America's housing stock is old - often over 50 years of age in much of the nation and owners want, need, improvements to live in the home they want.
The problem: many buyers stretch to buy their home and they do not have that much equity built up, even after five or perhaps even ten years in the house. But now there are two more children, maybe a grandparent, added to the family and where does everybody sleep.
Historically, home improvement loans have ignored an obvious reality: many projects significantly increase the value of the home,
Sure, some do not - pools usually, saunas, a green house.
But add a bedroom,or a bathroom, or update a kitchen and that house is worth more money.
TV watchers know that from HGTV's long-running "Love It Or List It" where after every reno, the realtor tells how much more the house is worth. Similar happens on "Fixer Upper."
So why can't a loan be created around the probable higher value of a home post renovation?
Why not indeed. That's what the founders of Renofi asked and they now have created a fintech to help credit unions make loans based on that calculation.
In the process, Renofi has processes for calculating what value in fact a particular renovation will add in a specific market and also conducts due diligence on the contractor associated with the project.
Renofi already works with several credit unions - you will hear specifics in the podcast - and wants to hear from more.
Here's what Renofi tells credit unions about itself: "RenoFi is a turn-key, end-to-end growth channel. We help our partner Credit Unions grow their loan portfolio by delivering highly-qualified new members seeking home renovation loans that meet your institution's specific underwriting criteria."
Sound good?
Listen to the podcast to learn more specifics.
And check out Renofi's website.
Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com
Find out more about CU2.0 and the digital transformation of credit unions here. It's a journey every credit union needs to take. Pronto