Permits before loans: Inside the launch of Kukun’s Renovation-HELOC Index

At a time when traditional purchase and refinance deals are expected to take a step back, mortgage lenders may be looking more closely at a space they’ve previously avoided — home equity. For lenders, the business opportunity across home equity lines of credit (HELOCs) and related products is massive. U.S. homeowners held $35 trillion in equity at the end of 2024, according to Federal Reserve data. About half of that was held by homeowners with mortgages, with roughly $11.7 trillion considered tappable based on keeping a 20% equity cushion in the property, more recent data from Intercontinental Exchange shows. Older Americans represent a significant share of that pie, having accumulated more equity over a longer life span. But their homes are often aging with them, and it may not be cost-effective for them to downsize or find something comparable in today’s higher mortgage rate climate. This drives the need for financing to pay for renovations and expansions. This is where Raf Howery looks to serve a purpose. His company, California-based Kukun, has launched a proprietary dataset, the Renovation-HELOC Index. The founder and CEO told HousingWire that he aims to help mortgage compani...