Widen Your Home Search Without Raising Your Budget
If you’re out there looking for a home, you’ve probably noticed that it’s hard to find something that checks every box within budget. Maybe the layout is great but the kitchen needs an update, or the house is in a great area but the basement’s unfinished.
The Purchase Plus Improvements program lets you roll renovation costs into your mortgage. That means you can buy a place that needs a bit of work, fix it up right away, and keep everything under one mortgage payment.
How It Works
The process is pretty straightforward. You find a home, get quotes for the work you want to do, and the lender includes that renovation amount in your mortgage. Once the work is done and confirmed, the lender releases the funds to pay for it.
You don’t have to do the work yourself. In fact, most lenders want the work done by licensed contractors. So if you’re not handy, no problem — you can still use this program.
When It Comes in Handy
Example 1: A growing family
Let’s say a couple is buying their first home. They find a place in a good area with a solid layout, but it only has two bedrooms and an unfinished basement. They use Purchase Plus Improvements to finish the basement and get the space they need without having to wait or take on another loan.
Example 2: Adding a rental suite
Another buyer finds a home with a basement that could be turned into a legal rental unit. Some lenders will allow you to use this program to cover the cost of that work. In some cases, they’ll even factor in the projected rental income to help with qualifying. That extra income can make a big difference in affordability.
What Kind of Work Can Be Included?
Generally, the upgrades have to be permanent and add value to the home. Some examples:
Stuff like pools, hot tubs, or fancy landscaping probably won’t be approved.
Why People Use It
This program opens up more buying options. You’re not limited to fully finished homes. You can look at properties that need a bit of work, knowing you can roll those costs into the mortgage and get the work done up front.
It also saves people from having to use credit cards or lines of credit to pay for renovations. Instead, everything is included in the mortgage at one lower interest rate.
Final Thoughts
This isn’t just for fixer-uppers. It’s for anyone who wants to make a good home the right home without stretching their budget.
If you’re looking at homes that are close but not quite there, this could be the difference-maker.
[Click here to start a quick pre-approval or see if it’s a fit.]
Frequently Asked Questions (FAQ)
How do the renovation funds get paid out?
The lender holds the renovation portion back at closing. Once the work is complete and confirmed, they release the funds.
Can I pick my own contractor?
Yes. Just make sure to get a proper written quote up front so the lender can approve it.
What if the work ends up costing more?
You’re responsible for anything above the original approved quote. The lender only funds what’s been agreed to.
Do I have to finish the work before moving in?
No. You move in as usual. Most lenders give you 90 to 120 days after closing to get the work done.