Home Renovations

Welcome to your go-to resource for all things home renovation. Here, you’ll find expert advice, project inspiration, and practical guides to help you navigate every step of your renovation journey.

Home Renovations Articles

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How to purchase a fixer upper and finance renovations How to purchase a fixer upper and finance renovations

Discover the reasons why you shouldn’t rely on an FHA 203k, Fannie Mae HomeStyle or a construction loan to buy and renovate a fixer upper and learn about the alternatives.

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The RenoFi glossary of renovation finance terms The RenoFi glossary of renovation finance terms

These are the terms you need to know when securing the financing you need for your remodel.

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Before & After: a RenoFi-powered home renovation in Middletown | RenoFI Before & After: a RenoFi-powered home renovation in Middletown | RenoFI

A RenoFi home renovation loan helped this New Jersey couple remodel their less-than-perfect home in their perfect location

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Financing for roof replacement Financing for roof replacement

A new roof is not cheap. Looking for the best way to finance a new roof? Our guide will help you sort through your roof financing options.

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Financing solar panels Financing solar panels

Solar can be a great way to reduce your utility bills, but most homeowners will need to finance the panels and installation. Learn how a RenoFi loan can help!

Finance your renovation for
- /month
Loan amount
- +
$500K
$10K
NOT PERSONALIZED LOAN OFFER. Sample payment based on lowest interest rate offered by lender of 8.5% (as of 5/9/24) for a variable-rate RenoFi HELOC with a 10-year draw period (interest-only monthly payments required) and 15-year repayment period (principal + interest monthly payments required), available to applicants with a credit score of at least 740, and assumes debt-to-income and combined loan-to-value ratios within lender guidelines and 100% return of investment on renovation financing. Variable rate determined by prime rate plus lender’s margin. Rate and loan program terms subject to change without notice. Closing costs and fees apply.

Home Renovations Articles Continued...

Garage Financing: 6 Best Garage Loans for Remodeling

Find the best loans to finance your next garage add-on, remodel, or detached structure project. Learn everything you need to know about garage …

Patio and deck financing

Learn how a RenoFi loan can help you when financing a deck remodel. Building a deck or patio could be a great way to increase the value of your home.

4 reasons why you've never heard of renovation loans

Paperwork and lack of information are some of the biggest reasons why most people have never used, let alone ever heard of renovation loans to finance …

Understanding After Renovation Value (ARV): How Much Will My Home Be Worth? | RenoFi

Understand the true meaning of ARV in real estate. Gain insight into how knowing your home’s after repair value can help secure financing.

Which home improvements and renovations really pay off?

No matter what the motivation for your home renovation may be, you’ll want to know that your money is well spent. RenoFi is sharing the improvements …

2023 Cost to Build a Deck: How Much Does it Cost to Build a Deck?

An expert analysis of the cost per square foot of building a deck, replacing a deck, and building a patio in 2023. This article also provides …

2023 Home Appraisal Guide: How They Work For Renovation Loans | RenoFi

Understand how home appraisals impact your renovation project funding. Learn how renovations can increase your home's value and maximize your return …

6 Best Backyard Landscaping Loans To Finance Your Next Project

An expert take on the best backyard landscaping loans, and backyard renovation costs.

9 tips for cutting costs on home renovations

Looking for ways to save money on home renovations? You’re not the only one. Read on to discover some money-saving tips, and some ways to revise your …

Before and After: a RenoFi-powered backyard in California

See how this backyard went from barren to beautiful with a RenoFi Loan.

Before and after: a RenoFi-powered renovation in Iowa

See how this entire first floor transformed with a RenoFi Loan.

Best ways to make your home renovation sustainable

Considering a home update? Here are the top tricks and tricks to reduce energy consumption and decrease your carbon footprint through home improvement …

Consequences of Renovating Without a Permit

Learn what will happen if you renovate your home without applying for the necessary building permits. Gain insight into the type of renovations …

Cost to remodel a garage

Looking to renovate or convert your garage? RenoFi will break down garage remodeling costs to get your started with this project.

