RenoFi raises $22m to scale renovation-focused lending platform

US-based FinTech RenoFi has secured $22m in Series B funding to scale its renovation-focused lending platform, as demand grows for home equity products that do not require borrowers to refinance existing low-rate mortgages.

The round was led by Fifth Wall, with participation from Progressive Insurance and other new investors. Existing backers including Canaan, First Round Capital, Curql and TruStage Ventures also contributed. The latest raise brings RenoFi’s total capital raised to $65m.

Founded in 2018, RenoFi partners with credit unions to offer renovation-specific home equity products, including what it describes as the first US renovation HELOC based on a property’s After Renovation Value (ARV) rather than its current appraised value. By underwriting against projected post-renovation value, the company aims to extend borrowing capacity to so-called “equity-light” homeowners, particularly recent buyers who may have limited accumulated equity.

According to the company, the new funding will support expansion of its distributed retail team, growth in embedded financing partnerships, and further development of its AI-enabled underwriting platform. RenoFi is building what it describes as an orchestration layer for mortgage lending, combining modern credit assessment tools with a proprietary renovation underwriting engine to move towards near-real-time loan approvals.

The investment comes amid structural shifts in the US housing finance market. Rising interest rates over the past two years have left many homeowners reluctant to refinance fixed-rate mortgages secured at historically low levels. As a result, demand for home equity lines of credit and similar products has increased. However, traditional lenders typically require substantial existing equity, limiting access for newer homeowners seeking to fund renovation projects.

Since launch, RenoFi says it has facilitated more than 8,000 renovation loans, representing over $1.5bn in funded loans and $2bn in renovation project value analysed through its underwriting platform. The company is licensed as a mortgage originator in 48 US states and reports attracting more than 10,000 new homeowners to its platform each month.

The Series B round signals continued investor interest in verticalised FinTech models that target specific use cases within mortgage lending, particularly as housing market dynamics reshape borrower behaviour and capital access.