Ardent CU launches new loan for home renovation

Consumers can borrow against their home’s anticipated after-renovation value

PHILADELPHIA » Ardent Credit Union has introduced a new home renovation loan in partnership with Philadelphia-based financial technology company, RenoFi.

Unlike a traditional home equity loan that calculates available equity based on a home’s current value, the loan will allow homeowners to borrow against their home’s after-renovation value, and will increase a homeowner’s borrowing power, according to the company.

“This unique product fills a need that isn’t being met with traditional home improvement financing options,” Rob Werner, president & CEO of Ardent Credit Union, said in a press release. “This is a perfect solution for people who want to move, but can’t find the home that fits their needs in this tight housing market. With this loan, they can turn the home they have into the home they’ve always wanted.”

Ardent’s Renovation Loan is suited for homeowners who want to renovate their primary residence, but have limited equity in their house, according to the release. It will offer a two-year draw period that turns into a fixed-rate term loan. While Ardent will underwrite the credit loans, RenoFi will act as a renovation concierge service, guiding homeowners through the process. To start, RenoFi will conduct a feasibility analysis of the project and assist in vetting the contractor.

“We know people make a huge financial and emotional investment in their homes, which is why we partnered with Ardent

Credit Union to launch this product,” Justin Goldman, co-founder & CEO of RenoFi, said in the release. “We want homeowners to have the best experience and access to the most competitive rates out there to help them achieve their renovation goals.”

Ardent is the first financial institution to partner with RenoFi. The two organizations have been piloting the program for more than a year.

RenoFi has seen an uptick in inquiries since the coronavirus pandemic began, according to the company.

“Not surprising homeowners are thinking about additional space after not being able to go anywhere,” Goldman said. “Whether it be a home office, additional bathroom or larger kitchen, people want to take the money they are saving on things like travel and make their home into something they love.”

Ardent Credit Union Ardent Credit Union was founded in 1977 by the employees of the SmithKline Corporation. Headquartered in Philadelphia, Ardent serves Philadelphia, Montgomery, Delaware, Bucks and Chester Counties. The company has branch locations in Upper Providence, Oaks, Blue Bell and Wayne. For more information about the Ardent Credit Union or the Renovation Loan visit www. ardentcu.org/.

RenoFi is backed by two of Philadelphia’s top venture capital firms, First Round Capital & Comcast Ventures. The company launched in 2019 when Goldman was looking to renovate his home and became frustrated by the lack of simple loan options available.