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Renovation HELOC

What is a  Renovation HELOC?  

A Renovation Home Equity Line of Credit (HELOC) is a specialized financing product designed to help homeowners fund major renovations. Unlike traditional HELOCs, RenoFi’s Renovation HELOC is based on the after-renovation value of the home rather than the current value. This approach allows homeowners to borrow significantly more, often up to 90% of the home’s post-renovation value, making it an ideal solution for extensive home improvement projects.



Key Features of a HomeStyle Renovation Loan:

1. Borrow Against After-Renovation Value 

  • Allows homeowners to access more equity by factoring in the projected increase in value after renovations. 

2. High Borrowing Limits 

  • Borrow up to 90% of the after-renovation value, enabling larger renovation projects. 

3. Flexible Line of Credit 

  • Access funds as needed during the renovation, ensuring you only pay interest on the amount you use. 

4. No Need to Refinance Existing Mortgage 

  • Keep your current low mortgage rate while still obtaining funds for your renovation. 

5. Lower Costs Than Personal Loans 

  • RenoFi HELOCs typically offer lower interest rates than personal loans or credit cards. 

6. Long Repayment Terms 

  • Flexible repayment options, with terms ranging from 10 to 20 years, depending on the lender. 

7. No Private Mortgage Insurance (PMI) 

Even with higher borrowing limits, PMI isn’t required. 

8. Wide Range of Eligible Projects 

  • Covers a variety of renovations, from kitchen and bathroom remodels to home additions and energy efficiency upgrades.


Qualifications for a RenoFi Renovation HELOC

 1. Homeownership 

  • The applicant must own a home that they plan to renovate. 

2. Adequate Equity 

  • While based on after-renovation value, applicants must still have sufficient initial equity to meet lending requirements. 

3. Good Credit Score 

  • Typically requires a credit score of 620 or higher, though higher scores improve eligibility for better terms. 

4. Proof of Renovation Plans 

  • Homeowners must submit detailed renovation plans, including contractor quotes, timelines, and cost estimates. 

5. Income Verification 

  • Lenders require proof of stable income to ensure the borrower can repay the loan. 

6. Debt-to-Income (DTI) Ratio 

  • Most lenders prefer a DTI ratio under 43%, though exceptions may apply. 

7. Primary Residence 

  • RenoFi loans are generally for primary residences but may also be available for vacation homes or investment properties, depending on the lender.  

RenoFi Renovation HELOCs are an excellent option for homeowners looking to maximize their borrowing potential while maintaining flexibility and affordability during large-scale renovations. Let me know if you'd like assistance in creating marketing materials or web content tailored to RenoFi HELOCs!