16 Aug

Dreaming of Home Renos?

Products

Posted by: Avaljit Sandhu

How to Make It Happen with a Purchase Plus Improvements Mortgage

Are you considering buying a home that needs some work? With a Purchase Plus Improvements Mortgage, you can finance the purchase of your new home and the renovations to make it perfect—all in one mortgage.

What Is a Purchase Plus Improvements Mortgage?

This type of mortgage allows you to borrow extra funds to cover the cost of home improvements right after buying the house. Here’s how it works:

  1. Find Your Home: Choose a home that needs renovations to match your vision.
  2. Get a Renovation Quote: Before buying, get a detailed quote from a certified contractor. This quote will outline the expected renovation costs.
  3. Include Renovation Costs in Your Mortgage: Your lender will approve the mortgage based on the home’s price plus the renovation costs. For example, if the home costs $300,000 and renovations are $40,000, your mortgage will be based on $340,000.
  4. Complete the Renovations: After you purchase the home, you’ll pay for the renovations upfront using your own funds.
  5. Get Reimbursed by the Lender: Once the renovations are done and inspected, the lender will reimburse you for the renovation costs.

Why Consider a Purchase Plus Improvements Mortgage?

  • Move-In Ready: Renovate before you move in, so your home is perfect from day one.
  • Simplified Financing: Combine the purchase and renovation costs into one mortgage, making it easier to manage your finances.
  • Boost Home Value: Smart renovations can increase your home’s value, giving you a good return on investment.

Key Points to Remember

  • Certified Contractors Only: The renovations must be done by a certified contractor to qualify for this mortgage.
  • Upfront Payment: Be ready to pay for the renovations upfront. The lender reimburses these costs after the work is done.
  • Lender Approval: The lender must approve your renovation plans and costs before you proceed.

A Purchase Plus Improvements Mortgage is a great way to buy a home that needs work and turn it into your dream home, all with a single mortgage. If you’re ready to take the next step, this could be the right choice for you.