FAQ’s

RenoFi Home Equity Loans

How is this different than a normal Home Equity Loan?

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.

How do you determine the after renovation value of my home?

RenoFi works with licensed, experienced renovation appraisers to perform an appraisal based on your renovation plans. We wrote all about it here.

Do I have to refinance my current mortgage to take out a RenoFi Home Equity Loan?

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.

What do I need to have ready in order to apply?

We have a complete checklist that you can find here.

What are the rates?

RenoFi Home Equity Loan rates are often BETTER than the Home Equity Loan rates you’d find at most banks. That’s possible because we work with credit unions who are notorious for having low rates & fees. You can read more here on why Credit Unions rock.

What are the term options?

RenoFi Home Equity Loans have terms up to 20 years.

Does the RenoFi Loan take a lien against my property?

Yes. The RenoFi Home Equity Loan is just like any other Home Equity Loan which does require 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.

Do I pay extra by going through RenoFi?

No! RenoFi is completely free to homeowners. Our lending partners (the credit unions) pay us to have access to our platform.

How much can I borrow?

$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 to be in a position to increase these limits.

Can I use a RenoFi Loan on an investment property?

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!

Do I need to work with a licensed contractor?

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.

Who underwrites the loan?

RenoFi does an analysis of your proposed renovation but our lending partners complete a full credit underwrite.

Is the RenoFi Loan a HELOC?

Yes, but with some improvements that make them even better for homeowners.

  1. RenoFi Home Equity Loans are based on the after renovation value, not the current home value.
  2. Unlike most HELOCs, which have a variable rate (meaning it’s not fixed and can go up or down over time), RenoFi HELOC’s have a fixed rate from day 1. This gives homeowners the peace of mind of always knowing what the rate will be but also gives them the flexibility of being able to draw the money down as they need it so they aren't paying interest on money they aren't using.

Are there inspections & draws like a typical construction loan or FHA 203K?

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.

Does the money go to me or my contractor?

The money goes to the homeowners and the homeowners pay their contractors directly, just as if you were using your own savings to pay for the renovation.

What are the fees?

Fees typically average around $100, which include all processing, underwriting and appraisal costs, paid to the Credit Union. There is also a small monthly fee paid to the Credit Union during the renovation period. This monthly fee ends at the completion of the renovation once a Certificate of Completion is issued.

What is the minimum credit/FICO score required?

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.

Can I pay interest only?

No, RenoFi Home Equity Loans are not interest only. Loans are amortized over 20 years during the draw period and homeowners pay a minimum of $100/month or principal + interest, whichever is greater.

Is this loan available in my state?

We are currently operating in PA & soon to be NJ. Our sincere hope is to bring the RenoFi loan to everyone in the US as soon as humanly possible. If you are not in PA or NJ and just want some advice on how to fund your renovation, we’ve learned a thing or two and would be happy to try and point you in the right direction if we can. Just email us.

Can I change the scope of work after closing?

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.

How long does the process take?

We are averaging around 30 days from when 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.

Who services my RenoFi loan? / Who do I pay each month?

Your loan will be serviced by one of our lending partners and payments will be made directly to them.

About RenoFi

What is 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.

How long has RenoFi been in business?

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.

Which lenders does RenoFi work with?

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.

What type of loans does RenoFi offer?

We currently have our RenoFi Home Equity Loan and are working on launching our second product, a RenoFi Cashout Refinance. Stay tuned for more! See Our Loans page for more information.

How do I know which type of loan is right for me?

Our licensed expert renovation mortgage consultants are standing by to help you explore the various options and choose the one that is best for you. Have a question - Chat, Email, Call now...