Home Possible + Freddie Mac CHOICERenovation® · Primary Residence Rehab

Home Possible® Freddie Mac CHOICERenovation®

One conventional mortgage that pairs Home Possible's 3% down with Freddie Mac CHOICERenovation® rehab financing — purchase or no-cash-out refinance your primary home and roll renovations into a single note sized on after-improved value.

3% down · 97% LTV
Primary residence only
LPA Accept only

Purpose

A conventional renovation loan combining Freddie Mac Home Possible® (low down payment affordable housing) with Freddie Mac CHOICERenovation®. Eligible low-to-moderate income borrowers purchase or refinance a primary residence and finance renovations into one mortgage while benefiting from Home Possible's 3% down payment options.

Loan Product Advisor must return Accept — manual underwriting is not permitted. Second homes and investment properties are not eligible under Home Possible.

At a Glance

Eligible Transactions & Occupancy

Eligible transactions

  • Purchase — Buy a fixer-upper and finance rehab in one closing.
  • No cash-out (rate/term) refinance — Refinance your existing mortgage and roll renovation costs into the new note.

Occupancy

Eligible only for primary residence occupancy. Home Possible is not available for second homes or investment properties — even when paired with Freddie Mac CHOICERenovation®.

Eligible Property Types

Home Possible and Freddie Mac CHOICERenovation® property eligibility rules apply.

Credit & Loan Size

Credit & underwriting

  • Loan Product Advisor (LPA) Accept required
  • Manual underwriting is not permitted

Loan amount limits

  • Minimum: $100,000
  • Maximum: Per FHFA conforming loan limits

Maximum LTV & Mortgage Insurance

LTV for eligible Home Possible borrowers

  • Purchase: Up to 97% LTV (3% down) for eligible 1-unit owner-occupied borrowers
  • No-cash-out refinance: Up to 97% LTV for eligible Home Possible borrowers

Mortgage insurance

Required when LTV exceeds 80%. Standard conventional mortgage insurance through Freddie Mac applies. Reduced mortgage insurance coverage is not permitted under the Freddie Mac CHOICERenovation® program — even when paired with Home Possible.

Repair Limits & Contingency

Purchase

Renovation costs cannot exceed 75% of the lesser of purchase price plus renovation costs, or as-completed appraised value. No minimum renovation amount.

Manufactured homes

Maximum renovation costs equal the lesser of $50,000 or 50% of the as-completed appraised value.

Contingency reserve

Required minimum 10%; 15% if utilities are off or not functioning. Maximum 20% contingency reserve. Unused contingency funds are applied to principal and may be reimbursed if originally funded by the borrower.

What Can Be Financed?

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Eligible Repairs

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Consultant, Contractors & Draws

Consultant required only in Alaska, California, Hawaii, and New York. Otherwise, not required by the matrix.

One general contractor manages the project; specialty contractors permitted as needed.

Draw schedule

  • • Five draws plus final inspection (1004D)
  • • 10% holdback per draw
  • • Up to 50% of material costs advanced before construction begins
  • • 15-month draw period after closing

Eligible Loan Products

Additional Home Possible Benefits

When paired with Freddie Mac CHOICERenovation®, eligible Home Possible borrowers may receive:

Best Uses

Home Possible Freddie Mac CHOICERenovation® only

Home Possible Freddie Mac CHOICERenovation® Calculator

Locked to primary-residence Home Possible rules — 97% LTV, 3% down alerts, $100,000 minimum loan, 75%/50% repair caps, contingency, draw admin, consultant toggle, and financed PITI reserve.

Program locked on this page

  • • Primary residence · Home Possible on
  • • 97% LTV max · 3% down minimum
  • • $100,000 minimum loan amount
  • • 5 draws + final 1004D · 10% holdback
  • • 15-month completion window
  • • Consultant only in AK, CA, HI, NY
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Property tax${monthlyTax.toLocaleString()}
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Total loan amount${totalLoan.toLocaleString()}
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This calculator is for informational purposes only. Results are estimates and are not exact — they do not include all closing costs, prepaid interest, or escrow deposits. Contact us for a personalized quote.

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.

Mortgage Knowledge Center

Common Home Possible® Freddie Mac CHOICERenovation® Questions

Deep-dive guides on eligibility, 3% down, income limits, credit, improvements, contractors, fund draws, HomeReady HomeStyle comparison, and more — all for primary-residence buyers pairing Home Possible with Freddie Mac CHOICERenovation®.

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Ready to buy and renovate with 3% down?

Ryan and Steve will confirm your Home Possible AMI eligibility, size the rehab escrow, and compare this path with standard Freddie Mac CHOICERenovation®, HomeReady HomeStyle, and FHA 203(k) before you write an offer.

(765) 450-8933 Get Started