CHOICERenovation® Refinance
Best For: Savvy Investors, Home Renovations
Refinance with funds for home improvements and repairs with this convenient and flexible program for renovations from Freddie Mac.
This loan program is not available in USA
Program Description
Homebuyers can utilize a CHOICERenovation® Loan to refinance their existing mortgage and get funds for renovations and repairs. This conventional loan product from Freddie Mac also allows for renovations on 1-unit second homes and investment properties, and has higher loan limits than programs like the FHA 203(k) renovation loan. It is similar to Fannie Mae's HomeStyle® mortgage.
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CHOICERenovation® Refinance
Min. Credit Score
620
Min. Equity
3%
Max Loan Amount
$766,550
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- As little as 3% equity in the home required to refinance
- Can be used for primary residences, second homes and investment properties
- Can be used for natural disaster recovery
- Cannot be used to demolish and rebuild
- Can only be used for single-unit second homes and investment properties
- Higher loan-to-value requirements for multi-unit primary residencies
Renovation Loan Analysis
Up to 75% of price or value
=
Your Estimated Renovation Fund
Renovation loans allow you to finance the cost of repairs and modifications into your home purchase or refinance. By registering for a free account , you can get a better idea of how much you could finance for renovating a home.
Program Availability
CHOICERenovation® Refinances are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
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An RMM PROLender can help you see if this or a different loan program is the right fit for your unique situation. Get Started.
“While there are many ways to finance repairs and renovation costs, refinancing with a CHOICERenovation Mortgage is an important option to consider."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
No Limits
Income Limit
No Limits
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
Refinancing?
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Key Features
- Provides up to 75% of home's value after improvements towards renovations
- Renovation funds can be used for labor, materials, and soft costs
- Any type of repair is eligible as long as it is permanently affixed
Additional Conditions
- LTV is determined by dividing the original loan amount by the "as-completed" value
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is not required for this loan program.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 3%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
CHOICERenovation® High-Balance Refinance
Best For: Large Loan Amounts, Home Renovations
Refinance above the conforming loan limits with funds for home improvements and repairs with this convenient and flexible renovation loan program.
Conventional Rate-and-Term Refinance
Best For: Flexible Terms, Rate Reduction, Easy Process
Popular refinancing option for loan amounts under the conforming loan limit. Flexible qualification and attractive benefits to qualified homeowners.
Related Resources
Knowing Your Mortgage Insurance Options (Conventional Loan PMI)
PMI is an important part of getting a mortgage, but it can vary in cost. Learn about the different types and what you should consider when budgeting for it here.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
Read More
A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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