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We are standing by to help you better understand how RenoFi Loans work and the projects they are best suited for.
Loans offered by our lending partners
RenoFi Home Equity Loan Financing Options For Homeowners
Fixed rate without the need to refinance your first mortgage.
Fixed Rate
Peace of mind of a fixed rate without the need to refinance your first mortgage.
Loan amounts of
25,000 to 500,000
| Rate | Fixed rate |
| Terms | up to 20 years |
| Borrowing power | Up to 90% of the AFTER renovation value |
| Disbursement | Full loan amount distributed at closing |
A RenoFi loan is a great fit for you, if:
You need future value of your renovated home today
The RenoFi Loan is unique because you’re able to borrow against what your home will be worth after the renovation is completed.
We’ll appraise your current home value and then the future home value, using the renovation plans that you submitted to RenoFi.
You’re renovating your primary residence (and you haven’t started demolition yet!)
Have a primary residence that is a single family home or townhouse? We can help! (ADUs are also ok if it’s being constructed on the property of your primary residence.)
While our lending partners are unfortunately not working with investment properties, properties titled in an LLC, or mobile/manufactured homes for after renovation value-based loans, RenoFi partners DO offer loans based on the current value for investment properties. Ground up new construction also is not supported - you’ll need a construction loan for that project.
If you’ve already started construction, this doesn’t automatically disqualify you for a RenoFi Loan, however, if you’re already deep into the construction process, lenders are less likely to approve your application.
We’ll appraise your current home value and then the future home value, using the renovation plans that you submitted to RenoFi.
See how much more you might be able to borrow
Try the RenoFi loan calculatorWe’re in this together
Our Advisory team is here to ensure you are getting the best loan for your renovation and to guide you through the application process every step of the way.
1.
Know your borrowing power
Play with our Calculator to see loan amount & rates and get self-prequalified to check if you might be a good fit for the loan.
2.
Prepare your application
Provide your personal details and documents through our secure online portal to be matched with a lender - see RenoFi Loan Requirement Checklist.
3.
Apply with matched lender
Once your application and renovation underwriting is done it’s sent to your matched lender for you to officially apply. If approved, you get direct access to the funds.
Got questions?
Corey
Acri, PA
“The folks at RenoFi worked so hard to ensure that we got the proper financing for our rehab. We had a pretty unique situation, having started our renovation before contacting RenoFi. They got us the right loan for the situation. I cannot say enough good things about how they had our backs from start to finish. Thank you!”
FAQ’s
What is a RenoFi loan
A “RenoFi Loan” refers to loans made by third party lenders powered by RenoFi’s proprietary Renovation Underwriting technology. RenoFi Loans use the home’s After Renovation Value (“ARV”) to increase homeowners’ borrowing power. RenoFi is not a lender but instead, works with various lenders to incorporate its renovation underwriting technology into lenders’ existing loan-underwriting process. RenoFi works with homeowners to find lenders offering both RenoFi Loans and other traditional loan products, including mortgage loans and personal loans.
How is a RenoFi Loan different from a normal cash-out refi, home equity loan, or HELOC?
A cash-out refinance loan, home equity loan, or home equity line of credit (HELOC) allows you to borrow against the current value of your home, whereas RenoFi Loans allow you to borrow against the after renovation value, or future value of your home. For homeowners who have been in their homes for 10+ years, borrowing against current home equity is fine because they’ve built up a lot of equity over the years and don’t have as large of an outstanding mortgage balance. But for recent homebuyers, a true renovation loan often offers higher borrowing power. It is important to note that if you take a RenoFi Loan there is no guarantee your home will increase in value and, in rare cases, you may owe more than your home is worth.
Why RenoFi and not go straight to the lender?
RenoFi’s services are free for homeowners, whether you decide to move forward or not. You can't obtain a RenoFi Loan without working with RenoFi first. We partner with specific credit unions to offer the RenoFi Loan, but our RenoFi team will do everything to prepare you to apply before handing you off to the credit union. You can look at us as a concierge, who will walk you through the journey of considering and then preparing for a renovation. Banks love us because they prefer to work with educated consumers. After our process, you’ll be ready to rock and roll with your lender. Our RenoFi advisors are seasoned experts that will guide you through finding the best financing option for your renovation project, regardless of whether or not you decide to apply for a RenoFi Loan with one of our lending partners.
Can I use a RenoFi Loan if I just purchased a home?
Yes, most lenders offering RenoFi Loans allow you to apply once you’ve closed on the home, meaning they don’t have any “seasoning” requirements. The RenoFi Home Equity Loan is specifically designed for homeowners who’ve recently purchased or are about to purchase a home, and are therefore “equity light,” and aren’t able to borrow enough money to fund a renovation with a traditional home equity loan.
How much can I borrow?
Lenders base this on several different metrics including your current home value, your home’s estimated “after renovation value,” your outstanding mortgage, and your overall financial health. Most lenders allow RenoFi Loans to cover up to $500k in renovation costs, though please note that loans over $250k will have stricter qualification criteria. Additionally, most lenders allow homeowners to borrow up to 125% of the current home value and up to 90% of the after renovation value. Some lenders will even go up to 150% of the current home value. See how RenoFi’s home improvement loan calculator helps you determine how much you can borrow.
How is the after renovation value of my home determined?
After renovation value is the estimated value of your home after your renovation is complete. You can estimate your after renovation value by using the current value of your home, plus the added value of your planned renovations. Homeowners can borrow up to 90% of their home’s after renovation value through a RenoFi Loan. You can find out your home’s after renovation value by getting an “as completed” appraisal on your home. This appraisal is based on the proposed renovation plan, on the condition that it is completed. Read more about how the after renovation value is determined here.
Do I have to refinance?
No! There are several different versions of RenoFi Loans, including home equity options that do not require you to refinance. With so many homeowners having locked in ultra low rates, this is especially helpful and one of the key things that makes RenoFi Loans so unique!
What are the rates?
Rates are set by the lenders and can vary slightly lender to lender. RenoFi Renovation Home Equity Loan rates vary depending on several different factors but the two most critical are your credit score and the loan to value ratio (LTV) based on your after renovation value. In general, RenoFi Loan rates are often better than the home equity loan rates you’d find at most banks. That’s possible because RenoFi Loans are offered by credit unions who are well known for having low rates & fees. To learn more about rates, try the RenoFi Loan calculator today.
What are the fees/closing costs on RenoFi Home Equity Loans?
Lenders offering RenoFi Loans may charge closing costs and fees as they would for any home equity loan. Closing costs vary by lender and for RenoFi Home Equity Loans range from several hundred dollars ($700-$800) up to 1% of the loan amount. These costs typically include an origination fee, title and escrow fees, tax certifications, recording fees, other underwriting costs paid by the consumer to the lender, and may include title insurance for higher loan amounts. Closing costs do not include the cost of the appraisal. The average appraisal cost is around $700, but can be in excess of $1000 depending on renovation size, complexity, and geographic location. It is important to note that the lender is taking the application and making a loan decision and that it is possible that you pay for an appraisal and are not approved for a loan.
During the renovation, some lenders may charge a monthly fee or a higher rate, but this is temporary and will cease once the renovation completes and RenoFi issues a certificate of completion.
What are the term options?
The RenoFi fixed-rate home equity loan being offered by some of our lending partners has term options of 10, 15 and 20 years. The RenoFi variable-rate home equity line of credit structure varies by lender. You can learn more here on the RenoFi Loans page. Please note lender programs vary by lender and lenders vary by state. Speak with a RenoFi Advisor today to learn more.