203k Calculator - Steps for Processing

The basic procedure for processing 203k Calculator includes the following:

Entering Case Information

Case Information entered on the initial 203k Calculator page determines the appropriate calculator worksheet displayed on the next page. Case information is added as follows:

Property Address

  1. Enter the house number and street name or number for the property in the Street Address field (up to 30 characters).

  2. Enter the city in which the property is located in the City field (up to 17 characters).

  3. Select the state in which the property is located from the drop-down list in the State field.

  4. Enter the property's five- or ten-digit zip code in the Zip Code field.

Borrower Data

  1. Enter the last name, first name, and middle initial of the primary borrower in the Borr1 field (up to 55 characters).

  2. Enter the last name, first name, and middle initial of the co-borrower in the Borr2 field (up to 55 characters).

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Case Characteristics

  1. Select the type of 203(k) case from the drop-down list in the 203k Type field (Standard or Limited).
    Standard: Remodeling and repairs with a minimum cost of $5,000. Use of a 203(k) consultant is required.
    Limited: Minor remodeling and non-structural repairs that do not exceed $35,000 (no minimum). Use of a 203(k) consultant is not required.

  2. Select the type of mortgage transaction from the drop-down list in the Purchase/Refinance field (Purchase or Refinance).

  3. Specify whether the property is a condominium unit by making a selection from the drop-down list in the Condominium field (Yes or No).

  4. Specify whether the property is a secondary residence by making a selection from the drop-down list in the Secondary Residence (Yes or No). Note: A secondary residence is a dwelling the borrower occupies less than a majority of the calendar year, in addition to the borrower's principal residence, and is not a vacation home. For cases assigned a case number on or after September 14, 2015, secondary residences are permitted, but only with written approval from the jurisdictional HUD Homeownership Center (HOC).

  5. Specify whether the property is HUD Real Estate Owned (REO) and/or the type of REO by making a selection from the drop-down list in the REO Type field.
    Not REO: Not HUD REO property.
    REO, not $100 down: HUD REO property that is not being purchased under the FHA $100 Down Sales Incentive
    $100 down REO: HUD REO property that is being purchased under the FHA $100 Down Sales Incentive.

  6. Enter the effective Fair Isaac Corporation (FICO) credit score for the borrower in the Estimated Minimum Decision Credit Score field (three digits).

    -or-

    For a borrower with non-traditional or insufficient credit, enter N/A. Note: The maximum loan-to-value (LTV) factor is 96.5% for a purchase case and 97.75% for a refinance case. If the property is a secondary residence, the maximum LTV factor for a secondary residence is used.

  7. Select Yes from the drop-down list in the EEM field if energy efficient improvements are factored into the mortgage under the Energy Efficient Mortgage (EEM) program. Otherwise, select No.

  8. Select Yes from the drop-down list in the Solar/Wind field if a solar or wind energy system is being installed on the property with proceeds of the loan. Otherwise, select No.

  9. For a refinance case, select the time period within which the property was acquired by the borrower from the drop-down list in the Property Acquired field.
    Less than 12 months prior to Case Number Assignment date.
    Greater than or equal to 12 months prior to Case Number Assignment date.
    Less than 12 months through Inheritance or Gift from Family Member.

    -or-

    For a purchase case, do not make a selection.

  10. Click Send when all of the case information has been entered. If processing was successful, the 203k Calculator page appears with the appropriate calculator worksheet based on the case information entered. Case information can be updated except for these Case Characteristics: 203k Type, Purchase/Refinance, Condominium, and Secondary Residence. Continue to Step 1: Establishing Financeable Repair and Improvement Costs, Fees and Reserves.

    -or-

    If there was an error, the 203k Calculator page appears with an error message near the top of the page and an Error(s) Detected field in the Details section near the bottom of the page. Review the information in these fields. Make any necessary corrections and process again.

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Step 1: Establishing Financeable Repair and Improvement Costs, Fees and Reserves

Enter dollar amounts only, without cents, commas, or dollar signs.

