RenoFi gets $14 million to allow every lender to become a home improvement lender
Leading Renovation Enablement Platform Surpasses $10 billion in the renovation loan application
PHILADELPHIA CREAM , April 4, 2022 /PRNewswire/ — RenoFi, the home improvement platform company, today announced $14 million in Series A financing. The round is a strong endorsement of RenoFi’s vision to enable lenders to offer best-in-class financing solutions that better meet the needs of today’s homeowners. Canaan led the round with new participation from Nyca Partners and CMFG Ventures. The company will use the funds to scale its business operations and product roadmap, including its first home improvement platform for lenders.
The time for lenders to improve their product line and better meet the needs of today’s homeowners in renovation has never been more critical. With an aging housing stock, record inventory, a global pandemic that has turned homes into permanent hybrid workspaces, and the largest generation in American history entering their prime homebuying years, it’s heralds as the decade of renovation. But lenders are utterly unprepared and need help to capitalize on the more than $400 billion that primary homeowners already spend annually on renovations and repairs.
The two most popular financial products used to finance home renovations — cash refinances and home equity loans — aren’t designed for renovations. While they might work well for those who’ve been in their home for a decade or more, they don’t meet the needs of recent buyers who haven’t yet built up equity. To solve this problem, lenders must offer financing solutions specifically designed for renovations.
RenoFi’s Renovation Enabling Platform is the first and only end-to-end loan origination and underwriting platform specifically designed to enable renovation loans. The heart of RenoFi’s technology platform is its Renovation Underwriter (RU) allowing lenders to make loans based on the post-renovation value of a home (as opposed to the current value of the home with a loan traditional real estate), helping lenders increase their clients’ borrowing power by an average of 11x.
“We believe more than ever that RenoFi will become the platform powering the de facto financing products for home renovations, a more than $400 billion market that has been underserved to date,” said Brendan Dickinsongeneral partner of Canaan who also led the top seed of Renofi in June 2020. “The team’s progress since their last round has been incredibly solid and is a testament to the great future ahead of us.”
RenoFi completed its first full year of operations in 2021, tripling the workforce to more than 60 people and partnering with more than a dozen new lenders now offering RenoFi-powered loans in 49 of 50 states. Since launch, owners have generated over $10 billion in the application for renovation financing from lenders powered by the RenoFi platform.
“Historically, paying for this renovation is quite a journey in itself,” said Justin Goldman, co-founder and CEO of RenoFi. “Every other major purchase we make in our lives comes with a smart and easy financing solution. Buy a car? Get a car loan. Buy a house? Get a mortgage. Go back to school? Get a student loan. This is a purpose-built financial product for a specific purpose. Remarkably, until now, this hasn’t existed for home renovations. We decided early on that the best way to actually help homeowners was to build the rails that the major American credit institutions needed to bring this new category of products online.With the welcome we are receiving from lenders, it is clear that we made the right choice.
To learn more about RenoFi’s platform and loan offerings, please visit https://www.renofi.com/.
Renofi is the home improvement platform company that enables lenders to offer best-in-class financing solutions that better meet the needs of today’s homeowners. The company offers the only end-to-end loan origination and underwriting platform specifically designed to enable renovation loans, allowing homeowners to borrow against the post-renovation value of their home, instead of the current value of the house, and to increase the borrowing power by 11 times on average. The company is backed by leading investors including Canaan, First Round Capital, Nyca Partners and CMFG Ventures. To learn more, please visit https://www.renofi.com/.