Lenders offering RenoFi Loans may charge fees as they would for any home equity loan. Fees for RenoFi Loans typically average around $495, which includes all processing and underwriting costs paid by the consumer to the partner lender other than the cost of the appraisal.
Your appraisal will range in cost based on renovation size, complexity, and geographic location. Most of the appraisals we facilitate on behalf of the lenders are under $500. 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.
RenoFi provides lenders with our Renovation Underwriting services. These services include a thorough review of the renovation project cost and scope, due diligence on the contractor, reconciliation of the appraisal and monitoring of renovations in progress. As such, if you decide to proceed with a RenoFi Loan, we will be paid for these services by the partner lender. RenoFi doesn’t charge any fees to homeowners and there is no obligation to obtain a RenoFi Loan.
Yes. However, this may inhibit how many subcontractors you can use, depending on your experience level. If you are a GC by trade, with years of applicable project experience and references, you can use as many subcontractors as you’d like.
If you are not a GC by trade, RenoFi will cap you at three subcontractors for two main reasons. First, RenoFi cannot evaluate your experience in managing subcontractor relationships if you don’t have significant GC experience. Second, RenoFi completes a detailed analysis of every GC a homeowner uses, and if you are not a GC by trade, RenoFi will have to instead complete that detailed analysis on each of your subcontractors, which requires a significantly larger financial investment on our side. This is why we limit our “part-time” GCs to three subcontractors or fewer.
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.
If your GC is not a GC by trade, he/she cannot use more than three subcontractors. The process also requires that your contractor provide references, reviews, their reported average renovation size, and evidence that they provide workers compensation, if they have W-2 employees. If your GC is not a GC by trade, you will have to report this information for your all of your subcontractors. All of these steps are required to ensure that the homeowner and lender are protected in this process. Learn more here.
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...