CHOICEReno eXPress® Mortgage
CHOICEReno eXPress® mortgage, an expansion of the Freddie Mac CHOICERenovation® mortgage, is a new streamlined renovation mortgage that enables you to offer an additional financing option for borrowers who are looking to finance smaller-scale home renovations. Lenders can sell a CHOICEReno eXPress mortgage to Freddie Mac prior to completion of the renovations without recourse, provided:
Sellers rep and warrant that the renovations are completed within 180 days of the note date, and
- For CHOICEReno eXPress mortgages located in designated Duty to Serve high-needs areas, the total cost of the financed renovations should not exceed 15% of the value for purchase transactions and “no cash-out” refinance mortgages.
- For CHOICEReno eXPress mortgages not in Duty to Serve high-needs areas, the total cost of the financed renovations should not exceed 10% of the value for purchase transactions and “no cash-out” refinance mortgages.
With CHOICEReno eXPress, you can offer a wide range of borrowers the ability to finance home repairs and help them attain and maintain affordable and sustainable homeownership.
Who is CHOICEReno eXPress for?
- Borrowers looking to finance relatively small-scale renovations
- Homeowners who need financing to make home improvements or repairs to their existing properties or a home they intend to purchase.
- Homeowners and borrowers who want to use the mortgage proceeds to pay for the renovations
Important Notice
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.
CHOICEReno eXPress® – Our Solution for Small-Scale Home Renovations
Product Features
- Eligible Mortgage ProductsFixed rate and adjustable rate mortgages
- Fixed-rate and adjustable-rate mortgages
- Freddie Mac Home Possible® mortgages
- Freddie Mac HomeOne® mortgages
- Freddie Mac HFA Advantage® mortgages
- Super conforming mortgages
- Delivery Requirements
- Final inspection (442)
- Delivered with IFI codes
- Proof of first lien position
- Property Type/Eligible Properties
-
1-4-unit primary residence
- Manufactured homes, including manufactured homes that are certified CHOICEHome® (if permitted under the seller’s purchase documents)
- 1-unit second homes
- 1-unit investment property
- Units located in planned unit developments (PUDs), condominiums, cooperatives (if permitted under the seller’s purchase documents) or leasehold estates are acceptable
-
- Maximum LTV Ratios
- (FRM/ARM), First-Time Homebuyers Program (FTHB) if >95% HomeOne only; 97% Home Possible® only
- 2-unit primary: 85% (FRM/ARM)
- 3- and 4-unit primary: 80% (FRM/ARM)
- 1-unit second home: 90% (FRM/ARM)
- 1-unit investment properties: 85% (FRM, 7/1, 10/1, 7/6-Month and, 10/6-Month ARMs)
- Manufactured home 95%/95%
- TLTV to 105% with Affordable Seconds (only with Home Possible and HomeOne)
- Eligibility/Underwriting
- Limited to Loan Product Advisor® (LPA℠) only
- Transaction Type
- Purchase
- No cash-out refinance (NCOR)
Resources
Resources for Borrowers
Reaching and educating borrowers – and helping them find the right mortgage – is essential for your business. Freddie Mac provides an array of materials you can share with your clients and business prospects.