source:
  type: regulation
  id: fhlmc-4607.5
  authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
    (05/04/26)
  description: "Freddie Mac Guide §4607.5 (Underwriting CHOICERenovation® Mortgages). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-4607.5-0
  canonical_id: fhlmc-4607.5-0
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: (05/04/26) This section contains requirements related
    to: ■ Residential loan application ■ Uniform Underwriting and Transmittal Summary ■ Accept Mortgages ■ Temporary
    rental payments for Mortgages with Settlement Dates before completion of renovations ■ Rental income from the
    sub…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '(05/04/26) This section contains requirements related to: ■ Residential loan application ■
      Uniform Underwriting and Transmittal Summary ■ Accept Mortgages ■ Temporary rental payments for Mortgages
      with Settlement Dates before completion of renovations ■ Rental income from the subject property (a) Residential
      loan application The Seller must code the Purpose of Loan on Form 65, Uniform Residential Loan Application,
      as either Purchase or Refinance (as applicable) and not as Construction or Construction-Permanent. (b) Uniform
      Underwriting and Transmittal Summary The Seller must code the Loan Purpose on Form 1077, Uniform Underwriting
      and Transmittal Summary, as either Purchase or No Cash-Out Refinance (as applicable) and not as Home Improvement.
      The Seller must indicate in the Underwriter Comments if the Mortgage is a CHOICERenovation® Mortgage.'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4607.5-1
  canonical_id: fhlmc-4607.5-1
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: 607-9 (c) Accept Mortgages All CHOICERenovation
    Mortgages must be Accept Mortgages. (d) Temporary rental payments for Mortgages with Settlement Dates before
    completion of renovations For CHOICERenovation In Progress and CHOICEReno eXPress Mortgages secured by Primary
    Residences, …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '607-9 (c) Accept Mortgages All CHOICERenovation Mortgages must be Accept Mortgages. (d) Temporary
      rental payments for Mortgages with Settlement Dates before completion of renovations For CHOICERenovation
      In Progress and CHOICEReno eXPress Mortgages secured by Primary Residences, if the Borrower plans to rent
      another property as their principal domicile during the renovations, the rental lease must be documented in
      the Mortgage file. The temporary rental payment for the Borrower’s principal domicile must be included in
      the calculation of the monthly debt payment-to-income ratio if: ■ More than 10 payments remain on the lease
      term as of the Note Date, or ■ The rental lease has a renewal or extension option (e) Rental income from the
      subject property For a CHOICERenovation Mortgage secured by a 1- to 4-unit Primary Residence or a 1-unit Investment
      Property, rental income from the unit(s), including ADU(s), that are included in the renovation project must
      not be used to qualify the Borrower.'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4607.5-2
  canonical_id: fhlmc-4607.5-2
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: Eligible renovations for CHOICERenovation® Mortgages
    (06/04/25) This section contains requirements related to: ■ Eligible and ineligible uses of Mortgage proceeds
    ■ Compliance with applicable laws and project documents ■ Renovations to Manufactured Homes ■ Payoff of short-term
    fi…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Eligible renovations for CHOICERenovation® Mortgages (06/04/25) This section contains requirements
      related to: ■ Eligible and ineligible uses of Mortgage proceeds ■ Compliance with applicable laws and project
      documents ■ Renovations to Manufactured Homes ■ Payoff of short-term financing that financed renovations completed
      prior to the Note Date'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4607.5-3
  canonical_id: fhlmc-4607.5-3
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: 607-10 (a) Eligible and ineligible uses of Mortgage
    proceeds CHOICERenovation® Mortgage proceeds must only be used to finance renovations that are made to a property
    with an existing dwelling and may include: ■ Fees related to plans and specifications, permits, title updates,
    app…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '607-10 (a) Eligible and ineligible uses of Mortgage proceeds CHOICERenovation® Mortgage proceeds
      must only be used to finance renovations that are made to a property with an existing dwelling and may include:
      ■ Fees related to plans and specifications, permits, title updates, appraisals, draw inspections and the final
      inspection ■ An amount up to, but no more than, six monthly payments of principal, interest, taxes and insurance
      ■ Contingency reserve funds as described in Section 4607.11(b) ■ The payoff of short-term financing that provided
      the Borrower with funds to repair, restore, rehabilitate or renovate an existing home as described in Section
      4607.6(d) ■ Adding or renovating outdoor structures used for leisure and recreation, including, but not limited
      to, swimming pools, decking, screening and porch and patio additions Note: In accordance with Section 4607.11(b),
      CHOICERenovation Mortgages whose proceeds are used exclusively to finance the addition or renovation of outdoor
      structures used for leisure and recreation will not be subject to the minimum contingency reserve requirements.
