In today’s competitive real estate market, finding a move-in-ready home within your budget can be challenging. So, what do you do when all the homes you love are out of your price range? Consider the Purchase Plus Improvements option!
This program allows homebuyers to borrow additional funds for renovations at the time of purchase, rolling the cost of upgrades into the mortgage instead of using high-interest loans or credit cards. This also lets you buy the worst house on the nicest street and turn it into your dream home.
How It Works
- Initial Purchase: Secure an accepted offer for the purchase price of the home.
- Improvement Estimate: Obtain quotes for the renovations you plan to complete.
- Include Costs: The lender will add the estimated cost of improvements to your mortgage amount.
- Renovations: Complete the approved renovations, often within a specified timeframe (typically 90-120 days).
- Final Inspection: After renovations are completed, a final inspection ensures the work meets the agreed-upon standards.
- Final Step: The lender will release the funds so the contractors may be paid for work completed (Tip… some lenders may even consider progressive disbursements as the work progresses!).
Advantages of the Purchase Plus Improvements Program:
- Convenience: By rolling renovation costs into your mortgage, you can simplify your finances and save money compared to using a credit card or cashing in investments.
- Increased Property Value: Upgrading your home can significantly increase its market value, giving you a better return on investment immediately rather than waiting years for natural appreciation.
- Customization: In many markets, finding a move-in-ready home within your budget can be challenging. This program allows you to buy a home needing renovations and customize it to your style.
Conclusion:
Don’t feel defeated by homes that are out of your price range or don’t meet your needs. With the Purchase Plus Improvements Program, you can buy a house on a more desirable street and transform it into your dream home.
Like many mortgage programs, the Purchase Plus Improvements Program has nuances. I’m here to help you understand it better. Contact me anytime to learn more about the program.
