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Can I afford a fixer-upper?

Updated October 20, 2026 · by ROW Home Solutions

Short answer: you can afford a fixer-upper if you can pay the down payment, closing costs and the improvement budget (plus a 10–15% contingency), and still keep several months of payments in reserve, with a debt-to-income ratio your lender accepts after any renovation loan. The free ROW Improvement Planner checks all of this in Buyer mode.

The 5-step check

1. List the work the home needs, split into needs (roof, HVAC, safety, anything an inspector flags) and wants (kitchen, finishes).
2. Price each item as a range and plan with the high end. Get contractor bids when you can.
3. Add a contingency of 10–15% for surprises found once walls are open.
4. Decide how you'll pay: cash, a HELOC or home equity loan after closing, a personal loan, or a renovation mortgage (such as FHA 203(k) or Fannie Mae HomeStyle) that adds the budget to your purchase loan.
5. Re-check your numbers: cash left after closing and the work, months of reserves, and DTI including any improvement-loan payment.

Needs first, wants later

If the full list doesn't fit, see whether the needs alone do. Many buyers handle the must-fix items at purchase and save for the wants. The planner shows a needs-only result when you mark items as "want".

What will it be worth after?

Value after improvements is the price plus the value each project adds. Recent sales of similar, updated homes nearby are the best guide. As a national reference, the Remodeling 2025 Cost vs. Value Report (national averages; © 2025 Zonda Media, a Zonda company) estimates how much of a project's cost is recouped at resale. For example, 112.9% for a minor midrange kitchen remodel, 80.0% for a midrange bath remodel and 67.5% for an asphalt roof replacement. Local results vary widely, so treat these as a starting point.

Watch-outs

• Renovation loans have their own eligibility rules, contractor requirements and limits. Ask a lender early.
• A HELOC is only available after you own the home and have equity.
• DIY saves labor, but published value figures assume professional work.

Quick answers

Can I afford a fixer-upper?

Yes, if you can cover the down payment, closing costs and the improvement budget plus a 10–15% contingency, and still keep several months of payments in reserve with a debt-to-income ratio your lender accepts.

How much contingency should I add for renovations?

A 10–15% contingency on top of the estimated cost is a common cushion for surprises. Older homes and bigger projects may need more.

Can I include renovation costs in my mortgage?

Renovation mortgages such as FHA 203(k) and Fannie Mae HomeStyle can add the improvement budget to the purchase loan. Eligibility, limits and contractor rules apply, so ask a lender.

Should I fix the needs or the wants first?

Needs first: roof, HVAC, safety and anything an inspector flags. Wants such as a kitchen update can wait until you rebuild savings.

Is there a free fixer-upper calculator?

Yes. The ROW Improvement Planner is free, needs no signup, and keeps your numbers on your device. It has Buyer, Seller and Investor modes.