PRODUCT DESCRIPTION - This product permits a homebuyer to qualify for some upgrades to their new home prior to taking possession.
IDEAL CLIENT - For borrowers who plan to buy a home that needs some TLC and want to include the costs of the renovations into the mortgage.
Example: You find a home you like and the sale price is $350,000 but the home needs new windows throughout and new cupboards in the kitchen. You make a normal offer on the place with the seller. You then get a contractor to view the home, and provide a quote for the cost of the work to be done. You will qualify on the total purchase price plus the cost of the improvements and the down payment is based on the total cost. You take possession, the contractor completes the renovations, and when the work has been completed, the contractor gets paid, and you have a home with all the upgrades you wanted.
MAXIMUM LOAN-TO-VALUE - The maximum Loan-to-Value for this product is 95% on a purchase.
DOWN PAYMENT SOURCES - The down payment can come from own resources, gifted down payment, and from borrowed funds. The down payment needs to be confirmed in your bank account.
SPECIAL CRITERIA - A minimum credit score of 680 is required for the main applicant, and must have a decent credit re-payment history.
View the entire Documents Required for mortgage purchases.