RenoFi, the renovation enablement platform company, announced it has secured $14 million in Series A funding, which it will use to scale its business operations and product roadmap, including its first-of-its-kind renovation enablement platform for lenders, according to its news release. 

The firm cited an aging housing stock, record low inventory, pandemic impacts that underscored the need for homes turning into permanent hybrid workspaces, and the largest generation in American history entering their prime homebuying years as reasons why lenders must be prepared to offer renovation loans to meet the growing demands. 

The two most popular financial products used to finance home renovations – cash-out refinances and home equity loans – are not designed for renovations, RenoFi says, because 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.

RenoFi’s Renovation Enablement Platform is the “first and only end-to-end loan origination and underwriting platform specifically built to enable renovation lending.”

The platform is powered by Renovation Underwriter, which enables lenders to provide loans based on a home’s post-renovation value (as opposed to current value of the home with a traditional home loan), helping lenders increase the borrowing power of their customers by 11x on average.

The financing was led by Canaan with new participation from Nyca Partners and CMFG Ventures. 

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