  1. For Step 1A. Repair and Improvement Costs and Fees Total (sum of Step A1 thru Step A7), do the following:

    1. Costs of Construction, Repairs and Rehabilitation: Enter the total cost of eligible improvements to the property (up to 99999). For a Standard 203(k), the amount must be 5000 or greater, up to 999999. Do not include the cost for the installation of a solar or wind energy system in this amount (see Step 4C. Solar Energy System Cost and Installation).

    2. Architectural or Engineering Professional Fees: For a Standard 203(k) case, enter the total cost of fees paid for architectural or engineering professional services (up to 99999). Skip this step for a Limited 203(k) case.
    3. 203k Consultant Fees: For a Standard 203(k) case, enter the total cost of fees paid to an FHA-approved 203(k) consultant (up to 99999). Skip this step for a Limited 203(k) case.
    4. Draw Inspection Fees during Construction Period: Enter the total cost of fees drawn from the escrow account to pay for inspections during rehabilitation of the property (up to 99999). Note: This does not include the cost of inspection fees for an EEM or solar/wind energy system (even if the inspector is also the 203(k) consultant). Instead, they are included in the amount financed for energy efficient improvements.
    5. Title Update Fees: Enter the total cost of title update fees (up to 99999).
    6. Permit Fees: Enter the total cost of fees paid for required permits (up to 99999). Note: The total cost of permit fees must be entered even if the borrower is being reimbursed at closing for obtaining the permits, prior to loan disbursement. Permit fees are not the same as draw inspection fees.
    7. Feasibility Study (when necessary): Enter the total cost of a study performed to determine if the project is financially feasible (up to 99999). Skip this step for a Limited 203(k) case.
    The system-calculated sum of these items is displayed in the view-only Step 1A. Repair and Improvement Costs and Fees Total (sum of Step A1 thru Step A7).

  2. For a Standard 203(k) case, enter the amount of financeable funds that are set aside to cover unforeseen project costs in Step 1B. Financeable Contingency Reserves, rounded up to the nearest dollar (up to 999999). The contingency reserve fund is established as a percentage of the financeable repair and improvement costs. It does not include an amount that may be provided from the borrower's own funds. The sum of Step 1B. Financeable Contingency Reserves and Step 6D. Borrower’s Own Funds for Contingency Reserves must meet or exceed the minimum required contingency reserves. See Standard 203(k) Contingency Reserve Requirements or HUD Handbook 4000.1 to determine the required minimum and maximum contingency reserve percentages.

    -or-

    For a Limited 203(k) case, this information is optional. Financed contingency reserve funds may be established by the lender.

    Note: The financeable contingency reserve fund may not exceed 20% of the financeable repair and improvement costs (Step 1A. 1. Costs of Construction, Repairs and Rehabilitation).

  3. For a Standard 203(k) case, type the amount of financeable funds that are set aside to make mortgage payments when the property cannot be occupied during rehabilitation in Step 1C. Financeable Mortgage Payments Reserves (up to 99999). A mortgage payment reserve is optional, but if the lender chooses to establish one, the mortgage payment reserve cannot exceed six months of mortgage payments. The number of mortgage payments cannot exceed the time frame required for completion set forth in the Rehabilitation Loan Agreement. For a multi-unit property, if one or more units are occupied, the mortgage payment reserve may only include the portion of the mortgage payment attributable to the units that cannot be occupied. Skip this step for a Limited 203(k) case.

