RenoFi: 2024 Home Equity Review

Home equity loan products offered

RenoFi (short for Renovation Finance) isn’t a home equity lender in the traditional sense. Instead, the company partners with credit unions to offer home equity lines of credit (HELOCs), fixed-rate home equity loans and cash-out refinancing to borrowers looking to fund home improvements. RenoFi currently offers these products in most U.S. states (with the exceptions of Arizona, Hawaii, Massachusetts, Nevada, New Mexico, New York and Utah) and Washington, D.C.

Both the HELOC and home equity loan can be had in loan amounts ranging from $25,000 up to $500,000. Most lenders who work with RenoFi allow you to borrow up to 90 percent of your home’s pre-renovation appraised value, or 90 percent of its post-renovation value.

Types of fees charged

RenoFi’s fees vary depending on which credit union you work with. In general, you can expect to pay:

• Closing costs: Typically ranging from $700 up to 1 percent of the loan amount, these costs include an origination and other underwriting fees, title fees and a recording fees.
• Appraisal fee: This can run from $700 up to $1,000 or more depending on the location of the home, scope of the project and other factors. Also worth noting: Your loan could still be denied after the appraisal if the lender deems the project too risky. 
• Renovation rates: While the renovation is in progress, some lenders might charge you a higher interest rate or a monthly fee. This will stop once the renovation has been completed.

How to qualify for a home equity loan through RenoFi

To qualify for a RenoFi loan, you’ll need a credit score of at least 640 for most lenders. The loan must be used for home renovations, and RenoFi needs to approve the contractors you work with. You can use the loan for renovations on a primary residence you currently own or are in the process of buying, as well as investment properties. You cannot use it on a home you’ve listed for sale in the past six months.

How to apply with RenoFi

You can start the application process with RenoFi online by filling out a form. This will get you in contact with a RenoFi advisor, who will help you connect with a lender partner.

How Bankrate scored RenoFi

• Methodology

  Methodology

  To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

  Learn more about our methodology.