Yes — purchase-and-renovate is a core Freddie Mac CHOICERenovation® use case. One conventional closing covers the acquisition and eligible improvements, with rehab dollars held in escrow and released across five draws plus a final 1004D inspection.
Four steps from offer to finished remodel — without a separate construction loan.
01
List repairs and upgrades, then get one general contractor bid (with specialty subs as needed) that matches what the appraiser will value after completion.
02
Write the offer with Freddie Mac CHOICERenovation® financing. Ryan and Steve underwrite LPA Accept, credit, income, and LTV against after-improved value.
03
You close on the purchase. Renovation funds sit in escrow — not as a lump-sum check for you to manage alone.
04
Five draws plus final 1004D. Contractors are paid as inspections confirm progress; work must finish within 15 months.
Paying cash for a fixer-upper and financing repairs later often means two sets of costs, delayed work, and rate risk. Freddie Mac CHOICERenovation® folds eligible renovations into the first mortgage so you start with one payment and a clear draw schedule.
Detailed contractor bids
Line-item scopes from a licensed, insured general contractor — not verbal estimates.
After-improved appraisal plan
The appraiser needs enough detail to value the finished home.
Repair cost within 75% cap
Purchase renovations cannot exceed 75% of the lesser of purchase-plus-rehab or as-completed value.
LPA Accept underwriting
Manual underwriting is not permitted — Loan Product Advisor must return Accept.
Minimum loan amount
Freddie Mac CHOICERenovation® requires a $100,000 minimum loan amount.
After-improved loan-to-value limits by occupancy — cash-to-close is based on purchase plus renovations, not purchase price alone.
| Occupancy | Max LTV | Typical down |
|---|---|---|
| Primary (Home Possible) | 97% | 3% |
| Primary (standard) | 95% | 5% |
| Second home | 90% | 10% |
| Investment | 85% | 15% |
Related Freddie Mac CHOICERenovation® guides and renovation programs to compare before you apply.
Eligible repairs, soft costs, and repair caps.
Already own? Roll renovations into a rate/term refi.
Cash required when you buy and renovate together.
Property types that can carry purchase-plus-rehab.
Full overview, LTV tables, and calculator.
Cross-program purchase-plus-rehab overview.
Yes. Freddie Mac CHOICERenovation® closes like a conventional mortgage — you take title, renovation funds sit in escrow, and the general contractor is paid as work passes inspection. You do not wait to close until the remodel is finished.
It depends on the scope. If the home is uninhabitable, Freddie Mac CHOICERenovation® may finance up to 6 months of PITI. Temporary housing costs outside that PITI allowance are usually your responsibility.
If purchase price plus renovations exceed LTV limits on after-improved value, you may need a lower offer, a smaller scope, more down payment, or a different program. Ryan and Steve stress-test this before you go under contract.
Yes. Freddie Mac CHOICERenovation® is one conventional closing with a rehab escrow on an existing dwelling — not a ground-up construction-to-permanent two-step process.
Ryan & Steve will size purchase-plus-rehab against Freddie Mac CHOICERenovation® LTV, repair caps, and LPA Accept before you write the offer.
Freddie Mac CHOICERenovation® is a registered trademark of Freddie Mac. Home Possible is a registered trademark of Freddie Mac. All loans are subject to credit and property approval. Program guidelines, LTV limits, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by Freddie Mac, Fannie Mae, HUD, or any government agency. Information is for educational purposes only and is not a commitment to lend.