FHA 203(k) Calculator

An FHA 203(k) lets you finance the purchase (or refinance) of a Texas property and the renovations on it in a single mortgage at 3.5% down — instead of buying first, then trying to qualify for a second loan for the work. The trick is the appraiser values the property as-completed, so the loan can exceed the as-is purchase price by the cost of the planned renovation, capped at 75% of that as-completed value.

Standard vs Limited — the $75K decision

Limited 203(k) (formerly "Streamlined K") is the lightweight path: total renovation budget capped at $75,000, no structural work, no HUD consultant, property habitable throughout, contractor paid in two draws. Most cosmetic remodels — kitchen, bath, paint, flooring, HVAC swap, roof — fit comfortably. Standard 203(k) handles anything bigger: load-bearing changes, additions, second stories, raising the foundation, full gut. It requires a HUD-approved consultant who scopes the work, inspects the draws, and signs releases. Standard takes longer to close (consultant work-up adds 2–4 weeks), but it removes both the $75K cap and the structural prohibition.

The 75% As-Completed cap

FHA will not insure renovation costs above 75% of the appraiser's as-completed value. On a $310K AC property, that's $232,500 total renovation — bid + soft costs + contingency + PITI reserve combined. The cap rarely binds on typical cosmetic remodels but absolutely binds on full rebuilds of distressed properties. If you trip it, the calculator surfaces the cap as a blocking validation.

What "binding constraint" means

Every 203(k) deal has one of three or four caps doing the actual work of capping your loan: the 96.5%-of-acquisition cap, the 96.5%-of-As-Completed-×-110% cap, the FHA county-limit ceiling, or — on Limited — the $75K renovation cap. The results panel surfaces which one is binding so you know which lever moves the deal: raise the as-completed appraisal (more rehab), reduce the renovation (less rehab), go up a price tier (only if county-limit binds), or switch Standard ↔ Limited.

UFMIP, MIP, and what's actually monthly

FHA charges an Upfront Mortgage Insurance Premium (UFMIP) of 1.75% of the base loan, financed into the loan amount — you don't pay it in cash. On top of that, an annual MIP runs 0.55% of the base loan (2026 schedule, 30-year loans above 90% LTV), charged monthly. Unlike conventional PMI, FHA MIP stays on the loan for the loan's life when the original LTV was over 90% (which 203(k) always is at 96.5%). If you eventually refinance to conventional below 80% LTV, MIP drops.

Rate / term refinance — no cash out

203(k) supports a rate-and-term refinance for a homeowner who wants to renovate using equity created by the renovation itself — common when a starter home needs the kitchen / bath / roof done after the family outgrows the as-is layout. The math is tighter: max base loan = lesser of (current payoff + renovation total) or (As-Completed × 97.75%). No cash to the borrower at close — if the math would leave cash on the table, FHA reclassifies it as cash-out, which 203(k) does not allow.