Can you use the 203k to build from scratch on a vacant lot- Sacramento

Home Inspector with, covering California & most other states S0289

Of course not. The FHA 203k loan program is a renovation loan product. There must have been a structure on the site with a certificate of occupancy issued at least twelve months prior to the new loan being put in place. Sorry no banana.

I have been getting quite a few calls on building from scratch on vacant land and there are several programs that do allow that. One is for Native Americans and it is the FHA 184 loan program. 

I was talking with Daniel Posehn of Wells Fargo in Sacramento yesterday and he has a pretty good program. I understand from Daniel that you can get 75% construction to value loan for up to a year at which time the home is finished and you refinance it to a longer term fix rate loan. Contact Daniel for more information on this one. Current rate it very attractive at about 4%.

Umpqua Bank also has a great "new construction" loan program that gives up to seven years before that original note needs to be paid off. Worth looking into for sure. If you are an agent selling land these programs should be of interest to you.

Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

To learn more about the FHA 203k loan program go to To contact us for a consultation please go to and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

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