Do I need a building permit for my renovation project?

Everything you need to know about building permits for your upcoming home remodel.

Home renovations for seniors aging-in-place

In this article, we’ll discuss why seniors wish to age in place, provide several renovation suggestions for safe senior living, and discuss how RenoFi …

How a home improvement loan calculator works

See how much you can borrow with a renovation loan for your home remodeling project, and learn more about how the home improvement loan calculator …

How inflation is impacting home improvement spend

Is now the right time to renovate? This article will discuss how inflation affects home improvement costs and how you can save money during this …

How long these 6 types of renovation projects take

How long will your renovation project take? Let’s break down the timeline on the top remodeling projects.

How RenoFi works: for contractors

Learn more about RenoFi’s financing process for homeowners and what RenoFi requires from contractors.

How to choose the right contractor for your home renovation

Why does finding the right contractor always feel like the hardest part of a home renovation? You have a lot of questions, so we’ve got some answers …

How to get a building permit for a renovation in Philadelphia

When it comes to permits for home improvements and renovation requirements, no city is exactly the same. Here's a guide to obtaining building permits …

How to pay for a renovation as a first time homebuyer

In this guide, we’ll discuss renovating as a first time homebuyer.  Which renovations can you do in your first five years in your home? Which ones …

How to renovate an at-home office

Here’s our complete guide to designing a home office space that fits your needs. From cost, to design, to renovation planning - this article will take …

Is it cheaper to renovate or move?

Moving and renovating are both stressful events - so how can you decide?

RenoFi Secures $14 Million to Enable Every Lender to Become a Renovation Lender

RenoFi, the renovation enablement platform company, today announced $14 million in Series A funding. The round serves as a strong endorsement of …

Roof renovation cost

Does your roof need to be repaired or replaced? View our guide on roof renovation cost so you know what you're up against when the time comes.

Should I hire an architect for my remodeling project?

We interviewed a home renovation architect to find out everything there is to know about architectural plans for your remodeling project.

The 2 rooms most likely to go over budget during a renovation

Are you planning a renovation project but are worried about going over budget? We asked expert builders and contractors to share their experience on …

The cost of lumber in 2021

The pandemic home renovation boom has pushed lumber prices to extremes, leaving those remodeling wondering if they should change renovation plans this …

Top 10 RenoFi lessons on renovating

Ten things you really need to know before you start a major home renovation.

Top 3 red flags that show your lender isn't trustworthy

Trying to decide which lender is best for your home improvement loan? Make sure you don’t end up with a bank or credit union that exhibits any of …

Top 5 remodeling projects in Philadelphia

Regardless of whether you have a home from the 1800s or a home built in 1980, remodeling is a chance to make your home reflect you. These are 5 trends …

Top advice for renovations in Philadelphia

We’ve asked a few recent RenoFi clients to share a few lessons they learned from their recent renovation in Philadelphia or the greater area. Here are …

Top home renovation blogs of 2021

These are the blogs we’re reading to get inspiration for remodeling, find out the current home design trends, and learn renovation best practices from …

Understanding your town ordinances for a remodel

How well do you know your neighborhood? Before any remodeling work begins, learn about your property line, setbacks, easements and restrictions.

What do I need from my contractor to apply for a RenoFi Loan?

Just like no two contractors are exactly the same, neither are their contracts or proposals. But in order for us to help put you on the best path to a …

What to do to prepare your home for a major remodel

Your guide to decluttering and preparing your home before your home remodel.

When to start planning for your summer remodel

If you want to renovate your home during the most popular time of the year, experts say it’s time to start now.

Why so many homeowners are planning home improvements in 2022

You’re here because you’re considering a home renovation. And that means you're part of the many homeowners that say they’re planning home improvement …

Why We Launched RenoFi - How Home Renovation Loans Help Achieve Your Goals

Sometimes it's not always about the numbers - sometimes renovating your home means taking care of your family and their needs. That's why many people …

Introducing RenoFi Renovation Loans

RenoFi was started in early 2018 because of the belief that we could make a difference in millions of homeowners’ lives by empowering them to …

Bathroom Renovation

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How much does it cost to renovate a bathroom? How much does it cost to renovate a bathroom?

