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 many people are choosing to make upgrades. With so many people working from home and simply spending more time at home these days, it has some looking for new ways to fund home improvements.

Are you planning to buy a home or condo in Chicago? Get pre-approved for a home loan with our Chicago lending expert at BHHS Prosperity Mortgage. The application process only takes a few minutes and will help give you a better idea of what to search for during your Chicago home or condo search!


Posted by Helaine Cohen on
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