Has anyone used Lending Home for a home loan?

Question

I just closed on another home in Memphis.  I bought it through Mid South Homebuyers and has been a good experience, my second through them.

I now have 10 mortgages and don't want to use a portfolio loan or pay high interest rates for private loans.  I'm always searching for other options and Lending Home will do loans on homes past 10 mortgages.  Their rates are around 7%.  I went through their online questionnaire and that's the rate they quoted.  I haven't talked to them yet as I haven't found my next home.

If anyone has dealt with them in the past I'd appreciate any feedback you may have.

Craig Renz · Answer

I have used Lending Home for my most recent flip. They have a relatively easy application and approval process but I did have some surprises. They held out until the last possible minute to provide final loan terms. They also don't tell you until after you request your first rehab draw that they will only release funds AFTER the portion that you are requesting is complete...this means that either you or your contractor is responsible to float the project until the funds are dispersed. You must submit photos of work complete to justify a draw. Very inconvenient, but this worked out since the draw process is pretty fast. Another challenge was that even though I voided the automatic draft permission in my loan docs (because I wanted to control payments and make them by check) they did an auto draw on my account. I raised a stink and they worked it out but this definitely rubbed me the wrong way. I'm not sure if I'll use them again, but as long as you aware of the challenges it is a good source.

Jeff Copeland · Answer

@David Hutson, a portfolio lender in the sense that @Jon Holdman is using the term is (to quote Investopedia) "a company that not only originates mortgage loans, but also holds a portfolio of their loans instead of selling them off in the secondary market".

Portfolio lenders don't necessarily lend you money on your entire portfolio of rental properties (that's called a blanket mortgage).

Rather, portfolio lenders issue loans/mortgages on single properties just like a conventional lender would, but they hold the notes themselves and usually do their own underwriting. Thus, they don't have to conform so strictly to Fannie and Freddie's underwriting guidelines. They can essentially lend to whomever, and however, they want.

That's not to say they don't have underwriting guidelines - but they do have more flexibility and can use a little more common sense in evaluating the big picture.

Steve Powers · Answer

I just closed a MFH acquisition loan with Lending Home in March 2021. NO upfront fees or application fee. I applied directly through the website. Easy process, true No Doc lender with very fair rates. No bank statement, No REO schedule, No capital reserve requirement, No Tax Return, No Income stated. Soft pull on one bureau. (not a trimerge)I did have to pay for an appraisal fee of about $625 up front to get the deal moving. No real communication after that for 2 weeks. Once the appraisal comes back, they get busy and close in about 7 business days. 2 points origination (min $2000) and $999 Legal (doc) fee were the only fees charged other than my hard cost to close. Easiest process around. I am now in the middle of a SFR refi with them. 30 year cash out at 70% LTV at 5% fixed with a 780 plus FICO and 25 bps penalty for small loan amount under $100k.

Account Closed · Answer

I'm looking to know a little bit more of Lending Home, as I talked to a Loan Officer and seems they can offer a good product. I have good credit score, good equity but tons of write-offs on my taxes, and it is very difficult to get a Home equity line. Any advice on this company?

Marty Johnston · Answer

As a broker  we have closed many loans with lending home - they offer very competitive rates and terms and borrowers are generally happy with what they offer. Don't fret the upfront fee - $200 is very minimal and it's just enough to keep a borrower committed in a way. In fact, a majority of our most popular lenders that we work with charge a minimal processing fee for the same reason. Also, time is money in their business, so if someone is simply shopping them into the 9th hr, it can be a significant waste of time as well - it's nothing personal to the borrower and lenders understand that investors need to shop at times to get the best rates and terms they can for their investment, but they just have to make sure they get something for the time spent on a file.

Hope this makes sense! And feel confident moving forward with Lending Home - Great lender, great programs, great service.

Cheers!

Marty True · Answer

I recently used LendingHome on an acquisition and just like @Craig Renz I voided the auto-draft doc and they did automatically take my first payment. I called them and they said it was an oversight and offered to remove the auto-draft. Also, like Craig, I didn't get my final loan terms until the last minute and they did change the offer significantly from the original numbers. I used a mortgage broker so not sure if the experience would be any different by going direct, through LendingHome's interface.

Orlando Spencer · Answer

Hello. I too recently filled out the online application through Lending Home but wanted to make sure they are legit as they reached out to me first (strange).

I'm interested to know how quickly they funded your loan(s) to those who have closed using them?

Also, is it a valid for them to request $199 fee just to begin the process of considering a loan?

Thanks for taking the time respond, good luck to everyone as we are @ the end of the month!

Derek Walvoord · Answer

I am thinking about using them.  They seem pretty slick (in the good way), with their user interfaces.  I had a really good talk with one of their loan officers.  I'll let you all know how it goes.  I did get a pre-qual letter very quickly from them, which is helping with negotiations on an offer that is outstanding.

David Hutson · Answer

I think I have the differences down.  That's why I'm asking about Lending Home, which we are straying away from.

What I need is a SFR mortgage from a company/people who will fund me with 10 mortgages now.  It does not matter to me if they base it off the home or me or a combination.  I am an active duty Soldier with 27 years of service, a six figure income from my salary (not including my properties) and a fico that hovers around 780.  It does not matter what anyone calls it.  I just want to continue to buy houses.

I have heard that there are a few banks in Memphis that will do this but I haven't found them yet and of the loans I have heard of or been offered, the rates are over 7%.

I'm in CA and the banks here won't do loans for me in TN so if anyone knows of another company that will loan to someone like me in Memphis I would appreciate a referral.

Jon Holdman · Answer

@David Hutson you're confusing a blanket loan with a portfolio loan.  A loan on multiple properties is a blanket loan.  A loan a lender holds in their own portfolio of assets is a portfolio loan.  Blanket loans are often portfolio loans.  But a portfolio loan can be for a single property.

I'd think you could get quite a bit better rate than 7% from a local portfolio lender.  I know you could here.

Has anyone used Lending Home for a home loan?

Most Popular Reply