Renovation Loan Calculator
Estimate FHA 203(k) or HomeStyle Renovation loan payments for a purchase or refinance — based on the as-improved value (purchase price + renovation budget, or existing value + renovation budget) — with full MIP or PMI breakdown and a side-by-side program comparison.
Get Started in 3 Steps
How to Use the Renovation Loan Calculator
Set Your Mode & Program
Toggle between Purchase and Refinance to load the right input fields. Then choose FHA 203(k) or HomeStyle to see program-specific mortgage insurance and qualification rules.
Enter Price + Renovation Budget
Input your purchase price (or current home value for refi) and your renovation budget. The calculator instantly shows the as-improved value — the foundation for all loan math.
Compare Programs Side by Side
Review the built-in comparison table at the bottom — it puts both programs on the same screen for down payment, MI cost, MI cancellation, monthly payment, and credit requirements.
Jackson County, OR · 2026 HUD/FHFA limits
ADU on property? Still counts as 1 unit — ADUs don't affect loan limits.
> $35,000 — Standard 203(k) applies; a HUD-approved 203(k) Consultant is required
As-Improved Value
Purchase Price + Renovation Budget
Down payment is 3.5% of the as-improved value — not just the purchase price.
FHA 203(k) Key Facts
- Down payment as low as 3.5% of the as-improved value
- 1.75% Upfront MIP financed into the loan
- Monthly MIP for life of loan (at < 10% down)
- Standard 203(k): $5,000+ reno; HUD consultant required if > $35k
- 203(k) Limited: up to $35,000 reno, no HUD consultant needed
- Covers structural, systems, and cosmetic improvements
FHA 203(k) Purchase
Est. monthly payment
$3,187.77
/ month
Monthly Escrow Estimates
Cash to Close
FHA 203(k) vs. HomeStyle — Same Purchase Scenario
| Feature | FHA 203(k)3.5% down · 1–4 units | HomeStyle3% down |
|---|---|---|
| Down Payment () | $17,850 (3.5%) | $15,300 (3%) |
| Est. Cash to CloseDown pmt + ~2% closing costs | $27,865 | $25,194saves $2,671 |
| Total Loan | $500,763 | $494,700 |
| Upfront MIP / Fee | 1.75% (financed) | None |
| Monthly Mortgage Insurance | $225.57 | $350.41 |
| MI Cancellation | Life of loan (if < 10% down) | At 80% LTV (automatic) |
| Est. Total Monthly P&I + MI | $3,187.77 | $3,276.75 |
| Monthly Payment Difference | $88.98/moFHA 203(k) saves $88.98/mo($1,067.75/yr · $32,032 over 30 yrs) | |
| Min Credit Score | 580 (3.5% down) | 620 |
| Max Loan (1-unit · Jackson County)Jackson County, OR | $541,287 | $832,750 |
| Min Down Payment | 3.5% | 3% |
| Luxury Upgrades | Not eligible | Allowed |
| HUD Consultant | > $35k renovation: required | Not required |
Comparison uses 30-yr fixed at 5.875% for both programs · 1-unit property. Limits: Jackson County, OR (2026 HUD/FHFA). PMI based on ~720 FICO. Actual rates vary.
One Loan Closes
Both FHA 203(k) and HomeStyle combine the purchase (or refinance) and renovation into a single mortgage. No separate construction loan required.
Renovation Funds in Escrow
Renovation money is held in an escrow account by the lender and disbursed to contractors as work is completed — keeping funds controlled and the project on track.
As-Improved Value Drives the Math
Loan amounts, LTV, and down payments are all based on the after-renovation appraised value — not just the purchase price. This lets buyers finance the renovation itself into the mortgage.
Renovation loan programs are complex. Both FHA 203(k) and HomeStyle require an approved appraiser to estimate the as-improved value, a detailed scope of work from licensed contractors, and lender draw management during renovation. Lumen Mortgage originates both programs in Oregon and California and can help you determine which fits your project and qualification profile.
What is the difference between FHA 203(k) and HomeStyle Renovation loans?
Both roll renovation costs into a single mortgage, but FHA 203(k) requires 3.5% down with lifetime MIP (if <10% down) and is more accessible for lower credit scores (580+). HomeStyle is a conventional Fannie Mae loan with PMI that cancels at 80% LTV, 3% minimum down, and allows luxury upgrades like pools.
Best for: Buyers purchasing fixer-uppers, homeowners refinancing to fund major renovations
How It Works
Understanding the Renovation Loan Calculator
Renovation loans let you roll the cost of improvements into a single mortgage, eliminating the need for separate construction financing. This calculator models both FHA 203(k) and Fannie Mae HomeStyle Renovation programs and compares them side by side.
Worked example: You're buying a $350,000 home in Medford that needs $80,000 in renovations. The as-improved value is $430,000. With FHA 203(k): 3.5% down on $430,000 = $15,050. Loan: $414,950 + $7,261 upfront MIP = $422,211. At 6.75%, monthly P&I is $2,738 + $190 MIP = $2,928. With HomeStyle: 5% down on $430,000 = $21,500. Loan: $408,500. At 6.50%, P&I is $2,582 + $170 PMI = $2,752. HomeStyle requires $6,450 more at closing but saves $176/month — and PMI cancels while FHA MIP runs for the life of the loan.
The built-in comparison table puts both programs side by side so you can choose the best fit for your credit profile and long-term cost preference.
Ready to apply?
Numbers look right? Explore our Renovation Loans page for eligibility details, rates, and next steps.
About This Calculator
What the Renovation Loan Calculator is For
FHA 203(k) and HomeStyle Renovation loans solve the same problem differently: how do you finance both a home and the renovations it needs in a single mortgage? This calculator models both programs across purchase and refinance scenarios. Toggle between Purchase and Refinance to see the specific inputs each scenario requires. On a purchase, the down payment is based on the as-improved value — not just the purchase price — which is the most important distinction new borrowers miss. On a refinance, it shows how much renovation funding your equity can support after paying off your existing loan. The built-in comparison table puts both programs side by side on down payment, mortgage insurance cost, MI cancellation, credit requirements, and total monthly payment so you can see which one fits your project and qualification profile.
Common Use Cases
- Buying a fixer-upper and financing the renovation in one loan
- Refinancing to fund a major kitchen, bath, or addition project
- Comparing FHA 203(k) MIP vs. HomeStyle PMI for your down payment scenario
- Checking whether 203(k) Limited ($35k cap) or Standard applies to your project
- Modeling total monthly cost and cash to close before making an offer
Ready to turn numbers into a loan?
Common Questions
Renovation Loan Calculator — Frequently Asked Questions
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All calculator results are estimates for informational purposes only and do not constitute a loan commitment or guarantee of any specific rate or terms. Actual loan terms will depend on creditworthiness, property type, and market conditions. Lumen Mortgage Corporation · NMLS #1498678 · Licensed in Oregon & California · 920 SW 6th Ave, Suite 1200, Portland, OR 97204.