Freddie Mac CHOICERenovation® Guide

What Home Improvements Can Be Financed With a Freddie Mac CHOICERenovation® Loan?

Freddie Mac CHOICERenovation® funds structural and cosmetic work that adds lasting value — kitchens, baths, roofs, foundations, energy upgrades, accessibility improvements, mold and lead remediation, and even new swimming pools FHA 203(k) excludes.

Get Pre-Approved Freddie Mac CHOICERenovation® Overview

Eligible Repairs & Upgrades

Work must appear in licensed contractor bids and support the after-improved appraisal.

Structural & foundation

Load-bearing repairs, foundation work, framing corrections, and code-related structural fixes.

Roof & exterior

Roofing, siding, windows, doors, and weatherization tied to habitability and value.

Kitchens & bathrooms

Cabinetry, countertops, fixtures, tile, and layout reconfiguration.

Room additions

Square-footage increases when plans, permits, and bids support after-improved value.

Energy improvements

Insulation, high-efficiency systems, and other energy upgrades documented in the scope.

Accessibility & appliances

Ramps, accessibility upgrades, and permanently installed appliances.

Swimming pools

New pools permitted when part of an approved scope — unlike FHA 203(k).

Mold & lead remediation

Remediation required for habitability or appraisal support.

Contingency reserve

10% minimum of repair costs (15% if utilities are off; 20% maximum) for unexpected work.

What Else Can Roll Into the Loan?

Beyond labor and materials, Freddie Mac CHOICERenovation® can finance project soft costs that keep the escrow and timeline intact.

•Architectural and engineering fees
•Third-party construction management
•Five draw inspections plus final 1004D inspection
•Title updates and permit fees
•Draw administration fee (greater of 1.5% of repairs or $500)
•Up to 6 months of PITI when the home is uninhabitable

Repair Cost Caps

Purchase
Renovation costs cannot exceed 75% of the lesser of purchase price plus renovations, or as-completed appraised value.
Refinance
Renovation costs cannot exceed 75% of as-completed appraised value.
Manufactured homes
Lesser of $50,000 or 50% of as-completed appraised value.

There is no minimum renovation amount. Unused contingency is applied to principal; cash-paid contingency may be reimbursed.

What Underwriters Expect

Line-item contractor bids

One general contractor with specialty subs as needed — verbal estimates will not clear underwriting.

After-improved appraisal support

Every major line item should help the appraiser value the finished home.

Plans and permits when required

Structural work, additions, and major systems often need permit documentation before closing.

15-month completion window

Renovations must finish within 15 months after closing, with five draws plus a final 1004D.

Keep Exploring

Related Freddie Mac CHOICERenovation® guides and renovation programs to compare before you apply.

Buy and Renovate

How purchase price and improvements combine in one closing.

Freddie Mac CHOICERenovation® Refinance

Roll renovations into a rate/term refinance instead.

Eligible Properties

Which homes can carry a Freddie Mac CHOICERenovation® scope.

What Is Freddie Mac CHOICERenovation®?

How the Freddie Mac renovation mortgage works.

Freddie Mac CHOICERenovation® Program Hub

Full overview, repair limits, and calculator.

Renovation Loans

Compare Freddie Mac CHOICERenovation® with HomeStyle and FHA 203(k).

Frequently Asked Questions

Can Freddie Mac CHOICERenovation® finance a new swimming pool?

Yes. New swimming pools are permitted when they are part of an approved scope and supported by after-improved value — a key difference from FHA 203(k), which does not allow new pools.

Are kitchen and bathroom remodels allowed?

Yes. Full kitchen and bath remodels — cabinets, countertops, fixtures, tile, and layout changes — typically qualify when documented in contractor bids and tied to lasting value.

Can I finance accessibility improvements?

Yes. Accessibility upgrades such as ramps, wider doorways, and related appliances can roll into Freddie Mac CHOICERenovation® when they appear in the approved scope of work.

What about mold or lead paint remediation?

Yes. Mold remediation and lead paint remediation are eligible repairs when priced in licensed contractor bids and required for habitability or after-improved appraisal support.

Want Your Scope Checked Against Freddie Mac CHOICERenovation®?

Ryan & Steve will review your contractor bids and after-improved value before you write a rehab-heavy offer.

Get Pre-Approved Back to Freddie Mac CHOICERenovation®

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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