If you have found a great home that just needs a little updating, a purchase plus improvements mortgage can be an excellent way to turn that great home into your dream home. After your down payment, closing costs and moving expenses, there can be little money left over for renovations; but with a purchase plus improvements mortgage, you are able to factor the cost of your renovations into your mortgage with as little as 5 percent down. For example:
If you purchase a home for $400,000 and determine that your renovations will cost $20,000, the total amount of your mortgage financing would be $420,000. With a down payment of as little as $21,000, you are able to complete your renovations right away and pay off that $20,000 throughout the course of your mortgage.
For more information about this type of mortgage product, feel free to contact our office today!