Renovation loan comparison chart.

Programs	FHA 203(k) Standard	FHA 203(k) Limited	FNMA HomeStyle® Renovation	FNMA HomeStyle® Energy	USDA Rehabilitation and Repair (Structural)	USDA Rehabilitation and Repair (Non-Structural)	FHLMC CHOICERenovation®	FHLMC CHOICEReno eXPress®	FHLMC GreenCHOICE®
Types of repairs	• Health and safety, livability • Structural repairs allowed • Luxury items not allowed	• Health and safety, livability • Structural repairs not allowed • Luxury items not allowed	• Health and safety, livability • Structural repairs allowed • Luxury items allowed	• Energy and water efficiency improvements • ENERGY STAR® appliances • Natural disaster or environmental hazard repairs • Resiliency or preventative improvements • Radon remediation	• Health and safety, livability • Structural repairs allowed • Luxury items not allowed	• Health and safety, livability • Structural repairs allowed • Luxury items not allowed	• Health and safety, livability  • Structural repairs allowed  • Luxury items allowed	• Health and safety, livability  • Structural repairs allowed  • Luxury items allowed	• Energy and water efficiency improvements  • ENERGY STAR® appliances  • Natural disaster or environmental hazard repairs  • Resiliency or preventative improvements  • Radon remediation
Minimum repair amount	$5,000 (see HUD Handbook 4000.1 for requirements)	No minimum	No minimum	No minimum	No minimum	No minimum	No minimum	No minimum	No minimum
Maximum repair amount	Total renovation costs are contingent upon the appraised property value	$75,000 in total renovation costs	Purchase: Renovation capped at 75% of acquisition or after-improved value (whichever is lower) Refinance: Renovation capped at 75% of after-improved value Manufactured homes: the lesser of $50,000 or 50% of the "as completed" appraised value	15% of after-improved value	Total renovation costs are contingent upon the appraised property value	Total renovation costs are contingent upon the appraised property value	Purchase: Renovation capped at 75% of acquisition or after- improved value (whichever is lower) Refinance: Renovation capped at 75% of after-improved value Manufactured homes: the lesser of $50,000 or 50% of the "as completed" appraised value	Purchase: • 15% of the lesser of acquisition costs (sales price plus renovation) or "as completed" value for properties located in designated Duty to Serve high-needs areas • 10% of the lesser of acquisition costs (sales price plus renovation) or "as completed" value for properties not in Duty to Serve high-needs areas Refinance: • 15% of the "as completed" value for properties located in designated Duty to Serve high-needs areas • 10% of the "as completed" value for properties not in Duty to Serve high-needs areas	15% of after- improved value
Property age	1-year old	1-year old	No age restriction	No age restriction, but home must have been completed	1-year old	1-year old	No age restriction	No age restriction	No age restriction
Number of contractors allowed	General Contractor	Maximum of 3 contractors	General Contractor	Maximum of 3 contractors	General Contractor	Maximum of 3 contractors	General Contractor if structural repairs, otherwise maximum of 3 contractors	General Contractor if structural repairs, otherwise maximum of 3 contractors	General Contractor if structural repairs, otherwise maximum of 3 contractors
Consultant required	Yes	No	No, but a Feasibility Study is required when hard costs exceed $75,000, structural repairs are being performed, or contractor is related to anyone in transaction	No	Yes	No	No, but a Feasibility Study is required when hard costs exceed $75,000, structural repairs are being performed, or contractor is related to anyone in transaction	No	No
Do-It Yourself(DIY), or Self-Help	Allowed with limitations. Certain requirements must be met.	Allowed with limitations. Certain requirements must be met.	Allowed with limitations up to 10% of the "as completed" value of the property. Certain requirements must be met and (DIY) work items are limited to: • Minor demo work, Interior painting Installation of appliances, Clean-up	Allowed up to 10% of the "as completed" value with limitations, requirements, and restricted DIY work items. • Minor demo work, Interior painting Installation of appliances, Clean-up	Not allowed	Not allowed	Allowed with limitations. Certain requirements must be met.	Allowed with limitations. Certain requirements must be met.	Allowed
Loan limits¹`	FHA county loan limits	FHA county loan limits	Conventional loan limits	Conventional loan limits	FHFA loan limits	FHFA loan limits	Conventional loan limits	Conventional loan limits	Conventional loan limits
Loan purpose	• Purchase • Rate/term refinance	• Purchase • Rate/term refinance	• Purchase • Limited cash-out/term refinance	• Purchase • Limited cash-out/term refinance	• Purchase only	• Purchase only	• Purchase • No cash-out refinance	• Purchase • No cash-out refinance	• Purchase • No cash-out refinance
Occupancy types	• Owner-occupied only	• Owner-occupied only	• Owner-occupied only • Second homes allowed (1 unit only)	• Owner-occupied • Second homes allowed (1 unit only)	• Owner-occupied only	• Owner-occupied only	• Owner-occupied only • Second homes allowed (1 unit only) • Investment properties allowed (1 unit only)	• Owner-occupied only • Second homes allowed (1 unit only) • Investment properties allowed (1 unit only)	• Owner-occupied only • Second homes allowed (1 unit only)
