Eligible Home Possible borrowers can put as little as 3% down on purchase and no-cash-out (rate/term) refinance — 97% LTV against after-improved value on a primary residence, with standard mortgage insurance above 80% LTV and Home Possible income limits applying.
Home Possible Freddie Mac CHOICERenovation® caps LTV at 97% for eligible borrowers on both purchase and no-cash-out refinance. Your down payment (or equity on refi) is calculated against the total loan amount — acquisition cost plus eligible renovation escrow — relative to after-improved appraised value.
You may put more than 3% down when it improves pricing or DTI, but the program's affordability hook is the low minimum for income-qualified primary buyers who meet Home Possible AMI limits.
Renovation contingency (minimum 10%, or 15% if utilities are off) and draw administration fees typically roll into the rehab escrow — not paid separately as out-of-pocket renovation cash at closing.
Renovation dollars go into escrow at closing — you are not wiring the full rehab budget to the contractor on day one.
Minimum 3% on purchase to reach 97% LTV against after-improved value — or more if you choose.
Lender fees, title, recording, and prepaid taxes/insurance due at closing.
Post-closing liquid assets when LPA or lender overlays require them.
Eligible gift money and down payment assistance can offset cash-to-close when documented correctly.
| Item | Home Possible Freddie Mac CHOICERenovation® | FHA 203(k) |
|---|---|---|
| Minimum down | 3% | 3.5% |
| Income limits | AMI caps apply | None |
| Rehab escrow at closing | Financed in loan | Financed in loan |
| Mortgage insurance | Standard PMI | Upfront + annual MIP |
Related Home Possible Freddie Mac CHOICERenovation® guides and sister programs.
AMI cap for Home Possible eligibility.
Score tiers that affect pricing at 97% LTV.
Full qualification pillars for this combo.
Standalone Home Possible 3% down guidance.
How Home Possible gift money must be documented.
Calculator and full program guidelines.
Your equity requirement applies to the total loan structure — acquisition plus eligible renovations — against after-improved value. Plan cash for the combined amount, not just the listing price.
Yes, when conventional Home Possible gift rules are met — typically from an eligible donor with a gift letter and documented transfer. This applies to down payment and closing costs on primary residences.
Often yes. Closing costs, prepaid items, and post-closing reserves sit outside the down payment. Renovation contingency (10%/15%) is usually inside the loan escrow, not extra cash you bring — unless LTV or appraisal forces it.
Home Possible Freddie Mac CHOICERenovation® allows 3% down (97% LTV) vs. 3.5% on FHA — but AMI limits, credit, and PMI vs. MIP decide which is cheaper overall. FHA has no income cap.
Ryan & Steve model cash-to-close with rehab escrow, gift funds, and DPA on your actual fixer-upper scenario.
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.