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FHA 203(k) Refinance Maximum Mortgage Calculator

Estimate the maximum FHA 203(k) rate-and-term refinance loan from the HUD-92700 worksheet: the existing-debt sum, the after-improved value, the lesser-of basis times 97.75%, the county cap, and financed UFMIP.

By Niko Kramer, Mortgage Loan Officer, Satori Mortgage, NMLS #2180891

Rehabilitation costs

Other financeable items

Estimated total mortgage (with financed UFMIP)

$374,986

Base mortgage plus financed UFMIP

Financeable rehab subtotal$68,000
Supplemental origination fee (greater of $350 or 1.5%)$1,020
Financeable rehabilitation total (B14)$69,020
Existing-debt sum (face-value ceiling)$377,020
After-improved value$400,000
Governing basis (the lesser)$377,020 (existing-debt sum)
Base mortgage (basis x 97.75%)$368,537
Financed UFMIP (1.75%)$6,449
MIP LTV (base / after-improved value)92.13%
Estimated cash to close$8,483

This is a rate-and-term (no cash-out) refinance: it returns no more than $500 cash to the borrower, and any extra capacity reduces the loan rather than paying out. Rehabilitation funds are held in escrow and released in inspected draws as the work is completed.

Estimates only. Your actual numbers depend on your loan, credit, and property. Estimate only, not a quote or an approval. This follows the HUD-92700 203(k) Maximum Mortgage Worksheet (Section D, refinance), reconciled to the live FHA Connection 203(k) Calculator; your lender's worksheet governs your file. Closing costs, the county limit, seasoning, and eligibility vary by file.

How the FHA 203(k) Refinance Maximum Mortgage calculator works

What this calculates

Estimates the maximum FHA 203(k) rate-and-term refinance that rolls renovation costs into a refinanced FHA loan. It follows the HUD-92700 worksheet: the lesser-of basis times the 97.75% loan-to-value factor for a rate-and-term refinance, the county loan limit, and the 1.75% upfront MIP. A planning estimate; the consultant and appraiser set the real figures.

The formula

Maximum mortgage is the lesser-of basis (existing debt plus rehab, or the as-completed value) times the 97.75% loan-to-value factor for an owner-occupied rate-and-term refinance, capped at the county FHA loan limit, then the 1.75% upfront MIP is added.

A worked example

Hypothetical, for illustration only: a $200,000 payoff plus $30,000 rehab against a $250,000 as-completed value, at the 97.75% rate-and-term factor.

  1. Cost basis = 200,000 + 30,000 = $230,000
  2. Value basis = 250,000 x 97.75% = $244,375
  3. Lesser-of basis = $230,000; add 1.75% upfront MIP (about $4,025) for a financed loan near $234,025, within the county limit.

About $230,000 base loan plus financed MIP in this made-up example. The 97.75% factor applies to a rate-and-term refinance; cash-out follows different, lower limits.

Assumptions and limits

  • The 97.75% loan-to-value factor applies to an owner-occupied rate-and-term refinance.
  • The total loan must fit within the county FHA loan limit.
  • Figures follow the HUD-92700 worksheet and the as-completed appraised value.
  • Niko is a mortgage loan officer and is not affiliated with or endorsed by HUD or the FHA.

Figures: FHA rate-and-term refinance loan-to-value factor (owner-occupant)97.75% ( HUD-92700 Section D / HUD Handbook 4000.1 , verified 2026-06-18) ; FHA upfront MIP (UFMIP)1.75% of the base loan ( Mortgagee Letter 2023-05 / HUD Handbook 4000.1 , verified 2026-06-18) . Figures are confirmed against their primary source; verify the current figure before relying on it.

How the 203(k) refinance worksheet works

The refinance worksheet builds a basis and applies the LTV factor. First it sums your existing-debt ceiling: your current payoff plus the financeable rehabilitation total (greater of $350 or 1.5% of the financeable rehabilitation subtotal is part of that total) plus your financeable closing costs and prepaids. Your basis is the lesser of that sum and the after-improved value. Your base mortgage is the basis times 97.75%, capped at the county forward limit, with financed UFMIP added on top.

