Purchase Plus Improvements
It can be so frustrating when you’ve been shopping for properties and there is always something that just isn’t right. Not everyone has that extra money saved up to spend on renovations, especially with all the closing costs and fees. Luckily, there is still a way we can tune up your house to be exactly what you wanted.
The Purchase Plus Improvements program allows a buyer to purchase a home with as little as 5% down and renovate immediately upon possession. No two people have the same tastes and sometimes it is hard to find a home you really like that you are not going to make changes to. Purchase plus improvements can help you finance renovations and create the home you’ve dreamed of.
Understandably, there are some restrictions around the program. The improvements must provide “value” to the property. Personal possessions, like appliances and hot tubs for example, are not considered in this program. Don’t worry, you will have a variety of options to choose where you want your money to go. Here are some types of allowable improvements:
Replace flooring
New paint
Renovate kitchen
Renovate bathrooms
Replace windows, doors and roofs
Build a garage
You can do a lot to a property with those kinds of renovations. Before we get too excited, there are some requirements in this program - but if they are abided by, this is a pretty good deal. Some key points to consider is:
All work MUST be complete and paid for BEFORE money is released from the lender. The amount equivalent to the cost of improvements will be held back and will be released once work has been 100% done and inspection report is provided.
Quotes are required to outline work that is to be completed and the cost of improvements.
No structural changes are permitted (some exceptions might apply, call us for details)
Maximum value of the improvements are not to exceed 10% of the purchase price up to a maximum of $40,000
Work must be completed in 120 days.
It’s important to consider these programs because at the end of the day it could save you some money by helping you find (and create) your dream home rather than having to go over-budget to get what you want. If you are still reading this post, that’s a sign that you should call the Weninger Mortgage Team and we can answer any questions you may have.
