A purchase-plus-improvements mortgage lets a buyer roll a portion of renovation costs into the mortgage, with the lender basing the loan on the home's value after the planned work rather than its as-is condition, subject to that insurer's guidelines.
A home in rough shape may need a higher down payment or a different lender than a move-in-ready one, since a property with major deferred maintenance can fail to meet the condition standard an insured mortgage requires.
A mortgage broker who works with purchase-plus-improvements products regularly can tell you quickly whether a specific property and renovation plan will qualify. Get your hand-reviewed valuation from Joel Dyck.