WASHINGTON—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, NAFCU said.
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, NAFCU noted.
Now Available
The loan product is available now for all approved lenders. Credit unions can learn more about the product, eligibility requirements and its terms here.
NAFCU President and CEO Dan Berger recently met with Freddie Mac CEO David Brickman to discuss issues related to the housing market, including emerging technologies in the mortgage banking space and recent developments at the government-sponsored enterprises (GSEs).