Purchase Plus Improvement Mortgage And all the ways you can use one

House shopping can be stressful, especially if you find a house but maybe it doesn’t have a garage, or a developed basement. This doesn’t have to be a deal breaker because there is a mortgage product that is designed to help with these situations. A Purchase Plus Improvement mortgage allows you to borrow the cost of renovations (up to a certain percentage) and add it to the home price, rolling it all into one easy-to-manage mortgage payment.

Ready to renovate?

First step is to find a home that you are looking to purchase, next step is to determine what updates you want to make the home function best for you. You’ll need to speak with your broker and explain what changes you are wanting to make, and they will line up the financing approval that will include the cost of the renovations.

You’ll go through the standard home buying process, make an offer and eventually close on the home. Once the sale has closed, the lender will release the agreed-upon cost of your renovations to your lawyer, who will hold that cash in trust. Your contractor can start the renovations that were previously arranged with your lender right away. Once your reno is complete, the lender will send a representative to look at your home, this is to ensure all the projects are appropriately completed and have passed inspection. Once approved, your lender will provide the money needed to pay your contractor.

What type of “renovations” qualify for a Purchase Plus Improvement Mortgage?

The obvious suggestions might be a new kitchen or updated bathroom, but there are other property improvements that can be made with this product that might surprise you. The Purchase Plus Improvement Mortgage isn’t just limited to renovations, you can also add new structures to the property. For example, if you need a garage, or a fence or even landscaping, these all qualify. Another option is a basement development. This can especially be helpful for those new-builds that don’t have a developed basement and you’re looking for more developed square footage to make the space more suitable for you and your family.

The point is, there are options. Lots of options. The flexibility with this mortgage product is perfect for those who have found the right home, but it just needs some personalization. Making a house a home doesn’t have to be so complicated, contact your mortgage expert to get started.