Yes. That is the core purpose of Home Possible® Freddie Mac CHOICERenovation® — purchase (or no-cash-out refinance) a primary residence and finance eligible renovations into one conventional mortgage, with up to 97% LTV and Home Possible affordable-housing benefits for qualifying borrowers.
Instead of buying with a standard mortgage and financing repairs later with a HELOC or cash, Home Possible Freddie Mac CHOICERenovation® rolls purchase price and renovation costs into a single note sized on the as-completed (after-improved) value — while keeping Home Possible's 3% down and affordable-housing features.
Eligible transactions are purchase and no-cash-out (rate/term) refinance. Occupancy is primary residence only. Underwriting requires Loan Product Advisor Accept — manual underwriting is not permitted. Minimum loan amount is $100,000; maximum follows FHFA conforming limits.
Ryan and Steve coordinate the contractor bid, contingency reserve, and after-improved appraisal so your offer on a fixer-upper closes as one clean file at Luminate Bank.
From offer to final draw — what happens at each stage.
Confirm Home Possible AMI eligibility (or underserved-area exception), credit path to LPA Accept, and 3% down cash-to-close before you shop distressed listings.
Lock a contractor bid, size contingency (10%/15%), and order the as-completed appraisal so purchase plus rehab fit the 75%/50% repair caps.
One mortgage funds at closing. Renovation dollars sit in escrow — not in your checking account — until draws are approved.
Five draws plus final 1004D, 10% holdback per draw, up to 50% materials advance. Finish within 15 months; unused contingency applies to principal (or reimburses cash-funded reserves).
| Feature | Home Possible Freddie Mac CHOICERenovation® | Buy now, remodel later |
|---|---|---|
| Closings | One mortgage | Purchase + later HELOC/cash |
| Sizing | After-improved value | As-is purchase only |
| Down payment | As low as 3% | Depends on first mortgage |
| Rehab funding | Escrowed draws | Cash or second lien later |
| AMI limits | Apply | Only if using Home Possible |
Related Home Possible Freddie Mac CHOICERenovation® guides and sister purchase-plus-rehab paths.
Scope of work, repair caps, and escrow line items.
1-unit primary, doublewide manufactured, PUD, and condo rules.
3% down on purchase-plus-rehab for eligible borrowers.
Standard Freddie Mac CHOICERenovation® purchase-plus-rehab path.
Compare FHA purchase-plus-rehab timing and MIP.
Full guidelines, calculator, and all 20 guides.
Yes. Home Possible® Freddie Mac CHOICERenovation® lets eligible borrowers purchase a primary residence and finance renovations into a single conventional mortgage sized on after-improved value, with as little as 3% down when AMI and LPA Accept requirements are met.
Yes. No-cash-out (rate/term) refinance with renovation escrow is eligible — still primary residence only, up to 97% LTV for qualifying Home Possible borrowers.
After closing, funds are held in renovation escrow and released through draws as work is completed and inspected. Completions must finish within 15 months after closing.
The after-improved (as-completed) appraisal is central — it supports both the purchase price and the renovation budget so one loan covers both.
Ryan & Steve confirm AMI eligibility, size the rehab escrow, and coordinate after-improved appraisal timing at Luminate Bank.
Home Possible and Freddie Mac CHOICERenovation® are registered trademarks of Freddie Mac. All loans are subject to credit and property approval. Program guidelines, income limits, 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.