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We love the house but....
 May 21 2019     Posted by Mary Poburan


You’ve found the perfect house in the right location but unfortunately it needs some work. Perhaps the flooring and kitchen are dated. Maybe the roof and windows need to be replaced. Saving up the 5% is hard enough, how do you afford to finance these projects? Well there is a mortgage product that meets your needs. It is possible to factor in the improvements into the mortgage as long as the following are in place:

1)     The quotes for the work to be done need to be detailed at the time you make an offer. Work to be completed should include items that “add value” not designed for appliances, window coverings, or minor cosmetics

2)     The cost of the work should be no more than 20% than the purchase price up to a max of $40,000.00. or max 10% of the future improved Value.( products vary with lenders and insurers). Exceptions can be made for larger projects on a case by case basis.

3)     The work needs to be completed BEFORE the money is released so you need to have the means to pay for the work upfront or else negotiate payment to your trades at completion.

4)     The cost cannot exceed the improved value (we will assess the as-is and as completed values once we have the quotes in hand) All work MUST be completed as per the plan.

5)     Completion of the project is verified by providing copies of paid invoices, or invoices and receipts. In some cases an onsite inspection will be done. Each lender varies slightly on what they want as proof of completion.

6)     If it adds value, we can work with it… as long as you have 5%( or whatever your down payment is) of the improved cost and can qualify for the larger mortgage, we can get it done!!

Don’t let that perfect house go just because it needs an update. There is a solution!

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