CHOICERenovation is Freddie Mac's answer to Fannie Mae's HomeStyle. It's a conventional loan that finances the home and the renovation together, based on the appraiser's as-completed value, with mortgage insurance that can be removed later.
Most buyers never need to know whether their renovation loan is sold to Fannie Mae or Freddie Mac. It matters to us because the two price differently week to week, and a few property details can make one a better fit. We run both.
Highlights
- Conforming limits. Up to $832,750 for a single-family home in the Philadelphia metro (2026), higher for 2–4 units.
- Renovation up to 75% of the as-completed value.
- Resilience improvements such as drainage, sump and backflow systems, and storm protection can be financed.
- Primary residences (1–4 units), second homes, and 1-unit investment properties.
- Cancelable mortgage insurance as the loan-to-value drops.
Who it fits
CHOICERenovation fits buyers with solid credit who want conventional terms and are renovating something substantial. It's also a good fit for anyone who wants to put money into making an older house hold up better, not just look better.
CHOICERenovation in Philadelphia
Philadelphia basements take on water. Old stone foundations, clay sewer laterals, hillside lots, and heavy summer storms add up to wet basements and backed-up drains across the region. CHOICERenovation lets you finance that resilience work along with the kitchen and baths, on conventional terms.
Where it fits best
- Manayunk and Roxborough. Stone and brick rowhomes built into hillsides. Retaining walls, water intrusion, and stone foundation pointing show up in almost every scope.
- Conshohocken and East Falls. River-town rowhomes and twins on steep lots, where drainage and foundation waterproofing are common line items.
- Older rowhomes citywide. Original clay or cast-iron sewer laterals, and basements that flood when the drains back up.
- Higher-priced suburbs. Like HomeStyle, it goes up to the $832,750 conforming limit, so it works in Montgomery County and Chester County when the total passes the FHA limit.
A worked example
A buyer finds a Manayunk hillside rowhome for $385,000. The basement shows water staining, and the sewer camera finds roots in the lateral. The scope includes $28,000 of resilience work: exterior regrading, a sump system, a backwater valve, foundation waterproofing, and a new lateral. The buyer adds a kitchen, a bath, and new electrical, for a total bid of $95,000.
- Purchase: $385,000
- Renovation: $95,000
- Contingency at 15%: $14,250
- Total: $494,250
- 5% down: about $24,713
- Loan: about $469,538
The loan fits well under the 2026 conforming limit of $832,750, and the renovation is a small share of the total, far below the 75% cap. This buyer could also use FHA, but with strong credit, conventional terms and cancelable mortgage insurance may cost less. We price both.
Illustration only. Your numbers depend on the appraisal, the bid, and your qualification.
Local rules and timing
Drainage and sewer work in the city needs L&I permits pulled by your contractor, and the plumbing has to be done by a licensed plumber. In the suburbs, the township or borough issues permits. Replacing a lateral means excavating to the main, so build that into the schedule. Conventional renovation loans generally allow up to about 15 months to complete the work.
Common pitfalls
- Pricing the finish and skipping the water. A new basement over an unaddressed leak is money lost. Price drainage first.
- No sewer camera. Do it during the inspection period, before you set the budget.
- Retaining walls. On hillside lots, a failing retaining wall can be a large, structural line item. Get it priced early.
- Choosing by name. CHOICERenovation and HomeStyle work almost the same way. We use whichever prices better when you lock. See 203k vs. HomeStyle.
For the full list of what a rowhome renovation usually needs, read what to budget for a Philadelphia rowhome renovation.
Compare
See HomeStyle Renovation for the Fannie Mae version, or the FHA 203k Standard if you need FHA's more flexible credit guidelines.
Frequently asked questions
Can CHOICERenovation fix a wet basement in a Manayunk or Conshohocken hillside house?
Yes. Regrading, sump systems, backwater valves, and foundation waterproofing can all be part of the scope. If the fix requires structural foundation or retaining wall repair, we'll look at whether the full scope fits the program.
Should I get a sewer camera inspection before I buy a Philadelphia rowhome?
Yes. Many rowhomes still have original clay or cast-iron laterals. A camera inspection during the inspection period tells you whether to put a lateral replacement in the budget.
Can I use CHOICERenovation to refinance and waterproof the house I already own?
Yes. A renovation refinance can roll your current mortgage and the project into one loan, based on the value after the work. See our refinance and renovate page for how it compares with a HELOC.
How is CHOICERenovation different from HomeStyle?
They're structured almost the same way: conventional, based on the as-completed value, with the renovation capped at 75% of that value. Differences come down to pricing, mortgage insurance, and a few property-eligibility details. We price both and use the one that costs you less.
What are resilience improvements?
Improvements that protect a home from damage: better drainage and grading, sump systems, backflow valves, roof tie-downs, and similar work. CHOICERenovation explicitly allows them to be financed.
Can I use CHOICERenovation for a 2–4 unit property?
Yes, for a primary residence. Second homes and 1-unit investment properties are also eligible.