Q: I want to buy a home but I want do a significant amount of renovations to it? Can I finance the purchase and renovation or can I only finance the purchase?

A. Yes, you can finance both the purchase and renovation at the time. There are loan products available that allow you to do both. And some loans allow you to not only renovate existing space but also add additional square footage to the home. You would

have to qualify for the total amount of the loan, typical to a traditional loan. In addition, before closing on the house, you would have to provide the appraiser with finished architectural drawings on the renovation. The appraiser would appraise the “on paper”

renovated house and it would have to appraise before you were granted the loan. Given this, when writing your offer, allow yourself enough time before closing to have the completed plans drawn and also include an appraisal contingency covering the total cost of the project.