Primary Freddie Mac CHOICERenovation® purchases can allow as little as 3% down with Home Possible on a 1-unit primary — 5% standard — while 2-unit, 3–4 unit, second home, and investment properties require more equity against after-improved value.
Cash required on purchase — minimums are educational; credit, LTV, property type, and lender overlays can raise cash required.
| Scenario | Max LTV | Min down |
|---|---|---|
| Primary — Home Possible eligible (1-unit) | 97% | 3% |
| Primary — standard 1-unit owner-occupied | 95% | 5% |
| Primary — 2-unit owner-occupied | 85% | 15% |
| Primary — 3–4 unit owner-occupied | 80% | 20% |
| Second home (1-unit) | 90% | 10% |
| Investment property (1-unit) | 85% | 15% |
| Rate/term refinance | Per occupancy LTV | Equity must meet LTV |
Renovation funds typically go into escrow at closing — you are not wiring the full rehab budget as a separate check to the contractor on day one. Your bring-to-close cash is mainly equity, closing costs, and any reserves required after closing.
When you qualify for Freddie Mac Home Possible®, Freddie Mac CHOICERenovation® can be paired for eligible 1-unit primary purchases at up to 97% LTV — the lowest cash-in option on the program.
On rate/term refinance, there is no purchase down payment — but your existing equity must support the combined loan amount against after-improved value within LTV limits. Investment refinance stays at 85% LTV, same as purchase.
On primary Freddie Mac CHOICERenovation® loans under 20% equity, conventional PMI applies. Unlike FHA MIP, PMI can often be canceled once you reach the required equity milestones through paydown or appreciation after renovations complete.
Related Freddie Mac CHOICERenovation® guides and renovation programs to compare before you apply.
Full qualification pillars including LTV and reserves.
Score tiers that affect pricing and overlays.
How occupancy and unit count change cash required.
Baseline conventional cash-to-close options.
3% down pairing for eligible primary purchases.
Full program overview, calculator, and LTV tables.
Your equity requirement applies to the total Freddie Mac CHOICERenovation® loan structure — acquisition plus eligible renovations — against after-improved value. Plan cash for the combined amount, not just the listing price.
Yes, when conventional gift rules are met — typically from an eligible donor with a gift letter and documented transfer. Gift rules tighten on investment properties.
Often yes. Closing costs, prepaid items, and post-closing reserves (especially on second homes and investments) sit outside the down payment. Renovation contingency is usually inside the loan escrow, not extra cash you bring — unless the appraisal or LTV forces it.
Rate/term refinance has no purchase down payment, but your existing equity must meet LTV limits against after-improved value. You may need to bring cash if the combined loan exceeds the maximum LTV for your occupancy type.
Use the Freddie Mac CHOICERenovation® calculator on the program hub or talk with Ryan & Steve for a scenario matched to your property and occupancy.
Freddie Mac CHOICERenovation® and Home Possible are registered trademarks 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.