RenoFi, an AI-enabled renovation financing platform, announced it has closed a $22 million Series B funding round, bringing its total capital raised to $65 million to date. The round was led by Fifth Wall, with meaningful participation from Progressive Insurance and support from HighSage Ventures, Alumni Ventures, Flintlock Capital, and Gaingels. Existing investors, including Canaan, First Round Capital, Curql, TruStage Ventures, and a network of credit union partners, also participated.
The new capital will support RenoFi’s profitable growth strategy, including plans to more than triple its distributed retail team of renovation financing specialists over the next year and expand partnerships with credit unions and embedded financing platforms. The company is also accelerating development of its platform, which serves as an orchestration layer for mortgage lending and pairs modern credit underwriting with a proprietary AI-enabled renovation underwriting engine designed to unlock After Renovation Value financing. RenoFi said it is building toward near-real-time approvals for renovation loans to streamline what has historically been a lengthy process.
Founded in 2018, RenoFi partners with credit union lenders nationwide to offer its Renovation HELOC, which leverages a property’s After-Renovation Value rather than just its current value. The company said this approach allows equity-light homeowners, particularly recent buyers, to unlock significantly more borrowing power without refinancing their existing mortgage. RenoFi reports it has facilitated more than 8,000 renovation loans, representing over $1.5 billion in funded loans and $2 billion in renovation project value analyzed through its proprietary renovation underwriting platform. The company is licensed in 48 states as a mortgage originator and attracts more than 10,000 new homeowners per month to its platform.
RenoFi positions itself as a renovation-specific partner for homeowners across the lending stack, offering home equity loans, purchase loans, cash-out refinance loans, construction and land lot financing, renovation loans, personal loans, home equity investments, and investment property financing.
The company said the financing environment has shifted in recent years as rising interest rates and locked-in low mortgage rates have made many homeowners reluctant to refinance. While home equity products have grown in popularity, RenoFi argues that most traditional solutions primarily serve homeowners with significant built-up equity, leaving recent buyers with renovation needs underserved.
KEY QUOTES
“Millions of homeowners want to renovate, but many lack the equity to borrow what they need. Robert, Lee and I built RenoFi to fix that. By creating the world’s first Renovation HELOC, building technology for the incredibly manual mortgage process, and partnering with a network of trusted credit unions, we’ve made it possible for homeowners to fund their dream projects without draining savings, racking up high interest rate debt or giving up their low-rate mortgage. This new capital will allow us to meaningfully scale our team, grow embedded financing partnerships, and help millions of more families to turn renovation plans into reality.”
Justin Goldman, Co-Founder And CEO, RenoFi
“RenoFi is transforming how homeowners finance and ultimately plan renovations. By enabling unmatched access to capital, particularly for the underserved segment of equity-light homeowners, RenoFi is making more renovations possible and unlocking growth across the $500 billion home improvement market. We are excited to partner with RenoFi to help them accelerate this momentum.”
Dan Wenhold, Partner, Fifth Wall
