Freddie Mac Single-Family Seller/Servicer Guide 4607.7 — Maximum financed renovation costs for CHOICERenovation® Mortgages

Freddie Mac Single-Family Seller/Servicer Guide 4607.7 — Maximum financed renovation costs for CHOICERenovation® Mortgages

Effective 2024-10-02 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Maximum renovation costs overview ■ Purchase transactions ■ Refinance Mortgages ■ Manufactured Homes (a) Maximum renovation costs overview The maximum financed renovation costs for CHOICERenovation® Mortgages are outlined below based on the Mortgage purpose. Mortgages secured by properties with Manufactured Home ADUs will be subject to the maximum financed renovation costs described in either Section 4607.7(b) for purchase transactions or Section 4607.7(c) for “no cash-out” refinance Mortgages, as applicable. (b) Purchase transactions The table below lists the maximum financed renovation costs for purchase transaction Mortgages secured by Mortgaged Premises that are not Manufactured Homes: Maximum financed renovation costs for purchase transaction Mortgages excluding Manufactured Homes For… The total cost of the financed renovations must not exceed… Of the lesser of the… CHOICERenovation Mortgages delivered pursuant to Sections 4607.1(a) and 4607.1(b) 75% ■ Sum of the purchase price of the property plus the estimated total of the renovation costs, or ■ “As completed” value of the property as determined by the appraiser pursuant to the appraisal requirements in Section 4607.8 CHOICEReno eXPress® Mortgages located in designated Duty to Serve high-needs areas (refer to Exhibit 40, Duty to Serve High-Needs Areas) 15% CHOICEReno eXPress Mortgages not in Duty to Serve high-needs areas 10% (c) Refinance Mortgages The table below lists the maximum financed renovation costs for “no cash-out” refinance Mortgages secured by Mortgaged Premises that are not Manufactured Homes: Maximum financed renovation costs for refinance Mortgages excluding Manufactured Homes For… The total cost of the financed renovations must not exceed… Of the… CHOICERenovation Mortgages delivered pursuant to Sections 4607.1(a) and 4607.1(b) 75% “As completed” value of the property as determined by the appraiser pursuant to the appraisal requirements in Section 4607.8 CHOICEReno eXPress Mortgages located in designated Duty to Serve high-needs areas 15% Maximum financed renovation costs for refinance Mortgages excluding Manufactured Homes For… The total cost of the financed renovations must not exceed… Of the… CHOICEReno eXPress Mortgages not in Duty to Serve high-needs areas 10% (d) Manufactured Homes The table below lists the maximum financed renovation costs for purchase transaction and “no cash-out” refinance Mortgages secured by Manufactured Homes: Maximum financed renovation costs for Manufactured Homes For… The total cost of the financed renovations must not exceed the lesser of $50,000 or… Of the… CHOICERenovation Mortgages delivered pursuant to Sections 4607.1(a) and 4607.1(b) 50% “As completed” value of the property as determined by the appraiser pursuant to the appraisal requirements in Section 4607.8 CHOICEReno eXPress Mortgages located in designated Duty to Serve high-needs areas 15% CHOICEReno eXPress Mortgages not in Duty to Serve high-needs areas 10% Note: Mortgages secured by properties with Manufactured Home ADUs will be subject to the maximum financed renovation costs described in Section 4607.7(a) for purchase transactions, or Section 4607.7(b) for “no cash-out” refinance Mortgages, as applicable above.

Source: Freddie Mac Single-Family Seller/Servicer Guide 4607.7 — Maximum financed renovation costs for CHOICERenovation® Mortgages · source URL · snapshot e399c3dcaab28da0

Freddie Mac Single-Family Seller/Servicer Guide 4607.7 — Maximum financed eligible renovation costs for CHOICERenovation® Mortgages — PENDING VERSION, takes effect 2027-01-25

Not yet in force. This is the pending version of the section, which takes effect 2027-01-25. The other version on this page governs until then.

Effective 2027-01-25 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Mortgages not secured by Manufactured Homes ■ Mortgages secured by Manufactured Homes (a) Mortgages not secured by Manufactured Homes The table below lists the maximum financed eligible renovation costs based on the Mortgage purpose for Mortgages not secured by Manufactured Homes: CHOICERenovation maximum financed eligible renovation costs based on the Mortgage purpose for Mortgages not secured by Manufactured Homes The maximum financed renovation costs for… Must not exceed… Of the… Purchase transaction Mortgages 75% Lesser of the: ■ Sum of the purchase price of the property plus the estimated total of the renovation costs, or ■ “As completed” value of the property as determined by the appraiser pursuant to the appraisal requirements in Section 4607.8 “No cash-out” refinance Mortgages used to finance eligible renovations 75% “As completed” value of the property as determined by the appraiser pursuant to the appraisal requirements in Section 4607.8 CHOICERenovation maximum financed eligible renovation costs based on the Mortgage purpose for Mortgages not secured by Manufactured Homes The maximum financed renovation costs for… Must not exceed… Of the… “No cash-out” refinance Mortgages used to pay off short term financing 75% Appraised value of the property (b) Mortgages secured by Manufactured Homes The table below lists the maximum financed eligible renovation costs based on the Mortgage purpose for Mortgages secured by Manufactured Homes. The maximum financed eligible renovation costs are applicable when the Mortgage is used to finance eligible renovations: CHOICERenovation maximum financed eligible renovation costs for Mortgages secured by Manufactured Homes The maximum financed renovation costs for… Must not exceed… Of the… Purchase transaction Mortgages The lesser of $50,000 or 50% “As completed” value of the property as determined by the appraiser pursuant to the appraisal requirements in Section 4607.8 “No cash-out” refinance Mortgages

Source: Freddie Mac Single-Family Seller/Servicer Guide 4607.7 — Maximum financed eligible renovation costs for CHOICERenovation® Mortgages · source URL · snapshot e399c3dcaab28da0