Upgrades as Downpayment

[Gary]

Did anyone else use the amount they paid towards upgrades as part of their down payment? We were told this was possible and they sent us an amendment to the purchase and sale agreement reflecting this. Today our lender tells us that Mattamy doesn't allow this to count towards the down payment? Has anyone had this issue?? If so how did you reslove it?

Thanks

[gagnon777]

Did anyone else use the amount they paid towards upgrades as part of their down payment? We were told this was possible and they sent us an amendment to the purchase and sale agreement reflecting this. Today our lender tells us that Mattamy doesn't allow this to count towards the down payment? Has anyone had this issue?? If so how did you reslove it?

Thanks



Not sure if I'm reading this right, but when we bought our home the downpayment required by Mattamy was $25K regardless if we added upgrades to our purchase price or not. If you purchased upgrades after you signed your purchase agreement, and you put $$$ towards that, that would NOT count against a downpayment.

[K.C.]

Did anyone else use the amount they paid towards upgrades as part of their down payment? We were told this was possible and they sent us an amendment to the purchase and sale agreement reflecting this. Today our lender tells us that Mattamy doesn't allow this to count towards the down payment? Has anyone had this issue?? If so how did you reslove it?

Thanks

Your lender is correct ... Mattamy doesn't allow this. Whoever told you that they do was confused or didn't understand your question. When you close on your house your down payment for upgrades can be used as down payment on your house but that's between you and your lender not Mattamy. In the meantime you have to come up with alot of cash if you want lots of upgrades. I think the deposit for upgrades is up to 35% now. The only upgrades you might not need to put down a deposit on are the ones you selected when you first signed the agreement to purchase.

[Gary]

That's correct. We put down the 25K and then about 35% of our design upgrades. We were told that the 35% would go towards down payment as well. They then sent us an amendment to the purchase and sale agreement reflecting the new sale price and balance owing. Now our lender is saying that 35% can't be used towards down payment. But if you take the difference between the final price, and balance owing on the new amendment you get the 25K plus the 35% of upgrades and that should be the total down payment. make sense?

[Gary]

Problem solved. A quick call to the lending agent's manager and we're good to go with the total amount as down payment. Thanks for the help.