Purchase Plus Improvements
When house shopping home buyers can usually come up with at least one thing they would change or renovate in a home. Many home buyers will buy a home and plan to do the renovations down the road. But what if they had the option to borrow the money with their mortgage and do the renovations right after they move in! This is actually an option. It is called the purchase plus improvements program.
How it works is the lender will lend the mortgage amount based on the Improved value that the home would be worth AFTER the renovations are completed. For example if a family buys a home for $300000 and have renovations totalling the $20000 they will get a mortgage for $320000. The first $300000 would be advanced on possession date to pay the seller. The remaining $20000 would be held in trust with the solicitor until the renovations are confirmed completed by an inspection. Home buyers would have to qualify under the usual lending guidelines for the full amount. Usually a lender requires the work to be completed within 90 days however in some circumstances this can be extended.
This is just one option to make your potential new home everything you want it to be. We have had many happy homeowners take advantage of this program for many different reasons. Sometimes big renovations and sometimes smaller.
Give Brenda or Jessica a call at 403-347-0774 to find out if the purchase plus improvements program would work for you!