How a refinance differs from a purchase

Both paths multiply a basis by an LTV factor, so the shape is the same. What differs is how the basis is built and which factor applies. A purchase basis is the lesser of your acquisition cost or 110% of the after-improved value, at a 96.5% factor. A refinance basis is the lesser of your existing-debt sum or the after-improved value, at a 97.75% factor. The existing-debt sum is a face-value ceiling: you cannot finance more than what you actually owe and pay, but the LTV factor still applies to the basis.

Standard versus Limited 203(k)

The Standard 203(k) handles structural and major work and requires at least $5,000 in rehabilitation, with a HUD consultant. The Limited 203(k) covers non-structural repairs up to $75,000 in total work and needs no consultant. The calculator flags a Limited scenario that runs over the cap or a Standard one below the minimum, so you land on the right path.

What the result does not include

A 203(k) rate-and-term refinance returns no more than $500 cash to the borrower, and it is for owner-occupied primary residences only. The contingency reserve is your input, because the FHA reserve is determined by the scope and the age and condition of the home rather than a fixed percentage. Eligible junior liens, a discount-point line, and an upfront MIP refund are optional inputs that default to zero. For a home owned fewer than 12 months, an adjusted as-is value rule can apply that this estimate does not model. Confirm the reserve, the county limit, and your seasoning for your file.

How to use this calculator

Pick Standard or Limited and your ownership history. Enter your existing payoff, the after-improved value, and each rehabilitation line. Add your financeable closing costs, any optional liens, points, or MIP refund, and your county limit. The result shows your financeable rehab total, your existing-debt sum and the after-improved value, which one is the governing basis, the base loan after the 97.75% factor and the county cap, the financed UFMIP, your MIP LTV, and your estimated cash to close. Nothing here is a rate, a quote, or an approval.

Sources

Related

FHA 203(k) purchase calculator, Budgeting a renovation loan, Conventional renovation capacity calculator, FHA 203(k) Renovation, and Renovation loans.

Common questions

It follows the HUD-92700 worksheet, Section D. Your basis is the lesser of an existing-debt sum (your payoff plus the financeable rehabilitation total and closing costs, a face-value ceiling) and the after-improved value. Your base mortgage is that basis times the 97.75% LTV factor, capped at the county limit, plus financed UFMIP. This is an estimate, not a quote.

Yes, in shape: both take a basis and multiply it by an LTV factor. What differs is how the basis is built and which factor applies. A purchase basis is the lesser of your acquisition cost or 110% of the after-improved value, at a 96.5% factor. A refinance basis is the lesser of your existing-debt sum or the after-improved value, at a 97.75% factor.

The LTV factor is 97.75% of the basis for an owner-occupant principal residence. It drops to 85% if you have owned and occupied the home fewer than 12 months and did not occupy it the entire time you owned it. A 98.75% factor applies only when the resulting loan is $50,000 or less, which is rare on a 203(k).

No. This is a rate-and-term (no cash-out) refinance. It returns no more than $500 cash to the borrower at closing. Because the LTV factor applies to the basis, the base loan is usually a bit below your existing-debt sum, so you may bring a small amount to close rather than receive cash. If your goal is to pull equity as cash, a 203(k) is not the tool.

Greater of $350 or 1.5% of the financeable rehabilitation subtotal, per the HUD-92700 worksheet. It is a financeable rehabilitation cost, so it is added to the rehab total and counts toward the basis on both purchase and refinance. The calculator computes it for you from your rehab subtotal.

It applies the 85% factor, but for a property owned fewer than 12 months an adjusted as-is value rule can further limit the loan, and that interplay depends on your acquisition cost. The calculator flags this case and routes you to me rather than guessing the figure. Bring your settlement details and we will run it accurately.

Last updated: June 10, 2026

This calculator is for educational estimates only. It isn't an offer to lend, a quote, or a commitment to make a loan. Your actual numbers depend on your loan, credit, property, and other factors. Rates and programs may change without notice.

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