Renovation Loan Calculator: FHA 203(k) and HomeStyle
Found a home that needs work, or want to renovate the one you own? A renovation loan covers the price (or your current mortgage) and the repairs in one loan. I offer two kinds: FHA 203(k) and Fannie Mae HomeStyle. Enter the price, your contractor bids and the value after the work, then open the details to itemize your budget and see your cash to close. You can print the worksheet or email it to me.
How much could a renovation loan cover?
Buy a home that needs work, or renovate the one you own, and finance the repairs in the same loan. Pick FHA 203(k) or Fannie Mae HomeStyle, enter the price, the repair bids and the value after the work, and open the details to itemize your budget and see your cash to close.
Renovation budget details (optional)
Closing and cash to close (optional)
Uses HUD’s 2026 one-unit FHA limits and FHFA’s 2026 conforming limits for each county. Sharing creates a link with the numbers you entered, so someone else can open the same results. Nothing you enter is saved on this site. These are estimates from the numbers you enter, not a loan offer or a rate quote. Your actual rate, payment and costs depend on your credit, the loan program and the property.
How the calculator works
A renovation loan is sized from two numbers, and the smaller one wins:
- Your total costs: the purchase price plus the repairs, the contingency reserve and financed fees such as permits, inspections and (for FHA) the 203(k) consultant.
- The value after the work: the appraiser’s “as-completed” value. FHA counts up to 110% of it; HomeStyle uses the value itself.
The loan can cover most of the smaller number, up to the loan limit for the county (FHA limits for a 203(k), conforming limits for HomeStyle). Whatever is left over is the cash you’d bring, plus normal closing costs. The calculator shows which of the three (costs, value or the loan limit) set your number.
FHA 203(k) or Fannie Mae HomeStyle?
| FHA 203(k) | Fannie Mae HomeStyle | |
|---|---|---|
| How you use the home | Only a home you’ll live in (1 to 4 units) | A home you’ll live in, a second home or a rental (1 unit) |
| Credit | More flexible | Usually needs stronger credit |
| What the work can include | Repairs and improvements; no luxury items like pools | Almost any permanent improvement, including pools, landscaping and outdoor kitchens |
| Size of the project | Limited: up to $75,000, not structural. Standard: $5,000 or more, structural work allowed | Repairs can be up to 75% of the lesser of the price plus repairs or the value after the work |
| Mortgage insurance | Upfront (1.75% of the loan) plus monthly | Monthly only, and only below 20% equity; it can come off later |
| Time to finish | 9 months (Limited) or 12 months (Standard) | 15 months |
| Doing work yourself | Generally not allowed | Some allowed, up to 10% of the value after the work |
| Consultant | Required for Standard 203(k) | Not required; plans and bids are reviewed |
Limited or Standard 203(k)?
- Limited 203(k): repairs up to $75,000 that aren’t structural, like kitchens, baths, flooring, paint, roofs, windows, furnaces and water heaters. No consultant is required, and the work has 9 months to finish.
- Standard 203(k): at least $5,000 in repairs and no repair cap beyond the loan limit. It covers structural work, additions and major remodels. A HUD-approved 203(k) consultant writes up the work and inspects each stage, and the work has 12 months to finish.
Things that change the numbers in Southwest Colorado
- Contractor bids: the loan is built on written bids from a licensed contractor, so get them early. Durango’s building season is short, and good contractors book up.
- Older homes: homes built before 1978 may need lead-safe work practices, and older homes often need a bigger contingency reserve.
- Wells, septic and rural access: repairs to these can be part of the loan, but they need to be in the bids and the appraisal.
- Where the home is: loan limits differ by county. La Plata County’s 2026 FHA limit is higher than Archuleta’s or Montezuma’s, and conforming limits for HomeStyle are higher still.
- Second homes and rentals: a mountain cabin or rental that needs work can’t use FHA, but it may fit HomeStyle.
Questions people ask me
Can I live somewhere else while the work is done?
Yes. If you can’t live in the home during the work, mortgage payments can be built into the loan: up to 12 months with a Standard 203(k), or up to 6 months with HomeStyle on a home you’ll live in.
Can I do the work myself?
With FHA, usually not; FHA expects licensed contractors. HomeStyle allows some do-it-yourself work, up to 10% of the value after the work, if it’s approved ahead of time. Ask me before you count on it.
What if the repairs cost less than expected?
Money left in the repair or contingency account goes toward your loan balance once the work is finished.
Can I use a renovation loan on a second home or a rental?
Yes, with HomeStyle (1-unit homes). FHA 203(k) loans are only for homes you’ll live in.
Can I renovate a home I already own?
Yes. Choose “Renovating a home I own” in the calculator. Both programs can refinance your current mortgage and add the renovation. FHA counts what the home is worth today plus the work, up to 110% of the value after the work; HomeStyle uses the value after the work. Neither pays out cash at closing. If you’d rather keep your current mortgage, a home equity loan or HELOC may fit better.
Want the full picture? See my renovation loans page, compare FHA loans, or, if you already own your home, look at home equity loans and HELOCs. Or call or text me at 970-828-1610.