  4. For Step 1D. Financeable Mortgage Fees Total (sum of Step D1 and Step D2), do the following:

    1. Financeable Origination Fee: Enter the financeable portion of the borrower-paid origination fee. The amount cannot exceed the greater of $350.00 or 1.5% of the sum of:

      - Step 1A. Repair and Improvement Costs and Fees Total (sum of Step A1 thru Step A7).
      - Step 1B. Financeable Contingency Reserves.
      - Step 1C. Financeable Mortgage Payments Reserves. (This item is not applicable to a Limited 203(k) case.)
    2. Discount Points on Repair Costs and Fees: Enter the financeable portion of the borrower-paid discount points on repair costs and fees (up to 99999). It cannot exceed an amount equal to the discount point percentage multiplied by the sum of the following:
      - Step 1A. Repair and Improvement Costs and Fees Total (sum of Step A1 thru Step A7).
      - Step 1B. Financeable Contingency Reserves.
      - Step 1C. Financeable Mortgage Payments Reserves. (This item is not applicable to a Limited 203(k) case.)
    The system-calculated sum of these items is displayed in the view-only Step 1D. Financeable Mortgage Fees Total (sum of Step D1 and Step D2) field.

  5. The total amount for Step 1: Establishing Financeable Repair and Improvement Costs, Fees and Reserves is calculated by the system and displayed in Step 1E. Total Rehabilitation Cost (Step 1 total) (sum of Steps 1A, 1B, 1C and 1D). This field is view only and is adjusted by updating the amounts in the prior fields. For a Limited 203(k) case, the amount in this field cannot be greater than $35,000.00.

    Continue to Step 2: Establishing Value - Purchase Case or Step 2: Establishing Value - Refinance Case.

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Step 2: Establishing Value - Purchase Case

Enter dollar amounts only, without cents, commas, or dollar signs.

Adjusted As-Is Value - Purchase Case

To establish the adjusted as-is value of the property for a purchase case, do the following:

  1. Enter the contract sales price of the property in Step 2A. Purchase Price (up to 9999999).

  2. Enter in Step 2B. Inducements to Purchase the amount of certain expenses paid by the seller and/or another interested party on behalf of the borrower that results in a dollar-for-dollar reduction to the adjusted value of the property before applying the appropriate loan-to-value (LTV) percentage (up to 99999).

  3. The amount in Step 2C. Purchase Price Minus Inducements to Purchase is calculated by the system and displays the sum of Step 2A. Purchase Price minus Step 2B. Inducements to Purchase. This field is view-only and is adjusted by updating the amounts in Steps 2A and 2B.

  4. Enter the estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date in Step 2D. As-Is Property Value (when an As-Is Appraisal is performed) (up to 9999999).

  5. Step 2E. Adjusted As-Is Value displays the view-only amount that is the lesser non-zero amount of:

    Step 2C. Purchase Price Minus Inducements to Purchase,

      -or-
    Step 2D. As-Is Property Value (when an As-Is Appraisal is performed).

After-Improved Value - Purchase Case

Enter the appraised value of the property subject to completion, repairs, or plans and specifications in Step 2F. Appraised Value (subject to repairs and improvements) (up to 9999999).

The amount for Step 2F. Appraised Value (subject to repairs and improvements) must be greater than the amount for Step 2D. As-Is Property Value (when an As-Is Appraisal is performed).

Continue to Step 3: Calculating Maximum Mortgage - Purchase Case.

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Step 2: Establishing Value - Refinance Case

Enter dollar amounts only, without cents, commas, or dollar signs.

Adjusted As-Is Value - Refinance Case

To establish the adjusted as-is value of the property for a refinance case, do the following:

  1. Enter the total amount of existing debt on the property in Step 2A. Existing Debt on Property Being Refinanced (up to 9999999).

  2. Step 2B. Step 1 Total (Step 1E) displays the view-only amount from Step 1E. Total Rehabilitation Cost (Step 1 total) (sum of Steps 1A, 1B, 1C and 1D).

  3. Enter the projected mortgage closing costs and prepaid items (e.g., flood and hazard insurance premiums, MIP, real estate taxes, and per diem interest) in Step 2C. Fees Associated with the New Loan (up to 99999).

