How to get a Purchase Plus Mortgage
Are you buying a real estate property this spring or sometime this summer? I think you understand how difficult it is to buy that "Perfect " house? How many times have you found a house that is 8 or 9 out of 10. I'm sure many times! Well here is the perfect plan for you!
This mortgage allows you to buy the house, take possession, then make the improvements while you live there or somewhere else, depending on the circumstances. Read further, I will explain in an example!
HOUSE AT THE TIME OF PURCHASE
- Mortgage amount $350,000
- 5 Year Fixed Rate of 3.34%
- 25 Year Amortization
- Monthly Payments of $1718.02
HOUSE AT THE OF PURCHASE AFTER THE IMPROVEMENT
- Mortgage amount $390,000
- Improvement cost $40,000
- 25 Year Amortization
- Monthly Payments of $1914.36
For a difference of $196.34 monthly you can have a brand new kitchen, floors or bathroom. Maybe you want a new garage or patio?? The possibilities are endless, let me show you how!!
Conditions of the Deal:
- Owner occupied only deals
- Maximum improvement must be equal to or less than 10% of the as-improved market value with a cap of $40,000
- Minimum improvement value must be $10,000
- You need to be fully qualified
- Lending value will be based on "as improved" value
Documentation Required Up Front:
- Detailed list of improvements
- Satisfactory contractors quote outlining the scope of the work and cost estimates
- Copy of the building permit if improvements are structural
Release of Holdback Funds:
- Hold back funds will be released once lender receives and approves the final inspection confirming 100% completion of the work as per the original quote/contracts. Any discrepancy may be applied to the Mortgage principal.
- In addition to the above, proof that contractor has been paid may be required for release of funds.
- The improvement work must be completed within 120 days of initial advance. Any hold back remaining after 120 days maybe applied on the mortgage principal.
- Hold back will be released through a Single Advance. Street Capital does not permit Multiple Advances.
Please call me at anytime!! Would love to explain the process to you!
