How Freddie Mac CHOICERenovation® renovation funds are distributed — five draws plus final 1004D, 10% holdback, 50% material advance, and contingency reserves.
How Freddie Mac CHOICERenovation® Funds Are Distributed | The 2 Mortgage Guys
How Freddie Mac CHOICERenovation® renovation funds are distributed — five draws plus final 1004D, 10% holdback, 50% material advance, and contingency reserves.
How Are Renovation Funds Distributed During the Project?
How Escrow Draws Work
Why Draws Protect Everyone
At a Glance
What Else Can Sit in Escrow
Keep Exploring
Frequently Asked Questions
Want a Clear Draw Calendar Before You Close?
Freddie Mac CHOICERenovation® rehab dollars sit in escrow after closing and release to contractors across five draws plus a final 1004D inspection — with a 10% holdback, up to 50% material advance on the initial draw, and contingency reserves that protect the project.
Four stages from closing to final inspection — payments follow verified progress.
Paying contractors only after verified progress reduces the risk of unfinished work, abandoned jobs, or funds diverted to unrelated expenses. It also keeps the after-improved appraisal honest — the lender financed a specific finished condition.
Expect holdbacks on incomplete items and documentation that matches invoices to the original bid. Change orders need lender approval before extra dollars leave escrow.
Ryan and Steve walk you through the draw calendar — five draws plus final 1004D, 10% holdback, up to 50% material advance, and a 15-month completion window — so contractors, inspectors, and your deadline stay aligned.
Related guides for contractors, DIY limits, and what soft costs roll into the escrow.
Ryan & Steve will map five draws, holdbacks, contingency, and your 15-month completion window around your contractor’s schedule.
Freddie Mac CHOICERenovation® 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.
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