Purchase Plus Improvements Mortgage
Sometimes our dream homes don’t check everything off our wish list from the get-go. Sometimes, it takes time and investment to make your vision a reality.
If you are interested in purchasing a home that needs renovations, you may be able to finance your home improvements from the on-set, with a purchase plus improvements mortgage.
To find out more, set up a consultation with the brokers.
What Is a Purchase Plus Improvements Mortgage?
How It Works
A purchase plus improvements mortgage, otherwise known as a renovation mortgage, allows qualified buyers to borrow a sum of money that will be used to renovate their home. Typically, the renovation loan is added to the total mortgage, but the money will not be paid out until after the renovations are completed, and an appraiser revalues the home.
While some buyers may invest in a renovation mortgage to update their new home cosmetically, others will complete necessary renovations or rebuilds. The goal is to add market value to your property, saving you money in the long run.
Whats the Best Way to Borrow Money for Home Improvements?
While there are other options for financing home improvements, such as taking out a loan from the government, applying for a line of credit, or participating in a renovation program, investing in a renovation mortgage makes the most sense for homebuyers. This mortgage program is quick and an affordable option to finance renovations.
Can You Add Renovations to a Mortgage When Purchasing?
Benefits of a Renovation Mortgage
There are several benefits to adding renovation costs to your mortgage. One is that you can gradually write off your reimbursement by adding the renovation amount to your mortgage repayment. You can also take advantage of interest rates that are typically more favorable than those of another type of loan.
How Do You Qualify for a Mortgage Plus Improvements Loan?
If you are interested in applying for a renovation mortgage, there are several steps to getting started:
1. Finding a Home
Find a home in your price range and get a better understanding of what renovations are needed.
2. Pre-Approval
Apply for a pre-approved mortgage and include quotes for the improvements that need to be done.
3. Revision
We will have your mortgage application as well as the estimates for renovations reviewed by a lender for approval.
4. Possession of Home
When you take possession of your home, you can begin the renovations. Once the home improvements have been completed and confirmed by an appraiser, you will receive your funds for the renovations.
Discover Your Renovation Mortgage Options
If your new home requires renovations, investing in a purchase plus improvements mortgage allows you to complete these improvements and live in your upgraded home immediately.
The specialists will take the time to guide you through the application process and find the very best mortgage rates from a series of lenders.
Book a consultation to get started.
