Freddie Mac Launches New “Fixer-Upper” Mortgage

Freddie Mac has announced a new loan product that allows borrowers to combine home improvement costs with a mortgage or refinance loan. 

CHOICERenovation is intended to address the need for more efficient ways to finance home improvements to solve for today’s aging housing stock. It allows lenders to deliver loans to Freddie Mac where the borrower uses the loan proceeds to pay for the renovations.

In addition, the product allows funds to be used to repair damage caused by a natural disaster and to prevent future disaster damage, such as covering the cost of storm surge barriers, foundation retrofitting or retaining walls.

Approved lenders who choose to provide CHOICERenovation mortgages to Freddie Mac may do so before or after the renovations on the property are complete. However, if the loan is being submitted prior to the completion, written approval must be received from Freddie Mac.