CHOICEReno eXPressSM Mortgage Program

4.08.2022 | Category: Homebuying

Do you feel priced out of the highly competitive housing market? Perhaps you have your heart set on something a little more character in the heart of a historic district.

If you’re one of the millions of prospective buyers looking to buy a fixer-upper, you might be well suited for a new convenient mortgage solution created especially for homeowners looking to tap their equity for simple home projects or upgrades.

CHOICEReno eXPressSM mortgage, an expansion of the Freddie Mac CHOICERenovation® mortgage, is a new streamlined renovation mortgage loan that allows homeowners to finance smaller-scale home renovations.

Benefits of a CHOICEReno eXPressSM mortgage:

A CHOICEReno eXPressSM mortgage is perfect for homeowners looking for a simple, low-cost refinance to tackle home improvement projects. The influx of funds can be used to spruce up your kitchen cabinets, repair or replace roofline, install new windows or update flooring, among other home upgrades.

Designed especially for homes that have been well loved over the years, this loan can help prospective homebuyers purchase or refinance while financing projects to help their house feel more like home. This efficient renovation loan can be used to finance both the purchase of the property and the home improvement costs in one loan.

The single-close loan has no extra fees and interest rates and can be combined with one monthly payment with a traditional mortgage refinance. Borrowers can use the mortgage proceeds from the eligible mortgage to pay for the renovations. Rather than taking out a home loan and then trying to be approved for a personal line of credit or home equity loan after the fact, your home improvement projects can be funded as soon as you get the keys.

Minimum Requirements for a CHOICEReno eXPress mortgage:

Like any conventional mortgage loan, you will need to have acceptable credit worthiness, sufficient income and a qualifying debt-to-income ratio. Most lenders look for a credit score above 620, two years of proof of income and your debt should be no more than $30-40% of your monthly income.

In addition, you will still need to have enough saved for a down payment. While most financial experts recommend at least 20%, this loan product has flexibility built in and you can combine this loan product with other loan types, such as an FHA loan or a VA loan to help you with the down payment requirements.

Buys can choose to use a CHOICEReno eXPress mortgage with a number of conventional home loan options including fixed-rate and adjustable-rate mortgages as well as be combined with Home Possible®, HomeOne®, HFA Advantage® and super conforming mortgages.

Additional Considerations Before Applying for a CHOICEReno eXPress mortgage:

  • For CHOICEReno eXPress mortgages located in designated Duty to Serve high-needs areas, the total cost of the financed renovations should not exceed 15% of the value for purchase transactions and “no cash-out” refinance mortgages.
  • For CHOICEReno eXPress mortgages not in Duty to Serve high-needs areas, the total cost of the financed renovations should not exceed 10% of the value for purchase transactions and “no cash-out” refinance mortgages.
  • This home loan product is not for new home builds. But with tight housing market conditions across the country, and rapidly rising home prices continuing to climb, a CHOICEReno eXPressSM mortgage could be the kind of loan that works well for your home buying needs.

Not every renovation requires an extreme makeover to transform a house into something extraordinary. If the CHOICEReno eXPress mortgage seems like an option that could fit your home buying needs, Mutual of Omaha Mortgage can help you get the financing you need.

Interested in learning more about your mortgage loan options? Click here to visit Mutual of Omaha Mortgage's full list of purchase loan offerings and get started today!

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