With a 10% contingency ($2,000), a flat $500 inspection fee, permits, a $200 title update, and a $350 supplemental origination fee, the Total Rehabilitation Cost came to $23,550 — comfortably under the $75,000 Limited ceiling, so it stayed a Limited 203(k).
- Ceiling (A), cost basis: $220,000 + $23,550 = $243,550
- Ceiling (B), 110% of the $245,000 after-improved value: $269,500
- The lesser is (A). Base mortgage = 96.5% × $243,550 = $235,025
What’s capping you: the cost basis. The after-improved value ($245,000) left plenty of room — the loan was limited by what the buyer was actually putting into the home. This is the healthy, common case. The final loan added the 1.75% upfront MIP to close at roughly $239,100, with a P&I payment near $1,571 at the rate locked.
Example 2 — Standard 203(k) purchase, capped by the 110% after-improved value
A buyer purchases a $200,000 fixer and plans an ambitious $120,000 structural rehab. The home is uninhabitable during the work, so utilities are off (a 15% contingency, $18,000) and the buyer finances several months of mortgage payments. With the consultant fee, permits, and fees, the Total Rehabilitation Cost climbs to about $160,500.
- Ceiling (A), cost basis: $200,000 + $160,500 = $360,500
- Ceiling (B), 110% of the $310,000 after-improved value: $341,000
- The lesser is (B). Base mortgage = 96.5% × $341,000 = $329,065
What’s capping you: 110% of the after-improved value. The rehab didn’t add dollar-for-dollar to the appraisal, so the finished-value ceiling caught the loan before the cost basis did. The buyer has to bring roughly $31,000 of their own funds to bridge the gap. This is the scenario that surprises people — and the reason to run the numbers before falling in love with a gut renovation.
Example 3 — Standard 203(k) refinance, capped by cost to accomplish (a real deal)
A homeowner refinanced a West Palm Beach, FL property they owned free and clear to fund a major rehab — foundation work, a room addition, full systems replacement — with repairs of $215,050. After the 10% contingency ($21,505), $7,500 in architectural fees, the consultant, inspections, and a $150 supplemental origination fee, the Total Rehabilitation Cost was $248,555.
- Ceiling (A), cost basis: $243,600 as-is + $248,555 rehab = $492,155
- Ceiling (B), 110% of the $409,000 after-improved value: $449,900
- Value would have supported a loan of $439,777 (97.75% refinance LTV × the lesser ceiling)
- But the actual base mortgage was $248,555.
What’s capping you: the cost to accomplish. On a refinance you can’t borrow more than the project actually needs — existing payoff plus rehab plus costs. By value, this borrower could have drawn $439,777; they borrowed $248,555, because that’s all it cost to finish the job. No editorial calculator on the internet models this ceiling — they’d show you the value number, or nothing. The HUD worksheet caps at cost-to-accomplish, and so does this tool.
A note on FHA loan limits: the county FHA loan limit is a hard cap on any 203(k).
In 2026, the national floor is $541,287, but some counties may run much higher. For example, in certain metro Atlanta counties such as Cobb County, the FHA loan limit on a single family residence is $718,750 while Fulton is $688,850. If your total loan bumps into the county ceiling, your options are a larger down payment, a lower price, or HomeStyle, which follows the higher conforming limit. (Compare programs on the renovation loans overview.)
203(k) standard vs Limited vs HomeStyle
|
|
203(k) Standard
|
203(k) limited
|
HomeStyle
|
|---|---|---|---|
|
Backed by
|
FHA
|
FHA
|
Fannie mae
|
|
Best for
|
Major or structural rehab
|
Cosmetic / non-structural, ≤ $75k
|
Flexible projects, higher loan amounts
|
|
Max rehab
|
No fixed cap (county limit applies)
|
$75,000 total rehab cost
|
75% of as-completed value
|
|
Min. down / LTV
|
3.5% (96.5% LTV)
|
3.5% (96.5% LTV)
|
3% first-time / 5% repeat
|
|
Required
|
Optional
|
Sometimes required depending on the lender
|
|
|
Mortgage Payment Reserve
|
Not allowed
|
Up to 6 months (if uninhabitable)
|
|
|
UFMIP 1.75% + annual MIP; life of loan under 10% down
|
Same as standard
|
PMI only; cancellable at 20% equity
|
|
|
Loan Limit
|
FHA county limit
|
FHA county limit
|
Conforming Limit (Larger)
|
Sources: HUD Handbook 4000.1, II.A.8; Fannie Mae Selling Guide B5-3.2. Guidelines summarized; individual lender overlays may be more restrictive.
Not sure which fits? Read the full FHA 203(k) loan guide or HomeStyle renovation requirements, or start with Mortgage Match and we’ll point you to the right program.
Frequently asked questions
How much can I borrow with a 203(k) loan?
Your maximum FHA 203(k) mortgage is 96.5% (purchase) or 97.75% (refinance) of the lesser of (your adjusted as-is value plus total rehabilitation cost) or 110% of the after-improved value, capped by your county’s FHA loan limit. The calculator above runs the full HUD worksheet and shows which of those limits is capping you.
What is the maximum renovation amount on a 203(k)?
A Standard 203(k) has no fixed renovation cap — the total loan just has to stay within your county’s FHA limit. A Limited 203(k) caps total rehabilitation cost at $75,000, and that figure includes contingency and fees, not just the contractor’s bid.
Is the $75,000 Limited 203(k) cap on the contractor bid or the whole thing?
The whole thing. Per form HUD-92700, the $75,000 applies to the total rehabilitation cost — hard costs plus contingency reserve, consultant and inspection fees, permits, and the supplemental origination fee. Budget the full package against $75,000, not just the bid.
What is after-improved value, and why 110%?
After-improved (or “as-completed”) value is the appraiser’s estimate of the home’s worth once renovations are done. FHA lets you borrow against 110% of that value, which is how a 203(k) can finance more than the home is worth today. It’s also a common binding limit on ambitious rehabs.
Do I need a 203(k) consultant?
A consultant is required on every Standard 203(k) and optional on a Limited. The consultant fee is set by a HUD schedule — from $1,000 for repairs up to $50,000, rising with the project size — and can be financed into the loan.
Can I use a 203(k) for an investment property?
No. FHA 203(k) is for primary residences only. If you’re renovating an investment property, HomeStyle allows investment occupancy, or a DSCR renovation path may fit. See your investor options.
Does the contingency reserve cost me money?
It’s held in escrow and only used if unexpected repairs come up. Unused contingency funds are applied to reduce your loan balance at the end of the project — so it protects you without disappearing.
How is this different from a regular mortgage calculator?
A standard calculator estimates a payment on a loan amount you type in. This tool calculates the maximum loan FHA or Fannie Mae will actually allow on your specific property and project, using the real underwriting worksheet — and shows you the binding constraint.
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