For planning, not loan selection. A participating lender must confirm current rules, property fit, costs, and approval for the actual transaction.
At a glance
- Purchase / refinance
- Purchase + no-cash-out refi
- Occupancy
- Primary; some second homes / 1-unit rentals
- Renovation amount / key cap
- Value-based; lender calculates
- Structural work
- Potentially; lender review
- Minimum project size
- Confirm with lender
- Consultant / oversight
- Lender escrow + oversight
- Typical project fit
- Repairs through major projects
- Upfront material draw
- May draw up to 50% of materials at closing
- Completion timeframe
- Within 450 days of note
- Property types
- Primary 1–4 units; other types vary
- Best when…
- A second conventional path is worth checking
What to discuss with Sean and the lender
- What is it?
- A Freddie Mac conventional mortgage that can finance eligible improvements with a purchase or no-cash-out refinance.
- Best fit / when to think about it
- Compare for inspection or appraisal repairs, a kitchen remodel, major rehab, or a structural scope when a lender offers it.
- Purchase / refi availability
- Purchase or eligible no-cash-out refinance.
- Occupancy / property considerations
- Primary residences and certain second homes or one-unit investment properties may qualify. Condo, manufactured, and unit-count rules vary.
- Typical project complexity
- Light through major work with a lender-approved scope and budget.
- Structural work?
- Potentially yes, subject to plans, permits, appraisal, and lender review.
- Current renovation limit / key cap
- Financed renovation costs are constrained by program value-based limits and property type; ask the lender to calculate the current maximum.
- Consultant / oversight expectations
- Expect renovation contracts, lender-controlled escrow or custodial funds, contractor requirements, and progress/completion oversight.
- Common friction points
- As-completed value, contractor documentation, contingency funds, draw controls, changes to the scope, and completion deadlines.
- What do we need to confirm?
- Confirm the property and refinance type, permitted work, cost/value limit, lender participation, and completion plan.