Purchase Plus Improvements
A purchase plus improvements mortgage (PPI) is an option that a number of borrowers choose when considering purchasing a fixer upper or flipping a home.
The brokers at Today's Mortgage Choice will browse the best and more cost-effective options for your mortgage. We’ll locate the incentives that make the most sense to your situation and help your project move forward.
To discuss your options, schedule a consultation today at (888) 418-6979.
What Is a Purchase Plus Improvements Mortgage?
A PPI program is a mortgage that helps homebuyers fund improvements, renovations, and upgrades. This type of mortgage finances both the value of the purchased home and the estimated renovations. Instead of taking out two separate loans, you can consolidate both needs into one intuitive and affordable loan option.
This mortgage allows you to finance any modifications and additions to your home at the time of purchase. Whether you want to create your dream home or intend to sell the updated property at a profit, a purchase plus improvements may be the option you are looking for.
What Mortgage Lenders Offer Purchase Plus Improvements Mortgages?
A number of lenders offer purchase plus improvements mortgages— banks, trust companies, credit unions, and more. Certain lenders offer special incentives to those renovating certain properties, such as commercial ones.
Our brokers will show you through the full range of lenders who specialize in these mortgages.
What Is the Mortgage Application Process?
As with any mortgage, you’ll apply for pre-qualification and pre-approval. You will be presented with a conditional offer as-is, not including the renovation cost.
With a purchase plus improvements mortgage, you’ll also have to submit a price quote for the renovations and updates. In your application you’ll have to clearly outline the renovations that need to be done, along with an approximate estimate.
If you are planning to do the work yourself, make sure you factor these labour savings into your costs. However, lenders usually stipulate that these renovations be carried out by a licensed contractor.
Your mortgage approval will then be revised to include the new post-renovation value of the home. You won’t receive renovation funds until after the work is complete, but the interest rates will not be affected.
How Can I Qualify for a Purchase Plus Improvements Mortgage?
To improve your chances of qualifying for a PPI mortgage you must be prepared to make a significant down payment and ensure your finances are in good standing.
Most lenders won’t grant a mortgage to those with greater than a 40% debt-to-income ratio. Based on your financial situation, our brokers can recommend the best lender for you.
The Brokerage Assistance and Advice You Need
You can count on skillful, unbiased advice and industry expertise at Today's Mortgage Choice. We can show you through a wide range of lenders, offering unbiased advice, and assist with the application process as well.
Allow us to help you get this project off the ground. Contact us today at (888) 418-6979 to schedule a consultation.