With the Renovation market expected to exceed $250 billion in the next 6 years, it was time for Freddie Mac to jump into the Makeover loan marketplace. And given that the Federal Housing Administration and Fannie Mae have this kind of loan in place, it was high-time for Freddie to jump on board.
The CHOICERenovation product is now available to borrowers.
Freddie Mac’s CHOICERenovation mortgage offers borrowers the ability to buy a fixer-upper and get it remodeled with a single loan, cutting out the need for the Homeowner to dip into their own pocket or do a cash-out refinance. Mortgagors can also take-out the loan for improving their existing homes.
There is information that says some metro areas will see an average growth of 6.8% in remodeling spending. There is no question that Freddie Mac’s CHOICERenovation mortgage is among answers to the pressing needs of today. And, it is one that has enough room to thrive, despite the existence of the FHA 203(k) and Fannie Mae’s HomeStyle Renovation.
So, who should consider a CHOICERenovation loan?
- The first home buyers seeking affordable housing.
- Multi-generational family homes in need of custom renovation suiting every family member
- Borrowers looking to fortify their homes against possible natural disasters
- Homes needing restoration for damages endured during a natural disaster or otherwise (retrofitting foundation area)
- Seniors looking to modify their homes to meet the needs of aging, IE accident-proof staircase or more space on the ground floor