The Jenkins have a problem
The Jenkins recently purchased their home and it needs a renovation - badly. But after getting a few quotes from contractors, they realize it’s going to cost a lot more than they thought.
They don’t have enough equity to borrow the full amount using a traditional home equity loan or cash-out refinance.
A friend tells them a RenoFi Loan could solve their problem and fund their home renovation.
Because RenoFi Loans are based on the after renovation value, they see they can borrow the full amount of their renovation costs!Try RenoFi Loan Calculator
So the Jenkins check out the FAQ page and learn:
Yes. RenoFi Loans act as a second mortgage, which means they won’t touch your first mortgage. No need to refinance your first mortgage if you’ve already locked in low interest rates!
The lenders that we work with currently offer variable HELOC rates, as well as fixed and variable home equity loan rates, depending on your location and project. Fixed rate home equity loans are not available in all states. If you’re not sure which of these you’re interested in, click here to learn more about the different options that may be available. Get connected with a RenoFi advisor to learn more
After renovation value is the estimated value of your home after your renovation is complete. You can estimate your after renovation value by using the current value of your home, plus the added value of your planned renovations. Homeowners can borrow up to 90% of their home’s after renovation value through a RenoFi Loan. You can find out your home’s after renovation value by getting an “as completed” appraisal on your home. This appraisal is based on the proposed renovation plan, on the condition that it is completed. Read more about how the after renovation value is determined here.
No! There are several different versions of RenoFi Loans, including home equity options that do not require you to refinance. With so many homeowners having locked in ultra low rates, this is especially helpful and one of the key things that makes RenoFi Loans so unique! With that said, one option available is a RenoFi Cashout Refi, if you choose that loan option from a lender, that does replace your existing mortgage. The choice is yours!
Once you collect all of the documents necessary to apply for a RenoFi Loan and connect with a lender, it is possible for a loan to close in less than 30 days, but it depends on your unique financial situation and the lender that you decide to work with. Due to COVID-related delays in the real estate lending world today, loans today are taking about 6 weeks for most lenders. Once things return to normal, most homeowners will be able to close in under 30 days with their lender. RenoFi cannot guarantee that you will be approved for a loan with any of our lenders, or in any specific time frame.
They also use the chat feature to ask a RenoFi Advisor a question.
The Jenkins want to be sure they will meet the lender’s requirements before going much further.
So they go through the RenoFi Self Pre-Qualification Tool, which takes less than 5 minutes and DOESN'T pull credit.RenoFi Self Pre-Qualification
After completing the form, they get assigned a dedicated RenoFi Advisor.RenoFi Self Pre-Qualification
Next, the Jenkins look at the RenoFi Loan checklist, to see which documents they need to have ready to apply for a RenoFi Loan.
Once the Jenkins have their checklist items ready to go, they connect with their dedicated RenoFi advisor to evaluate all of their options.
They settle on the perfect lender with the lowest rates and begin the application process directly with the lender.Get Started
The Jenkins get the loan amount in full from their lender and can pay their contractor directly going forward. No draws, no inspections, no headaches!
Let the renovating begin!
Visit our FAQs section to find more information on everything from pre-qualifying to choosing the right contractor.