Is a renovation loan right for you?
Purchase and fix up your dream home with a rehab home loan. A rehab loan lets you include the cost of home improvements and repairs into a new home loan. Finance your home’s purchase price and any repairs or upgrades to be made in one mortgage.
Benefits of a renovation loan
- Save Money:Â Combine your rehab loan and your mortgage into a single home loan, which limits your loan closing costs.
- Buying or refinancing: Our rehab loan is available to both buyers and refinancing households.
- Expanded Options: Find the right rehab loan whatever your home improvement project and needs.
Renovation loan eligibility requirements
- Good credit score
- Down payment of 3.5% or more
- Self-occupancy of the property
- Debt-to-income ratio below 45%
Check out what your monthly payment could be by using our 203k Renovation Mortgage Calculator...
This calculator is made available to you as an educational tool only and calculations are based on borrower-input information. This is not an advertisement for the above terms, interest rates, or payment amounts. This is not an advertisement to extend credit as defined by Regulation Z nor an application for credit as defined by RESPA/Regulation X.
The information is meant for educational purposes only, the approximate origination charges, and total approximate funds needed to close is just an illustration and may not be accurate to your personal loan scenario. Actual fees and costs and payments may vary. As a result of refinancing, your total finance charges may be higher over the life of the loan. This is not a commitment to lend. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. Monthly Payment does not include taxes and insurance. Your payment obligation will be higher. APR is not shown – see our website for assumptions and loan terms. Certain limitations apply, call for details.
Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
Results received from this calculator are designed for comparative purposes only, and accuracy is not guaranteed. We do not guarantee the accuracy of any information or inputs by users of the software.
Monthly Payment Breakdown
Principal & Interest (P&I)
$
MIP
$
Taxes & HOA
$
Homeowners Insurance
$
Loan Type
Purchase Price
Home Value
$
Down Payment
$
Current Mortgage Balance
$
Total Renovation Costs
$
Upfront MIP
$
Total Loan Amount
New Loan Amount
$
Contingency Reserve
A contingency reserve is an additional amount of money set aside to cover unexpected costs that may arise during the renovation process. It's typically 10-20% of the total renovation cost. This reserve helps ensure that you have funds available if unforeseen expenses occur, helping to keep your project on track.
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Expected Home Value Increase
The expected increase in home value to qualify for a home improvement mortgage can vary depending on the lender and loan program.
FHA 203(k) loans typically require that the improvements will increase the property value by at least the amount of the repairs.
Renovation Associated Costs
$
Renovation Cost Estimate
$
Contingency Reserve
$
Draw Inspection & Title Update
$
203(k) Consultant Required
203(k) Consultant Fees
$
203(k) Supplemental Origination Fee
$
Estimated Monthly Payment
$ /mo
Loan Type
Total Renovation Costs
$
Loan amount
$
Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
$
Upfront MIP
$
Annual MIP rate
$
Monthly MIP
$
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $ (the amount borrowed)
- Interest payments: $ (the cost of borrowing)
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