Purchase Plus Improvements Mortgage
What is a Purchase Plus Improvements mortgage?
This program 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.
Once you take possession of your new home, you can start the upgrades immediately. This type of mortgage comes with a few extra requirements before signing, such as providing quotes for the work that needs to be completed.
Not every home is move-in ready. Have you found the perfect home, but it needs a little TLC? With one manageable mortgage, you can have your home — plus add in the costs of renovations — sometimes with as little as 5% down.
We work with multiple lenders to find your perfect mortgage fit (baby needs a new nursery?)
What does this mortgage allow?
Cost of renovations are added to the home purchase price, with mortgages available up to 95% Loan-to-value (LTV) or 80% LTV for refinances
Amortizations, up to 30 years
What properties are eligible
Maximum 4 units, with at least one unit occupied as the principal residence
New construction or existing properties
Purchase Plus Improvements Mortgages
How It works
01
find a property, get an idea of renovations
When you have found a property, determine what renovations need to be done and a rough idea of how much they will cost.
02
get firm quotes
We will get you approved based on the house price 'as-is.' At that point, you'll need to get in touch with the appropriate contractors and get firm price quotes for the work that needs to be done. Make sure the quotes specifically state the work that is to be completed (in most cases, the work will need to be done by a licensed contractor).
03
We get the mortgage revised
We will then have your mortgage approval revised to include the price of renovations, as per the quotes, and help you complete your mortgage details.
04
complete the purchase, start renovations
After the sale has concluded and you take possession of your new home, you can immediately start the renovations that were agreed upon.
05
renovations will be verified
Once the work has been completed, a bank representative is sent out to verify that the renovations were completed properly and as required.
06
you get the money
You'll receive the money to pay the contractors — your lawyer will be instructed by the lender to release the money for the specified renovations.
07
enjoy your new upgraded home
With the upgrades done, and all the mortgage details taken care of, you can fully enjoy your new home-sweet-home.
Get in touch with us
Feel free to reach out and ask questions
We’re happy to answer any questions you might have. Please reach out using the form here, or using any of the options below.
- 647-779-1901 (Please text using SMS/Whatsapp for faster responses)
- Click here to schedule a free mortgage consultation
- ron@ronmortgages.com
- Working hours: Mon - Sat: 8:00am - 8:00pm
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