Transform Your Central Valley Home: One Loan for Purchase and Renovation

Turning a Fixer-Upper into Your Dream Home: How Renovation Loans Help Central Valley Buyers Purchase and Improve a Property

With limited inventory and rising prices across California’s Central Valley, many buyers are discovering that the perfect home isn’t always “move-in ready.” From Fresno and Clovis to Modesto, Visalia, and Bakersfield, homes with solid bones but dated interiors can offer huge potential — especially when paired with a renovation loan.

A renovation loan allows you to buy a home and finance repairs or upgrades in one mortgage. Instead of using your savings or a credit card to remodel, the cost of improvements is built right into your loan. Whether you want to update a kitchen, replace the roof, or modernize an older property, these programs can make it possible.

Renovation Loan Options Available in the Central Valley

1. FHA 203(k) Renovation Loan

Backed by the Federal Housing Administration, the FHA 203(k) program helps buyers purchase and repair older homes with as little as 3.5% down.

Highlights:

• Combines purchase and renovation costs into one loan
• Minimum 620 credit score (standard FHA guidelines)
• Available in both “Limited” (repairs up to $35,000) and “Standard” (larger structural projects) versions

Eligible Renovations:

• Kitchen and bathroom remodels
• Roof replacement, HVAC, plumbing, or electrical updates
• Flooring, paint, and energy-efficient upgrades
• Room additions or structural improvements

2. Fannie Mae HomeStyle® Renovation

Designed for conventional borrowers, the HomeStyle program offers flexible options for primary residences, second homes, and some investment properties.

Highlights:

• Down payments as low as 3% for first-time buyers
• Competitive fixed rates
• Can include luxury or energy-efficient upgrades if permanently affixed to the property

Eligible Renovations:

• Major remodels and room additions
• Landscaping, driveways, and outdoor living areas
• Solar panels or green-energy improvements
• Accessibility modifications

3. Freddie Mac CHOICE Renovation®

Similar to Fannie Mae’s program but with added flexibility, CHOICE Renovation® allows you to finance renovations that help protect the home from natural disasters — a key benefit in areas like the Central Valley where energy efficiency and safety matter.

Highlights:

• Down payments starting at 3% for qualified buyers
• Can be used for primary, secondary, or investment properties
• Offers flexibility for resilience-related upgrades

Eligible Renovations:

• Structural repairs or modernization
• Foundation and roof reinforcement
• Energy and disaster-resistant improvements (storm-proofing, solar, etc.)
• Interior remodeling or updates

4. VA Renovation Loan (for eligible Veterans)

The VA Renovation Loan combines the benefits of VA financing with funds for home improvements — ideal for service members and Veterans who want to make an older home their own.

Highlights:

• 0% down payment (for qualified borrowers)
• No mortgage insurance
• Renovation funds capped at $50,000
• Same flexible credit and income standards as VA purchase loans

Eligible Renovations:

• Kitchen and bath remodels
• Roof, plumbing, and electrical work
• Energy-efficiency upgrades
• Accessibility improvements

5. USDA Renovation Loan (currently unavailable due to the government shutdown as of 11/2/2025)

When active, the USDA Renovation Loan allows buyers in eligible rural areas to purchase and repair a home with 100% financing — no down payment required. The Central Valley has many USDA-eligible communities, making this program a valuable option once funding resumes.

Highlights:

• 0% down payment
• Competitive fixed interest rates
• Designed for rural and semi-rural buyers

Eligible Renovations:

• Essential repairs to make a home safe, sanitary, and functional
• Energy-efficiency improvements
• Accessibility upgrades

Already Own a Home and Want to Renovate?

If you already own your home and are looking to fund renovations, we have excellent Home Equity Lines of Credit (HELOCs) and Home Equity Loans (HELOANs) available. These programs allow you to tap into your existing home equity to finance projects such as remodeling, adding a pool, or building an accessory dwelling unit — often without affecting your current first mortgage. A HELOC provides flexible, revolving access to funds, while a HELOAN offers the stability of a fixed rate and fixed monthly payment.

The Importance of Working with a Realtor and a Knowledgeable Loan Officer

A skilled Realtor plays a critical role when purchasing a fixer upper. They help you locate homes that qualify for renovation, negotiate a fair price, and provide you with reputable contractors to help with the renovation process. 

As your local loan officer, I help ensure that financing aligns with your goals and that the renovation budget, contractor bids, and final loan structure all work together seamlessly. I’ll guide you through program selection, pre-approval, and the renovation draw process — making sure you understand every step from offer to final inspection.

If you’re ready to explore how a renovation loan could help you turn a Central Valley fixer-upper into your dream home — or you’d like to learn more about using your home equity for improvements — I’d be happy to discuss your options.

Robert Clark – Mortgage Loan Officer
Firestone Financial Group
NMLS #357788 / #301522
rbrtclark53@gmail.com
559-476-9279 | 209-227-7745
robertclarkloans.com

Equal Housing Lender. Not a commitment to lend. Borrower must qualify. Programs subject to change without notice.