Transform Your Home with FNMA HomeStyle Renovation & FHLMC CHOICERenovation Loans!

Where Trust Meets Home.

HELPING YOU ACHIEVE HOMEOWNERSHIP

A Conventional Loan is one of the most popular loan options for homebuyers. Unlike government-backed loans, conventional loans are funded by private lenders and typically offer flexible terms, competitive interest rates, and multiple down payment options.

Whether you’re a first-time buyer or upgrading to your dream home, a Conventional Loan gives you the freedom to finance with fewer restrictions and more possibilities.

Program Highlights

Purchase or refinance a home

Competitive interest rates

Flexible loan terms

Multiple down payment options

Up to 97% financing available

Loan amounts up to conforming limits

No upfront government funding fees

Private Mortgage Insurance

Key Benefits

Loan-to-Value (LTV):

  • Up to 97% for primary residences

  • Up to 90% for second homes

  • Up to 85% for investment properties

Credit Score Requirements:

  • 620+ for primary/second homes

  • 720+ for investment properties

Renovation Limits:

  • Limited Renovation Loan: Up to $35,000

  • Standard Renovation Loan: No cap on renovation amount, but total loan must stay within conventional guidelines.

This program is ideal for clients looking to turn a fixer-upper into their dream home without needing separate financing for renovations.

Eligible Loan Costs:

Interior Improvements:

  • Modernize kitchens, bathrooms, flooring

  • Add accessible features for disabilities

  • Additions, structural alterations, reconstruction

  • Energy efficiency upgrades

Exterior & Safety Repairs:

  • Install/repair septic systems and water wells

  • Remove safety/health hazards

  • Repair existing amenities (e.g., pools, saunas, accessory units)

Repair Types & Limits

Fannie Mae HomeStyle

  • Provides a simple and flexible way for borrowers to renovate or make home repairs with a conventional first mortgage, rather than a second mortgage, home equity line of credit, or other more costly methods of financing 

  • Minimum FICO of 620

  • No minimum dollar amount required for repairs

  • 15-year and 30-year fully amortizing fixed term options

  • Loan amount based on “as-completed” value

  • Can help save loans that have repair contingencies

  • Not just for owner occupied

  • Luxury improvements allowed

Structural Repairs:

  • CHOICERenovation® is advantageous for borrowers who wish to refinance an existing mortgage and take on a substantial home improvement project.

  • Loan amount based on “as-completed/After improved” value

  • Can help save loans that have repair contingencies

  • Minimum FICO of 620

  • 15-year and 30-year fully amortizing fixed term options

  • CHOICERenovation® can be used for 1-unit second homes or Investment property

  • Luxury Improvements Allowed

Loan Types

Standard Renovation Loan

The Freddie Mac CHOICERenovation® is a single-close loan that enables borrowers to purchase a home that needs repairs or refinance their existing home and include the necessary funds for renovation in the loan balance. There are no required improvements or a minimum dollar amount for the repairs. Repairs or improvements, however, must be permanently affixed to the real property

Fannie Mae Homestyle

The Fannie Mae HomeStyle® Renovation is a single-close loan that enables borrowers to purchase a home that needs repairs or refinance their existing home and include the necessary funds for renovation in the loan balance. There are no required improvements or a minimum dollar amount for the repairs. Repairs or improvements, however, must be permanently affixed to the real property. A HomeStyle mortgage may not be used for complete tear-down and reconstruction of the dwelling.

Loan Types

Limited Renovation Loan

For non-structural repairs (≤ $35,000)

Standard Renovation Loan

For structural repairs or high-cost improvements

Property Requirements

The security property for a HomeStyle Renovation mortgage must be

  • Repairs may be structural or non-structural

  • Eligible property types:

    • 1-4 unit primary residences

    • 1-unit second homes

    • 1-unit Investment

    • FNMA approved condos

    • PUD’s

    • Multi-wide Manufactured Homes

    • 2-4 unit Investment properties are not permitted

  • Draw Inspection fees $175 x # of draws.  If a HUD Inspector is involved the fee will follow their schedule. 

  • Repairs or improvements must be permanently affixed to the real property and add value to the property

The security property for a ChoiceRenovation mortgage must be

  • Repairs may be structrual or non-structural 

  • 620 minimum qualifying credit score

  • Eligible property types:

    • 1-4 Unit Primary Residence

    • 1 Unit Second Home 

    • 1 Unit Investment 

    • PUDs Approved Condos 

    • Multi-wide Manufactured Home 

  • 2-4 unit Investment properties are not permitted

  • Repairs or improvements must be permanently affixed to the real property and add value to the property

  • Draw Inspection fees $175 x # of draws.  If a HUD Inspector is involved the fee will follow their schedule.

Loan Type Overview

  • HomeStyle Renovation provides a simple and flexible way for borrowers to renovate with a conventional first mortgage, rather than a second mortgage, HELOC, or other more costly methods of financing 

  • No minimum dollar amount required for repairs

  • Loan amount based on “as-completed” value

  • Can help save loans that have repair contingencies

  • Not just for owner occupied

  • Luxury improvements allowed

  • CHOICERenovation® is advantageous for borrowers who wish to refinance an existing mortgage and take on a substantial home improvement project.

  • Loan amount based on “as-completed/After improved” value

  • Can help save loans that have repair contingencies

  • CHOICERenovation® can be used for 1-unit second homes or Investment property

  • Luxury Improvements Allowed

Eligibility

Single-family primary residences only

Must be in USDA-approved rural areas

Ready to Make a Move?

Let’s talk about your next chapter — whether it's finding your dream home, selling a property, or investing in your future.

Buying or selling a home is more than a transaction — it’s a life-changing experience. At Covenant Realty, we treat it that way.

We’re not just helping you find a house — we’re helping you find home.

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