California Loan Options
California FHA 203(k) Renovation Loan
At Pacific Home Loans, we proudly offer 203(K) Renovation Loans to help California homeowners and buyers finance property improvements with ease. This single-close refinance or purchase/renovation loan provides a streamlined solution for those looking to upgrade their current home or transform a new property into their dream home.
Whether you’re planning minor upgrades or major renovations, our 203(K) Renovation Loans offer the flexibility and financial support needed to bring your vision to life. With a simplified process and expert guidance, Pacific Home Loans is here to help you renovate with confidence in California’s competitive housing market.
Ready to start your home improvement journey? Contact Pacific Home Loans today!
FHA 203(k) Renovation Loans
Eligible Property Types:
The types of properties available for this loan are:
- Homes that are 1 year or older
- 1 to 4-unit single-family residences
- A single-family townhome or condominium (Cooperatives do not apply)
Connect with our experienced loan officer team today to determine if your property meets the requirements for this loan program. We’re here to assist you every step of the way in California.
Streamlined FHA 203(k) Renovation Loan
Program Highlights:
There are two different FHA 203(K) loan programs available. The first is the Streamlined FHA 203(k) renovation loan, which is for any homeowner or buyer who wants to make minor changes to their home or condo, with a maximum remodeling fee of $35,000.
Eligible Streamline FHA 203(k) Projects:
Repair, Replace or Upgrade:
- Roof, gutters, and downspouts
- Improvements for accessibility
- Plumbing and electrical systems
- Flooring
- Existing AC system
- Painting
- Appliances
- Weatherization
- Repair, replace, or add exterior decks, patios, porches
- Basement waterproofing
- Window, door, and exterior siding replacement
- Septic and/or well repair or replacement
- Lead-based paint stabilization or abatement of lead-based paint hazards
Ineligible Streamline(K) Projects:
- Any repair taking more than 6 months to complete
- Repair of structural damage
- Major structural repairs
- New construction (adding a room)
- Repairs requiring detailed plans and specifications
- Repairs that would necessitate more than 2 draws
- Luxury items that are not a permanent part of the real estate
- Granite, marble countertops, Jacuzzi tubs, hot tubs, pools, etc.
Connect with our experienced loan officer team to learn more about the eligibility criteria and how you can benefit from the Streamlined FHA 203(K) renovation loan program in California. We’re here to help you make informed decisions about your home improvement projects.
Standard FHA 203(k) Renovation Loan
The second loan option is the Standard FHA 203(k) renovation loan, which allows for substantial structural changes, including improvements, repairs, remodeling, or updates to the home. This loan also offers the opportunity for buyers to construct a new home or add an accessory dwelling unit.
Eligible Standard FHA 203(K) Projects
Structural Alterations and Additions:
- Attached unit (new)
- Garage
- Remodel kitchen and baths
- Modern upgrades removing obsolescence
- Modernize plumbing, heating, A/C, and electrical systems
- Install or repair well or septic systems
- Major landscaping
- Roofing, gutters, and downspouts
- Flooring, tiling, and carpeting
- Energy conservation improvements
- Improvements for accessibility
- New non-attached appliances
- Swimming pool repairs
Connect with our experienced loan officer team today to explore the possibilities with the Standard FHA 203(k) renovation loan program in California. We’re here to help you realize your home renovation and improvement goals with confidence and ease.
FHA 203(k) Program Summary
Overall, the FHA 203(k) Renovation Loan program offers several advantages, allowing you to save money and qualify for a lower interest rate compared to the standard construction-to-permanent loan. Here are some of the benefits available to you:
- Home Improvements with a New Refinance or Purchase Loan: You can finance your home improvements seamlessly with a new loan, whether you’re refinancing or purchasing a property.
- No Payments for Upgrades Prior to Loan Closing: You won’t need to make payments for upgrades before the loan closing, providing financial flexibility during the renovation process.
- Financing Program with Lower Rates: Enjoy the advantage of lower interest rates compared to standard construction financing options.
- Financing for Home Improvement (Construction Cost/Repairs): The loan covers the costs of home improvements, including construction expenses and repairs, streamlining the financing process.
- Roll First Six Payments into the Loan: You have the option to roll the first six payments into the loan, reducing initial financial burdens.
Once you are pre-approved for a loan and decide to finance with the 203(k) loan, your loan officer will schedule an appointment with a state of California licensed contractor of your choice. The contractor will provide the following:
- A written work plan along with cost estimates
- Details on the nature, type of repair, and the estimated cost of completion
- Proof of license and assurance for each specialized repair
- A written agreement to complete the work within the allotted time and for the estimated cost
With the FHA 203(k) Renovation Loan program, you can embark on your home improvement journey in California with confidence and support from our experienced team.
Information and self-help tools are provided for your independent use and are not intended to provide investment advice. We cannot and do not guarantee loan eligibility or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to speak with one of our experienced loan officers for a loan eligibility analysis and custom rate and payment estimate.
