How Home Possible® Freddie Mac CHOICERenovation® renovation funds are distributed — five draws plus final 1004D, 10% holdback, 50% material advance, and contingency reserves.
How Home Possible® Freddie Mac CHOICERenovation® Funds Are Distributed | The 2 Mortgage Guys
How Home Possible® Freddie Mac CHOICERenovation® renovation funds are distributed — five draws plus final 1004D, 10% holdback, 50% material advance, and contingency reserves.
How Are Renovation Funds Distributed During the Renovation Process?
How Escrow Draws Work
Why Draws Protect Everyone
Draw Rules Snapshot
What Else Can Sit in Escrow
Keep Exploring
Frequently Asked Questions
Want a Clear Draw Calendar Before You Close?
On Home Possible® Freddie Mac CHOICERenovation®, rehab dollars sit in escrow after closing and release to contractors across five draws plus a final 1004D inspection — with a 10% holdback, up to 50% material advance on the initial draw, and contingency reserves that protect your primary-residence project.
Four stages from closing to final inspection — payments follow verified progress on your 1-unit primary.
Paying contractors only after verified progress reduces the risk of unfinished work or funds diverted to unrelated expenses. It also keeps the after-improved appraisal honest — the lender financed a specific finished condition on a Home Possible primary residence.
Expect holdbacks on incomplete items and documentation that matches invoices to the original bid. Change orders need lender approval before extra dollars leave escrow. Repair costs must still fit the 75% purchase cap (or manufactured-home limits).
Ryan and Steve walk you through the draw calendar — five draws plus final 1004D, 10% holdback, up to 50% material advance, and a 15-month completion window — so contractors, inspectors, and your deadline stay aligned.
Related guides for contractors, DIY limits, and what soft costs roll into the escrow.
Ryan & Steve will map five draws, holdbacks, contingency, and your 15-month completion window around your Home Possible Freddie Mac CHOICERenovation® contractor schedule.
Home Possible and Freddie Mac CHOICERenovation® are registered trademarks of Freddie Mac. All loans are subject to credit and property approval. Program guidelines, income limits, LTV limits, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by Freddie Mac, Fannie Mae, HUD, or any government agency. Information is for educational purposes only and is not a commitment to lend.