Purchase Plus Improvements
At DLC Mortgage Mentors, we understand that the best home isn’t always the one that looks perfect on day one—it’s the one with the right bones and the potential to become exactly what you want. A Purchase Plus Improvements mortgage lets you roll the cost of those upgrades into the same mortgage you use to buy the home, so you’re not scrambling for extra cash or juggling multiple loans. Instead of settling, you can buy the place that’s “almost right” and customize it to fit your lifestyle from the start.
A Purchase Plus Improvements program is ideal if you’ve found a great property that needs a new kitchen, updated bathrooms, fresh flooring, or even a finished basement or legal suite. Rather than paying for renovations out of pocket or putting them on high‑interest credit, the improvement funds are built into your mortgage and repaid over time at your mortgage rate. That means predictable payments and a much smoother cash‑flow picture in the first few years of ownership.
How it works with us
- Step 1 – Pre‑approval with improvements in mind
We start by pre‑approving you not only for the purchase price, but also with an allowance for renovations. That way, you know your total budget up front and can shop for homes and reno ideas at the same time. - Step 2 – Plan and price your upgrades
Once you’ve found a property, you’ll gather written quotes from contractors for the work you want done—things like cabinetry, countertops, flooring, windows, roof, or adding insulation. We’ll review those quotes with you and package them for the lender so they’re comfortable with both the scope and the cost. - Step 3 – Final approval and possession
Your mortgage is set up based on the purchase price plus the approved improvement amount. On closing day, you take possession of the home as usual; the improvement portion is held back until the work is completed. - Step 4 – Complete renovations and release funds
After the renovations are finished, an inspector or appraiser confirms that the agreed‑upon work has been done. Once verified, the lender releases the improvement funds, which reimburses you (or your contractor) for the renovation costs you’ve paid.
What kinds of renovations qualify?
Generally, lenders want to see permanent improvements that add value or extend the life of the home—such as kitchens, bathrooms, flooring, roofing, windows, doors, plumbing, electrical upgrades, finishing basements, decks, or energy‑efficient upgrades. Purely cosmetic or luxury items (like hot tubs or designer furniture) may not be acceptable, so we’ll review your wish list together and separate “must‑haves” from “nice‑to‑haves” based on what lenders will approve.
How much extra can you usually borrow?
Most programs allow an improvement amount up to a certain percentage of the purchase price or appraised value—often in the 10–20% range—with an overall dollar cap depending on the lender and insurer. We’ll run the numbers to make sure your renovation plan fits inside those limits and still keeps your monthly payments comfortable.
If you’re looking at a home that needs some love but has great potential, I can help you structure a Purchase Plus Improvements mortgage that covers both the purchase and the upgrades in one clean package. That way, you move in once, renovate once, and end up with the home you really wanted—without blowing up your savings or your cash flow.