203k Calculator - Business Background

203k Calculator is used for Standard and Limited 203(k) Rehabilitation Mortgage purchase and refinance cases. It does the following:

Determines the maximum base mortgage amount
Determines loan-to-value (LTV) factor for maximum mortgage eligibility
Calculates the LTV for the application of the annual mortgage insurance premium (MIP)
Establishes the details of the escrow account

For cases assigned a case number on or after October 31, 2016, 203k Calculator must be completed before processing Insurance Application and endorsement of the case for FHA insurance. For cases assigned a case number between September 14, 2015 and October 30, 2016, completing 203k Calculator is optional. However, once 203k Calculator information is processed during the optional time period, it must be used for endorsement of the case for FHA insurance and cannot be undone.

203k Calculator (with FHA Case Number) is pre-filled with information from Case Number Assignment and may be pre-filled with information from Appraisal Logging and/or FHA TOTAL Scorecard, depending on previous case processing. If pre-filled information must be updated, an update is made in the source of the information first, then 203k Calculator is updated.

If 203k Calculator was processed before Appraisal Logging or if certain Appraisal Logging information was updated after 203k Calculator was processed, Insurance Application cannot be processed until 203k Calculator is updated with the new information from Appraisal Logging. For example, if the appraised value of the property is updated through Appraisal Logging, 203k Calculator must be processed (recalculated) with the new value before Insurance Application can be accessed.

The types of 203(k) Rehabilitation Mortgages are:

• Standard: Mortgage used for remodeling and repairs. A minimum repair cost of $5,000 and the use of a 203(k) consultant are required.

• Limited: Mortgage used for minor remodeling and non-structural repairs. The total rehabilitation cost cannot exceed $75,000; there is no minimum. The use of a 203(k) consultant is optional. Note: For a mortgage assigned an FHA case number before November 4, 2024, the maximum is $35,000 for a Limited 203(k) and $50,000 for property located in a Qualified Opportunity Zone (QOZ).

You can access 203k Calculator through the following sequence of FHA Connection links: Single Family FHA, Single Family Origination, Case Processing, and 203k Calculator (with FHA Case Number).

A blank form version of 203K Calculator is also available on HUD.gov at:

https://entp.hud.gov/idapp/html/f17203k-look.cfm.

•	Standard: Mortgage used for remodeling and repairs. A minimum repair cost of $5,000 and the use of a 203(k) consultant are required.
•	Limited: Mortgage used for minor remodeling and non-structural repairs. The total rehabilitation cost cannot exceed $75,000; there is no minimum. The use of a 203(k) consultant is optional. Note: For a mortgage assigned an FHA case number before November 4, 2024, the maximum is $35,000 for a Limited 203(k) and $50,000 for property located in a Qualified Opportunity Zone (QOZ).

203k Calculator - Business Background

See Also