Learn the average costs of bathroom remodeling projects and get a comprehensive budgeting guide to plan your renovation. Learn about materials, labor, and the best financing options.

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6 loan options to finance a bathroom remodel 6 loan options to finance a bathroom remodel

Use our guide to learn how to finance your bathroom remodel, and find out how RenoFi can help.

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How much value does a bathroom remodel add? How much value does a bathroom remodel add?

On average, you’ll be able to recoup between 56-64% of renovation costs.

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Top 7 bathroom renovation trends of 2021 Top 7 bathroom renovation trends of 2021

These are the top design and style ideas that you should consider for your upcoming bathroom remodel, straight from the experts.

Inground Pool

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How much does an inground pool cost? How much does an inground pool cost?

Could an inground pool add value to your home? Read our guide to learn more about the cost of an inground pool.

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How to finance a pool How to finance a pool

Check out our comprehensive guide to inground pool loans. We explain financing and what it takes to break ground on the pool of your dreams!

Kitchen Renovation

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6 ways to finance your outdoor kitchen 6 ways to finance your outdoor kitchen

RenoFi can help you figure out an affordable way to build an outdoor kitchen space for the whole family. Learn more about outdoor kitchen financing!

Home renovations can be an exciting process for any homeowner, but they also come with a myriad of challenges, can be quite stressful, and may become a financial risk, especially when you don’t properly plan for them. 

As a homeowner, you could consider a home renovation for several reasons, including improving its livability, increasing property value, or increasing your comfort or enjoyment in your home. 

The success of your home renovation depends on many factors, and some of the most important factors include your renovation budget, renovation plan, building regulations in your area, cost of materials, and the total renovation time. 

In this guide, you will learn how to plan your home renovations effectively while optimizing for the most value out of your renovation budget.  Follow the tips provided for a successful renovation of your home.

Assessing Your Renovation Needs

Before planning any home renovation project, you must assess your renovation needs. This way, you don’t jump headfirst into a project you may not have the finances for or one your state does not permit.

Acquaint Yourself With Local Renovation Regulations 

Before you start any major renovation project in your home, you must familiarize yourself with the building codes and regulations in your county regarding construction and renovations. 

In some cases, you may require a building permit. In New York City (NYC), for instance, performing a full home renovation may require you to obtain everything from building and electrical permits to curb cut and roof work permits.

By ensuring complete regulatory compliance, you can make sure your home renovations adhere to the standards and safety protocols in your state. This also means that you don’t end up shelling out extra cash to pay fines.

Identify Your Renovation Objectives

It is important to know early on in the project planning phase why you need to carry out a renovation. Is it simply to increase the value of your home for resale, improve its overall functionality, or update the aesthetics to accommodate your personal styling preferences?

For instance, many home renovation experts advise that you focus on high-impact areas, such as the kitchen, bathroom, and curb, to boost your home’s resale value.

On the other hand, if your goal is to improve your living experience, you might prioritize renovation projects that focus on improving comfort and convenience, such as upgrading your HVAC system or adding storage to your home.

Understand the Scope and Scale of Your Project

Just like it is important to know your renovation objectives, you must define the scope and scale of your renovation project from the start. Perhaps your home renovation only involves a minor update, such as repainting your walls and replacing old fixtures, or you might be considering performing a major overhaul, like knocking down an old wall with too many cracks or even adding new rooms. 

Regardless of the scale of your project, identifying its size can help you set the right expectations in terms of time, cost, and the level of inconvenience you can expect during the renovation process.

Consult With Professionals

It might be tempting to perform DIY home renovations, especially if you think it might save you a lot of money in the long run. But in most cases, unless you are a seasoned construction expert, you might end up spending more money than you initially intended because you are likely to make avoidable mistakes that renovation professionals could have helped you avoid.

