Take Advantage of These Financing Options For Your DREAM Projects!
RenoFi Loans are similar to traditional mortgages & home equity loans with one key difference. By using the after-renovation value instead of your home’s current value, RenoFi Loans enable you to borrow the most money at the lowest rates.
Why RenoFi and not another loan, such as a 203k?
RenoFi is a 2nd position loan – where as a 203k is a 1st position loan – if you refinance your mortgage to get a 203k, there are a lot of fees associated with that. And if you had previously locked in a good interest rate, you would ultimately lose that rate. The 203k has higher interest rates than a typical mortgage. RenoFi’s loans, being 2nd position, means that you leave your 1st mortgage as it is – don’t need to touch it – don’t need to pay to refinance.
Smoother process – No inspection and draw process – if you were to go with a 203k loan, there would be an inspection and draw process where they send someone out from the bank to see different milestones – then they release money to you. RenoFi doesn’t have that process. RenoFi already did the due diligence on the us! This generally makes the process a lot smoother as the I&D is what holds up renovations a lot.
What are the costs for these loans?
There is only a $95 fee for RenoFi – vs. thousands of dollars for a new mortgage!
So who lends the money?
Credit unions are our financing partners who offer competitive home equity rates for the loans. You will receive the funding directly from the credit union and then you pay M&K as per your payment schedule outlined in your contract. Neither the contractor or the homeowner pays a fee to RenoFi. RenoFi is compensated by the borrower.
How much can I borrow?
You can borrow $20k-$250k (amount determined by a variety of factors including project size, after renovation value of home, credit score, etc.)