RenoFi raises $14 million as firm seeks to enable affordable home improvement financing

[ad_1]

Renovation financing startup RenoFi raised $14 million in Series A funding led by Canaan, with Nyca Partners and CMFG Ventures participating.

Why it matters: The company aims to make the surging demand for home improvements affordable by providing financing to its customers.

Get market news worthy of your time with Axios Markets. Subscribe for free.

Context: The renovation market is being driven by a combination of aging housing stock, record low inventory, and the COVID-19 pandemic making many homes into hybrid workstations for homeowners.

How it works: RenoFi offers loan origination and underwriting for borrowers seeking to do renovations who may not have built up equity in their homes yet.

  • “Banks are very good at underwriting the credit risk of a borrower, but they don’t have the capabilities typically to underwrite the risk of a renovation,” RenoFi founder Justin Goldman tells Axios.

  • For borrowers that wouldn’t usually qualify for a home equity line of credit or a cash-out refinance, RenoFi enables lenders to underwrite loans by considering the value of a home after its renovation.

  • That allows RenoFi to work with banks and credit unions to offer homeowners more attractive options for financing home improvements.

By the numbers: Now available in 49 out of 50 states in the U.S., homeowners have generated $10 billion in renovation financing demand from lenders on RenoFi’s platform.

Like this article? Get more from Axios and subscribe to Axios Markets for free.

[ad_2]

Source link

Related Posts

Creative Ways to Customize Your Wood Fence

A wood fence is a classic and versatile addition to any property, offering privacy, security, and curb appeal. While a standard wooden fence serves its purpose, customizing it can elevate your outdoor…

How to increase the footfall at your next real estate open house

When you’re planning an open house event, then there’s a lot of planning involved. From staging the house to arranging beverages and entertainment, an open house is not a simple…

You Missed

Creative Ways to Customize Your Wood Fence

  • By Ruby
  • July 16, 2025
  • 2 views
Creative Ways to Customize Your Wood Fence

How to increase the footfall at your next real estate open house

  • By Ruby
  • March 11, 2025
  • 27 views
How to increase the footfall at your next real estate open house

Selecting the Perfect Plant Palette for Your Landscape

  • By Ruby
  • February 19, 2025
  • 25 views
Selecting the Perfect Plant Palette for Your Landscape

Smart Thermostat Benefits That Nashville TN HVAC Professionals Want You to Know

  • By Ruby
  • February 19, 2025
  • 27 views
Smart Thermostat Benefits That Nashville TN HVAC Professionals Want You to Know

Find the Best Backyard Remodeling Contractors Near Me

  • By Ruby
  • January 23, 2025
  • 21 views
Find the Best Backyard Remodeling Contractors Near Me

The Psychology of Blue: The Color of Calm and Serenity

  • By Ruby
  • November 19, 2024
  • 30 views
The Psychology of Blue: The Color of Calm and Serenity