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Clover MortgageCalculators

Purchase Plus Improvements Calculator

Buying a home that needs work? See how rolling the renovation budget into your mortgage changes your down payment and your monthly payment.
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Financing $650,000 plus $50,000 of improvements gives a $649,530 mortgage, with a payment of $3,591.36.

Total financed mortgage

$649,530

Lending value of $700,000 less your $70,000 down payment, plus a $19,530 default insurance premium.

Monthly payment
$3,591.36
Payment without the renovations
$3,306.33

The renovations add $285.03/month

Minimum down payment
$45,000
Loan-to-value on lending value
90.0%

The work would create about $30,000 of equity

Your after-improved value of $730,000 exceeds the $700,000 you would have in it.
How the financing is built
Amount
Purchase price$650,000
Improvement budget$50,000
Lending value used$700,000
Less down payment−$70,000
Plus insurance premium$19,530
Total mortgage$649,530

You need to fund the work first

Improvement funds are held back by your lawyer and released only once the work is complete and, usually, inspected. You must be able to pay the contractor before the money arrives.

Purchase plus improvements programs have their own eligibility criteria, budget limits and inspection requirements, which vary by lender and insurer. Clover Mortgage Inc. is a licensed mortgage brokerage. This calculator provides estimates for information only and is not an offer of credit, an approval, or financial advice.

Every mortgage is different. A Clover Mortgage broker can confirm what you actually qualify for across more than 50 lenders — at no cost to you.

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Total financed mortgage

$649,530