CHOICERenovation^® FAQ

Disclaimer

The information on this page is not part of, and is not a replacement or substitute for, the requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents.

What renovation Mortgage offerings are available for sale to Freddie Mac?

Freddie Mac offers three different renovation Mortgage offerings. This table describes some of the features of each offering, subject to requirements in Guide Chapters 4607 and 4602:

CHOICERenovation Mortgages (Guide Chapter 4607)	CHOICERenovation eXPress Mortgages (Guide Chapter 4607)	Renovation Mortgages (Guide Chapter 4602)
Purchase transaction or “no cash-out” refinance Eligible to be secured by Manufactured Home Financing always structured as a single closing with no Interim Construction Financing for renovations Improvements are financed and completed after the closing of the Mortgage Required to be sold with recourse for CHOICERenovation In Progress Mortgages Required prior written approval from Freddie Mac for CHOICERenovation In Progress Mortgages	Purchase transaction or “no cash-out” refinance Eligible to be secured by Manufactured Home Financing always structured as single closing with no Interim Construction Financing for renovations Improvements are financed and completed after the closing of the Mortgage Not required to be sold with recourse Does not require prior written approval from Freddie Mac when Settlement Date is before completion of renovations	Purchase transaction or “no cash-out” refinance Not eligible to be secured by Manufactured Home Financing structured separately for Interim Construction Financing for renovations and Permanent Financing Improvements are completed before conversion to Permanent Financing Not required to be sold with recourse Does not require negotiated provision to sell to Freddie Mac

For CHOICERenovation Mortgages, does the “as-completed” appraised value include the land value?

Yes, the “as-completed” appraised value does include land value.

For CHOICERenovation Mortgages, are properties with a C5 and C6 condition rating eligible for delivery to Freddie Mac?

Yes, if all issues that cause the property to be rated with a C5 or C6 condition rating are cured as part of the completed renovations. The appraisal report must be completed “subject to completion, repairs or alterations” and the reported condition rating must reflect the hypothetical condition that the repairs or alterations have been completed.

Guide Reference: Section 4607.8 and 5605.5(a)(ii)8

Date: 03/27/2025

Does Freddie Mac provide CHOICERenovation sample form templates to assist Sellers with origination of the Mortgage?

Yes, please see the link below to the templates for:

Does Freddie Mac allow ADUs to be included in a renovation project?

Yes, Freddie Mac does allow for the addition or renovation of ADUs.

Can any bifurcation of the selling representation and warranty obligations be considered for Concurrent Transfers of Servicing for CHOICERenovation In Progress Mortgages?

Yes, Concurrent Transfers of Servicing involving CHOICERenovation In Progress Mortgages is allowed for Sellers that have obtained Freddie Mac’s prior written approval.

CHOICERenovation® FAQ

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