In today’s market place, many home buyers have found the perfect location for their dream home, but not the perfect home.  Home buyers have found lovely neighborhoods, mature trees and lots of children in the neighborhood for their kids to play with.

So what’s wrong?  What’ the objection?

Many times, the home buyers want a newer home or at least have some updated kitchen and baths. Other times, the home is just to small, and would better suit the family if there were a larger breakfast area or an additional hearth room added!

As our response to the market place in the greater Kansas City area, we have created our purchase plus program. 
You can purchase a home PLUS add the cost of improvements to the loan!  What could be better?

Here is how it works:

• Find the home to purchase for a personal residence.
  
• Write an offer “contingent upon the Buyer obtaining plans and specs for home improvements within ‘x’ days of approval”.
  
• Obtain plans for improvements. Get the specifications agreed to and obtain quotes from several reputable sources.  I can provide names of contractors who can help you if needed.
  
• Increase the sales price with the cost of improvements to create the ‘Acquisition Cost of the home”.

On the day of closing, the seller gets their agreed to sales price and the additional funds are put in a construction account for you.  Draws are made as the work progresses.
What else should you know?

• An appraisal is completed based on the ‘subject to’ completion of the work, so that you know the true value (remember some improvements will only bring a home up to standard value, not increase the value).
  
• A contingency factor of 10% is allowed in the construction costs and put into the transaction. This can either be paid by you at closing or rolled into the construction portion of the loan [preferred].
• The Purchase Plus loan is an Interest Only payment at the closing of the loan and during the construction phase of the project.