Purchase Plus Improvements
Purchase Plus Improvements – Simple Explanation
Think of Purchase Plus Improvements like this:
You’re buying a home that isn’t perfect… yet
And your mortgage helps you fix it up right away.
What this means for you
Instead of needing extra cash after you buy, this program lets you:
Buy the home
Include the cost of renovations
Roll everything into one mortgage
Example
You find a home you love, but:
The kitchen is outdated
The floors need replacing
Normally, you would:
Buy the home
Then save or borrow money to renovate
With this program:
The renovation costs are included right into your mortgage from the start
Some lenders max 10-20% of the purchase price and we have some lenders that will lend up to $150,000.
What you need upfront
Minimum 5% down based on purchase price + renovations
A plan and quotes for the work to be submitted with the deal
How the down payment works
Your down payment is based on the total project cost, not just the purchase price.
Example:
Purchase: $300,000
Renovations: $50,000
Total: $350,000
5% down = $17,500
Why it works this way
The lender is looking at what the home will be worth after the renovations are complete, not what it’s worth today.
So everything gets bundled into one mortgage, including the improvements.
Important to know
The renovation money is not given upfront.
You will:
Complete the work first
Then get reimbursed by the lender (with proof the work is done)
Depending on the improvements amount we may require an inspection to be done by an appraiser to confirm work is done or sometimes just work and receipts.
The big advantage
You can take a home with potential and turn it into exactly what you want without needing a large amount of extra cash upfront
Why people use this program
1. Keep more money in your pocket
Roll renovation costs into your mortgage instead of paying out of pocket
2. Buy homes others overlook
Less competition often means better pricing
3. Build equity faster
You’re increasing the home’s value right away
4. Customize your home
Make it yours instead of settling
5. Avoid high-interest debt
No need for credit cards or personal loans
6. Get into the market sooner
Buy now instead of waiting years to save for renovations
Bottom line
You don’t need to find a perfect home… You can buy the potential and create it.