You choose the contractor(s). Home Possible® Freddie Mac CHOICERenovation® requires one general contractor (specialty trades as needed). The lender verifies licensing, insurance, and line-item bids — a renovation consultant is required only in Alaska, California, Hawaii, and New York.
Home Possible Freddie Mac CHOICERenovation® does not assign a contractor for you. Collect bids from licensed, insured pros whose scopes match the renovations you want financed on a 1-unit primary residence. The lender then confirms credentials and that costs stay inside the 75% purchase repair cap (or lesser of $50,000 / 50% for manufactured homes).
Unlike FHA Standard 203(k), there is no HUD consultant in most states. One GC coordinates the project, with specialty subs as needed — plans, permits, 10%/15% contingency, and the five-draw schedule still apply.
Ryan and Steve review bid packages early so weak insurance, vague line items, or unlicensed vendors do not stall LPA Accept underwriting after you are under contract.
Four items that keep Home Possible Freddie Mac CHOICERenovation® draws and appraisals moving.
State or local licensing appropriate to the work — roofing, electrical, general contractor, etc.
Insurance certificates that meet lender overlays and cover the project period.
Materials and labor broken out so appraisers and inspectors can match progress to the five draws.
Completion estimate that fits the Freddie Mac CHOICERenovation® window, plus contingency (10% min / 15% if utilities off).
| Topic | Home Possible Freddie Mac CHOICERenovation® | FHA Standard 203(k) |
|---|---|---|
| Who picks GC | Borrower | Borrower (consultant-managed) |
| Consultant | AK / CA / HI / NY only | HUD consultant required |
| Contractor count | One GC + specialty as needed | Per consultant write-up |
| Pools allowed | Yes | No |
Draws, DIY rules, and document checklists for this program.
Why financed escrow cannot be DIY labor.
Five draws, 10% holdback, and 1004D final.
Eligible repairs, pools, and escrow line items.
Standard Freddie Mac CHOICERenovation® contractor approval guide.
Bid packages, insurance, and income docs.
Full guidelines, calculator, and all 20 guides.
You select the contractor(s). The lender reviews licensing, insurance, and line-item bids. They do not typically assign a GC, but they can reject a package that fails guidelines.
Only in Alaska, California, Hawaii, and New York. Elsewhere the matrix does not require a consultant — you still need one general contractor, specialty trades as needed, and draw inspections.
Yes. The program calls for one general contractor, with specialty contractors permitted as needed. Combined bids must match the after-improved appraisal plan and repair caps.
Financed escrow work needs licensed, insured contractors. Switch vendors or move that item outside the loan as personal cash work — Ryan and Steve flag this early on Home Possible Freddie Mac CHOICERenovation® files.
Ryan & Steve review Home Possible Freddie Mac CHOICERenovation® bids, insurance, and draw-ready scopes 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.