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Purchase Plus Improvement Mortgage
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Buy the Home. Build the Dream. All in One Mortgage.
What Is a Purchase Plus Improvement Mortgage?
Found the perfect home — but it needs a little work? Don’t let renovation costs hold you back. A Purchase Plus Improvement (PPI) mortgage lets you combine the purchase price of a home with the estimated cost of renovations into one single mortgage — so you can start improving your new home right after you get the keys.
No separate renovation loans. No high-interest credit cards. Just one simple, manageable payment at your best mortgage rate.
How it works — and how I support you every step of the way
- Get a thorough pre-approval
Start by working with a broker to complete a detailed pre-approval. This helps you understand exactly how much you can afford for both the home purchase and renovations before you begin your search. - Find your home & make an offer
Once you have found the right home, submit your offer with your total pre-approved budget in mind, including a rough estimate of your renovation plans. - Share your MLS listing & purchase agreement
Send your MLS listing and signed purchase agreement to your HomeMortgageCare broker. From there, we’ll move quickly to secure your mortgage approval. - Provide detailed renovation quotes
Submit clear, itemized quotes from contractors outlining the full scope and cost of the renovations. The more detailed the quotes, the smoother the approval process. - Renovation costs are reviewed and added
We present your renovation plans to the lender for approval. Once accepted, these costs are added directly to your mortgage. - Appraisal is completed
A professional appraisal is arranged to confirm that the planned renovations will increase the property’s value accordingly. - Mortgage is re-approved
Your mortgage is finalized with the renovation costs included, putting you in a position to close on your new home. - Take possession & begin renovations
After closing, you take possession of the property and begin the renovations. You’ll typically have 90 to 180 days to complete the work.
Renovation costs must be paid upfront using your own funds, such as savings, a line of credit, or credit cards. - Notify us when renovations are complete
Once the work is finished (or nearly complete),. I will arrange a final inspection with the appraiser to confirm all work has been completed as planned. - Funds are released & you’re reimbursed
After the final inspection is approved, the lender releases the renovation funds to you. This reimburses your upfront costs, and the full renovation amount is now part of your mortgage
What renovations are covered?
The improvements must be permanent in nature and add value to the home such as:
- Kitchen or bathroom remodels
- Roof replacement
- Basement renovation or finishing
- New flooring or windows
- Structural repairs
- Painting and cosmetic upgrades
Not covered: Appliances, furniture, or other non-permanent fixtures
Key Program Details
Feature | Details |
Minimum Down Payment | As little as 5% |
Max Improvement Amount | Up to $100,000 of the as-improved value |
Renovation Timeline | Work must be completed within 90–180 days |
Eligible Properties | 1–4 unit residential homes |
Rate Type | Fixed, variable, or adjustable |
Why Choose Purchase Plus Improvement?
- One mortgage, one payment — no juggling separate renovation loans
- Instant equity — add value to your home from day one
- Start right away — once you take possession of your new home, you can start the upgrades immediately
- Open up your search — homes that may need a little TLC but are in a great location or have great bones are now within reach
- Best rates — as an insured mortgage product, you benefit from lower rates
Ready to Get Started?
I will walk you through every step — from pre-approval to renovation fund release.
FAQs
A Purchase Plus Improvements mortgage allows you to combine the cost of buying a home and renovating it into a single loan. This means you can finance upgrades—such as new flooring, a kitchen renovation, or even larger structural changes—based on the home’s projected value after improvements are completed.
Both cosmetic and structural renovations are typically eligible. Cosmetic updates may include painting, installing new countertops, or upgrading flooring, while structural work can involve adding rooms, repairing the foundation, or modifying the home’s layout.
Your down payment is calculated based on the property’s estimated value after renovations.
Renovation timelines depend on the size of the project. For improvements under $40,000, you generally have up to 6 months to complete the work. For projects exceeding $40,000, the timeline can extend up to 12 months.
The funds for your renovations are held by the lender and released once the work is completed. In some cases, they may be distributed in stages after inspections confirm the progress of the renovations.
If your actual renovation costs exceed the approved amount, you will be responsible for covering the difference with your own funds. Planning for unexpected expenses is recommended.
