PHILADELPHIA—Ardent Credit Union has entered into a partnership with a fintech called RenoFi on a new renovation loan product. According to the CrossState Credit Union Association, which first reported the new product, the Ardent Renovation Loan will significantly increase a homeowner’s borrowing power.
“Unlike a traditional home equity loan that calculates available equity based on a home’s current value, this loan will allow homeowners to borrow against their home’s after-renovation value at the lowest rate possible,” the CrossState CU Association reported. “Ardent’s new Renovation Loan is suited for homeowners who want to renovate their primary residence but have limited equity in their house.”
According to the report, the loan will offer a two-year draw period that turns into a fixed-rate term loan.
The credit union said its Renovation Loan is much more flexible and affordable than a typical construction loan. While Ardent will underwrite the credit loans, RenoFi will act as a renovation concierge service, guiding homeowners through the process.
Ardent is the first financial institution to partner with RenoFi. The two organizations have been piloting the program for more than a year, according to the CrossState CU Association.