Yes. Freddie Mac CHOICERenovation® can finance purchase or rate/term refinance renovations on a 1-unit second home when conventional second-home occupancy, down payment, reserves, LPA Accept, and after-improved LTV guidelines are met — something FHA 203(k) cannot do.
Lake houses, condos near family, and future retirement homes often need roofs, kitchens, HVAC, or cosmetic updates before you can enjoy them. Freddie Mac CHOICERenovation® folds those eligible upgrades into one conventional loan instead of paying cash after closing.
Occupancy is the gatekeeper: the property must be for your personal use part of the year — not a full-time rental marketed to tenants. Mislabeling investment use as second home is a common underwriting failure.
Ryan and Steve size after-improved LTV, dual-housing reserves, and contractor bids so the second-home remodel clears Freddie Mac CHOICERenovation® guidelines before you go under contract.
You will occupy the home periodically. It is not listed as a long-term rental or marketed as an investment at closing.
Income and DTI must support your primary mortgage plus the second-home Freddie Mac CHOICERenovation® payment after closing.
Expect a larger down payment than primary Freddie Mac CHOICERenovation® and stronger reserve documentation.
One general contractor, escrow draws, LPA Accept, and a 15-month completion window still apply — second-home status does not relax contractor rules.
| Feature | Freddie Mac CHOICERenovation® | FHA 203(k) |
|---|---|---|
| Second home | Allowed at 90% LTV | Primary residence only |
| Swimming pools | New pools permitted | New pools not permitted |
| Mortgage insurance | PMI — cancellable | MIP — often longer term |
| Underwriting | LPA Accept | FHA guidelines |
Related Freddie Mac CHOICERenovation® guides and renovation programs to compare before you apply.
When the property is income-producing instead of personal use.
Cash-to-close by occupancy type.
Purchase-plus-rehab steps for a second home.
Eligible upgrades for a vacation or second home remodel.
Baseline second-home occupancy rules.
Full program overview and guide directory.
If you plan to list the property as a short-term rental or long-term investment at closing, lenders usually treat it as investment occupancy — not second home. Occasional personal use with rare guest stays may still qualify as second home when guidelines are met; Ryan and Steve clarify intent before you apply.
Second homes allow up to 90% LTV on purchase and rate/term refinance — typically 10% down on after-improved value. Rehab cost is included in the loan amount, so cash-to-close is based on the combined purchase-plus-renovation amount.
Yes. Second-home underwriting usually requires cash reserves covering payments on both your primary mortgage and the second-home Freddie Mac CHOICERenovation® loan after closing.
Often yes, when equity, credit, occupancy, LPA Accept, and renovation scope meet guidelines. The after-improved appraisal must support payoff plus rehab escrow, and renovations cannot exceed 75% of as-completed value.
Ryan & Steve will confirm occupancy, 90% LTV, and dual-housing reserves before you lock Freddie Mac CHOICERenovation® on a vacation or future retirement home.
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.