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Purchase plus improvements

Purchase Plus Improvements Mortgage: Buying & Renovating in One Step

Buying a home that needs renovations can be a great way to customize your space and increase its value. A Purchase Plus Improvements (PPI) mortgage allows you to finance both the home purchase and the renovation costs in one mortgage, eliminating the need for separate loans or out-of-pocket expenses. This is a great option for buyers who find a home with potential but need extra funds to make it move-in ready.

A Purchase Plus Improvements mortgage works by allowing buyers to borrow additional funds (typically up to 10-20% of the home’s value) to cover renovation costs. Lenders require that you provide quotes for the planned improvements upfront, and the renovation funds are held in trust until the work is completed. Once the renovations are finished and inspected, the lender releases the funds to cover the costs.

The biggest advantage of a PPI mortgage is that it eliminates the need for costly personal loans or credit cards to fund renovations. Instead, you benefit from lower mortgage rates while increasing your home’s value right from the start. This type of mortgage is ideal for buyers who want to upgrade kitchens, bathrooms, flooring, roofing, or other major home improvements right after moving in.

A Purchase Plus Improvements mortgage requires careful planning, but it’s a great way to turn a fixer-upper into your dream home while spreading the renovation costs over the mortgage term. If you’re interested in buying a home that needs work, I can help you navigate the process, secure the right financing, and maximize your investment. Let’s connect to explore your options!