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Purchase Plus Improvements Program

Helping Qualified Home Buyers Carry Home Improvement Costs into Their Mortgage

 If you’re in the market for a new home but can’t find that picture perfect place you have in your mind, well don’t worry at Mortgage Tree we have the perfect solution for you. With the new Purchase plus improvements program (PPI), Mortgage Tree can help qualified home buyers carry the cost of their home improvement projects into their mortgage with as little as 5% down.

That means you can buy the home of your dreams and get started on those much-needed improvements right away!

How To Qualify for a Purchase Plus Improvements Mortgage

You will still need to qualify for either a high ratio or conventional mortgage, but with an extra amount added into your mortgage to cover the renovation costs of your new home.

A few things to note when choosing a PPI mortgage:

  1. The renovations must be permanent
  2. They also need to add value to the property
  3. Upgrades such as a roof, new flooring, or fireplace

Just like any other mortgage application you will go through similar steps except for the added renovations steps as listed below:

  • When you have an offer to purchase and are within the condition date you will need to have a quote for the work you are wanting completed. The quote will be sent to the Lender / Insurer for approval.
  • Renovation financing costs can be up to $40,000 or 10% of the purchase price. In some exceptions we can approve you for a higher amount.
  • Once you have taken possession of the home, renovations need to start right away. Here is where you need to be vigilant – You will have between 90-365 days to complete the renovation. (The 90-365 days depends on your Lender).
  • The financing amount of the renovations are kept “In-Trust” at your Lawyer’s office during the renovations.
  • Once the renovations are complete, the lender will evaluate and approve the work done. Then the funds will be released to either yourself or to your contractor.

Please note costs related to the renovations during the renovation period are paid out of pocket by you.  It is imperative that you keep all receipts.

If you’re curious about the PPI mortgage and would like to plug in some numbers, click the link here:

Last Words

If you are looking for a way to finance renovations on a newly purchased property, a purchase plus improvements mortgage may be the perfect option. This type of mortgage combines the benefits of a traditional mortgage with some extra money specifically earmarked for renovations.

There are some requirements to qualify. You can find that information here:

Contact Mortgage Tree today if you want more information about how to get started with a purchase plus improvements mortgage. We would be happy to answer any questions you have!

Thank you for taking the time to visit our website and read our blog. We hope we have been able to answer a few questions.

Please contact us anytime we are here to help you!


The Mortgage Tree Team – “Your Key to Home Ownership”