If you’re thinking about starting a major renovation project in the near future, you’ve probably already started researching how to pay for it. While a cash-out refinance or a home equity line of credit may be helpful, it may not be enough to cover the high cost of renovations.
Another option is a construction loan, but that choice could be complicated. That’s were a new type of home equity loan can help.
The loan is based off a home’s after-renovation value. Owners are able to borrow up to 90-percent.
The financial technology company RenoFi is helping connect homeowners with credit unions willing to give such loans. Typical customers borrow around $150,000.
It’s another way for homeowners to tackle major renovation projects in a time when…