A new loan product from Freddie Mac – CHOICERenovation – allows borrowers to combine home improvement costs with a mortgage or refinance loan.
“We realized that there’s a significant amount of aging housing stock and a severe lack of affordable housing,” said Kelly Marrocco, credit policy director at Freddie Mac. “This loan program provides people with the opportunity to buy or refinance older properties and include the cost of repairs in their loan.”
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.
The loan product is available now for all approved lenders. Credit unions can learn more about the product, eligibility requirements and its terms here.
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