California FHA 203k Rehab Loans For Homebuyers of Fixer Uppers

California FHA 203k loans are ideal for homebuyers of fixer-uppers and/or total gut rehab owner-occupant homes. With home prices selling at historic highs, why not buy a fixer upper and customize it to your likings. Homes in the state of California are one of the highest-priced in the nation, if not the highest. The state of California also has the fifth world’s largest economy. The average market value of homes in California is way above the national average market value of comparable homes in the United States.

Some of the highest-priced homes are in the following cities:

  • San Francisco
  • Los Angeles
  • Irvine
  • Sacramento
  • San Diego
  • Modesto
  • Santa Barbara
  • San Bernadino, and other counties

In this article, we will discuss and cover FHA 203k Rehab Loans Mortgage Guidelines.

California Home Prices And Maximum Loan Limits In High-Cost Areas

FHA Loans have higher loan limits in high-cost counties for single-family homes and one-unit properties such as condominiums and townhomes.

Most areas in California are classified as high-cost areas where the FHA Loan Limits are substantially higher than the standard $420,680 FHA Lending Limit. FHA Loans have higher loan limits in high-cost counties for single-family homes and one-unit properties such as condominiums and townhomes. FHA 203k Loans are different than regular portfolio construction loan programs offered by banks. Many areas in California, are classified as high-cost areas. The maximum FHA Loans Limits in high-cost areas are higher for 203k Rehab Loans than the rest of the United States due to higher home values in California than other states in the nation.

Streamline California FHA 203k Rehab Loans

FHA 203k Streamline Rehab Loans are an acquisition and rehab mortgage loan all in one loan and one mortgage loan closing. The FHA 203k Rehab Streamline Loan is different than the full FHA 203k Loan. This is because the maximum construction budget is capped at $35,000. There are also restrictions on the scope of work you can do with an FHA 203k Streamline Loan.

Homeowners cannot make structural changes such as the following:

  • room additions or changing the main structure of the home

Homeowners can do just about everything else, such as the following:

  • remodel bathroom
  • new windows
  • kitchen, bedrooms
  • family room
  • attic
  • basement
  • other areas of the home

Homeowners can also remodel the exterior of homes such as new roofing, siding, windows, and gutters.

Full FHA 203k Loans

California homeowners can now take advantage of the full 203k Loan where they can just about do anything to their home including structural changes and room additions.

California homeowners can now take advantage of the full 203k Loan where they can just about do anything to their home including structural changes and room additions. With a Full 203k Rehab Loan, there is no maximum loan amount. As long as the home appraises on the future value after the work has been done, homeowners are good to go with a full FHA 203k Rehab Loan. This holds true as long as they do not exceed the maximum FHA Loan Limit for their county. Again, many high-cost counties in California have High-Balance FHA Loan Limits capped at $970,800. Homeowners who need what the maximum California FHA Loan Limit is for a certain county, contact us at Capital Lending Network, Inc. at gcho@gustancho.com or 262-627-1965. Or email us at gcho@gustancho.com. Text us for a faster response.

California FHA 203k Standard Renovation Loans

With a full California FHA 203k Rehab Loan, a homeowner can do the following renovations:

  • room additions
  • second story additions
  • new kitchens
  • new bathrooms
  • new appliances
  • new mechanical systems
  • new windows
  • new roofs
  • new porches
  • new siding
  • pretty much anything they choose

California FHA 203k Rehab Loans Requirement

Minimum credit scores for a 3.5% down payment California FHA 203k Loan is 580

Capital Lending Network, Inc. are California FHA 203k Mortgage Lenders and do not have any overlays on 203k Loans.

  • Whatever the federal minimum mortgage lending requirements are for FHA Loans are what it is for California FHA 203k Rehab Loans
  • Minimum credit scores for a 3.5% down payment California FHA 203k Loan is 580
  • The 3.5% down payment required is on the after improved value of the home buyer is purchasing

California home buyers who would like to learn more about 203k Loans, contact us at Capital Lending Network, Inc. At 262-627-1965 or text us for a faster response. Or email us at gcho@gustancho.com.

No Lender Overlays On California FHA 203k Rehab Loans

We have no lender overlays on California FHA 203k Rehab Loans.  580 is the minimum credit score required for a 3.5% down payment California 203k Rehab Loans.  Maximum debt to income ratios is capped at 46.9% front-end and 56.9% DTI back-end DTI on California FHA 203k Rehab Loans.

FHA Loan Requirements on Collection and Charged-Off Accounts

Charge offs and Unpaid Collection accounts are okay and do not have to be paid off to qualify for California FHA 203k Rehab Loans.  Medical collections are exempt and do not have to be paid off and are not calculated in debt to income ratio income calculations.  Non-Occupant Co-Borrowers are allowed for home buyers not qualifying for income or self-employed borrowers with a lot of unreimbursed expenses. Loan officers at Loan Consultants, Inc. are available 7 days a week, evenings, weekends, and holidays.


Peter has 7+ years of experience in residential lending. He is a licensed Realtor in the Chicagoland area.

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