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
Keep Exploring
Related Calculators
FHA MIP Calculator
Calculate your FHA upfront MIP (1.75%, financed into the loan), monthly mortgage insurance premium, and see precisely how your down payment affects MIP rate, duration, and total lifetime cost.
Conventional & PMI Calculator
Calculate your conventional loan payment with FICO-score-based PMI rates, see exactly when PMI cancels under the Homeowners Protection Act, and find out how much you'd save by improving your credit score before applying.
Mortgage Calculator
Estimate your monthly principal & interest payment, compare 15- vs. 30-year terms, and see total interest paid over the life of the loan
Construction Calculator
Plan construction-to-permanent financing with draw schedule interest-only payments, editable permanent loan rate, and an optional PITI breakdown once the loan converts.
Explore Further
Related Resources
From the Blog
Further Reading
AgriculturalFinancing an 80-Acre Equestrian and Cattle Ranch in Grass Valley, California: Where Ranch Home Loans Tops Out and True Ag Lending Begins on a $3.95M Multi-Residence Income Property
A real-world walkthrough of how to finance a representative 80-acre legacy ranch in Grass Valley, Nevada County — three to four residences across two APNs, a 16-stall barn with office, a 6-stall mare motel, covered and outdoor arenas, a covered round pen, hot walker, cutting arena, cattle squeeze, irrigated cross-fenced pastures, two ponds, an orchard, and a 4-bay metal shop. At a $3.95M price point this property sits above the Ranch Home Loans loan-amount ceiling and squarely in true Ag-loan territory. We compare what each product can actually fund: standard residential jumbo (functionally unworkable on multi-residence, multi-APN, dual-livestock-operation properties), Ranch Home Loans at its $2M ceiling (a layered piece, not a complete solution), and our in-house true Ag loan options at up to 70% LTV (the primary product on commercial-scale equestrian and cattle operations).
VineyardFinancing a 30-Acre Vineyard Estate in Grass Valley, California: Conventional vs. Ranch Home Loans vs. Ag Loans on a $2.29M Nevada County Wine Property
A real-world walkthrough of how to finance a 30-acre established vineyard estate in Grass Valley, Nevada County — 18 acres of producing vines planted in 2002, a Craftsman home, a six-suite office building, a 1,500 sq ft barn, a separately-metered tent building generating rental income, a 20,000-gallon Gunite pool with studio pool house, NID irrigation water, and AG zoning across three parcels. We compare the three viable loan products on the same property: Conforming Conventional vs. standard residential Jumbo, our Ranch Home Loans jumbo, and our true Ag loan options. The decision depends on whether the buyer is occupying the residence and farming at hobby scale, scaling commercial wine production under a use-permit-driven venue plan, or buying the property as an investment to rent out — each path leads to a different product.
EquestrianFinancing a 19-Acre Equestrian Estate in Lincoln, California: Conventional vs. Ranch Home Loans vs. Ag Loans on a $1.5M Sierra Foothills Horse Property
A real-world walkthrough of how to finance a 19.34-acre luxury equestrian estate in Lincoln, Placer County — five-stall barn, arena, round pen, NID-irrigated hay production, two wells, two septics, and barn-loft ADU potential. We compare the viable loan products on the same property: Conforming Conventional vs. standard residential Jumbo, our Ranch Home Loans jumbo, and our true Ag loan options. The 'right' answer isn't the cheapest rate — it's the structure that respects the acreage, the hay income, the improvements, and the buyer's plans for the loft above the barn. Here's how Sierra Foothills equestrian buyers actually navigate the financing decision.
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.