Renovating your home? Here's how to apply for a home equity loan

Realizing that it’s possible to turn your current home into a home you love is a great feeling. Discovering the smartest way to do it is even better. Once you know how to qualify for a renovation home equity loan, it’s time to gather everything you need to apply.

Utilize our helpful checklist with all items you need to apply for a renovation home equity loan and get ready to make that dream home of yours a reality.

Items Required for All Home Equity Loans:

2 Most Recent Pay Stubs
2 Years of W-2 Forms
(if you're self-employed, click here for additional requirements)
Additional Requirements for Self-Employed Borrowers: Self-employed borrowers will also need to submit:
• the last 2 years of filed personal federal tax returns, including all schedules and all pages
• any K-1s (if applicable)
• the returns of the partnership or corporation (if applicable)
• the most recent Profit and Loss Statement showing year-to-date revenues and expenses (if applicable)
Proof of Homeowners Insurance
Most insurance companies will provide this immediately after purchasing your policy. They can also provide additional confirmation upon request. Specific to home renovation loans, you will need to ensure you have coverage matching the value of your post-renovation home.
Most Recent Mortgage Statement
Bank Statements for Prior 2 Months

Items Specific to a Renovation Home Equity Loan:

Your Contractor’s Information
This includes basic contact info such as name, address, phone number, email, company website, etc. If you work with RenoFi, we contact your contractor to perform basic due diligence before the lender can approve your loan.
Preliminary or Signed Renovation Contract between you and contractor, with a Detailed Cost Estimate
Lenders require a detailed material and labor line item cost breakdown, along with a clear payment schedule. As a result, you'll need to ensure that you are ready with your renovation contract. You don't need the contract to be signed to apply for the loan, but you will need the fully executed contract, with all of the details agreed, to close.
Renovation Plans to be used by your contractor for the project
Renovation plans may include Architectural plans, Structural plans, Addition plans, Floor plans, Renderings, Front elevation plans or any other designs, drawings, and plans to be used by your contractor for the project, as applicable.

As you collect each documentation required for your renovation home equity loan application, we’re here to answer any questions you may have. Contact RenoFi as you prepare for the next step toward your dream home.