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Renovation Loan Capacity Calculator

Estimate your maximum renovation funds, maximum loan, and cash to close on a conventional HomeStyle or CHOICERenovation loan.

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

Maximum renovation funds

$367,500

75% of the lesser of (acquisition + renovation) or as-completed value

ProgramHomeStyle
Renovation entered (with contingency)$90,000
Maximum loan amount (at 95% LTV)$465,500
Estimated down payment / cash to close$24,500

Fannie HomeStyle refinances are limited cash-out only: no cash back to you beyond the renovation proceeds and minor incidentals. Renovation 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. The applicable LTV is an editable estimate seeded from the standard conforming maximum; confirm eligibility for your scenario. Closing costs and any financed mortgage insurance are not included here.

How the Renovation Loan Capacity calculator works

What this calculates

Estimates how much renovation money you can roll into a HomeStyle or CHOICERenovation loan and your resulting loan and cash to close. These conventional renovation loans size the loan against the home's after-renovation value, letting you finance improvements in one mortgage. A planning estimate; final figures come from the appraisal and the lender.

The formula

Maximum loan is the lesser of (after-renovation value x the program loan-to-value) and (purchase price + renovation cost) x the loan-to-value, within the conforming loan limit. Financeable renovation funds are what remains after the base loan covers the purchase or payoff.

A worked example

Hypothetical, for illustration only: a $300,000 purchase with $60,000 in planned renovations and an after-renovation value of $380,000, at 95% loan-to-value.

  1. Cost basis = 300,000 + 60,000 = $360,000
  2. Value basis = 380,000 x 95% = $361,000
  3. Maximum loan is the lesser of the two, about $360,000, which covers the purchase and the renovation.

About $360,000 maximum loan in this made-up example, financing the full renovation. The renovation amount is also subject to program caps and the appraiser's as-completed value.

Assumptions and limits

  • Renovation loans size against the after-renovation value, which the appraiser determines.
  • Loan amounts are subject to the conforming loan limit and program rules.
  • Renovation funds are held in escrow and released as the work is completed.
  • An estimate; final figures come from the appraisal and full underwriting.

Figures: 2026 conforming loan limit (one-unit baseline)$832,750 ( FHFA , verified 2026-06-18) . Figures are confirmed against their primary source; verify the current figure before relying on it.

How the renovation funds cap works

Both Fannie HomeStyle and Freddie CHOICERenovation limit the renovation portion to 75% of the as-completed value. On a purchase, the basis is the lesser of (purchase price plus renovation cost) or the as-completed appraised value, so an honest appraisal matters. Manufactured homes are capped at the lesser of $50,000 or 50% of the as-completed value. If your budget runs past the cap, the calculator flags it and shows the most you could finance.

How your maximum loan is set

Your maximum loan is the cost basis times the maximum LTV for your occupancy. The standard conforming maximums run up to 97% on a 1-unit primary residence and step down for multi-unit homes, second homes, and investment properties. The calculator seeds the standard maximum and lets you edit it, because your credit, file, and lender can set a lower limit. The LTV here is an editable estimate, never a guaranteed cap.

Purchase versus refinance

On a purchase, your cash to close is the down payment: acquisition plus renovation, minus the maximum loan. On a refinance, the new loan pays off your current balance and funds the renovation escrow. HomeStyle refinances are limited cash-out only and CHOICERenovation is no-cash-out, so you do not pocket extra cash beyond the renovation funds. Closing costs and any financed mortgage insurance are estimated separately and not included here.

How to use this calculator

Pick purchase or refinance, the program, and your property type. Enter the price or payoff, the estimated as-completed value, and your contractor's renovation bid. Add a contingency cushion if you want one. The result shows your maximum renovation funds, your maximum loan, and your cash to close, and warns you if the budget exceeds the cap. Nothing here is a rate, a quote, or an approval.

Sources

Related

Budgeting a renovation loan (the guide this calculator pairs with), Renovation loans, and HomeStyle Renovation.

Common questions

On Fannie HomeStyle and Freddie CHOICERenovation, renovation funds are capped at 75% of the lesser of (purchase price plus renovation cost) or the as-completed value. Your maximum loan is that basis times your occupancy's LTV. This calculator estimates both from your numbers. It is an estimate, not a quote or an approval.

Renovation funds are limited to 75% of the as-completed value (for a refinance) or 75% of the lesser of acquisition-plus-renovation or as-completed value (for a purchase), per Fannie Selling Guide B5-3.2 and Freddie Guide 4607. Manufactured homes are capped at the lesser of $50,000 or 50% of the as-completed value.

The applicable maximum LTV follows the standard conforming eligibility matrix by occupancy: commonly 97% on a 1-unit primary residence, lower for multi-unit, second homes, and investment properties. The calculator seeds the standard maximum and lets you edit it, because your file and lender can set a lower limit. Confirm your eligibility before relying on it.

A contingency reserve is a cushion held in escrow for overruns, financed alongside the work, so it counts toward the renovation total and the 75% cap. For 2-4 units a 10% reserve is the default (a lender may raise it); on a 1-unit home it is optional. The calculator lets you set it.

No, not as cash in hand. Fannie HomeStyle refinances are limited cash-out only, and Freddie CHOICERenovation is a no-cash-out refinance. The loan proceeds pay off your current balance and fund the renovation escrow; you do not pocket extra cash beyond the renovation funds and minor incidentals.

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.

Estimates are great. A real plan is better.

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