Understanding Purchase Plus Improvements

If you're a first-time homebuyer, you know that finding the perfect property within your price range can be a challenging task. After all, there are so many things to consider, from location to size to layout. And even when you think you've found the perfect home, you might discover that it needs some work before it's truly move-in ready.

That's where purchase plus improvement comes in. This program allows you to add the cost of home upgrades into your mortgage, making it a great option if you can't find something move-in ready and aren't afraid to do a little work!

Here's how it works.

When you're purchasing a home, you can provide quotes to the lender ahead of time for the work you would like to complete. These upgrades will have to increase the value of the property accordingly. Once the renovations have been completed and verified by an appraiser, the lender will reimburse you and include the money in your mortgage.

But while this sounds simple enough, it's important to note that there are some pretty strict rules to follow. For example, the renovations must be completed within 90 days of closing the mortgage. Additionally, the work must be done by a licensed contractor, and you'll need to provide proof of payment to the lender before you can receive the reimbursement.

It's also worth noting that this program isn't for everyone. Buying a home is a stressful endeavour in and of itself, and the added stress of having to undertake renovations right away might not be a good idea for everyone. However, if you have the financial wherewithal to handle the cost of renovations and like the idea of making the home your own from the start, then this might be just the option you've been looking for!

One of the benefits of this program is that it allows you to personalize your new home to fit your needs and style. You can add the features that matter most to you, such as a larger kitchen, an extra bedroom, or an updated bathroom. And because the cost of the renovations is included in your mortgage, you won't have to worry about coming up with the funds on your own.

Another advantage of purchase plus improvement is that it can be a cost-effective way to increase the value of your home. By making upgrades and renovations, you'll not only create a more functional and comfortable living space for yourself, but you'll also increase the value of your property, which could come in handy if you decide to sell in the future.

Of course, it's important to remember that not all upgrades are created equal. When you're considering which renovations to make, be sure to focus on those that will provide the most value for your investment. For example, updating the kitchen or bathroom, adding a bedroom, or improving the energy efficiency of the home can all be smart investments that will pay off in the long run.

Overall, purchase plus improvement can be a great option for homebuyers who are willing to put in a little extra work to create their dream home. By taking advantage of this program, you can personalize the living space, increase the value of your property, and enjoy the satisfaction of knowing that you've created a home that truly reflects your style and needs.