Rehab & Renovation Loan Calculator: Finance the Purchase Plus the Fixes
A renovation loan lets you finance both a home's purchase price and the cost of fixing it up in a single loan, based on the home's projected value after the work is done. This calculator estimates your total loan amount and monthly payment when you combine purchase and renovation costs.
How renovation financing works
Normally, a lender only lends against a home's current value. A renovation loan is different: it lends against the after-repair value, what the home will be worth once the planned work is complete. That means you can buy a fixer-upper and roll the renovation budget into your mortgage, rather than needing separate cash or a second loan for the work. It's one loan, one payment, based on the finished home's value. Our rehab & renovation loan page covers the program types in detail.
The instant-equity opportunity
Here's why renovation loans are powerful: if you buy a home for $300,000 and put $50,000 of value-adding renovation into it, and it appraises at $400,000 after, you've created $50,000 in equity through the work itself. You're financing the improvement but capturing the value. That's the appeal for buyers willing to take on a project, they can build equity that a move-in-ready purchase wouldn't offer.
Which program fits
There are several renovation loan types, FHA 203(k) for owner-occupants, conventional renovation loans, VA renovation loans for eligible veterans, each with different limits and requirements. The right one depends on your situation and the scope of work. If you're early in the journey, it's worth comparing these against your broader first-time homebuyer loan options. This calculator gives you the combined-cost picture; the specific program is worth a conversation to match to your project.
