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RenoFi

Home Renovation Loan Solutions
RenoFi offers innovative home renovation loan solutions to current and prospective homeowners.

Overview

RenoFi offers innovative home renovation loan solutions to current and prospective homeowners.

What is RenoFi?

RenoFi is a home renovation financing service. Founded by Justin Goldman, Lee Miller, and Rob Shedd, the platform connects homeowners with lenders who can provide flexible funding options.

Should You Use RenoFi to Finance Your Home Renovation?

RenoFi offers a unique alternative to funding home renovation projects, which makes them worth considering. RenoFi calculates your projected after renovation home value based on a unique type of appraisal to determine the loan amount – instead of using the equity you currently have available in your home.

Home inspections and draws aren’t required after loan approval; the credit unions in the RenoFi partner network assess lower interest rates and fees than you’ll find with traditional banks. So, upon approval for a loan, you can borrow with confidence knowing the lender won’t assess the steep interest rates and fees you’ll find with traditional banks. 

How RenoFi Loans Work

How Much You Can Borrow

You can borrow up to 80% of your home’s value once the renovation is complete or 125% of your home’s current value. When reviewing your application, lenders also factor in your outstanding mortgage balance and financial health. 

Loans are limited to $500,000, but any loan amount over $250,000 may have more stringent qualification criteria. Use the personalized Loan Calculator on RenoFi’s website to gauge how much you can afford to borrow. It only takes a few minutes, and there is no formal credit check. 

What You Can Use RenoFi Loan For

You can use the RenoFi Loan products to renovate a home you currently own or plan to buy. However, loan proceeds cannot be used on investment properties, homes currently listed for sale, new construction, or multi-unit properties. (Note: detached townhouses are eligible for funding). 

Fees, Costs, and Terms

RenoFi does not charge homeowners for the service that they provide. Expect the following lender fees if you take out a RenoFi loan: 

  • Processing and Underwriting Costs (varies by lender)
  • Appraisal Fee (varies by project scope and complexity)
  • Monthly fee: You may incur a monthly fee from the lender during the renovation process.

However, charges will stop once the project is complete and you receive a certificate of completion from RenoFi. Fixed-rate home equity loans are available with 10, 15, and 20-year terms. However, the terms for home equity lines of credit (HELOCs) vary by lender. If you pay the loan off early, most lenders will not charge a prepayment penalty. 

Interest Rates

The rate you receive will depend on your lender and the loan type. If you apply for a RenoFi Renovation Home Equity Loan, the lender will evaluate your credit score and after renovation loan to value (LTV) ratio to assess the interest rate. 

Application Requirements and Document

RenoFi does not pull your credit when searching for lending partners. But when you submit a loan application to the lender of your choice, they will run your credit at that time and generally require a credit score of at least 640 to consider you for a loan. (If possible, check your credit score beforehand to know where you stand). Your debt-to-income ratio should also be 45% or lower. 

Be prepared to provide the lender with the following documents when you apply for a loan: 

  • Two most recent pay stubs
  • Two years of W-2 forms
  • Two most recent months of statements for personal bank accounts, investment accounts (if applicable) and retirement accounts (if applicable) 
  • Most recent mortgage statement
  • Proof of homeowners insurance
  • Contractor’s name, address, email, website, and phone number
  • Cost estimate that includes a general scope of work and subcategory cost breakdown
  • Drawings of the renovation with your contractor’s dimensions noted
  • Architect/engineer plans (if required by your local building code)
  • Preliminary renovation contract that includes an estimated timeline, payment schedule, and applicable change order procedures

RenoFi Home Renovation Loans

RenoFi offers three types of home renovation loans. Both options are ideal for borrowers who wish to tap into the future value of their home after renovations or plan to renovate their primary residence and haven’t yet begun the demolition process.

RenoFi Renovation Home Equity Loan

The RenoFi home equity loan offers fixed rates. You can borrow between $25,000 and $500,000, and loan terms are available for up to 20 years. Loan proceeds are distributed as a lump-sum payment.

RenoFi Renovation HELOC

HELOCs from RenoFi are offered for $25,000 to $500,000, capped at 80 percent of your home’s after-renovation value. Loan proceeds are accessible through a line of credit once you close on the loan. You will have a 10-year draw period, followed by a 20-year amortization term to repay what you borrow. 

RenoFi ReFi

RenoFi ReFi allows you to refinance your first mortgage to access the money you need for home renovation projects. It works like a traditional cash-out refinance but with more borrowing power, as you can take out up to 80% of your home’s projected value after the renovation.

