Blog Posts about Loans
Rob, Lee and I started RenoFi in early 2018 because of the belief that we could make a difference in millions of homeowners' lives by empowering them to transform their homes into spaces they love with a smart and affordable financing solution. Little did we know that world events would bring people’s satisfaction with their home into such sharp relief. Today, we are announcing that we raised our Series A of $6.
We’re going to be blunt here: refinancing can often be a dumb way to pay for your renovations. If you’re trying to lock in a significantly lower rate, you may be an exception, but for most homeowners, refinancing means throwing money away and getting less out of it. Let us explain. Here are 3 reasons why you shouldn’t use a Cashout Refinance when renovating. 1. You’ll Lose That Low Interest Rate If you bought your home when interest rates were higher (like maybe back in 2000), then a refinance could be a good move.
Did you know contractors actually hate construction loans? Since these loans will typically cost your contractor more time and money, it’s hard to blame them. But when your contractor actually refuses to work with a construction loan completely, then what do you do? Basically, you have two options. 1. Choose a Different Loan You do have other options; options contractors actually love—like RenoFi Loans. That’s because they’re way less of a pain than construction loans.
You’ll have a lot of decisions to make during your home renovation—how to pay for it is probably the biggest. That’s because making an investment in a home you love right now shouldn’t end up costing you for years to come. But too often homeowners make really bad choices when it comes to financing their project, and that’s exactly what happens. Here are 6 of the dumbest things homeowners do when paying for a renovation:
So, you’ve been planning a major renovation for months now. You finally found a contractor, and you’ve started looking for a construction loan. Hold up! There’s something you should know: contractors HATE construction loans. And you may not love using one either. But why?!? They’re A Lot of Work As much as you don’t like extra paperwork, neither does your contractor. And with a construction loan, there’s a lot of extra steps required of your contractor throughout the process.
You’ve grown to love where you live, but you’ve outgrown your home. You could move, but it may mean choosing between the right home and the right neighborhood. So you’re considering a major renovation project, but don’t really know your financing options. Chances are you’ve heard of Fannie Mae Homestyle or FHA 203K Renovation loans, but aren’t sure how these loans work when renovating an existing home. Here’s what you need to know:
FHA 203K and Fannie Mae Homestyle loans have traditionally been the only solutions for homebuyers looking to finance both the cost of purchasing AND renovating a new home. But today, that’s no longer the case. Mortgage bankers now often avoid suggesting FHA 203Ks and Homestyle loans to their clients, and realtors are steering both their buyers and sellers away from these options completely. Why? There are four primary reasons that apply to both loans:
You have decided a renovation project is the best way to get a home you really love. And you know you need a loan, but perhaps what you don’t know is where to start. We know it can be overwhelming, but take a deep breath. We are here to help guide you through the process! At RenoFi we break the renovation financing process into 4 simple steps that will walk you through the initial phase of getting your renovation off the ground.
Just like no two general contractors are exactly the same, and neither are their contracts or proposals. And at RenoFi, we’ve seen them all. But in order for us to help put you on the best path to a home you love, there are a few submission requirements necessary in every contract and every proposal/detailed estimate from your contractor that you should know. 1. The Contract While collecting pay stubs and bank statements is pretty straightforward, this important part ofyour home equity loan checklist may be a little less familiar.
Before RenoFi came along, the two most common options for buyers looking to buy and renovate a home all in one loan were Fannie Mae Homestyle Renovation and FHA 203K loans. And while they both allow you to borrow money for both the purchase and rehab of a home, there are a few notable differences that make Fannie Mae Homestyle Renovation loans the better choice over an FHA 203K for many homeowners.