CHOICEReno eXPress^® FAQ

CHOICEReno eXPress^® is a new streamlined renovation mortgage option intended for borrowers looking to finance relatively small-scale renovations. CHOICEReno eXPress is part of our CHOICE suite of mortgage solutions and is an expansion of the CHOICERenovation^® offering that provides more financing flexibilities for lenders and borrowers. This mortgage solution enables Sellers to deliver CHOICEReno eXPress mortgages to Freddie Mac prior to completion of the renovations without recourse, provided certain requirements are met.

CHOICEReno eXPress allows homebuyers to include renovation costs in the mortgage financing to assist in addressing the aging housing supply, the need for affordable housing and the increasing demand for aging-in-place housing solutions. It enables Sellers to sell CHOICEReno eXPress mortgages to Freddie Mac prior to completion of the renovations without recourse, provided certain requirements are met – giving them additional flexibility.

CHOICEReno eXPress allows homebuyers to include renovation costs in the mortgage financing to assist in addressing the aging housing supply, the need for affordable housing and the increasing demand for aging-in-place housing solutions. It enables Sellers to sell CHOICEReno eXPress mortgages to Freddie Mac prior to completion of the renovations without recourse, provided certain requirements are met – giving them additional flexibility.

Yes. Freddie Mac is committed to offering a variety of solutions and continues to offer the current construction conversion and renovation mortgage offerings.

Sellers do not need to obtain prior written approval to deliver CHOICEReno eXPress mortgages. However, if the requirements outlined in Guide Section 4607.1 (c) will not be met (e.g., all renovations must be completed within 180 days of the note date), renovations not completed by the settlement date must be financed with CHOICERenovation mortgages as described in Section 4607.1(b).

Renovations purchased from a home improvement store pursuant to Section 4607.10(c) may apply to CHOICEReno eXPress, in addition to the other options under the CHOICERenovation offering.

If the Borrower chooses a home improvement store to have renovation work completed and the home improvement store’s renovation program requires payment-in-full at the point of purchase, renovations may be purchased from the home improvement store, provided the requirements in Section 4607.10(c) are met. These requirements include the Seller’s review of the home improvement store’s renovation program.

If the requirements in Section 4607.10(c) are met:

• Up to 100% of the cost of materials may be advanced to the home improvement store, and
• Up to 100% of the renovation costs identified in the renovation contract (including labor costs) may be paid to a home improvement store at closing in lieu of such funds being deposited into the completion escrow account or Custodial Account for Renovation Funds (as described in Sections 4607.11 and 4607.12), as applicable

Refer to Section 4607.6(a) for eligible uses of mortgage proceeds, such as adding or renovating an ADU, including a manufactured home ADU.

Sellers must enter the valid value of:

• Loan Program Identifier CHOICEReno EXpress, or
• Loan Program Identifier CHOICEReno EXpress DTS Area for mortgages located in designated Duty to Serve high-needs areas