Homebuyer education	Not required	Not required	Required if LTV, CLTV, or HCLTV ratio exceeds 95% for a purchase transaction and all borrowers are first-time home buyers	Required if LTV, CLTV, or HCLTV ratio exceeds 95% for a purchase transaction and all borrowers are first-time homebuyers	Not required	Not required	Required if LTV, CLTV, or HCLTV ratio exceeds 95% for a purchase transaction and all borrowers are first- time home buyers	Required if LTV, CLTV, or HCLTV ratio exceeds 95% for a purchase transaction and all borrowers are first- time home buyers	Required if LTV, CLTV, or HCLTV ratio exceeds 95% for a purchase transaction and all borrowers are first- time home buyers
Units	1-4 units (owner occupied)	1-4 units (owner occupied)	• 1-4 units (owner occupied) • 1 unit (second homes)	• 1-4 units (owner occupied) • 1 unit (second homes)	Single-family only	Single-family only	• 1-4 units (owner occupied) • 1 unit (second homes and investment properties)	• 1-4 units (owner occupied) • 1 unit (second homes and investment properties)	• 1-4 units (owner occupied) • 1 unit (second homes)
Property types	• Stick built, historical properties, manufactured homes, mixed-use properties, modular homes, PUDs, townhomes, warrantable condos	• Stick built, historical properties, manufactured homes, mixed-use properties, modular homes, PUDs, townhomes, warrantable condos	• Stick built, historical properties, manufactured homes, modular homes, PUDs, townhomes, unfinished new construction, warrantable condos	• Stick built, historical properties, manufactured homes, modular homes, PUDs, townhomes, warrantable condos	• Stick-built homes with or without an ADU, historical properties, modular homes, PUDs, townhomes • Manufactured homes allowed	• Stick-built homes with or without an ADU, historical properties, modular homes, PUDs, townhomes • Manufactured homes allowed	• Stick built, historical properties, manufactured homes, modular homes, PUDs, townhomes, unfinished new construction, warrantable condos	• Stick built, historical properties, manufactured homes, modular homes, PUDs, townhomes, unfinished new construction, warrantable condos	• Stick built, historical properties, manufactured homes, modular homes, PUDs, townhomes, unfinished new construction, warrantable condos
Secondary financing	No max CLTV when secondary financing is provided by Governmental Entities, Homeownership and Opportunity for People Everywhere (HOPE) Grantees, HUD-Approved Nonprofits and Family Members Max 110% CLTV when secondary financing is provided by private individuals or other organizations	No max CLTV when secondary financing is provided by Governmental Entities, Homeownership and Opportunity for People Everywhere (HOPE) Grantees, HUD-Approved Nonprofits and Family Members Max 110% CLTV when secondary financing is provided by private individuals or other organizations	97% CLTV when borrower is a FTHB on a purchase or FNMA owns existing mortgage on a refinance (not permitted for high-balance loans) Otherwise, secondary financing permitted to 95% CLTV	97% CLTV when borrower is a FTHB on a purchase or FNMA owns existing mortgage on a refinance (not permitted for high-balance loans) Otherwise, secondary financing permitted to 95% CLTV	Allowed as long as the total value of all liens on the property is less than or equal to the property's market value, except when a "softsecond" for down payment and/or closing costs assistance creates the coverage	Allowed as long as the total value of all liens on the property is less than or equal to the property's market value, except when a "softsecond" for down payment and/or closing costs assistance creates the coverage	97% CLTV when borrower is a FTHB on a purchase or FHLMC owns existing mortgage on a refinance (not permitted for high- balance loans) Otherwise, secondary financing permitted to 95% CLTV	97% CLTV when borrower is a FTHB on a purchase or FHLMC owns existing mortgage on a refinance (not permitted for high- balance loans) Otherwise, secondary financing permitted to 95% CLTV	97% CLTV when borrower is a FTHB on a purchase or FHLMC owns existing mortgage on a refinance (not permitted for high- balance loans) Otherwise, secondary financing permitted to 95% CLTV
Contingency reserves	10%, must be increased to 15% if utilities are not on/functioning or self-help is present Contingency reserves may not exceed 20%	10%, must be increased to 15% if utilities are not on/functioning or self-help is present Contingency reserves may not exceed 20%	10%, must be increased to 15% if utilities are not on/functioning or if DIY is present Contingency reserves may not exceed 15%	20%	10%, must be increased to 15% if utilities are not on/functioning	10%, must be increased to 15% if utilities are not on/functioning	10%, must be increased to 15% if utilities are not on/functioning or self- help is present Contingency reserves may not exceed 20%	10%, must be increased to 15% if utilities are not on/functioning or self-help is present Contingency reserves may not exceed 20%	20%
