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. Renovation loans are one of the best-kept secrets for California buyers — I’ve helped clients turn fixer-uppers into dream homes with a single loan. Call (800) 239-1103.

Renovation Loans California: Buy and Renovate With One Loan

California’s housing inventory is tight, and many of the most affordable homes need work. Renovation loans let you buy a fixer-upper and finance the cost of repairs — all in a single mortgage. No need to tap savings, take out a personal loan, or go through a separate construction draw process. 📞 (800) 239-1103

How Renovation Loans Work

A renovation loan combines the purchase price of the home with the estimated cost of renovations into one mortgage. You close on the loan, work begins, and funds are disbursed to your contractor as work is completed. The loan amount is based on the after-renovation value of the home — so you may be able to borrow more than the home is currently worth.

Types of Renovation Loans Available in California

FHA 203k Loan

The most popular renovation loan for California buyers with lower credit scores or smaller down payments. As little as 3.5% down (580+ credit score). Two versions: Standard 203k (major structural repairs, $5,000+) and Limited 203k (cosmetic repairs up to $35,000). Requires working with a HUD-approved consultant for the Standard version.

Fannie Mae HomeStyle Renovation

Conventional renovation loan. No minimum renovation amount, no required consultant, and can be used for luxury upgrades (pools, high-end kitchens) that FHA won’t finance. 3% down for primary residence (with strong credit). Works on primary homes, second homes, and investment properties.

Freddie Mac CHOICERenovation

Similar to HomeStyle but with unique flexibility: can be used to fortify a home against natural disasters (critical in California’s fire and flood zones). 3% down, works on primary and second homes. Particularly relevant for fire zone properties.

Renovation Loan vs HELOC: Which Is Right for You?

• Renovation loan: Best if buying a fixer-upper or if you have limited equity. You don’t need existing equity — the loan is based on the after-improved value.
• HELOC: Best if you already own the home, have 20%+ equity, and want a flexible credit line for phased renovations.

See our detailed Renovation Loan vs HELOC comparison.

California Fixer-Upper Markets

Renovation loans are particularly popular in East Bay communities like Oakland, Richmond, and Hayward where older housing stock offers value. Also strong demand in LA neighborhoods like Highland Park, Echo Park, and Inglewood. Marin County fixer-uppers can be excellent renovation loan candidates too.

Renovation Loan Requirements

• FHA 203k: 3.5% down, 580+ credit score, primary residence only
• HomeStyle/CHOICERenovation: 3%–5% down, 620–640+ credit, primary, second, or investment
• Contractor must be licensed and approved by lender
• Appraisal based on after-renovation value
• Renovation must begin within 30 days and complete within 6–12 months of closing

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