  4. Step 2D. Sum of Step 2A, Step 2B and Step 2C displays the system-calculated sum of: Step 2A. Existing Debt on Property Being Refinanced, Step 2B. Step 1 Total (Step 1E) and Step 2C. Fees Associated with the New Loan. This field is view only and is adjusted by updating the amounts in Steps 2A, 2B, and/or 2C.

    Note: For a refinance case, an as-is appraisal is required if the sum of Step 2A. Existing Debt on Property Being Refinanced and Step 2B. Step 1 Total (Step 1E) is greater than Step 2G. Appraised Value (subject to repairs and improvements). If the property was acquired less than 12 months prior to the Case Number Assignment date, an as-is appraisal is always required (if not acquired by gift or inheritance through a family member).

  5. Enter the estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date in Step 2E. As-Is Property Value (when an As-Is Appraisal is performed). Leave the field blank if an as-is appraisal was not performed.

  6. Step 2F. Adjusted As-Is Value displays the view-only amount calculated by the system that is the (a) adjusted as-is value of the property, if an as-is appraisal was performed, or (b) sum of Step 2A. Existing Debt on Property Being Refinanced and Step 2C. Fees Associated with the New Loan.

After-Improved Value - Refinance Case

Enter the appraised value of the property subject to completion, repairs, or plans and specifications in the Step 2G. Appraised Value (subject to repairs and improvements) field.

Continue to Step 3: Calculating Maximum Mortgage - Refinance Case.

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Step 3: Calculating Maximum Mortgage - Purchase Case

The fields in this step are view only, except for Steps 3C and 3E, as explained below. Adjustments to the view-only amounts are made by updating the source(s) of information.
Step 3A. Sum of Step 2E + Step 1E (i.e., Adjusted As-Is Value + Step 1 total): Sum of Step 2E. Adjusted As-Is Value plus Step 1E. Total Rehabilitation Cost (Step 1 total) (sum of Steps 1A, 1B, 1C and 1D).
Step 3B. Step 2F (i.e., After-Improved Value) X 110% (or 100% for condominiums): Sum of Step 2F. Initial Base Mortgage Amount = Lesser of Step 3D or Step 3E multiplied by 110% or 100% for a condominium.
Step 3C. Less Lead-Based Paint Credit: For a HUD REO purchase case only, enter the amount of the credit adjustment provided by HUD at sales closing associated with a lead-based paint stabilization plan (up to 99999). Enter a dollar amount only, without cents, comma, or dollar sign. Otherwise, this field is view only. Note: The sales contract must include a stipulation for the lead-based paint credit adjustment.
Step 3D. Lesser of Step 3A or Step 3B ($__________) x Step 3G __________% (appropriate LTV Factor) Minus Step 3C: System-calculated amount that is the lesser of (a) Step 3A. Sum of Step 2E + Step 1E (i.e., Adjusted As-Is Value + Step 1 total) or (b) Step 3B. Step 2F (i.e. After-Improved Value) X 110% (or 100% for condominiums):
  - multiplied by Step 3G. Determining Loan-to-Value Factor for Maximum Mortgage Eligibility
  - minus Step 3C. Less Lead-Based Paint Credit.
  -or-
  Step 3D. Lesser of Step 3A or Step 3B ($__________) Minus $100 Minus Step 3C: For a HUD $100 Down REO purchase case, this is the system-calculated amount that is the lesser of (a) Step 3A. Sum of Step 2E + Step 1E (i.e., Adjusted As-Is Value + Step 1 total) or (b) Step 3B. Step 2F (i.e. After-Improved Value) X 110% (or 100% for condominiums):
  - minus $100
  - minus Step 3C. Less Lead-Based Paint Credit.
Step 3E. Nationwide Mortgage Limit: Enter the county-level median price estimate used by the FHA for mortgage limit determination based on the property information (up to 9999999). Enter a dollar amount only, without cents, comma, or dollar sign. Note: To look up the mortgage limit for the property, use Mortgage Limits on the HUD.GOV website at: https://entp.hud.gov/idapp/html/hicostlook.cfm.
Step 3F. Initial Base Mortgage Amount = Lesser of Step 3D or Step 3E: System-calculated amount that is the lesser of (a) Step 3D. Lesser of Step 3A or Step 3B ($__________) x Step 3G __________% (appropriate LTV Factor) Minus Step 3C or (b) Step 3E. Nationwide Mortgage Limit.
-or-
For a HUD $100 Down REO purchase case, this is the system-calculated amount that is the lesser of (a) Step 3D. Lesser of Step 3A or Step 3B ($________) Minus $100 Minus Step 3C or (b) Step 3E. Nationwide Mortgage Limit.
Step 3G. Determining Loan-to-Value Factor for Maximum Mortgage Eligibility: Maximum LTV factor based on the values in the Minimum Decision Credit Score (MDCS) and Secondary Residence fields in the Case Information section.

