Other Freddie Mac renovation loansĪlthough Freddie Mac’s CHOICEReno eXpress is an option for some borrowers, it isn’t an option for everyone.įor instance, this program only allows for small–scale renovations. However, this program doesn’t require occupancy during renovation, and you’re allowed up to 180 days to complete renovations. Typically, owner–occupied mortgages require moving into the property within 60 days of closing. Allowable LTVs are higher for first-time home buyers using the Freddie Mac HomeOne or Freddie Mac Home Possible mortgages
But the program doesn’t allow payment to yourself for labor. The good news, though, is that you’re allowed to complete home improvement projects yourself if you’re a licensed contractor. However, you must provide an estimate from a home improvement store or licensed contractor. And it’s limited to certain types of loans and units.įreddie Mac’s CHOICEReno eXpress differs from construction loans because you’re allowed to advance a contractor or home improvement store 100% of the cost of materials once you receive funds. Keep in mind, though, this program isn’t for newly constructed properties. This streamlined renovation loan program is an alternative to using your personal savings, a credit card, or your home’s equity to finance home projects. So rather than getting separate financing to cover home projects, you can get an all–in–one, single–close loan. But renovations can be costly.įreddie Mac’s CHOICEReno eXpress is designed for small–scale projects, and it works by combining home financing with a renovation loan. And some projects will even increase your home’s value.
#Freddie mac loan programs update#
Home renovations can update a property to your style and liking. What is the CHOICEReno eXpress renovation loan? Like other one–time–close home improvement loans, CHOICEReno eXpress can save time and money for people who want to finance renovations on a new or existing home.Ĭheck your mortgage options. That means just one set of paperwork, one closing, and one set of closing costs. This one–time–close loan funds your mortgage and home improvements all with a single loan. Freddie Mac’s CHOICEReno eXpress program can provide much–needed cash if you’re buying or refinancing a home in need of improvements.