It is highly recommended that you consult a professional renovation agency, which can provide valuable insights into what’s feasible within your budget and timeframe. Experts such as architects, designers, and contractors can help you define the most realistic renovation path, considering your current structure.

Lastly, you should consider getting multiple quotes and opinions to ensure that you get the best value for your money.

Consulting a designer to help you polish your home renovation ideas, establish your vision for your home visually, and show you what’s structurally possible can be a time-saving and value-driven endeavor. 

If you don’t have the time to look for a designer for your project and prefer to work with professional designers, you can make use of  RenoFi Design, a service that allows you to work with designers over Zoom calls. This can help you understand what’s possible, visualize your renovated home, and get preliminary quotes. 

Creating a Realistic Budget

Budget – the big bad wolf of any renovation project. One thing you don’t want to do is to under-budget for your renovation project only to realize that you still require a bucket load of cash to bring your dream home to life.

Pick Your Projects

When creating your budget, ensure that you pick projects that can allow a high enough cost recovery on the total value of your home, especially if your renovation will increase its value. 

A 2022 Remodeling Impact Report by the National Association of Realtors estimates hardwood flooring refinish provides a 47% cost recovery, while installing new wood flooring can provide as high as an 18% cost recovery. 

Once you pick the projects you want to work on, ensure that you stick with them regardless of how tempting it is to add more along the way unless it stays within your budget, of course.

Research the Costs

This is the part of the renovation process where you discover that you have underestimated the cost of some materials or renovation operations and overestimated the cost of others!

To save money during your renovation, you will need to carefully research the cost of everything involved, including the cost of materials and labor. 

If you have already consulted with a home renovation agency, then you probably already have a list of materials and an estimated cost on hand.

This is the part where you go online and manually research the cost of various renovation items. There are plenty of free renovation calculators to choose from online. Pick one and use it. You can also manually check the cost of materials on sites like Amazon or eBay.

Compare Renovation Bids From Different Contractors

The next thing to do is consult various home renovation contractors based on your renovation goals and compare their remodeling costs. Some contractors offer more renovation options than others.

Seek out at least three trusted home renovation contractors in your area or state and request project bids from all of them, as well as the estimated timeline for your project.

Don’t just opt for the cheapest contractor and call it a day, as cheaper isn’t always better. Instead, research your potential contractors by looking at online reviews, as well as asking about their insurance type and certification.

Set Aside Emergency Funds

No matter how well you plan the budget for your home renovations, something else that you didn’t plan for is likely to show, and you’ll most likely require more funds than you had initially budgeted. It is recommended that you set aside around 10-20% of your total budget as your emergency/contingency fund.

Unforeseen issues that may arise include unplanned structural repairs, mold remediation, and an increase in the price of materials.

How Much Does It Cost to Perform Home Renovations?

The cost of renovation typically depends on several factors, like the size of your home, the type of materials your renovation project requires, the cost of materials in your state, and more. In most cases, the cost of renovating a home is very specific to that home.

However, here are a few national averages to consider according to statistics from Angi:

The costs of renovations provided above are only provided as guides to help you plan your home renovation budget. In reality, the cost of renovating your home will be peculiar to your specific needs.

Financing Your Renovation

Not everyone has the cash on hand to fund a renovation, and many homeowners find themselves in tough spots when it comes to financing such projects. A Forbes survey revealed that 63% of people rely on savings for home improvement projects and this approach typically leaves homeowners with limited options for larger renovations. 

For many, especially new homeowners with minimal equity, tapping into thier home’s value through cash-out refinancing or a home equity loan is often out of reach. With average down payments hovering around 8-14%, it can take years to build enough equity to support a major project. Instead, many homeowners turn to less-ideal solutions like high-interest credit cards, personal loans, or borrowing from their 401k, leaving them stretched thin financially.

For most people, paying cash for their home renovations will be the best option, and this cash usually comes from their savings or retirement accounts.

However, not everyone has enough savings to finance a full-scale renovation, especially if it’s to increase property value. If this is you, then you may need to consider a few renovation loan options to pay for turning your current home into your dream home.