Continue to Step 4: Additions to Base Mortgage Amount.

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Step 3: Calculating Maximum Mortgage - Refinance Case

The fields in this step are view only and display system-calculated amounts, except for Step 3E. Adjustments to the view-only amounts are made by updating the source(s) of information.
Step 3A. Step 2D (sum of 2A, 2B and 2C): System-calculated sum of Step 2A. Existing Debt on Property Being Refinanced, Step 1E. Total Rehabilitation Cost (Step 1 total) (sum of Steps 1A, 1B, 1C and 1D) and Step 2C. Fees Associated with the New Loan.
Step 3B. Sum of Step 2F + Step 1E (i.e., Adjusted As-Is Value + Step 1 total): System-calculated sum of Step 2F. Adjusted As-Is Value plus Step 1E. Total Rehabilitation Cost (Step 1 total) (sum of Steps 1A, 1B, 1C and 1D).
Step 3C. Step 2G (i.e., After-Improved Value) X 110% (or 100% for condominiums): System-calculated sum of Step 2G. Appraised Value (subject to repairs and improvements) multiplied by 110% or 100% for a condominium.
Step 3D. Lesser of Step 3B or Step 3C ($__________) x Step 3G __________% (appropriate LTV Factor): System-calculated amount that is the lesser of (a) Step 3B. Sum of Step 2F + Step 1E (i.e., Adjusted As-Is Value + Step 1 total) or (b) Step 3C. Step 2G (i.e., After-Improved Value) X 110% (or 100% for condominiums) multiplied by Step 3G. Determining Loan-to-Value Factor for Maximum Mortgage Eligibility.
Step 3E. Nationwide Mortgage Limit: Enter the county-level median price estimate used by the FHA for mortgage limit determination based on the property information (up to 9999999). Enter a dollar amount only, without cents, comma, or dollar sign. Note: To look up the mortgage limit for the property, use Mortgage Limits on the HUD.GOV website at: https://entp.hud.gov/idapp/html/hicostlook.cfm.
Step 3F. Initial Base Mortgage Amount (lesser of Steps 3A, 3D or 3E): System-calculated amount that is the lesser of (a) Step 3A. Step 3A. Step 2D (sum of 2A, 2B and 2C), (b) Step 3D. Lesser of Step 3B or Step 3C ($__________) x Step 3G __________% (appropriate LTV Factor), or (c) Step 3E. Nationwide Mortgage Limit.
Step 3G. Determining Loan-to-Value Factor for Maximum Mortgage Eligibility: Maximum LTV factor based on the values in the Minimum Decision Credit Score (MDCS) and Secondary Residence fields in the Case Information section.

Continue to Step 4: Additions to Base Mortgage Amount.

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Step 4: Additions to Base Mortgage Amount

The fields in this step are view only, except for Step 4A and/or Step 4C, as explained below. For Step 4G. Final Base Mortgage Amount = Lesser of (sum of Step 4B and Step 4E) or Step 4F, the system-calculated amount is provided after the 203k Calculator page is processed. Adjustments to the view-only amounts are made by updating the source(s) of information.

