FHA 203(k) Renovation Loans · California
The FHA 203(k) program lets you purchase or refinance a home and roll renovation costs into a single mortgage — with as little as 3.5% down.
Most loan programs only let you borrow based on what a home is worth today. The FHA 203(k) is different — it lets you borrow based on what the home will be worth after your improvements are complete.
That means you can buy a home that needs work (or refinance one you already own), finance the repairs, and end up with a single, affordable monthly payment. No second mortgage, no high-interest home improvement loan.
For buyers in Orange County and across California — where turnkey homes carry a significant price premium — the 203(k) opens up a whole category of properties that most buyers skip over.
Choose the option that matches your renovation scope.
The 203(k) has more flexible requirements than many conventional renovation loans — here's what most borrowers need to qualify.
Loan requirements can vary based on your full financial profile. The best way to know where you stand is a quick conversation — I'll review your situation and let you know exactly what you qualify for.
Talk to Jason — Free ConsultationThe program covers a wide range of improvements — here's what's generally allowed and what isn't.
From application to move-in, here's what to expect.
We'll review your credit, income, and renovation goals to determine your loan amount and program eligibility.
Identify a home that needs work. Your real estate agent and I can help evaluate fixer-uppers that fit your budget.
Licensed contractors submit bids. For the Standard 203(k), a HUD consultant reviews and approves the scope of work.
Loan closes with renovation funds in escrow. Contractors are paid in draws as work is completed. Move in when done.
The 203(k) process has more moving parts than a standard mortgage. Choosing the right loan officer makes a real difference in how smooth — or stressful — your experience is.
Based in Orange County, I understand SoCal's real estate dynamics — and how to position a fixer-upper offer to win in a competitive market.
Renovation loans require coordination between you, your contractor, the HUD consultant, and underwriting. I keep the process on track.
Whether you're buying in California, Arizona, Colorado, Florida, or anywhere else I'm licensed, I can originate your 203(k) loan.
Need down payment help? I also offer a $15K Closing Cost Grant and a Forgivable Loan Program that may work alongside your 203(k).
Have more questions? Reach out directly — I'm happy to walk you through your specific situation.
It's an FHA-backed mortgage that lets you finance both the purchase (or refinance) of a home and the cost of renovations in a single loan — rather than carrying two separate loans.
The Limited 203(k) covers non-structural repairs up to $75,000 — faster process, no HUD consultant needed. The Standard 203(k) handles major structural renovations with no fixed dollar cap (up to FHA loan limits).
A minimum score of 580 qualifies you for the 3.5% down payment option. Borrowers with scores between 500–579 may still qualify with a 10% down payment, subject to lender guidelines.
In 2026, FHA loan limits in high-cost counties like Orange, Los Angeles, and Riverside reach up to $1,249,125 for a single-family home. Your loan is sized at 110% of the estimated after-renovation value.
No — the FHA 203(k) is exclusively for primary residences. It cannot be used for vacation homes or rental properties.
Yes. All renovation work must be completed by a licensed, insured contractor. DIY work is not permitted under the 203(k) program.
Plan for approximately 45–60 days to close — longer than a standard FHA loan due to contractor bids, HUD review, and renovation planning. A head start with pre-approval makes it much smoother.
Most structural and functional improvements qualify: kitchens, bathrooms, roofing, HVAC, electrical, plumbing, flooring, windows, and more. Luxury items like pools are generally not eligible.
Yes — if the home is uninhabitable during renovation, up to six months of mortgage payments can be included in the loan to cover your housing costs while work is in progress.
Absolutely. If you already own a home that needs work, the 203(k) can refinance your existing mortgage and roll in renovation costs — one new loan that covers both.
Jason Barlow is a licensed mortgage broker with Arbor Financial Group. NMLS #1368625. Licensed in CA, AZ, CO, FL, IL, MN, OR, WI, WA, and AL. This is not a commitment to lend. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states. Interest rates and program terms are subject to change without notice. FHA 203(k) loans are subject to FHA guidelines and county loan limits. Contact Jason for a personalized rate quote.
Equal Housing Lender. For more information on FHA loan programs, visit HUD.gov.
