Home Renovation Loan FAQ's

Below you’ll find answers to the questions we get asked the most about RenoFi home renovation loans.

RenoFi Home Equity Loans

RenoFi Home Equity Loans give homeowners the benefit of the improvements they are making to their home up front, meaning the home value used in the loan is the after renovation value, not the current home value. We've written extensively on how this works.
Lenders offering RenoFi Loans work with RenoFi’s Renovation Underwriting Platform along with licensed, experienced renovation appraisers to perform an appraisal based on your renovation plans. We wrote all about it here.
Nope! If you have a great rate locked in on your primary mortgage, there is no need to lose that rate and pay mega closing costs all over again.
We have a complete checklist that you can find here.
RenoFi Home Equity 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 notorious for having low rates & fees. You can read our blog post Why Credit Unions? to learn more about why Credit Unions rock. Or visit the RenoFi Loans page to see more information.
The RenoFi Fixed Rate Home Equity Loan being offered by some of our lending partners has term options of 5, 10, 15 and 20 years. The RenoFi Variable Rate Home Equity Line Of Credit has a 10 year interest only draw period followed by a 20 year amortization period. You can learn more here on the RenoFi Loans page. Please note Lender programs vary by state, speak with a RenoFi representative today to learn more
Yes. RenoFi Home Equity Loans are just like any other Home Equity Loan meaning the lenders offering these loans take a lien against your property. This is what enables the rates to be so low while also being able to borrow so much. Loans that don’t come with a lien like a personal loan generally have rates that are 2-3x higher and limit how much you can borrow significantly.
No! RenoFi is completely free to homeowners. Our lending partners (the credit unions) pay us to have access to our platform.
$500,000 is the current maximum loan amount, though please note that loans over $250k will have stricter qualification criteria. In the future, we hope our lending partners will be in a position to increase these limits.
At this time unfortunately not. We may be able to help by connecting you to lending partners who do specialize in investment properties so feel free to reach out and we’ll see what we can do!
Yes any contractor used will need to be state licensed. All contractor will go through a due diligence process that includes checking for licensing, insurance, and other parameters.
RenoFi does an analysis of your proposed renovation but our lending partners complete a full credit underwrite.
RenoFi's lending partners are currently offering several variations, one of which is a HELOC. You can see the different options on the RenoFi Loans page. We understand how the different terminology can be confusing - a HELOC (which stands for Home Equity Line of Credit) is a specific form of a home equity loan which typically has a variable rate and enables you to draw the money down as you need it. For more information on your options, schedule a call today with a RenoFi advisor.
Nope! We’ve designed RenoFi loans in a way that makes life much easier for homeowners & their general contractors. In most cases the entire loan amount is made available up front. After the renovation is completed, the appraiser visits the home to issue a certificate of completion. Read more about the differences between RenoFi Loans vs other loan types.
The money goes directly from the lending institution to you, the homeowner, and you, the homeowner, pay your contractors directly, just as if you were using your own cash to pay for the renovation.
RenoFi doesn’t charge any fees to homeowners. Lenders offering RenoFi Loans can charge fees like they would for any Home Equity Loan. Fees for RenoFi Loans typically range from $95 to $495, which include all processing and underwriting costs paid to the Credit Union. Some lenders will recoup appraisal costs from the homeowner - those costs average $475. RenoFi’s lending partner fees are subject to change but are generally lower than typical bank fees and are not marked up in anyway by RenoFi.
Our lending partners will accept FICO scores as low as 680. At times FICO scores lower than 680 will be accepted on an exception basis. Contact us to discuss further.
It will depend on the loan selected. RenoFi's lending partners do have an interest only option now available. Learn more here.
RenoFi has now partnered with lenders serving every US state with the exception of Texas.
This is tricky. Once the loan has closed it's not possible to go back and amend the loan. We work with our homeowners to ensure they have some wiggle room in their budget to pay for things that might pop up along the way.
We are averaging about 30-45 days from the point that you have all of your renovation documents in order to when you close with one of our partner lenders. These turn times can vary greatly depending on the complexity of the renovation.
Your loan will be serviced by one of our lending partners and payments will be made directly to them.

About RenoFi

RenoFi is a financial technology company helping homeowners get their someday home, today. We’ve designed a new suite of home loans that better meet the needs of homeowners looking to renovate their homes. RenoFi is not the lender, rather we partner with lenders (local Credit Unions) to provide the loans to our homeowners. Our role is simple, we are building the technology to make offering RenoFi loans possible and we are also helping homeowners learn about RenoFi Loans. We've written more about how we help homeowners.
The idea for RenoFi came in 2017 but the company wasn't started until January of 2018. In just a short time we’ve already helped homeowners fund millions of dollars worth of renovation projects. Read more here.
RenoFi currently works exclusively with local Credit Unions and we are adding new ones all of the time. In the event that we have more than one Credit Union in your area, we will match you with the best Credit Union for your situation which usually means the one who can offer the best rates, lowest fees & most money. Why Credit Unions?
We currently have two types of our RenoFi Home Equity Loans and are working on launching our third product, a RenoFi Cashout Refinance. Stay tuned for more! See the RenoFi Loans page for more information.

How do I know if a RenoFi loan is right for my project?

The RenoFi team is standing by to help you better understand how RenoFi Loans work and the projects they are best suited for. Have a question - Chat, Email, Call now...