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RenoFi is a mortgage lender backed by select regional credit union partners that allow us to offer very unique Renovation Equity Products (2nd mortgages and equity lines). With the average home renovation costing over $100,000+, we have the ability to finance what other lenders, banks, and credit unions can't.

If a homeowner consults to convert their existing home into the upgraded version of the home, they truly want, and the renovations (with all the bells and whistles) comes to $200,000 and a homeowner’s budget is limited to say $150,000 then they must scale back the project and make concessions on what they really want their home to become. This is where the Renovation Equity Product comes into play, no more scaling back due to limited budget or finances.

What is most unique about our Renovation Equity Loan Program is it allows us to calculate the maximum loan for a borrower in a dramatically different way than almost any other bank, credit union, or lender. The typical equity product (Line of Credit or 2nd Mortgage) caps at 85% - 90% of current market value. Our Renovation Equity Product calculates the maximum loan based on either 125% of current market value (up to 35% higher than any other bank, credit union, or lender) or 90% of After Renovated Value (ARV); we then take the lower of the two calculations – the existing 1st mortgage and this determines our maximum loan amount. We can do loan amounts between $50,000 and $500,000. Rates are anywhere from Prime + 1 to Prime + 4% depending on credit score, loan amount, and loan to value. There are NO inspections or draws after the loan funds; the borrower is in full control of the money for their renovation project – not the lender.

Here are two examples of how dramatically different this can be for you:

EXAMPLE 1

Estimated Cost of Renovation = $140,000

Conventional Bank, Credit Union, or Lender’s Equity Line or 2nd Mortgage (limited to 90% of the homes market value)

Home Value: $600,000 x 90% = $540,000 - $450,000 existing 1st mortgage = $90,000 max loan

Cross Country Mortgage Renovation Equity Product (125% of current market value or 90% of ARV)

Home Value: $600,000 x 125% = $750,000 - $450,000 existing 1st mortgage = $300,000 potential max loan amount

Home Value After Renovation: $750,000 x 90% = $675,000 - $450,000 existing 1st mortgage = $225,000 potential max loan amount

Remember that we use the lesser of our 2 calculations; in this scenario that is $225,000 vs $90,000 (the typical maximum loan available from any other bank, credit union, or lender). $225,000 (Our Max Loan) - $90,000 (competitors’ max loan) = $135,000 higher loan amount available for renovations with our Cross Country Equity Renovation Product.

EXAMPLE 2

Estimated Cost of Renovation = $400,000

Conventional Bank, Credit Union, or Lender’s Equity Line or 2nd Mortgage (limited to 90% of the homes market value)

Home Value: $800,000 x 90% = $720,000 - $600,000 existing 1st mortgage = $120,000 max loan

Cross Country Mortgage Renovation Equity Product (125% of current market value or 90% of ARV)

Home Value: $800,000 x 125% = $1,000,000 - $600,000 existing 1st mortgage = $400,000 potential max loan amount

Home Value After Renovation: $1,300,000 x 90% = $1,170,000 - $600,000 existing 1st mortgage = $570,000 potential max loan amount

Remember that we use the lesser of our 2 calculations; in this scenario that is $400,000 vs $120,000 (the typical maximum loan available from any other bank, credit union, or lender). $400,000 (Our Max Loan) - $120,000 (competitors’ max loan) = $280,000 higher loan amount available for renovations with our Cross Country Equity Renovation Product.

The loan proceeds are 100% available to the borrower after the loan funds. The typical process is as follows:

1. Borrower Pre-Approval (24-48 hours)
2. Contractor and Plans/Specs/Bid Sheet approval (24-48 hours)
3. Appraisal ordered and received (5-7 days)
4. Loan submitted to Underwriting (4-7 days)
5. Loan conditionally approved (48-72 hours)
6. Conditions submitted for underwriter review (48-72 hours)
7. Loan is cleared to close and sent to the title company to close (48-72 hours)
8. Loan closes and then funds (3 business days from closing date)

The entire process can be completed in 30 days.