The Purchase plus Program is designed to help clients make their new home a little more the way they want it. Whenever you visit a house with a Real estate agent, you end up to chose of the many that you have visited. But it often misses a little something that could really make it you’re dream house.
Most of the lenders have to follow the insurers guidelines which is either capped at a maximum of 10% of the house value with CMHC and 20% of the house value with Genworth. This mean that if a House sells for $200,000, the max for renovations would be capped at $40,000. It is not a big issue with higher amounts. But when you purchase a $80,000 house and you want to do the Vinyl, Windows and Roof, which costs about $25,000. You won’t have enough with those 2 programs.
I have access to some lenders that allow you to do as many renovations as you may want. These lenders use the CMHC progress draw advance program which allow you up to 4 draws, no inspection cost to you, and this is good for purchase plus renovations or new Construction. That program would be the perfect solution for that $80,000 house plus $25,000 in renovations.
In both cases, inspection or appraisal will be required when you do some renovations but all the lenders have different policy with regards to who pays the invoices.
Contact me to learn more on how I can help you with your project,