I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Fixer-upper mortgages let you buy and renovate with one loan — and in California’s tight market, they open doors to properties most buyers overlook. Call (800) 239-1103.
California’s tight inventory and high prices make fixer-uppers more attractive than ever — but most buyers don’t know how to finance one. Fixer-upper mortgages let you buy and renovate with one loan, based on the home’s after-renovation value. You don’t need to pay cash for repairs or take out a separate construction loan.
Why Fixer-Uppers Make Sense in California
Move-in-ready homes command a significant premium — often 10–20% more than comparable fixer-uppers. California’s aging housing stock (much built pre-1980) creates abundant opportunity. You control the renovation — choose your finishes, layout, and quality. Post-renovation value gains can exceed renovation costs in appreciating California markets.
Your Fixer-Upper Loan Options in California
FHA 203k
3.5% down, 580+ credit score, primary residence only. Two versions: Standard for major structural work, Limited for cosmetic repairs under $35,000. Requires a HUD-approved 203k consultant for the Standard version. See full guide: FHA 203k Loan California.
Fannie Mae HomeStyle
Conventional, 3% down, 620+ credit. Works on primary homes, second homes, and investment properties. Luxury upgrades allowed. No required consultant. See: HomeStyle Renovation California.
Freddie Mac CHOICERenovation
Identical to HomeStyle with one important addition: explicitly allows wildfire hardening and disaster-resilience upgrades. Critical for California’s fire zone markets. See: CHOICERenovation California.
Finding the Right Fixer-Upper in California
Work with a real estate agent experienced in renovation projects. Get a general contractor to walk through properties before making offers. Get a renovation bid before your offer — this becomes part of the loan application. Factor in 10–15% contingency on top of the contractor estimate. Check permit history — unpermitted work can complicate financing.
Common Renovation Projects in California Homes
Earthquake bolting and cripple wall bracing (many pre-1980 homes need this), updated electrical (many older California homes have aluminum wiring or insufficient amperage), kitchen and bathroom modernization, ADU conversion (garage, basement, or backyard cottage — see ADU financing), and wildfire hardening (especially in Marin, Sonoma, and foothill communities).
Fixer-Upper Mortgage Requirements in California
All renovation loan programs require a licensed, insured contractor — DIY work is not allowed. You’ll also need a detailed scope of work and cost estimate before closing. Work must begin within 30 days of closing, and all renovations must complete within 6–12 months (varies by program). Draws are released in stages as work is inspected.
Frequently Asked Questions — Fixer-Upper Mortgage California
Can I buy a fixer-upper with a regular mortgage in California?
A standard mortgage only covers the home’s current value — not the cost of repairs. For a fixer-upper, you need a renovation loan (FHA 203k, HomeStyle, or CHOICERenovation) that finances both purchase and renovation in one loan based on the home’s after-improved appraised value. This lets you buy a property that needs work and fund the renovation through the same closing, without a separate construction loan or paying cash for repairs out of pocket.
How much can I borrow for renovations on a California fixer-upper?
Renovation loan amounts are based on the home’s after-renovation appraised value — what the property will be worth once improvements are complete. In California’s high-cost markets like the Bay Area, Marin County, and Los Angeles, this can mean substantial renovation budgets because the appraised values are high. The key limit is that the total loan cannot exceed the program’s loan limit (conforming, FHA, or jumbo) and the appraiser’s estimate of after-improved value. Your contractor’s bid and scope of work are submitted as part of the loan application and drive the renovation portion of the financing.
Can I use a fixer-upper mortgage for an investment property in California?
Yes, with HomeStyle or CHOICERenovation — not FHA 203k, which is limited to primary residences. Investment properties typically require 20–25% down with renovation loan programs. The renovation scope and contractor requirements are the same regardless of occupancy type. Both HomeStyle and CHOICERenovation also work for second homes, giving California buyers flexibility to renovate vacation or investment properties in one transaction.
Do I need a contractor for a fixer-upper mortgage?
Yes — all renovation loan programs require licensed, insured contractors. DIY work is not allowed. The contractor submits a detailed bid as part of the loan application, and the renovation funds are disbursed in draws as work is completed and inspected. For FHA 203k Standard loans, a HUD-approved 203k consultant must also be involved to oversee the project and approve each draw. HomeStyle and CHOICERenovation do not require the consultant but still require licensed contractors for all work.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
