Bottom Line Up Front
FHA 203(k) rehab loans let you finance the purchase of a home and the cost of its rehabilitation through a single mortgage. This is ideal for buyers who want to purchase fixer-uppers, make structural repairs, or modernize older homes without needing separate construction financing.
Overview
FHA 203(k) rehab loans let you finance the purchase of a home and the cost of its rehabilitation through a single mortgage. This is ideal for buyers who want to purchase fixer-uppers, make structural repairs, or modernize older homes without needing separate construction financing.
Who Qualifies?
580+ credit for 3.5% down. Owner-occupied primary residence. Renovation work must begin within 30 days and complete within 6 months (Limited) or 12 months (Standard). Licensed contractor required for Standard 203(k).
Key Benefits
- ✓One loan covers purchase + renovation
- ✓Low 3.5% down payment
- ✓Based on after-improvement value
- ✓Streamlined and Standard options
- ✓Eligible for most property improvements
✅ Pros
- Buy a fixer at a discount
- Single closing, single loan
- FHA credit flexibility
- Force equity through improvements
⚠️ Considerations
- FHA mortgage insurance applies
- Contractor and inspection requirements
- Longer closing timeline
- Renovation must meet FHA guidelines
California-Specific Information
With California's older housing stock in many neighborhoods, 203(k) loans are a powerful tool for buyers priced out of move-in-ready homes. Buy a dated property below market, renovate, and build instant equity.
Rates & Pricing
Same rates as standard FHA loans. Total cost includes renovation budget financed into the loan amount.
Why Work with Our Recommended Broker for Rehab Loans (203k)?
Our recommended broker, Save Financial, Inc. (Sponsored by Save Financial, Inc. (NMLS #377740)), is a trusted California mortgage brokerage with 45 years of combined experience and relationships with 20+ wholesale lenders. They specialize in finding the best rehab loans (203k) rates and terms for California borrowers. Their $500 price guarantee means if they can't beat another lender's offer, you get $500. Our recommended broker serves 168+ California cities from offices in Newport Beach and Marina del Rey, and the team speaks English and Spanish.
Call (888) 703-1840 or get a free quote online — open 7 days a week, 9AM–8PM.
Our Recommended Broker's $500 Price Match Guarantee
Our recommended broker, Save Financial, guarantees to beat any written offer for the same product, we pay you $500 cash.
Sponsored by Save Financial, Inc. (NMLS #377740) · DRE #01875766 · Call (888) 703-1840
Reviewed By
Mike Baasti, Licensed Mortgage Broker
Expert contributor to Mortgage Guide California. Licensed mortgage broker (Sponsored by Save Financial, Inc. (NMLS #377740), DRE #01875766) and founder of Save Financial, Inc. in Newport Beach, CA. 20+ years originating conventional, FHA, VA, jumbo, and specialty loans across California.