Use the future value of your guest house or in-law suite to finance its construction today with a RenoFi Renovation Home Equity Loan.
Unlike traditional home equity loans, RenoFi Loans factor in the value that an accessory dwelling unit (ADU) will add to your home.
Terms up to 20 years. Rates are based on the after renovation value.
Have a great rate locked in on your first mortgage? No problem!
Get the money you need to build your ADU upfront.
Standard home equity loan
|Standard Cashout Refi||Standard Home Equity Loan||Construction Loan|
|Loan based on the after renovation value||Yes||No||No||Yes|
|Borrow up to 90% after renovation value||Yes||No||No||No|
|Refinancing always required||No||Yes||No||Yes|
|Requires inspections & draws*||No||No||Yes|
11x more (average)
Over $510 million
5 star average (Google)
Katie & Ken recently completed a major home renovation that included significant new square footage off the back of their home to make room for a brand new kitchen & master suite.
Post-Renovation Home Value$500,000
Pre-Renovation Home Value$385,000
Borrowed$185,000 ($615 per month)
Loan type RenoFi Home Equity LoanRead Katie & Ken’s story
DJ & Vanessa’s recent renovation transformed unused attic space into a new master suite. Outdoors they added a fire pit & a revamped back patio for fun summer nights with their three young children.
Post-Renovation Home Value$900,000
Pre-Renovation Home Value$780,000
Loan type RenoFi Home Equity LoanRead DJ & Vanessa’s story
Justin & Nicki’s renovation added 850 sq. ft. to their home in the shape of a new great room with entry from backyard, new master suite with walk-in closets and all new exterior siding & roof.
Post-Renovation Home Value$807,000
Pre-Renovation Home Value$405,000
Loan type RenoFi Home Equity LoanRead Justin & Nicki’s story
Lenders offering RenoFi Loans may charge fees as they would for any home equity loan. Fees for RenoFi Home Equity 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.
Because these are unique appraisals, they have a higher cost than typical appraisals. The average appraisal cost is around $700, but can be in excess of $1000 depending on renovation size, complexity, and geographic location. 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.