Renovation and 203(k) budget

Buying a home that needs work? Add up the repairs, allow for surprises, and see the total cost, a rough loan amount, the monthly payment and the cash you'd need. Useful for buyers, builders and contractors alike.

These numbers are estimates only and may not be accurate. They depend on your real interest rate, credit, income and the home's actual taxes and insurance. Contact us for accurate figures; it's free and there's no obligation. The starting interest rate (6.5%) is an example only, not a quote: your rate depends on your credit, loan type, down payment and the market, and can be higher or lower. Change it to see the difference.

The home

Purchase price ($)

Expected value after the work ($) appraiser decides

Repairs and improvements

Roof ($)

Air conditioning / heating ($)

Kitchen ($)

Bathrooms ($)

Flooring ($)

Windows and doors ($)

Electrical and plumbing ($)

Paint and drywall ($)

Other ($)

Contingency (%) often 10-20%

Fees: consultant, permits, inspections ($)

The loan

Down payment (%) FHA 203(k) 3.5%

Interest rate (%) example

Loan cap: % of value after the work FHA 203(k) uses 110%

Total project cost

$—

Repairs
Contingency
Repairs + contingency + fees
Project size
Rough loan amount
Monthly payment (principal & interest)
Cash needed (before closing costs)
Equity after the work

Estimates only. Contact us for accurate figures: free, no obligation.

Your full name

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How FHA 203(k) loans work

Common questions

What is an FHA 203(k) loan?

A loan that combines the price of a home and the cost of repairs or improvements in one mortgage. The Limited 203(k) is for smaller, non-structural work; the Standard 203(k) covers larger projects and needs a 203(k) consultant.

How much contingency should I allow?

Most renovation loans require a contingency reserve, often 10% to 20% of the repair costs, for surprises found once work starts. Older homes usually need more.

Can builders and contractors use this?

Yes. It's a quick way to sketch a project budget and show a buyer roughly what the financing could look like. Real loan amounts depend on the appraisal, the program and the contractor's bid.

For education and planning only. Approximate estimates; not legal, tax or financial advice. Not a loan offer, approval or commitment to lend. Example rates are for illustration only; rates can change and may not be available at commitment or closing. Rates, terms, taxes, insurance and program rules vary and change; your actual numbers may differ. Mortgage services by Bill McElhill, NMLS #2176490, licensed in Florida, Georgia and Texas.