Purchase Plus Home Improvements Renovation Financing

To be competitive when shopping for a home, we often must forego things on our wish list. Your new home may not be everything you dreamed of right from the start, but it can be with some improvements.

Purchase plus improvement renovation financing can make your dream home possible, even when the home you buy is not move-in ready. Essentially, the lender adds extra funds to your mortgage, so that you have the money you need to renovate. You’ll receive the funds needed to purchase your new home, and additional money to cover renovation expenses. Both amounts are rolled into one payment, eliminating the need to seek higher-priced financing such as a line of credit or credit card for those renovations.

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How Does Purchase Plus Improvement Financing Work?

Most people do not realize that purchase plus improvement financing is possible, and it is easier than you might think to obtain.

  1. Find the home you want to purchase
  2. Decide what renovations it needs, and have an idea of the cost
  3. Let Ottawa Mortgage Market know the situation and how much the renovations are expected to cost. We will then line up approval for financing that includes the renovation expenses.
  4. Purchase the home
  5. Once you take possession, the lender will forward the renovation funds to your lawyer to be held in trust.
  6. Complete the renovations, typically within 90 days
  7. Once the renovations are completed, a representative will inspect your home and the improvements
  8. After the representative has verified and approved the work, the funds will be released to pay your contractor.

We will help guide you through all the nuances and options to help you find the right mortgage. Talk to us here at Ottawa Mortgage Market about the best options for you and your situation. We will help guide you through all the options and nuances to help you find the right mortgage financing.