Renovation Mortgage
Renovation Mortgage
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Found your dream home, but it needs a little work? Trying to come up with a down payment and money for renovations can get expensive. We help home buyers buy their home, pay for their renovations all with one manageable mortgage payment. With as little as only 5% down!
A Purchase Plus Improvements mortgage is the technical name for consumers looking to purchase a home that has great potential but needs renovations that buyers want to add into their mortgage. This program allows you to make improvements immediately after taking possession of your new home and have the costs rolled into one easy-to-manage mortgage.
The Process
- Step 1: You find your perfect house and have a good idea of what renovations need to be done. You negotiate your purchase price with your realtor and get contractors in to get quotes started.
- Step 2: We do need firm quotes for the work that needs to be done as quickly as possible. Make sure the quotes specifically state the scope of work that is to be completed. Its not an issue if you use multiple companies to get the full renovations complete.
- Step 3: We then obtain a formal approval based on the home purchase and the renovations included to confirm your total new mortgage payments and down payment needed.
- Step 4: You take possession of your new home and start the renovations. ** the money for the renovations will stay with the lawyers until the job is 100% done so you will want to ensure that you have a plan in place for giving deposits or payments upfront. Not an issue to use a credit source for this as we know the money is coming back to you upon completion.
- Step 5: Once the work is all 100% completed we send out our appraiser who acts like an inspector for the lenders to ensure the renovation is completed. We may also need paid receipts for the work done depending on what lender you have your mortgage with. The cost of this is only approx. $150
- Step 6: Appraiser creates a report to confirm completion. Your lawyer will be instructed by the lender to release the money for the renovations when the lender receives the report. This whole process generally takes about a week depending on how efficient all parties are.
- The mortgage interest rate is not affected by this program.
- It is absolutely necessary to have a firm price quote prior to possession of the subject property.
- You will not receive any funds for the renovations until after the work is 100% complete.
