How do I know if a RenoFi loan is right for my project?
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Renovation season is in full swing, and homeowners are remodeling their homes in all sorts of different facets. From the inside to the outside, from the top floor to the bottom floor, there are many ways to revamp your space.
According to RenoFi Advisors, here are some of the top projects that homeowners are financing with RenoFi Loans.
1. Home Addition
RenoFi Loans are a great way to finance home additions because they offer increased borrowing power compared to traditional home equity loans. The average cost of a home addition is $32,000 to $80,000 on average, but can vary dramatically depending on where you live. Higher cost markets can be close to double that.
The type of addition can also impact the cost - from kitchen additions to garages to extra rooms, the more appliances, fixtures, space and structural changes, the more the cost.
The average RenoFi Loan amount is $175,000, which can fully cover the cost of an average addition project.
ADUs, short for “Accessory Dwelling Units” are becoming increasingly popular. Otherwise known as tiny homes (if they’re located on another residence), in-law suites, or garage conversions, building these structures can be quite expensive.
ADUs are basically mini-size versions of full size homes, including a kitchen, bathroom, insulation, and more. The average cost of an ADU varies by market and size, but at the very least will hover around $100,000, and on the higher end be closer to $500,000.
The maximum amount any homeowner can borrow with a RenoFi Loan is $500,000, which is perfect for constructing ADUs.
To see exactly how much you can borrow with a RenoFi Loan, check out the RenoFi Loan Calculator .
3. Kitchen Remodel
As the world begins to open up, many folks are looking to turn their kitchen space into an entertaining space. Adding that island, bumping out that wall, refurbishing those cabinets and more can drastically change the vibe of a space and is well worth the cost.
Kitchen remodels are probably the top project that RenoFi Advisors see, as they’re so common (everyone has a kitchen!) and because they’re generally on the more expensive side due to all the functionality requirements, compared to a bedroom or living room.
4. Bathroom Remodel
Bathroom remodels are neck-and-neck with kitchen remodels competing for top project financed by a RenoFi Loan, and our advisors see a lot of master bathroom remodels. Many couples might purchase a home where the master bathroom isn’t connected to the bedroom, or it’s lacking in space or aesthetic quality.
While some choose to DIY or finance with cash, it can be a risky move! With all the plumbing, detailed tile work and electrical requirements, hiring a contractor and financing with a RenoFi Loan can mean lasting, quality improvements to your space - which is why many folks go with us.
5. Deck Construction
What’s better than walking out of your kitchen to a summer evening dinner on the deck? In our eyes, not much. Many homeowners with the yard space want to maximize it by building decks used for dinner parties, a relaxing morning coffee or just outdoor living generally.
While the minimum RenoFi Loan amount of $20,000 is greater than the average cost of a basic deck, lots of homeowners choose to multi-level decks, add enclosures, or combine a deck build with other home improvement projects, rather than saving up for each one and doing them one by one.
6. Pool Installation
Let’s face it: pools are expensive, but worth it! A built in hangout spot for the kids and a relaxing respite from hot weather in the summer makes the cost less daunting, but that doesn’t mean that most homeowners have $80,000 in savings.
Pools start at around $50,000 and go up from there, which means lots of homeowners, especially in areas like Florida and California, choose to finance their pools with RenoFi Loans.
7. Master Bedroom Remodel
The master bedroom remodel can turn “the room where you sleep” into a total haven. From adding a jetted tub, custom bookshelves, and most importantly, more space, renovating the master bedroom is a game changer.
In many cases, our RenoFi Advisors see homeowners financing master bedroom remodels along with other projects, like bathrooms, new flooring, or other structural changes.
This all-in-one method prevents your home from looking like a construction zone for years on end.
8. Backyard Patio
Similar to the deck, the backyard patio is the project of the summer. If you’re hosting a graduation party, family get together, or holiday barbecue, it’s tough to enjoy the weather without a decent patio out back.
Lots of folks use RenoFi Loans to not only finance basic patios, but to install outdoor lighting, stone walkways, outdoor kitchens, and even landscaping work in the backyard and front yard.
9. Finishing the Basement
An unfinished basement is great for storage…and not much else. Finishing the basement can increase the value of your home and create a whole new space to fit your lifestyle. Whether it’s a playroom, a home gym, office, guest room or theatre, our advisors are seeing many homeowners prioritize this area.
Especially for folks working from home, having extra living space can make daily life a lot easier and create some more boundaries between work, play, kids, etc.
10. Open Concept First Floor
Last but not least, the open concept kitchen or open first floor plan is a trend that’s here to stay.
Knocking down some walls and making new ones is costly, which is why so many homeowners take out loans to complete projects like these. The better quality of life with a more open home is totally worth the cost.
Unlike other loan types, RenoFi finances almost all types of major renovation projects. If you want to learn more about financing a project that’s not on this list, contact a RenoFi advisor.