CHOICERenovation® Mortgage: Buy, Renovate, and Finance With One Loan
CHOICERenovation® is Freddie Mac's renovation mortgage program. It lets home buyers and current homeowners combine the cost of renovations with their main mortgage — one loan, one closing. Renovation costs are built directly into the mortgage to keep things easy.
What Is the CHOICERenovation® Mortgage?
The CHOICERenovation® mortgage is a conventional mortgage that lets borrowers finance renovations and a home purchase or refinance together. The Freddie Mac-backed program can be used to pay for a home's cosmetic updates, kitchen remodels, structural improvements, resiliency upgrades, and accessibility features.
CHOICERenovation® can be used on single-family homes, 2-4-unit properties, warrantable condos, and manufactured housing. It also allows for any type of occupancy — primary, vacation, or rental. Renovation money from a CHOICERenovation® mortgage can pay for project's labor, materials, permits, inspections, architect or design fees, and contingency reserves.
Freddie Mac requires renovation work to be completed within 12 months of closing.
CHOICERenovation® - Key Facts at a Glance
| Requirement | CHOICERenovation® Details |
|---|---|
| Down Payment | 3% for primary home, 5% for second and investment properties |
| Property Types | 1–4 unit homes, condos, manufactured homes |
| Occupancy | Primary, second home, investment |
| DIY Allowed | For one-unit primary residences only |
| Timeline | 12 months to finish renovations |
| Mortgage Insurance | Required for LTV > 80%, cancellable at 20% equity |
| Eligible Projects | Cosmetic, structural, resiliency, energy, accessibility |
Key Definitions
- As-Completed Value
- The appraised value of the home after planned renovations. Determines maximum loan amount.
- Contingency Reserve
- A reserve fund to cover unexpected renovation expenses, typically 10% of project costs.
- Resiliency Improvements
- Upgrades like storm hardening, solar panels, radon mitigation, or accessibility features. Specifically supported under CHOICERenovation®.
- CHOICEReno eXPress®
- A streamlined option under CHOICERenovation® for smaller projects, capped at $35,000 in repairs and 10% of property value. Requires less documentation.
Who Is the CHOICERenovation® Program For?
Freddie Mac made CHOICERenovation® for people who want to finance their renovations into their main mortgage. It's a one-time close renovation loan that competes with Fannie Mae's Homestyle® Renovation and the FHA 203k construction loan.
CHOICERenovation® can be used to renovate a starter home, upgrade a second home or rental, and other home construction projects .
| Who Uses This Program | Typical Reasons for Use |
|---|---|
| First-time buyers | Finance a home and needed repairs in one mortgage |
| Homeowners refinancing | Roll renovation costs into a new loan |
| Buyers of fixer-uppers | Purchase and improve the home with a single loan |
| Second home or rental investors | Upgrade properties not covered by FHA renovation loans |
| Energy-conscious owners | Fund resiliency and energy efficiency improvements |
CHOICERenovation® Loan Benefits
CHOICERenovation® is a flexible across property types and supports projects most other loan programs won't finance.
| Benefit | How It Helps |
|---|---|
| One Loan, One Closing | Finance home and renovations with one mortgage |
| Wide Project Eligibility | Use for most upgrades, including structural and cosmetic |
| More Property Types | Works for primary, second, and investment homes |
| Resiliency Focus | Fund storm and energy improvements |
| Lower Cost | Often less expensive than personal or construction loans |
| Streamlined Option | CHOICEReno eXPress® is faster for projects under $35,000 |
CHOICERenovation® Loan Requirements for 2025
CHOICERenovation® is a Freddie Mac mortgage, which means it uses many of the same mortgage guidelines as a standard conventional loan.
- Minimum credit score of [conv-fico-min not found]
- A reasonable debt-to-income ratio
- A capacity to repay the loan
- Private mortgage insurance (PMI) required with less than 20% equity
- The home meets basic safety and livability standards
In addition, CHOICERenovation® requires the following:
3% Minimum Down Payment
The CHOICERenovation® program requires a down payment of least 3% or more for a primary residence. For example, a buyer purchasing a $300,000 home would need $9,000 for the down payment. A 5% down payment is required for second homes and rentals.
All Residential Property Types
CHOICERenovation® can be used for single-family residences including detached homes, condos, and manufactured properties, as well as 2-4 unit properties. CHOICERenovation® can also be used for house-hacking, when the homeowner lives in one unit of a multi-unit property and rents the other(s) to help pay the mortgage.
All Occupancy Types
CHOICERenovation® can be used for primary residences, second homes, and investment properties. You don't have to live in the home you are renovating.
75% Renovation Limits
Renovation costs may reach up to 75% of the home's as-completed appraised value, so a home with a $400,000 after-renovation value could support up to $300,000 in renovation costs. Manufactured homes have a lower cap — either 50% of the finished value or $50,000, whichever is less.
12 Months to Complete Work
All renovation work must be finished within 12 months. A project that starts January 1 must be finished by the following January 1.
Approved Contractors Only with Limited DIY
Freddie Mac requires homeowners to use approved contractors for most CHOICERenovation® projects. DIY work is allowed only with one-unit homes where the owner is doing the work and will live in the home. DIY is strictly limited to 10% of the as-completed value, so a homeowner with a $350,000 finished value could complete up to $35,000 of the work themselves.
6 Months Reserves for Unihabitable Homes
If the home is uninhabitable during renovations, CHOICERenovation® requires up to six months of PITI in reserves. A monthly payment of $2,000 would mean setting aside $12,000 to cover payments while the work is underway.
What Is CHOICEReno eXPress®?
