Good for Recent Homebuyers
HELOC
- Higher borrowing limits based on your home’s future value
- Partners with credit unions for lower rates
- Free renovation connections from Cottage
- Personalized help to increase approval odds
- Not a lender—connects you with different lending partners
- Origination and appraisal fees
- Extra fees or higher rates during renovation
- Must use funds for renovations
| Rates (APR) | Starting at 8% |
| Funding amounts | $25,000 – $500,000 |
| Repayment terms | Draw: Up to 10 years / Repayment: 10, 15, or 20 years |
| Repayment terms | 640 |
Home equity loan
- Requires excellent credit and a short repayment term for the most competitive rate
| Rates (APR) | Starting at 6.5% |
| Funding amounts | $25,000 – $500,000 |
| Repayment terms | 10, 15, or 20 years |
| Min. credit score | 640 |
RenoFi serves as a lending matchmaker for homeowners who need funds for a renovation but don’t have much equity. The company connects you to a loan from a local credit union. It’s a solid option if you’re a specific kind of borrower, like a new homeowner with limited equity.
It’s not the best choice if you can qualify for a traditional HELOC or home equity loan, since you won’t find the most competitive rates or lowest fees from RenoFi.
However, you can borrow more money than you can from traditional lenders—up to 90% of your post-renovation home value. Plus, the company walks you through the process and helps prepare your application. It’s a helpful feature, especially if you’re self-employed.
Table of Contents
How does a RenoFi loan work?
You can work with RenoFi for a home equity line of credit (HELOC) or a home equity loan. With both loans, you can expect to pay origination fees of up to 1% and appraisal fees of around $1,000. Lenders can also charge additional fees or higher interest rates during your renovation, increasing the total cost of the loans.
Eligibility requirements are nearly identical for both loans, but the terms and rates differ. Here’s a breakdown of how the options compare:
| Loan features | RenoFi HELOC | RenoFi home equity loan |
| Rates | Higher | Lower |
| Variable or fixed | Both | Fixed |
| Repayment terms | Draw: Up to 10 years; Repayment: 10, 15, or 20 years | 10, 15, or 20 years |
| Fees | Origination fee: Up to 1%; Appraisal fee: Around $1,000 | Origination fee: Up to 1%; Appraisal fee: Around $1,000 |
HELOC
The RenoFi HELOC has a draw period of 10 years, and you can access the full amount immediately. You can choose from three repayment terms: 10, 15, or 20 years. The terms are similar to those from other lenders, but the starting rate of 8% APR is higher.
The ability to choose from a variable or a fixed rate is a standout feature many lenders don’t offer. But the real benefit of a HELOC from RenoFi is that the equity requirements are much more lenient. You can borrow up to 150% of your home’s current value or up to 90% of the post-renovation value as long as it’s your primary residence.
Fixed-rate home equity loan
RenoFi’s fixed-rate home equity loan offers fixed rates starting at 6.5% APR. The rates are lower than average, but you need excellent credit and a short repayment term to get the most competitive rate. Borrowers with average credit scores and typical repayment terms can expect higher-than-average rates.
Is RenoFi a direct lender?
No, RenoFi isn’t a direct lender. The company partners with credit unions to provide HELOCs and home equity loans. You can still expect a standardized process—meeting with a RenoFi loan advisor, getting preapproved, preparing your application, and then applying directly with the lender.
It’s free to work with RenoFi, and you’re not obligated to move forward with a loan from one of the company’s lending partners. It’s helpful to think of RenoFi as a concierge that guides you through the process. The company’s loan advisors answer questions and help prepare your application. You can also work with Cottage, a RenoFi partner, to find vetted professionals for your renovation. It’s another free perk.
However, you only have access to RenoFi’s lending partners, and you might be able to find better terms or rates on your own.
What credit score do you need for RenoFi? How to qualify
RenoFi offers unique flexibility in its loan qualification requirements. As long as you’re using the loans to renovate your primary property, the property’s future value after a renovation determines the loan amount.
It’s slightly different for investment properties since the current value determines the size of those loans. You need to submit renovation plans for both loans. Other eligibility requirements are more standard, though.
Similar to other lenders, most RenoFi lenders require a credit score of at least 640. You also need to provide proof of income. Loans are available in nearly every state, and different types of properties, including Accessory Dwelling Units (ADUs), are eligible.
| Detail | RenoFi requirement |
| Credit score | 640 |
| State of residence | Not available in Hawaii, Iowa, Massachusetts, and New York |
| Employment | Full-time, part-time, or self-employed |
| Property | Primary home, vacation home, or investment property |
RenoFi customer reviews
RenoFi only has two customer reviews on the Better Business Bureau, and it’s not a BBB-accredited business. The company earns a low rating, and both reviewers on the site have the same issue: It’s challenging to qualify for a loan.
We started the process in March. They require strict guidelines to show what projects you are doing, broken down into labor and material. That is difficult to get from a contractor. After this step was complete, we were ready to proceed. They then require an appraisal. Our appraiser did not do his job correctly, which RenoFi was no help with. As strict as they are, they need to have guidelines in place to protect everyone. — April N. in a BBB review
Reviews for RenoFi are more positive on Trustpilot. Still, a few are exactly the same, indicating that some might not be authentic. But many reviews mention RenoFi employees by name and state that the customer service experience was better than expected, which is encouraging feedback for potential borrowers.
We had an excellent experience working with RenoFi on our home project. If you want an advisor who will go above and beyond for you- ask for Alicia. She treated us like family and was so great to work with. Jaimie, the processing manager, made sure everything was signed, sealed, and delivered correctly to the credit union. Overall great company and people to work with on such a major project.
—Karli S. in a Trustpilot review
Alternatives to RenoFi
RenoFi is a solid choice if you recently bought a home and need money for renovations immediately. But it’s not the best pick if you’ve owned your home for a few years and have equity, because you can likely find lower rates and fewer fees with another lender.
RenoFi is also not a direct lender. The company acts as a broker and connects you with lenders. It’s a free service with valuable benefits, like help preparing your application and connections to renovation professionals. But you might be able to find better terms if you work directly with a lender instead.
Let’s take a look at some of the best alternatives to RenoFi, including LendingTree, Figure, and HomeTap.
Best for comparison shopping: LendingTree
Like RenoFi, LendingTree is a loan broker connecting borrowers with potential lenders. The most significant difference is that LendingTree allows you to work directly with the lender and provides quotes. It’s one of the best ways to compare and shop for the best deal without filling out multiple applications.
But unlike RenoFi, you won’t receive personalized help, and eligibility requirements are more standard—you typically need a solid amount of equity in your home.
Best for fast funding: Figure
Once the application and approval process are complete, Figure funds loans within five days. It’s one of the fastest funding timelines available, much quicker than RenoFi’s process, which takes 30 to 60 days.
But the fast timeline comes at a cost. Figure’s origination fee is up to 4.99%—nearly five times higher than you would pay with RenoFi. Even though Figure offers other types of loans, the HELOC is the only home equity product. RenoFi, on the other hand, has more options.
Best for home equity agreements (HEA): Hometap
Home equity agreements are different from home equity loans and mortgages. An investor gives you a lump sum of cash, and in exchange, you provide a share of the equity in your property. It’s a unique way to access funds, and it’s not right for everyone. But if you decide it’s the best option, Hometap is an excellent choice. You can use the funds for anything, and loans are available for up to $600,000.
