Posted October 28, 2025

Building Dreams in Richmond: How One Contractor Used the FHA 203(k) to Finance His Own Projects

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Discover how a Richmond, CA contractor transformed his business and personal home using the FHA 203(k) renovation loan program. Learn how experts like Mike Young and his team make renovation dreams a reality with decades of experience in consulting and training.

A Contractor’s Dilemma in Richmond, CA

For more than a decade, Luis Ramirez, a hardworking general contractor in Richmond, California, spent his days transforming other people’s fixer-uppers into dream homes. From restoring crumbling Victorians in Point Richmond to updating mid-century ranches near Hilltop, Luis had built a reputation for quality work, honest pricing, and craftsmanship that stood the test of time.

But like many contractors, Luis faced one frustrating truth — while he was busy renovating everyone else’s homes, his own home was falling apart.

The roof leaked in three places. The kitchen still looked like something from a 1980s magazine ad. His wife, Maria, joked that their house had “character,” but every time she said it, Luis knew she meant “needs work.”

He wanted to fix it. He had the skills. He had the team.
But he didn’t have the cash.

The Spark: Discovering the FHA 203(k)

One rainy afternoon, Luis was working on a rehab project in El Cerrito when the lender mentioned a term he’d heard before but never really understood: “FHA 203(k) loan.”

“Contractors love this program,” the loan officer said. “You can use it to buy or refinance your own home and finance the renovation into one simple loan.”

Luis raised an eyebrow. “You mean I can use a loan like that on my own house?”

“Absolutely,” the lender replied. “As long as you live there as your primary residence and the repairs are non-structural, you could even be your own contractor.”

That got his attention.

Enter the Expert: The Mike Young Team

Before diving in, Luis knew he needed guidance.
That’s when he was referred to Mike Young, a national 203(k) consultant with over 31 years of experience helping homeowners, contractors, and lenders successfully navigate renovation loans.

Mike had consulted on thousands of 203(k) projects — from Sacramento and San Jose to Richmond and beyond. His calm, professional style made the complicated FHA process feel simple.

“Luis,” Mike said during their first call, “this loan is designed for people like you — professionals who can bring value through their own craftsmanship. The trick is doing it by the book.”

Mike explained that under HUD Handbook 4000.1, a Limited 203(k) allows up to $75,000 in non-structural renovations. That meant Luis could finally remodel his kitchen, replace the roof, and upgrade the windows — all without dipping into his savings.

Creating the Scope of Work

Working with Mike’s team, Luis prepared a Scope of Work — a detailed breakdown of the improvements, materials, and costs.
Together, they listed:

• New composite shingle roof
• Energy-efficient dual-pane windows
• Modern kitchen cabinets and quartz countertops
• Luxury vinyl plank flooring
• Updated lighting and fresh paint throughout

Mike reviewed everything to ensure compliance with FHA guidelines, double-checking that all repairs were “permanent and improving the property’s value.”

When the paperwork was complete, Mike submitted the consultant’s report, HUD-92700, and the lender approved the project.

The Magic of “After Improved Value”

One of the most powerful parts of the FHA 203(k) program is that the loan amount is based not just on what the property is worth today — but what it will be worth after improvements.

Luis’s modest Richmond home, currently valued at $420,000, was projected to be worth $510,000 once the renovations were complete. That $90,000 equity increase wasn’t just satisfying — it was smart business.

“That’s the beauty of the 203(k),” Mike told him. “You’re not just fixing your home — you’re building wealth.”

Rolling Up His Sleeves

The day after closing, Luis pulled on his work boots — not for a client this time, but for himself.

He and his crew tackled the project just like any other: with precision, pride, and attention to detail.
Within the first two weeks, the old cabinets were out, the roof tear-off was complete, and new windows were ordered.

Because Luis was both homeowner and contractor, he had the rare luxury of setting his own pace and ensuring every detail met his exacting standards. The project inspector, assigned through the lender, conducted periodic draw inspections to confirm progress before releasing funds — a process that kept everything on track and by the book.

The Transformation

Over the next sixty days, the change was nothing short of dramatic.
Gone was the outdated kitchen. In its place stood a chef-worthy workspace with soft-close drawers, recessed lighting, and a custom backsplash Maria picked out herself. The house felt new again — lighter, brighter, and more energy-efficient.

Even the neighbors noticed.

“Luis! Did you flip your own house?” one of them joked.
Luis just smiled. “Something like that.”

From Struggle to Strategy

What began as a personal renovation turned into a business strategy.

Seeing firsthand how seamless the process was with Mike Young’s guidance, Luis began recommending the FHA 203(k) program to his clients who wanted to purchase fixers or refinance for home improvements. He realized he could grow his contracting business while helping more Richmond families create homes they loved.

Before long, he became one of the go-to 203(k) contractors in Richmond, CA, known for understanding both the construction and compliance sides of the process.

“It’s not just about swinging hammers,” Luis explained to a new client. “It’s about knowing how to make the financing work for you.”

A Consultant’s Perspective

When Mike Young looked back on Luis’s project, he smiled.
“This is exactly why I’ve done this for over 31 years,” Mike said. “The 203(k) program empowers professionals and families alike. It helps people build equity, stabilize communities, and bring older homes back to life.”

Mike’s nationwide network of 203(k) consultants, under the MY 203k Team, continues to help contractors, homeowners, and lenders streamline their renovation loans — from the Scope of Work to the final Draw Inspection.

With over three decades of consulting experience in Richmond, CA, Mike has seen thousands of success stories just like Luis’s — each one unique, but all sharing a common theme