CHOICEReno eXPress® is a smaller version of CHOICERenovation® for smaller renovation projects. Because it's smaller in scope, renovating home buyers and homeowners have less paperwork and shorter timelines on the program's same one-loan, one-closing structure.
CHOICEReno eXPress® is best for buyers and homeowners planning only modest repairs or updates. Ask your mortgage lender which flavor of loan is best for your project.
CHOICEReno eXPress® Key Facts
| Feature | CHOICEReno eXPress® Details |
|---|---|
| Maximum Project Size | $35,000 or 10% of the property’s value, whichever is less |
| Eligible Work | Non-structural updates, cosmetic improvements, minor repairs |
| Eligible Properties | 1–4 unit homes, condo, manufactured |
| Occupancy Types | Primary residence, second home, investment property |
| Completion Timeline | Within 6 months of loan closing |
When To Use CHOICEReno eXPress®
- Cosmetic updates: New flooring, paint, appliances, cabinets, or landscaping
- Minor repairs: Roof patching, HVAC replacement, plumbing, or electrical updates
- Quick improvements before sale: Small projects to boost home value fast
- First-time buyers: When big renovations aren’t needed, but some updates are
CHOICEReno eXPress® is not designed for large-scale remodels or structural work. If your project goes beyond the $35,000 cap or involves significant additions, the full CHOICERenovation® program is the better choice.
📊 Key Statistic
CHOICERenovation® vs Other Renovation Loans
CHOICERenovation® competes directly with Fannie Mae's HomeStyle® Renovation and the FHA's 203(k) construction project. Each has advantages depending on credit, down payment, and property type.
Compare Features: CHOICERenovation® vs HomeStyle® Renovation vs FHA 203(k)
| Feature | CHOICERenovation® | HomeStyle® Renovation | FHA 203(k) |
|---|---|---|---|
| Min Down Payment | 3% | 3% | 3.5% |
| Min Credit Score | 620 | 620 | 580 + |
| Renovation Limit | 75% of finished value | 75% of finished value | 110% of finished value |
| DIY Work | Allowed, limited | Allowed, limited | Not allowed |
| PMI / MIP | PMI, cancellable | PMI, cancellable | MIP, often for life |
| Property Types | 1–4 unit, condos, manufactured | 1–4 unit, condos, co-ops, manufactured | 1–4 unit, condos |
| Occupancy | Primary, second, investment | Primary, second, investment | Primary only |
| Special Focus | Resiliency, energy upgrades | Energy credit | Health/safety upgrades only |
Comparing CHOICERenovation® and HELOCs
Some homeowners use a HELOC home equity loan to finance renovations, but second mortgages require homeowners to already have home equity. CHOICERenovation® can give access to funds without home equity.
| Feature | CHOICERenovation® | HELOC / Home Equity Loan |
|---|---|---|
| Funds Available | At closing | After equity is built |
| Interest Rate | Fixed or adjustable | Fixed or adjustable |
| Mortgage Insurance | If >80% LTV, cancellable | Not required |
| Loan Structure | One loan, one closing | Separate loan or credit line |
| Renovation Limit | Up to 75% of finished value | Limited to equity |
| Credit Score Needed | 620 | Typically 680 |
| DIY Work Allowed | Yes, with limits | Not restricted |
| Payment Reserve Option | Up to 6 months PITI | Not required |
| Use of Funds | Renovation and purchase/refinance | Any purpose |
What To Do If...
I want to finance resiliency upgrades like storm protection or energy efficiency
Freddie Mac does not allow DIY work for resiliency or energy efficiency projects. CHOICERenovation® requires that resliency work be completed by a licensed contractor. Detailed plans and cost estimates must be provided up front. The lender will review your contractor's credentials and may ask for permits or proof of compliance with local building codes.
I have a small project under $35,000
Consider CHOICEReno eXPress®, a streamlined version of CHOICERenovation® with simpler paperwork and faster approvals.
The home will be uninhabitable during renovations
You may finance up to six months of PITI into the loan as a payment reserve, provided the appraised value supports it.
CHOICERenovation®: Good Things To Know
CHOICERenovation® works for all property types
You can CHOICERenovation® this program for primary residences, second homes, and investment properties.
DIY work is welcome
Homeowners can complete their own work on one-unit primary homes, up to 10% of the as-completed value.
Fast, standard closing process
CHOICERenovation® mortgages close just like regular mortgages, typically in 30–45 days.
Resiliency projects are fully supported
Freddie Mac actively encourages storm protection, energy efficiency, and accessibility improvements.
Frequently Asked Questions
What is the maximum renovation amount for a CHOICERenovation® mortgage?
Borrowers can finance renovations up to 75% of the “as-completed” appraised value of the home. Manufactured homes are capped at $50,000 or 50% of the as-completed value.
Can borrowers do the renovation work themselves?
DIY work is allowed on one-unit primary residences, limited to 10% of the as-completed value. All work over $10,000 requires lender oversight and inspections.
How long do I have to complete renovations?
Work must be completed within 12 months of loan closing. Extensions may be granted in certain cases.
What is CHOICEReno eXPress®?
It's a streamlined version of CHOICERenovation® for smaller projects, capped at 10% of the property's value (maximum $35,000 in renovations). It requires less paperwork and a simpler process.
Can CHOICERenovation® be used for resiliency improvements?
Yes. Freddie Mac specifically allows resiliency upgrades such as storm hardening, energy efficiency, and accessibility improvements under this program.
How is CHOICERenovation® different from FHA 203(k)?
CHOICERenovation® is a conventional mortgage with cancellable PMI, broader renovation flexibility, and options for second homes and investment properties. FHA 203(k) is limited to primary residences and requires mortgage insurance for the life of the loan.
