Purchase Plus Improvements Program
The Purchase with Improvements and Refinance with Improvements product provides home buyers/owners with the opportunity to make improvements to their home and allows the homeowner to borrow against the increased value of the property. Purchase transactions up to 95% on the lesser of the improved property value or the sum of the purchase price plus direct costs of the improvements. (Refinance Plus Improvements up to 80% on the lesser of the improved property value or the sum of the purchase price plus direct costs of the improvements.)
This policy addresses purchase and refinance situations when improvements are made to the property that increase the market value. Note that the cost of improvements (increase in market value) are limited to the lesser of 20% of the Improved Value, or $40,000.
A detailed list of improvements from a third party (contractor) outlining the scope of work and cost estimates, and copies of building permits (if required). This quote is required when application is being submitted.
Some lenders release the entire committed amount to the solicitor at closing, and some lenders hold it back from advance. Clients have 90-days to complete the indicated work (depending on nature of work and weather permitting for longer waiting periods for completion) The improvement funds will be released from lawyers trust account (or from lender) to client upon receiving and approving the inspection report from an approved Appraiser, confirming all work has been completed.
Standard debt servicing rations must be adhered to, as well as credit rating requirements.
For further details, please contact one of our mortgage professionals at Homefund.
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