Eligible renovation mortgages can combine purchase or refinance financing with approved home improvements. Project scope, property condition, contractor documentation, and program limits matter.
Define the work before choosing the loan
Separate repairs needed for the property from improvements you would like to make. Structural work, health or safety issues, cosmetic updates, and larger additions can point to different programs and requirements.
Prepare for a construction process, not just a closing
Expect a review of bids, contractors, the project timeline, and how funds are disbursed. Some projects may require additional inspections, a consultant, reserves, or other oversight. Confirm these requirements before making promises to a seller or contractor.
Compare renovation with other paths
Depending on your situation, the comparison might include a renovation mortgage, a home equity option, or buying a different property. Evaluate the total costs, cash needed, timeline, and risk of delays. An investor flip is a separate financing conversation.
Bring these questions to the conversation
- Property address and current condition
- A detailed list of proposed work
- Written estimates and contractor information
- Your intended occupancy and completion timeline
Explore the purchase and renovation numbers.
Open the purchase and renovation calculator
Explore estimated payments for financing a home purchase and renovations.
Educational illustration only. Not a rate quote, APR, Loan Estimate, approval, eligibility decision or loan commitment. All amounts are in U.S. dollars. Enter your own assumptions; zeros omit costs, they do not mean a cost does not apply.
Enter your assumptions, then calculate to see the illustration.
What this renovation illustration does not do
Loan amount = purchase price + entered improvement budget + contingency + financed upfront fees − cash contribution to the project. The combined budget is not an appraised or after renovation value.
This is a fixed rate, fully amortizing payment illustration, not a 203(k) eligibility check, official maximum mortgage calculation or rehabilitation draw/disbursement certification. It does not apply FHA mortgage limits, minimum investment rules, upfront or annual insurance rates, property standards, allowable repairs, consultant requirements, appraisal formulas or project timelines.
All financing is assumed outstanding from the start. Construction interest, staged draws, payment reserves, unused contingency refunds, cost overruns and later changes to insurance or taxes are not modeled. Mortgage insurance is a manual constant input, not an automatic program calculation. Upfront cash shown excludes credits, escrow deposits, prepaids and other settlement adjustments. Verify your actual budget, required cash and program terms with your loan team.
Definitions and further reading: CFPB: payment components · CFPB: loan costs and principal · HUD: 203(k) program overview
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
DISCLOSURE: Numbers shown constitute an estimate and are provided for illustrative and educational purposes only. The calculations provided, which may include the displayed interest rates, total cost of the mortgage, and monthly payment amounts, are estimates based on data entered by the user. The amounts displayed are not guaranteed, and what you actually pay may be different, as your mortgage payment and interest rate will depend on factors like your mortgage product, collateral, and credit history. Additional taxes, insurance, and other fees or charges may apply. Results do not reflect all loan programs and are subject to individual program loan limits. This does not constitute an offer for a mortgage or refinance and is not a commitment to lend, nor is it an advertisement for the above interest rate, loan terms, or payment. Contact a Loan Officer for assistance.