Contingency reserves usage	• Health and safety first • Unforeseen repairs or deficiencies • Remaining funds at borrower’s discretion	• Health and safety first • Unforeseen deficiencies only	• Health and safety first • Unforeseen repairs or deficiencies • Remaining funds at borrower’s discretion	• Unforeseen necessary or required repairs only	• Health and safety first • Unforeseen repairs or deficiencies • Remaining funds at borrower’s discretion	• Health and safety first • Unforeseen repairs or deficiencies • Remaining funds at borrower’s discretion	• Health and safety first • Unforeseen repairs or deficiencies • Remaining funds at borrower’s discretion	• Health and safety first • Unforeseen repairs or deficiencies • Remaining funds at borrower’s discretion	• Unforeseen necessary or required repairs only
Mortgage payment reserves	Up to 12 months PITI reserves allowed if/when home is uninhabitable during renovation	Not allowed	Up to 6 months PITI reserves allowed if/when home is uninhabitable during renovation	Not allowed unless combined with HomeStyle® Renovation loan	Up to 6 months PITI reserves allowed if/when home is uninhabitable during renovation	Not allowed	Up to 6 months PITI reserves allowed if/when home is uninhabitable during renovation	Up to 6 months PITI reserves allowed if/when home is uninhabitable during renovation	Up to 6 months PITI reserves allowed if/when home is uninhabitable during renovation
Draw process	• Materials draws allowed in limited circumstances (conditions apply) • Up to 5 draws allowed (10% holdback applied to progress draws) • Payments are made after 203(k) Consultant approves the work	• Up to 50% of labor and materials may be disbursed at closing, if requested in writing from contractor • Remainder of funds disbursed when borrower signs off that work is complete and work has been inspected, if applicable	• Up to 50% of materials costs may be disbursed at closing • Number of draws determined by contractor with a max of one draw every 30 days (10% hold back applied to progress draws) • Funds are disbursed after work has been completed and inspected by a third-party inspector	• No disbursements at closing allowed • Number of draws determined by contractor with a max of one draw every 30 days (10% holdback applied to progress draws) • Funds are disbursed after work has been completed and inspected by appraiser	• Materials draws allowed in limited circumstances (conditions apply) • Up to 5 draws allowed (10% holdback applied to progress draws) • Payments are made after Consultant approves the work	• Up to 50% of labor and materials may be disbursed at closing • Remainder of funds disbursed when borrower signs off that work is complete and work has been inspected, if applicable	• Up to 50% of materials costs may be disbursed at closing • Number of draws determined by contractor with a max of one draw every 30 days (10% hold back applied to progress draws) • Funds are disbursed after work has been completed and inspected by a third- party inspector	• Up to 50% of materials costs may be disbursed at closing • Number of draws determined by contractor with a max of one draw every 30 days (10% hold back applied to progress draws) • Funds are disbursed after work has been completed and inspected by a third-party inspector	• No disbursements at closing allowed • Number of draws determined by contractor with a max of one draw every 30 days (10% holdback applied to progress draws) • Funds are disbursed after work has been completed and inspected by appraiser
Completion timeline	• Permits must be pulled and work started within 30 days of closing • May not cease for any 30 consecutive day period • Must be completed within 12 months	• Permits must be pulled and work started within 30 days of closing • May not cease for any 30 consecutive day period • Must be completed within 9 months	• Permits must be pulled and work started within 30 days of closing • May not cease for any 30 consecutive day period • Must be completed within 9 months	• Permits must be pulled and work started within 30 days of closing • May not cease for any 30 consecutive day period • Must be completed within 180 days	• Permits must be pulled and work started within 30 days of closing • May not cease for any 30 consecutive day period • Must be completed within 6 months	• Permits must be pulled and work started within 30 days of closing • May not cease for any 30 consecutive day period • Must be completed within 6 months	• Permits must be pulled and work started within 30 days of closing • May not cease for any 30 consecutive day period • Must be completed within 9 months	• Permits must be pulled and work started within 30 days of closing • May not cease for any 30 consecutive day period • Must be completed within 180 days	• Permits must be pulled and work started within 30 days of closing • May not cease for any 30 consecutive day period • Must be completed within 180 days
Allowed in combination with...	• $100 Down HUD REO • Good Neighbor Next Door • Energy Efficient Mortgages • Down Payment Assistance	• $100 Down HUD REO • Good Neighbor Next Door • Energy Efficient Mortgages • Down Payment Assistance	• HomeStyle® Energy • High balance • HomeReady® • Down Payment Assistance	• HomeStyle® Renovation • High balance • HomeReady® • Down Payment Assistance	• Down Payment Assistance	• Down Payment Assistance	• GreenCHOICE® Mortgages • Super conforming mortgages • Home Possible® • HomeOne® • HFA Advantage®	• GreenCHOICE® Mortgages • Super conforming mortgages • Home Possible® • HomeOne® • HFA Advantage®	• CHOICERenovation® Mortgages • CHOICEReno eXPress Mortgages • Super conforming mortgages • Home Possible® • HomeOne® • HFA Advantage®