Mortgage Product Highlight - Purchase Plus Improvemnts
If you’re looking to purchase a home, that may need a little TLC once you move in, the Purchase Plus Improvements mortgage program may be the perfect mortgage for you. This will allow you to qualify for as much as 20% of the purchase price, OR $40,000 in extra capital to implement all of your ideas!
When utilizing this product there are a few key steps that must be followed.
Step 1: You’ve completed your pre-approval and have found the house you are looking to make an offer on. Once your offer is accepted and your mortgage is approved, you can now begin planning your upcoming renovations.
Step 2: Your lender will require quotes to confirm the total cost of the renovations. The quotes must include a detailed list of the work to be done with a complete cost breakdown and timeline by a licensed contractor.
Step 3: Your lender will provide the finalized mortgage which includes the cost of the purchase price, less your down payment for your completion date and the renovation costs will be sent to your lawyer to sit in trust while the renovations are completed.
Step 4: Once you’ve moved in and the renovations have been completed, there will be an appraiser who confirms the renovations have been completed. The appraiser will provide a detailed list of the work that has been done to confirm this matches the initial quotes provided. Once all is confirmed, they will release the funds to you.
The purchase plus mortgage program is a great tool to get you into the market, with a home that you love! You do, however, have to keep in mind that the renovations do have to be paid upfront. That can be paid from a credit card, a line of credit, etc, and you will then be reimbursed for the total agreed amount. The lenders are also quite particular about a specific timeline. Due to the program being specifically for cosmetic renovations all has to be done within 30 days. Often we can extend that to 90 days maximum.
If you have any questions about this program or any other mortgage tools please do not hesitate to reach out!