RenoFi offers home equity loans that utilize the After Renovation Value (ARV) of a property, allowing homeowners to borrow up to 90% of their home's future value without refinancing their existing mortgage. This approach addresses the challenge of limited borrowing power by providing access to funds for renovations based on projected home appreciation rather than current equity.
Funding
$62.9M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
CPFounders
Product
Problem
Homeowners often face limitations in borrowing power when seeking funds for renovations, as traditional loans rely on the current equity of the property. This can be particularly challenging for those who have recently purchased a home or have not yet built substantial equity.
Solution
RenoFi provides access to home equity loans and HELOCs that utilize the After Renovation Value (ARV) of a property, enabling homeowners to borrow up to 90% of their home's projected future value. This approach allows homeowners to finance renovations without refinancing their existing mortgage, preserving potentially favorable interest rates. RenoFi partners with credit unions to offer these loans, leveraging its proprietary Renovation Underwriting technology to assess the ARV and facilitate the loan process. By considering the increased value post-renovation, RenoFi unlocks greater borrowing potential compared to traditional lending models.
Target Audience
RenoFi primarily targets homeowners seeking to finance renovation projects, particularly those who have limited current equity or wish to avoid refinancing their existing mortgage.
Features
- Home equity loans and HELOCs based on After Renovation Value (ARV)
- Borrow up to 90% of the home's future value
- Options to keep existing mortgage without refinancing
- Fixed-rate and variable-rate options available
- Loan amounts ranging from $25,000 to $500,000
- Access to a network of lending partners nationwide
- Professional design consultation services available