Step 4A. Energy Efficient Improvement Amount (EEM): If Yes was selected in the EEM field in the Case Information section, enter the total amount of cost-effective energy efficient improvements being financed under the EEM) program (up to 99999). Include the fees for a home energy assessment by a qualified energy rater, but not draw inspection fees. Enter a dollar amounts only, without cents, comma, or dollar sign. If No was selected, this field is view only.
Step 4B. Intermediate Base Mortgage Amount = Step 3F + Step 4A: For a purchase case, this is the system-calculated sum of Step 3F. Initial Base Mortgage Amount = Lesser of Step 3D or Step 3E plus Step 4A. Energy Efficient Improvement Amount (EEM).
-or-
For a refinance case, this is the system-calculated sum of Step 3F. Initial Base Mortgage Amount (lesser of Steps 3A, 3D or 3E) plus Step 4A. Energy Efficient Improvement Amount (EEM).

Step 4C. Solar Energy System Cost and Installation: If Yes was selected in the Solar/Wind field in the Case Information section, enter the total cost for installing a solar or wind energy system on the property (up to 99999). Enter dollar amounts only, without cents, comma, or dollar sign. If No was selected, this field is view only. Note: The cost for the installation of a solar or wind energy system entered here must not also be included in Step 1A. 1. Costs of Construction, Repairs and Rehabilitation.

Step 4D. Step 2F x 20% (i.e., After-Improved Value x 20%): For a purchase case, this is the system-calculated sum of Step 2F. Appraised Value (subject to repairs and improvements), which is the after-improved value of the property, multiplied by 20%.
-or-
Step 4D. Step 2G x 20% (i.e., After-Improved Value x 20%): For a refinance case, this is the system-calculated sum of Step 2G. Appraised Value (subject to repairs and improvements), which is the after-improved value of the property, multiplied by 20%.
Step 4E. Solar Energy Amount to Be Added to Base Mortgage Amount = Lesser of Step 4C or Step 4D: System-calculated solar/wind energy amount to be added to the base loan amount that is the lesser of (a) Step 4C. Solar Energy System Cost and Installation or (b) Step 4D. Step 2F x 20% (i.e., After-Improved Value x 20%) for a purchase case or Step 4D. Step 2G x 20% (i.e., After-Improved Value x 20%) for a refinance case.
Step 4F.Step 3E x 120% (i.e., Nationwide Mortgage Limit x 120%): For a purchase case, this is the system-calculated sum of Step 3E. Nationwide Mortgage Limit multiplied by 120%.
-or-
Step 4F. Step 3G x 120% (i.e., Nationwide Mortgage Limit x 120%): For a refinance case, this is the system-calculated sum of Step 3G. Nationwide Mortgage Limit multiplied by 120%.
Step 4G. Final Base Mortgage Amount = Lesser of (sum of Step 4B and Step 4E) or Step 4F: System-calculated final base mortgage amount that is the lesser of (a) Step 4B. Intermediate Base Mortgage Amount = Step 3F + Step 4A plus Step 4E. Solar Energy Amount to Be Added to Base Mortgage Amount = Lesser of Step 4C or Step 4D or (b) Step 4F. Step 3E x 120% (i.e., Nationwide Mortgage Limit x 120%).

Continue to Step 5: Calculating the LTV.

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Step 5: Calculating the LTV

Annual MIP LTV

Step 5A. MIP LTV = Step 4G Divided by Step 2F (i.e., Final Base Mortgage Amount divided by After-Improved Value)for a purchase case and Step 5A. MIP LTV = Step 4G Divided by Step 2G (i.e., Final Base Mortgage Amount divided by After-Improved Value) for a refinance case, are view-only fields that display the system-calculated loan-to-value (LTV) ratio for determining the annual mortgage insurance premium (MIP) rate after the 203k Calculator page is processed.

