Yes. Freddie Mac CHOICERenovation® supports rate-and-term refinance so you can replace your existing mortgage and roll eligible renovations into one new conventional loan — sized on after-improved value with rehab funds held in escrow. Cash-out is not available.
If you already own the home and have equity, Freddie Mac CHOICERenovation® refinance can fund kitchens, systems, additions, pools, and other eligible work without a separate personal loan or waiting to save cash for every phase.
Underwriting still follows conventional refinance rules — credit, income, occupancy, and LTV — plus renovation documentation: contractor bids, after-improved appraisal, LPA Accept, and a 15-month completion timeline.
Ryan and Steve compare Freddie Mac CHOICERenovation® refinance with a rate-and-term refi plus cash, a HELOC, HomeStyle, or FHA options so you are not overpaying for convenience.
Enough after-improved equity remains after paying off the current loan and funding the rehab escrow within LTV limits.
Rolling renovations into the first mortgage keeps payment structure simple when rates and costs justify a full refinance.
Five escrowed draws with 10% holdback fit larger remodels better than informal cash-out spending.
Freddie Mac CHOICERenovation® is rate/term only — if you need cash-out equity, we compare other conventional or DSCR paths.
After-improved max LTV by occupancy. Investment refinance stays at 85% — not the lower cap some programs use.
| Occupancy | Max LTV |
|---|---|
| Primary residence | Up to 97% with Home Possible / 95% standard |
| Second home | 90% |
| Investment property | 85% |
Renovation costs on refinance cannot exceed 75% of as-completed appraised value. Minimum loan amount remains $100,000.
Related Freddie Mac CHOICERenovation® guides and renovation programs to compare before you apply.
Purchase-side Freddie Mac CHOICERenovation® when you are buying a fixer-upper.
Eligible upgrades and the 75% refinance repair cap.
Refinance-and-renovate a vacation or second home.
Investment refinance stays at 85% LTV.
Full overview, LTV tables, and calculator.
Baseline conventional refinance guidelines.
Yes. Freddie Mac CHOICERenovation® supports rate-and-term (no cash-out) refinance to pay off your current mortgage and escrow eligible renovations in one new conventional loan — subject to equity, LTV, LPA Accept, and the 75% renovation cost cap on as-completed value.
No. Freddie Mac CHOICERenovation® refinance is rate-and-term only — renovation costs roll into the new note, but you cannot take cash out beyond allowed refinance and rehab costs.
Yes. Refinance Freddie Mac CHOICERenovation® uses an after-improved appraisal so the lender can size the new loan against projected value — not just today's as-is condition.
A HELOC is a second lien drawn as you spend. Freddie Mac CHOICERenovation® refinance replaces your first mortgage with one note that includes rehab escrow — often cleaner if you want a single payment and structured draws, and if rates and equity make a full refinance sensible.
Ryan & Steve will check equity, the 75% repair cap, and LPA Accept before you lock a Freddie Mac CHOICERenovation® rate/term refi.
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.