Do you have your eye on a fixer-upper or need to renovate that kitchen before you move in, wondering where the money will come from?
It’s called a Purchase Plus Mortgage because it lets you renovate a newly-purchased or refinanced home and roll the cost of the improvements into the balance of the mortgage.
The process is very straight forward:
• Get quotes for the work you want to be done before you take possession.
• Get you approved for a mortgage on the property as improved.
• You move in and start renovating.
• Mortgage is funded usually in two parts; first to complete the purchase of the home, and second once renovations are completed.
• Confirmation of completed work: Usually by means of inspection by an appraiser but sometimes by paid invoices.
• All advances are paid by your lawyer and/or lender on completion of work and inspection.
What you should know?
Not all upgrades will be approved. Each lender will have specific guidelines. The usual allows amount is 20% of “as improved” property value up to a maximum of $40,000.Renovations are meant to increase the property value so they must be permanent, and not easily removed. Most renovations must be completed within 120 days. The work can be completed by a professional or by you; however, if you complete the work, the lender will only pay for materials.
Next steps
The Purchase Plus Improvements program can be the perfect solution.
Call me today!
Let's discuss your options.