We’ve got you! With our “Purchase Plus” conventional program, you can finance eligible improvements right into the purchase loan!
You find a house in your price range. The payment works. The neighborhood works. Maybe the size and layout even work.
And then you walk inside.
Oh no…the house needs work!
The flooring needs to go. The kitchen is dated. The windows are old. Maybe the roof needs attention, the HVAC has seen better days or the yard needs some serious love!
And your first thought may be:
“I can afford to BUY the house. But I don’t have another $20,000, $30,000 or $40,000 sitting around to fix it.”
Before you cross that house off your list, I want you to know there may be another option!
What If You Could Finance the Improvements When You Buy the House?
That’s exactly what our Purchase Plus program is designed to do.
For an eligible conventional purchase, certain cosmetic repairs and smaller-scale improvements can potentially be financed right into the purchase loan from the beginning.
That means you aren’t necessarily buying the home first and then trying to figure out how to pay for everything afterward.
Buy the home. Finance the eligible improvements. Make it yours.
And depending on the conventional loan program and your qualifications, financing may be available with as little as 3% down.
That can be especially interesting for buyers who are trying to stay within a more affordable price range and finding that many of those homes could use some updating.
What Kind of Work Can You Do?
This isn't intended for tearing a house down and starting over.
Think cosmetic improvements and smaller-scale projects that can add value and make the home work better for you.
Depending on the project and program guidelines, that could include things like:
- Flooring
- Interior or exterior paint
- Kitchen or bathroom updates
- Countertops and cabinetry
- Windows and doors
- Roofing, gutters or downspouts
- HVAC
- Decks, patios or porches
- Energy-efficient improvements
- Accessibility improvements
- Landscaping or yard work
And there may be other eligible improvements as well.
The house doesn't have to be perfect on closing day. That may open up homes you otherwise would have passed right by.
How Does Purchase Plus Work?
There are a few important pieces.
This is a conventional purchase program, and the improvements are planned as part of the financing from the beginning.
We'll need a fixed bid from an approved contractor for the work rather than the homeowner doing the improvements themselves.
The renovation amount is subject to program limits, including a maximum improvement calculation based on the home's purchase price and/or completed value. There is also a required contingency for unexpected costs, and the work generally needs to be completed within six months.
The funds aren't simply handed to the buyer at closing. They're managed through the renovation process and released according to the program requirements.
So yes, there are some moving pieces.
But that's what we're here for!
The Contractor and Timing Matter
This is one place where planning ahead can make a BIG difference.
If you're looking at a home that needs work, call me before you write the offer, and let’s go over the options and possibilities.
We can talk through the property, the improvements you're considering and the timing. Because one of the biggest pieces is getting the contractor and bid lined up early enough to keep the transaction moving.
We have some contractors who help us with this program that we can refer. When everybody is on the same page—buyer, REALTOR®, lender and contractor—the process can be surprisingly streamlined.
The Affordable Home May Not Be the Perfect Home—Yet
This may be the biggest reason I love this program.
When affordability is tight, sometimes buyers keep searching for the home that's already remodeled, already updated and already perfect.
But somebody else paid for all of that. And often, it's reflected in the price. What if instead you find the home with the right location, the right bones and the right price—and then make the improvements that matter to you?
You might prefer different flooring anyway. You might hate the beautifully remodeled kitchen someone else chose. You might rather select your own countertops, paint colors or cabinets.
Sometimes the more affordable home isn't the one that's already perfect. It's the one we can help you make perfect for you!
Don’t Automatically Pass It By
So if you're house hunting and keep seeing homes you can afford—but they need work—don't assume you have to choose between:
Buying the house or having money left to improve it.
There may be a way to structure the financing so eligible improvements are included right in the purchase loan.
Not every house will qualify. Not every project will qualify. And not every buyer will qualify. But it's absolutely worth having the conversation before you rule the home out.
See a house that needs work? Send it to me! Let's look at the property, the numbers and what you'd want to change.
You might be surprised by what's possible! I love this PROGRAM!! 🏡🔨💚
— SE
