Do you want to purchase a home that needs some TLC? Do you want to get these renovations taken care of right away? Purchase plus improvements mortgage is available for purchases up to 95% loan to value.
There is an available mortgage option that will help you pay for renovations with as little as 5% down, and you can start improving your property immediately.
Qualifying Property Types:
- A property with up to 4 units, one of which must be owner-occupied.
- Can be an existing property or a new construction.
How Does Purchase Plus Improvements Mortgage Work?
- Find a house that you want to purchase and determine the renovations that you want to do and the approximate cost of those renovations.
- The mortgage will be approved on the value of the house as it is at the time of the purchase. You then obtain firm and specific quotes for the work that you will do.
- The purchase plus improvements mortgage approval will be revised to include the cost of renovations.
- Take possession and start renovating!
- Upon completion, the lender will send someone to inspect the work and determine that it was completed as specified or will require an appraisal.
- The money for the renovations is released to you by your lawyer at the lender’s instruction.
Keep In Mind:
- There must be firm price quotes for the work to be done and these must be in place before the property is in your possession.
- Renovation funds are released by your lawyer only after the work is done.
- An appraisal may be required.