RenoFi Reviews

RenoFi boasts a 5-star average on Google. Here’s what some of their customers had to say: 

  • We were easily able to finance our project. Both RenoFi and the Credit Union were great to work with. Our project is underway as we speak! Brandon Segal
  • This process was very helpful. Although a long process, it was very thorough. I was confident we were sure to get a loan. Thank you, RenoFi, for getting us approved and our loan funded! The Armijo’s
  • They are easy to work with, and their website is very well designed to make the process easy and stress-free. Dave Richie
  • Do your homework, we did, and I have to say I am 100% satisfied. Not only are we getting an addition we have been saving up for 5 years to start, but this allowed us to have a significant increase in the value of our house and greatly improved the 1941 construction. There was excellent communication at every step, and Renofi handled all of the heavy lifting for the loan procurement. Wendy Williams
  • I was thrilled to find Renofi to help us secure funding for our custom pool project. They offered more repayment options than other pool loan lending institutions which helped make our project more affordable. The application process was relatively easy, and the Renofi reps were very good at guiding me through the process and telling me what was needed for approval. Funding large home improvement projects can be complicated, but Renofi made the process easy and achievable. Blake Rush

How To Get Started with a RenoFi Loan

RenoFi makes it easy to get the funding you need for your next home renovation project. Here’s how to get started: 

  • Step 1: Input your information into the pre-qualification tool to view your loan options. If you’re pre-qualified, you can connect with a RenoFi Advisor to learn more about your potential loan offers and the application process. 
  • Step 2: Gather the documents your lender will need to process your loan application. Upload the requested information to the portal to be matched with a lender. 
  • Step 3: The RenoFi team will review and underwrite your application. Once the RenoFi team has determined the likelihood of you qualifying for a RenoFi Loan, they will order your appraisal, and you will be sent a link to pay your appraisal invoice.
  • Step 4: While waiting for the appraisal, the RenoFi team reviews your renovation documents. Upon completion, you will submit your loan application directly to the lender. If your application is approved, you will have access to the loan proceeds.

After you’ve submitted your documentation to RenoFi, the process takes about 60 days on average.

FAQs About RenoFi Home Renovation Loans (7)

  • Who owns RenoFi?

    RenoFi was founded by Justin Goldman, Lee Miller, and Rob Shedd.

  • What is a RenoFi Loan?

    A RenoFi Loan is a home renovation loan that allows you to borrow up to 80% of your home’s estimated value after the renovation. Borrowers can choose from a RenoFi Home Equity loan or a RenoFi HELOC to secure the funding they need. These loan products act as a second mortgage.

  • How is a RenoFi Loan different from a standard home equity loan or HELOC?

    The value of home equity loans and HELOCs from traditional lenders is based on the current value of your home. But RenoFi takes a different approach by giving you credit for your home’s potential value once renovations are complete.

  • Why use RenoFi instead of going straight to lenders?

    Upon approval for a RenoFi loan, you may want to go directly to the lender to avoid additional fees. However, the process doesn’t work this way, and the lender will refer you back to RenoFi to get started with their unique underwriting process. Furthermore, you should know that RenoFi doesn’t assess fees to homeowners for the service they provide. 

    Another benefit of working with RenoFi is the ability to work with a dedicated representative as you navigate the lending process. They can help you evaluate your loan options and decide which is best for your financial situation.

  • Who lends you the money from a RenoFi Loan?

    RenoFi partners with credit unions to extend loans to qualified consumers.

  • Is RenoFi a legitimate company?

    Yes, RenoFi boasts over 100 positive reviews on Google and a 4.7-star rating. They also partner with several NCUA-backed credit unions to issue home renovation loan products. Since its inception in 2018, RenoFi has helped homeowners secure several hundreds of millions in funding for renovation projects.

  • How does RenoFi make money?

    RenoFi assesses a fee each time a lender in its network approves a homeowner for a RenoFi Loan and closes the deal.

RenoFi

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RenoFi Products and Services

Loans
Loans

RenoFi Renovation Home Equity Loan

The RenoFi home equity loan allows you to tap into your home's future value to fund renovation projects.

Learn more

RenoFi Renovation HELOC

The RenoFi Home Equity loan gives you access to a line of credit at a fixed or variable rate. You may qualify for a line of up to 80% of your after renovation value.

Learn more

RenoFi ReFi

The RenoFi ReFi is a refinance loan that allows you to take up to 80% of your home's projected value after renovation.

Learn more

Why Us

Increased Borrowing Power

RenoFi's lending partners offer flexible loan options, even if you have little to no equity in your home.

Seamless Process

You will work with a dedicated RenoFi Advisor to get the process started, and they will help you navigate the loan process from start to finish.

Competitive Loan Terms

Most loans are available with extended terms and lower interest rates than you'll typically find with a traditional home equity loan.

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RenoFi In The News

SPOTLIGHT

Get a Home Renovation Loan

Borrow up to 80% of your future home value to renovate your house with a Home Equity Loan from RenoFi. Answer a few questions to see your loan options and get support from RenoFi home renovation loan experts or try the RenoFi loan calculator to see how much you could borrow.

Fund Your Home Renovation Project

If you want to increase your borrowing power for your home renovation project, consider a loan from RenoFi. There are two options to choose from, and they have dedicated specialists on hand to help you find the right lender. Get started using the personalized monthly payment calculator to gauge your potential borrowing power, interest rate, and monthly payment. You can also use the self pre-qualify tool to begin working directly with a RenoFi Advisor.

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    All data provided by the Home Mortgage Disclosure Act, at cfpb.gov updated Dec, 19
    Read more

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