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What is CHOICERenovation – An All-in-One Mortgage Solution?

CHOICERenovation is a mortgage program by Freddie Mac designed to help homeowners finance both the purchase and renovation of a home with a single loan. This program allows you to combine the costs of buying a home and renovating it into a single mortgage. It provides an affordable and flexible solution for buyers looking to purchase fixer-uppers or homeowners who wish to renovate their existing homes.

Who is Eligible?

  • First-time and repeat homebuyers
  • Homeowners looking to refinance and renovate
  • Individuals buying second homes or investment properties


  1. Simplified Financing: Combine the costs of the property and renovations into a single loan.
  2. Lower Interest Rates: Typically offers lower interest rates compared to other types of loans.
  3. Flexible Use of Funds: Renovations can range from simple cosmetic changes to major structural repairs.
  4. Potential for Increased Home Value: Improve the value of the home through renovations.

How Does It Work?

Application Process

  1. Consult a lender who offers CHOICERenovation loans.
  2. Get pre-approved for the loan amount.
  3. Find a home and make an offer.
  4. Work with a contractor to estimate renovation costs.
  5. Finalize the loan details and close on the property.

Renovation Phase

  • Renovation funds are placed in an escrow account.
  • Funds are disbursed as milestones are reached.
  • All renovations must be completed by a licensed contractor.


  • Repayment terms can vary, but they generally follow the structure of a conventional mortgage.
  • Fixed and adjustable-rate options are available.

What Can Be Financed?

  • Interior and Exterior Improvements: Kitchen and bathroom remodels, room additions, etc.
  • Structural Repairs: Foundation repair, roof replacement, etc.
  • Energy-Efficient Improvements: Solar panel installation, window replacement, etc.

Limitations and Restrictions

  • You must work with a qualified lender.
  • There are limits on the loan amount, typically aligned with Freddie Mac’s conforming loan limits.
  • The property must be a one- to four-unit residential property.
  • All renovations must be completed within a certain timeframe.
CHOICERenovation provides a streamlined approach to financing a home and the improvements needed to make it your dream home. By understanding the eligibility criteria, benefits, and application process, you can make an informed decision to see if this mortgage solution is right for you.


CHOICERenovation is a mortgage program offered by Freddie Mac that allows borrowers to finance the cost of home improvements, repairs, and renovations directly into their mortgage loan.

The program covers a wide range of renovations and repairs, including structural alterations, additions, major landscaping, energy efficiency improvements, accessibility improvements, and more. The specific allowable renovations may vary, so it’s important to consult with a loan officer or advisor.

Yes, the CHOICERenovation program can be used for both purchasing a new home and refinancing an existing mortgage.

Borrowers must meet Freddie Mac’s eligibility criteria, which generally includes a good credit score, stable employment history, and a debt-to-income ratio within acceptable limits. The property itself must also meet certain criteria, and the planned renovations must be completed by a licensed contractor.

The loan amount depends on various factors including your creditworthiness, the value of the property, and the cost of the renovations. Loan officers can provide specific information based on your individual situation.

Interest rates for CHOICERenovation loans are generally competitive with other mortgage products, but they can vary based on the borrower’s credit score, loan amount, and other factors. It’s important to shop around and compare rates from different lenders.

Generally, Freddie Mac requires that the renovation work be completed by a licensed and insured contractor. However, there may be some exceptions for minor work or for borrowers with professional expertise in a specific trade.

The specific timeframe for completing renovations will depend on the terms of your loan agreement. Typically, borrowers have up to 12 months to complete the renovation work.

The funds for the renovations are typically held in escrow and disbursed to the contractor in stages as the work is completed and inspected.

If the renovation costs exceed the original estimate, you may be required to pay the additional costs out of pocket. It’s important to work with your contractor to get accurate estimates and build in a contingency buffer for any unforeseen expenses.

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