I bet you didn’t know that you could get a mortgage for renovating a home. Truth be told today there are thousands of home buyers and existing owners who have decided to use a little elbow grease and get more bang for the buck by investing (or purchasing) a home that needs renovations. When purchasing a new home many new owners choose not to develop the basement and instead wait…little did they know that you can get some specific financing options whether you’re buying new or looking to make improvements on an older home.
If you consider yourself someone who falls into that category then you should consider looking into the “purchase plus improvements” mortgage when you renovate your home. It’s hard pressed to find a mortgage lender who doesn’t offer this type of loan even if you only have the minimum 5% down payment.
The trick is in the details.
You Need Proof
Imagine purchasing a home in a small community like Whitecourt. As a Mortgage Lender in the Whitecourt area all we would require is proof of the work that you would be completing in the renovation of your home. Through this we can typically add the quoted amount to your desired purchase price and once that’s sorted we simply deduct the down payment and determine the proper amount.
Here at GM Mortgages we typically allow a maximum of 10% on the value of your home, if it ends up costing more to renovate your home then you’d have to change your focus to a construction draw mortgage. When all is said and done though you usually have just 90 days for the work to be completed and while you can extended if required it’s often better to have everything in order and be completed for the time period.
Existing home owners have the same luxury available with one exception:
Your maximum mortgage can’t exceed more then 80% of the current value of your home.
It can be a little overwhelming but if this sounds like something you’d like to learn more about then please feel free to contact us at 587-803-1313, we always look forward to your calls and are willing to answer any and all questions you may have.