A Purchase-Plus  Improvement
Mortgage takes into account
the future value of a home with repairs or renovations as completed after the closing.

Example: Your realtor introduces you to a property that requires basement finishing or upgrading.

The estimated cost of the basement renovations is approx. $40,000. The current appraisal value and sale price of the home is $400,000. Instead of the standard 5% down on the $400,000 ($20,000), a Purchase-Plus Improvements Mortgage lets you place 5% down on the future value of the home ($440,000) which includes the cost of the basement renovations. The new mortgage amount would be $418,000.00 giving the client $38,000.00 for their renovations.