IK Financial Metarials
Mortgage

Purchase Plus Home Improvements (PPI)

IK Financial Purchase Plus Home Improvements (PPI)
When it comes to shopping for your perfect home, it can be hard to find the exact one ready to go! Old paint or flooring, outdated fixtures or perhaps more extensive repairs - every buyer might face these downsides. While some buyers have no issues dealing with these deficiencies in a home, other house hunters might.

If you are looking into a home that requires improvements, there is a mortgage product known as Purchase Plus Improvements (PPI). This type of mortgage is available to assist buyers with making simple upgrades, not conduct a major renovation where structural modifications are made. Simple renovations include paint, flooring, windows, hot-water tank, new furnace, kitchen updates, bathroom updates, new roof, basement finishing, and more.

The main difference between a regular mortgage and a purchase plus home improvements program is the need for quotes. As part of the verification process, your mortgage professional and the lender will need to see a quote for the work that is planned for the improvements. The quotes will provide us with the cost and plan details required to secure the final approval.

The lender will release the full funds directly to the lawyer with instructions to hold onto the portion for improvement costs until the renovations are completed. You would need to pay the contractor and then, once the renovations are complete, and the lender has approved and waived the holdback, the lender will allow the lawyer to release the additional funds.

To get started with this type of mortgage program, the first step is reaching out to IK Financial Mortgage Agents to understand how this mortgage product would apply to your application and specific situation, as based on your existing mortgage. Understanding what you qualify for and the types of improvements that can be included in the financing, will help you better understand which potential houses might work great for you and how much financial room you have for improvements.


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