For a purchase case, this is Step 4G. Final Base Mortgage Amount = Lesser of (sum of Step 4B and Step 4E) or Step 4F divided by Step 2F. Appraised Value (subject to repairs and improvements).

For a refinance case, this is Step 4G. Final Base Mortgage Amount = Lesser of (sum of Step 4B and Step 4E) or Step 4F divided by Step 2G. Appraised Value (subject to repairs and improvements).

Case LTV

Step 5B. Case LTV = Step 4G Divided by Lesser of Step 3A or Step 3B for a purchase case and Step 5B. Case LTV = Step 4G Divided by Lesser of Step 3B or Step 3C for a refinance case, are view only fields that display the system-calculated loan-to-value (LTV) ratio for the case based on the maximum allowable mortgage amount after the 203k Calculator page is processed.

For a purchase case, this is Step 4G. Final Base Mortgage Amount = Lesser of (sum of Step 4B and Step 4E) or Step 4F divided by the lesser of Step 3A. Sum of Step 2E + Step 1E (i.e., Adjusted As-Is Value + Step 1 total) or 3B. Step 2F (i.e., After-Improved Value) X 110% (or 100% for condominiums).

For a refinance case, this is Step 4G. Final Base Mortgage Amount = Lesser of (sum of Step 4B and Step 4E) or Step 4F divided by the lesser of Step 3B. Sum of Step 2F + Step 1E (i.e., Adjusted As-Is Value + Step 1 total) or 3C. Step 2G (i.e., After-Improved Value) X 110% (or 100% for condominiums).

Adjustments to these values are made by updating the source(s) of information.

Continue to Step 6: Establishing the Rehabilitation Escrow Account.

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Step 6: Establishing the Rehabilitation Escrow Account

The fields in this step are view only, except for Steps 6D and 6F, as explained below. Adjustments to the view-only amounts are made by updating the source(s) of information.

Step 6A. Total Rehabilitation Cost (Step 1 total) +: Displays the amount from Step 1E. Total Rehabilitation Cost (Step 1 total) (sum of Steps 1A, 1B, 1C and 1D). An adjustment to this amount is made by updating the information in Step 1: Establishing Financeable Repair and Improvement Costs, Fees and Reserves.
Step 6B. Cost of Energy Efficient Improvement Amount (Step 4A) +: Displays the amount from Step 4A. Energy Efficient Improvement Amount (EEM). For an EEM case, an adjustment to this amount is made by updating the amount in Step 4A. Energy Efficient Improvement Amount (EEM).
Step 6C. Cost of Financed Solar Energy Systems Improvement (Step 4E) +: Displays the amount from Step 4E. Solar Energy Amount to Be Added to Base Mortgage Amount = Lesser of Step 4C or Step 4D. For a case for which a solar or wind energy system is being installed, an adjustment to this amount is made by updating the information in Step 4C. Solar Energy System Cost and Installation and/or the other source(s) of the information.

Step 6D. Borrower's Own Funds for Contingency Reserves: If all or part of the contingency reserves are being provided through the borrower's own funds, enter the amount in Step 6D. Borrower’s Own Funds for Contingency Reserves. Enter a dollar amount only, without cents, a comma, or dollar sign (up to 999999). Note: The sum of Step 1B. Financeable Contingency Reserves and Step 6D. Borrower's Own Funds for Contingency Reserves must meet or exceed the minimum required contingency reserves.

Step 6E. Rehabilitation Escrow Amount Total (sum of Steps 6A, 6B, 6C and 6D): System-calculated amount for an interest-bearing rehabilitation escrow account. It is the sum of the following: Step 6A. Total Rehabilitation Cost (Step 1 total) +, Step 6B. Cost of Energy Efficient Improvement Amount (Step 4A) +, Step 6C. Cost of Financed Solar Energy Systems Improvement (Step 4E) +, Step 6D. Lead-Based Paint Credit Adjustment (Step 3C) + (for a purchase case) or Step 6D. Lead-Based Paint Credit Adjustment (N/A) + (for a refinance case).
For Step 6F. Initial Draw at Closing Total (sum of Step F1 thru Step F7), do the following (enter dollar amounts only, without cents, commas, or dollar signs):
-

1. 203k Consultant Fees: For a Standard 203(k) case, enter the portion of the fees paid to an FHA-approved 203(k) consultant, not to exceed the amount in Step 1A. 3. 203k Consultant Fees (up to 99999). Skip this step for a Limited 203(k) case.

