How does a renovation mortgage work and can a first time homebuyer attain oneto renovate before moving In? If so, would you be able to attain a renovation mortgage while working with the California first time homebuyer down payment assistance program?

A mortgage for a house + immediate renovations is simple: a lender agrees to loan you a certain amount above the loan amount for the house. The lender is going to be very wary of this arrangement and may require that they pay the contractor(s) directly and also approve the contractor and the work planned.

Bottom line is that you still need to qualify for the entire dollar amount.

Questions you have about CA downpayment assistance in addition to this type of loan need to be addressed to both the lender you are dealing with and the state of CA. I have a feeling that this won't be easy. Lenders are VERY wary still.