Difference between 203k loan and new CHOICERenovation product?

[Taylor Chiu]

Hey everyone, Freddie Mac just came out with a CHOICERenovation loan. Any ideas how this differs from the 203k loan? Seems like both cater to those who need to finance rehab costs, but I imagine there is more to it than that.

[Kin Meng Sio]

I believe it's more comparable to Fannie's HomeStyle loan where it has less limitation of buyer's situation, and difference on the down payment requirement. HomeStyle loan doesn't limit to just first-time home buyer (I see 203K as a variation of FHA loan). You can have 4 concurrent HomeStyle loans on either primary residence or investment properties (4plex max).

Check out more on HomeStyle loan, which should give you a better sense of what Freddie's would look like. Today I'm actually going to talk to couple lenders who offer HomeStyle loans, I'll let you know how it goes.