LendingHome Reviews - What Is It?
DO NOT USE LendingHome!!! You Must Read This Review!
Fully Researched: Price, User Feedback and More!
LendingHome is a lender that uses its own capital to directly originate loans. The company issues "Platform Notes" to individual investors or sells whole loans to institutional investors. Individual investors can browse available investment opportunities, choose the most appealing ones and define the investment amount they want to commit. $50,000 is the minimal sum of money that can be invested on its retail investor platform, but you can participate in individual Platform Notes with just $5,000. Account Fees may vary from 1.0% to 2.5%. Investment Length is up to 12 months. The loans on LendingHome are funded before they are offered to investors. The Co-Founder and CEO of the company, Matt Humphrey, claims that they don't deal with crowdfunding as it is.
LendingHome provides bridge loans for residential rehab properties, as well as a test program to potentially provide consumer home loans. A bridge loan is a short-term mortgage that helps to get a property quickly. This financing is usually used until the borrow finds permanent financing, the home is resold. The LendingHome bridge loan program is made for property investors who want to finance their next rehab or flip. The main benefit for bridge loan borrowers is how fast the whole process takes place. The borrower has to answer several questions and then they can get a customized rate. This takes just a few minutes. Application process is really fast but underwriting process involving a rigorous documentation requires more time. If everything is fine, the loan closes in two weeks. LendingHome has funded more than $1.5 billion in mortgage loans as of August 2017.
Customer Reviews - Does LendingHome Really Work?
There are many users' reviews about the company online. Most people are satisfied with the services offered by LendingHome. The main benefit if transparency of the services. On the platform, you can see underlying documentation on each loan, including data on the loan terms, property, additional guarantees, and the borrower. You can see the particulars of each note. The clients are pleased with the fees. The application fee for borrowers is $199. It is structured as a refundable deposit on the costs of loan underwriting (e.g., background checks, ordering appraisals, flood certification, etc.). There is no fee for investors. If you want to withdraw from the process, the company will do a full or partial refund of money not yet spent. Fees are net-funded at closing.
Investors can choose individual loans or enroll in AutoInvest, the program in which LendingHome reinvests any available money into any open notes that fit the chosen specifications. Investor Dashboard allows to monitor the financial performance of your portfolio, including a breakdown of loans. The maximum term of the loan is 12 months. It may be shorter if the borrower makes a prepayment, and it may be longer if there is default or delinquency. The users like Payment Terms. After applicable servicing fees are deducted and payments are collected, the remaining interest and principal is sent to investors. Those funds are directed to your trust account. These funds can be either withdrawn or reinvested. If a default occurs, the company handles the loan default process to the very end.
To participate in the program you will need to create an account at www.lendinghome.com, link your bank account, verify your accreditation, fund your account, browse notes and invest. Rates start at 7%, Fee is 2.5% (minimum of $2,500). With LendingHome, the savings are passed on to the borrower. The company is based out of San Francisco, CA, and has been in business since 2013. However, there are some online customer reviews. The company holds an A-rating with the Better Business Bureau. There is only one closed complaint (as of 2/9/15). The servicing charge is 10% of the coupon rate. This sole fee is incurred by investors on the platform.
Accredited investors find it easy to sign up through the official website where they can view investment opportunities. One can browse notes and choose the first investment. The investor will be guided through a verification process and checked for eligibility to invest on the platform. Let's take a look at the actual users' testimonials left online.
"I had the best possible experience with LendingHome. This company employs really professional people. I cooperated with Gabe who won me over when I was looking for suitable lenders. This specialist wasn't trying to sell me anything or pushing on me, he was just there to help me with the answers to all of my questions. He appeared to be very competent which made me feel secure and comfortable in the whole process. They provided me with a much lower rate than other companies did that I was working with."
"I just completed the mortgage refinance with LendingHome on my home in Texas. To tell you the truth, I have never been so pleased with the performance of any mortgage company. The staff of this lender is honest and knowledgeable. They met my needs in record time without any issues at all. The whole process was very smooth and friendly. I could see the interest rate calculations online. I would certainly recommend this company to my family and friends. Thank you very much for such a nice experience."
"I was looking for a proper lender for a 30 year re-fi and I encountered LendingHome. This company differs significantly from others of the kind. It does not have high rates or pressure techniques. I took a chance and was offered lower rates and freedom of choice. My assistants Jennifer Anderson and Gabe Bodner were available throughout the whole process to answer my questions and help me whenever I needed their help. I would recommend this company and its employees."
My Final Summary
LendingHome is associated with a great number of advantages. The first one is that you don't have to wait for crowdfunding of your loan. You are able to start earning interest as soon as you invest. You will see immediate cashflow on your balance. You can also benefit from investment diversity. It means that Platform Notes start at $5,000 and allow you to diversify across any number of mortgages within their Bridge Loan program. There are many customer testimonials about the company. Most clients claim that the Customer Service is just great. The specialist working with customers are attentive, professional and honest. You can get with one in touch by the phone or email. The company can boast transparent workplace with definite goals, perfect leadership and enormous upside potential.
It is a well-known fact that the traditional mortgage process is inefficient and slow. Using special technology, LendingHome has facilitated the loan process for borrowers while giving the opportunity to easily invest in residential real estate notes for experienced investors. Their online platform connects investors and residential real estate property borrowers who want to borrow some money. So, LendingHome is a nice place for borrowers participating in small-to-moderate sized real estate projects and who need short-term loans, as well as for investors who want to earn money by providing loans to those people. There is no doubt that this company deserves your attention.
LendingHome Pricing and Rates
The borrower will have to pay $199 for an application fee, as well as an origination fee of up to 2.5% of the principal amount. There may be additional fees and charges based on the loan approval. The investor will need to fill out an application to insure that they are able to meet the requirements concerning the minimum annual income. Remember that $10,000 is the minimum required fund to invest in a LendingHome product. $100 will be enough to participate in individual notes.