      ■ Renovations or repairs to a property that has been damaged in a disaster or for renovations that will protect
      the Mortgaged Premises in case of a future disaster (e.g., storm surge barriers, foundation retrofitting for
      earthquakes, retaining walls, etc.) ■ Renovations to improve the energy and/or water efficiency, the health
      and safety and/or the resiliency and preventiveness of the Mortgaged Premises Note: See Section 4607.16(b)
      for special requirements when CHOICERenovation Mortgages are combined with GreenCHOICE Mortgages® and the
      eligibility for the credit for Credit Fees for GreenCHOICE Mortgages ■ Adding or renovating an ADU, including
      a Manufactured Home ADU Note: See Section 4607.6(d) below regarding the payoff of short-term financing that
      financed the addition or renovation of an ADU prior to the Note Date. CHOICERenovation® Mortgage proceeds
      may not be used: ■ To raze an existing structure and build a new primary dwelling unit ■ For personal property
      with the exception of new appliances'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4607.5-4
  canonical_id: fhlmc-4607.5-4
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: 607-11 (b) Compliance with applicable laws and
    project documents Renovations must comply with all applicable State and local laws and regulations, including
    zoning regulations. All required permits and approvals must be obtained. Renovations of properties located in
    Planned Unit …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '607-11 (b) Compliance with applicable laws and project documents Renovations must comply with
      all applicable State and local laws and regulations, including zoning regulations. All required permits and
      approvals must be obtained. Renovations of properties located in Planned Unit Developments (PUDs), Condominium
      Projects or Cooperative Projects must comply with all applicable project conditions, covenants and restrictions.
      (c) Renovations to Manufactured Homes Renovations to a primary dwelling unit that is a Manufactured Home or
      a Manufactured Home ADU are allowed, provided the Manufactured Home remains in compliance with HUD’s property
      acceptability criteria for Manufactured Homes and the general requirements in Section 5703.2, property eligibility
      requirements for Manufactured Homes in Section 5703.3(a) and requirements for eligible properties with an
      ADU in Section 5601.2, as applicable. Renovations may include the removal of a Manufactured Home on the property
      that is not the primary dwelling unit, provided any effect of its removal on the value of the Mortgaged Premises
      is reported by the appraiser when determining the “as completed” value of the property pursuant to the appraisal
      requirements for CHOICERenovation Mortgages in Section 4607.8. (d) Payoff of short-term financing that financed
      renovations completed prior to the Note Date For CHOICERenovation Mortgages that are “no cash-out” refinance
      Mortgages, proceeds can be used to pay off short-term financing that financed renovations (including, but
      not limited to, the addition or renovation of an ADU) completed prior to the Note Date, provided the following
      requirements are met: ■ The CHOICERenovation Mortgage is not secured by a Manufactured Home ■ The CHOICERenovation
      Mortgage is not a CHOICEReno eXPress® Mortgage ■ The Borrower on the CHOICERenovation Mortgage must be the
      Borrower on, and obligated to repay, the short-term financing. Exceptions: ❑ A Borrower may be omitted in
      the event of death or divorce, or'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4607.5-5
  canonical_id: fhlmc-4607.5-5
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: 607-12 ❑ A Borrower who is a Related Person may
    be added, provided that all Borrowers on the CHOICERenovation Mortgage are owner-occupants of the Mortgaged
    Premises and considered in the underwriting of the CHOICERenovation Mortgage ■ All renovations financed by the
    short-term fi…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '607-12 ❑ A Borrower who is a Related Person may be added, provided that all Borrowers on the
      CHOICERenovation Mortgage are owner-occupants of the Mortgaged Premises and considered in the underwriting
      of the CHOICERenovation Mortgage ■ All renovations financed by the short-term financing must be completed
      prior to the Note Date of the CHOICERenovation Mortgage with no outstanding obligations related to such financing
      ■ All renovations financed by the short-term financing must be completed prior to the appraisal, which must
      reflect these renovations having been made. The appraisal report obtained in accordance with CHOICERenovation
      Mortgage appraisal requirements in Section 4607.8 must only be completed subject to completion of any proposed
      renovations also being financed with the CHOICERenovation Mortgage. ■ The Mortgage file must contain copies
      of all relevant documentation, including, but not limited to: ❑ The short-term financing agreement ❑ Sufficient
      documentation (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.)
      on which to validate the actual cost of all renovations financed by the short-term financing ❑ A document
      clearly showing the calculation of the short-term financing ❑ The Settlement/Closing Disclosure Statement
      or an alternative form required by law for the closing of the short-term financing ❑ The payoff statement'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4607.5-6
  canonical_id: fhlmc-4607.5-6
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: Maximum financed renovation costs for CHOICERenovation®
    Mortgages (10/02/24) This section contains requirements related to: ■ Maximum renovation costs overview ■ Purchase
    transactions ■ Refinance Mortgages ■ Manufactured Homes'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Maximum financed renovation costs for CHOICERenovation® Mortgages (10/02/24) This section
      contains requirements related to: ■ Maximum renovation costs overview ■ Purchase transactions ■ Refinance
      Mortgages ■ Manufactured Homes'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4607.5-7
  canonical_id: fhlmc-4607.5-7
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: 607-13 (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
    cost…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '607-13 (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:'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4607.5-8
  canonical_id: fhlmc-4607.5-8
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: 607-14 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…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '607-14 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% 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%'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4607.5-9
  canonical_id: fhlmc-4607.5-9
  section: Freddie Mac Guide 4607.5
  description: '4607.5 Underwriting CHOICERenovation® Mortgages: 607-15 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… CHOICEReno
    eXPress Mortgages not in Duty to Serve high-needs areas 10% Note: Mortgages secured by properties with Manu…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4607.5 — Underwriting CHOICERenovation® Mortgages
      (05/04/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '607-15 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… 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.'
    drafter_attestation: Verbatim from Freddie Guide §4607.5 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
