The purchase plus improvements mortgage allows a borrower to purchase a property and include home improvements in the cost. Basically any renovation that will increase the value of the home can be considered. In order to apply for a purchase plus improvements mortgage, you must obtain quotes for the improvements you plan to make, and submit them along with your mortgage application. The mortgage will then be approved for both the cost of the home and the renovations together.
Some advantages of purchase plus improvements:
- Can be done whether or not the purchaser has 20% down.
- Eliminates the need to seek other financing, perhaps at higher interest rates, after the home is purchased to make improvements.
- Opens up more options when looking at properties.