Want to buy a dumpy house? Check Out the Purchase Plus Improvement Program

There is no question that the today's real estate market causes us to be more creative when it comes to buying a home.

Picture this common scenario. You get pre-qualified for a mortgage, and you go out to start buying homes with your realtor and discover that the house you can qualify for needs some work! You barely have money for a downpayment, let alone the $20,000 extra to fix up a home. Many home buyers hang their head and resort back to renting.

There is another way.

A lot of lenders offer the Purchase Plus Improvement Program. It's very simple. When you buy a home, you are able to get some additional renovations tacked right onto the mortgage. The only stipulations are that it cannot include appliances and the lender usually will only advance the funds when the project is done. A purchase plus improvement program can be used up to 95% Loan to Value

Most houses have only cosmetic issues, and with a little extra money and elbow grease you'll have your own home and likely a very strong equity position.