The Purchase Plus Improvements Program allows purchasers to borrower additional mortgage-money above and beyond their approved mortgage amount with the minimum down payment required to complete renovations within 120 days from the closing date of their purchase.
The Purchase Plus Improvements Program is instrumental in home ownership because of how difficult it is for most people to qualify for a moderately priced house in popular urban areas today. In all other circumstances, borrowers must wait until their home appreciates enough to be able to refinance for renovations.
Depending on appreciation rates and whether or not borrowers requalify, they may not get an opportunity to make aesthetic changes using mortgage financing. All refinancing is only possible if the mortgage amount requested does not exceed 80 percent of the loan to value and if borrowers can meet lending guidelines once again.
Therefore, the program is beneficial for several reasons, including:
How it works using a real example:
Why Don't More Purchasers Use This Program?
There is only one main deterring factor that explains why more purchasers don't use this program more often and that is they must front the money for renovations first.
The funds for renovations must be one of the standard traditional down payment sources, which include personal savings, RRSPs, a non-repayable gift from an immediate family member, sweat equity, existing home equity or proceeds from a sale.
The good news is that the Purchase Plus Improvement Program can be used under the following products:
Eligible Properties include:
The Purchase Plus Improvements Program is available through the broker channel and the lenders we work with also use more forms of income to qualify than banks accept which include the Child Tax Credit and disability income.
If you'd like to learn more about the Purchase Plus Improvements Program, please feel free to contact me at (647) 773-4849 or by mail at firstname.lastname@example.org.
Sarah A. Colucci, Sr. Mortgage Agent Lic. M140000929
Mortgage Edge Broker 10680
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By: Sarah Colucci