A RenoFi home renovation loan, for instance, allows you to borrow against the post-renovation value of your home, and in many cases, it may be the best option for homeowners with long-term remodeling goals.

Refinancing Your Mortgage

Refinancing your mortgage is one way to pay for your home renovations, especially if the current interest rates are lower than the existing mortgage rate. While this may free up additional funds for your renovation project, it is not a generally recommended approach as it will extend the lifespan of your mortgage.

Personal Loans

If your home renovation is not an extensive one, and you don’t have the cash to pay for it out of pocket, a personal loan may be the best route to go. However, like most unsecured loans, personal loans tend to have higher rates than secured loans, especially if you have a poor credit history.

Home Equity Loans and Lines of Credits

Home equity line of credit loans, also known as HELOC, like RenoFi loans, are the best options for homeowners who need to borrow money for their renovation while keeping the interest rates low and ensuring that you have the maximum loan limit possible based on the after-renovation value of your home.

Home equity loans let you borrow against the equity of your home, and they come with significantly lower interest than personal loans. However, the major caveat is that you have to use your home as collateral.

According to the US Census Bureau’s Housing Survey, approximately 50% of home equity loans are used for home renovations. So, your neighbor with the new curb and a freshly remodeled kitchen may just have taken a home equity loan for their project.

Imagine your home is currently valued at $500,000, and your outstanding mortgage balance is $400,000. You are planning a renovation and expect that the after-renovation value of your home will be approximately $640,000. 

Your current loan-to-value ratio (LTV) is at 80%, which means that you effectively can’t borrow anything to fund your renovation. A RenoFi loan, however, would allow you to go as high as 150% LTV or 90% LTV using the after-renovation value.

So, in this example, while using a standard home equity loan results in your borrowing power being $0, a RenoFi loan allows you to borrow up to $176,000, thanks to your home’s after-renovation value!

If you are considering a home renovation, RenoFi is by far the smartest way to finance your project. Learn more and explore your borrowing options here.

Get started with your RenoFi loan here

Making the Most Out of Your Home Renovation Budget

You also must ensure that you take advantage of every opportunity possible to save money throughout the renovation process.

Cost-Effective Design Choices

Discuss with your home renovation contractor some of the cost-effective ways to help you achieve a high-end look for your home without necessarily spending on high-end price tags. This doesn’t mean you should use cheap construction materials or cut corners on the cost of labor. 

However, based on the advice of your contractor, you can decide to refinish existing cabinets instead of replacing them. This can save you thousands of dollars in costs while giving your home a fresh and updated appearance.

Another example is opting for open shelving instead of custom cabinetry. However, it is important to ensure that whatever design choice you make aligns with your overall aesthetic.  

Reusing and Repurposing

Another good way to save is by reusing and repurposing old materials for new constructions. You can consider using reclaimed wood for flooring, designing your accent walls, or putting a shine on your old furniture using a fresh coat of paint.

You can think of it as adding a special touch to your renovation.

Getting the Most Out of Your Home Renovation Fund

Home renovations can enhance the appeal of your living space and increase your property’s value. Through careful planning and budgeting, choosing the right financing method, and making smart design and material choices, you can save significantly on your renovation project and avoid common pitfalls.

It is important to communicate your goals and visions for your home renovation project with your contractors to ensure they give you exactly what you had in mind. You must also manage your expectations accordingly and remain flexible throughout the renovation process, as you never know what challenges the project will face along the way.

RenoFi loans are the smartest way to finance a home renovation project. Unlike traditional loans, which are based on your current home value or require you to refinance your primary mortgage and give up your low rate, RenoFi loans are based on the after-renovation value of your home. This allows you to borrow, on average, 11x more, get a low monthly payment, and keep your low rate on your first mortgage.

With the right plan and financing opportunity, a home renovation can transform your space into a beautiful and functional space that is fit for you and your family.

Explore RenoFi loans and find out how much you can borrow to finance your dream home today!