RenoFi, a renovation enablement platform company, has raised $14m in Series A funding.
Canaan led the round with new participation from Nyca Partners and CMFG Ventures.
RenoFi offers an end-to-end loan origination and underwriting platform specifically built to enable renovation lending, allowing homeowners to borrow against their home’s post-renovation value, instead of the home’s current value.
The company said the two most popular financial products used to finance home renovations – cash-out refinances and home equity loans – are not designed for renovations. While they can work well for those who’ve been in their homes for a decade or more, they don’t meet the needs of recent homebuyers who haven’t yet built up equity. To solve this problem, lenders need to offer financing solutions purpose-built for renovations.
RenoFi said it will use the funds to scale its business operations and product roadmap, including its first-of-its-kind renovation enablement platform for lenders.
Justin Goldman, co-founder and CEO of RenoFi, said, “Every other major purchase we make in our life has a smart and easy financing solution attached to it. Buying a car? Get an auto loan. Buying a house? Get a mortgage. Going back to school? Get a student loan. Each of these is a purpose-built financial product for a specific use. Remarkably, until now, this has not existed for home renovations.
“We decided from the outset that the best way to actually help homeowners was to build the rails that America’s great lending institutions needed to bring this new product category online. With the reception we’re getting from lenders, it’s clear we made the right choice.”
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