- 2. Architectural or Engineering Professional Fees: For a Standard 203(k) case, enter the portion of the fees paid for architectural or engineering professional services, not to exceed the amount in Step 1A. 2. Architectural or Engineering Professional Fees (up to 99999). Skip this step for a Limited 203(k) case.
- 3. Permit Fees: Enter the portion of the fees paid for required permits that are reimbursed at mortgage closing through a draw of the escrow funds, not to exceed the amount in Step 1A. 6. Permit Fees (up to 99999). Note: Permit fees can only be financed if there is documentation showing the borrower paid for the permit fees prior to closing.
- 4. Origination Fees: Enter the portion of the fees paid for the origination of the mortgage, not to exceed the amount in Step 1D. 1. Financeable Origination Fee.
- 5. Discount Points on Repair Costs and Fees: Enter the portion of the fees paid for discount points on repair costs and fees, not to exceed the amount in Step 1D. 2. Discount Points on Repair Costs and Fees (up to 99999).
- 6. Material Cost for Items Ordered and Prepaid by Borrower or Contractor (under contract for delivery): For a Standard 203(k) case, enter the portion of the material cost of items prepaid by the borrower in cash or by the contractor, where a contract is established with the supplier and an order is placed with the manufacturer for delivery at a later date (up to 99999). Skip this step for a Limited 203(k) case.
- 7. Up to 50% of Material Cost for Items Ordered but Not Yet Paid for (under contract for delivery): Enter the portion of the material cost (not to exceed to 50%) for items not yet paid for by the borrower or contractor, where a contract is established with the supplier and an order is placed with the manufacturer for delivery at a later date (up to 99999).
The system-calculated sum of these items is displayed in the view-only Step 6F. Initial Draw at Closing Total (sum of Step F1 thru Step F7) field. This is the total portion of costs and fees that are reimbursed at mortgage closing through a draw of the escrow funds.
Step 6G. Rehabilitation Escrow Amount Balance (for future draws) = Step 6E Minus Step 6F: System-calculated rehabilitation escrow balance. It is Step 6E. Rehabilitation Escrow Amount Total (sum of Steps 6A, 6B, 6C and 6D) minus Step 6F. Initial Draw at Closing Total (sum of Step F1 thru Step F7).

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Submit for Processing

When all of the required information has been entered on the 203k Calculator page, click Send. If processing was successful, the 203k Calculator Results page appears with this Success Message near the top of the page: 203k Calculator Successfully Completed.

The system-calculated amounts for the following are displayed:

Step 4G. Final Base Mortgage Amount = Lesser of (sum of Step 4B and Step 4E) or Step 4F.

Step 5A. MIP LTV = Step 4G Divided by Step 2F (i.e., Final Base Mortgage Amount divided by After-Improved Value) for a purchase case or Step 5A. MIP LTV = Step 4G Divided by Step 2G (i.e., Final Base Mortgage Amount divided by After-Improved Value) for a refinance case.
Step 5B. Case LTV = Step 4G Divided by Lesser of Step 3A or Step 3B for a purchase case or Step 5B. Case LTV = Step 4G Divided by Lesser of Step 3B or Step 3C for a refinance case.

To make adjustments, click Repaint Form near the top of the 203k Calculator Results page and follow the process above.

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If there was an error, the 203k Calculator page appears with an error message near the top of the page and an Error(s) Detected field in the Details section near the bottom of the page. Review the information in these fields. Make any necessary corrections and process again.

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Last revised: June 23, 2016