Lendinghome Review (2021): Scam or Legit?

by vaibhav
Updated on

Lendinghome is a new lending platform that claims to provide the best rates on loans. But can you trust them? We’ve done some digging and found this loan blog may not be what it seems…

Lendinghome is a company that offers loans for people who are in need of fast cash. The company claims to offer a loan within 24 hours, but the company has been accused of being a scam. Read more in detail here: hard money lenders near me.

Platform Notes from LendingHome Funding Corporation are secured, limited-recourse liabilities backed by a mortgage loan originating on the LendingHome platform.

LendingHome collects fees from the underlying mortgage loan and pays Platform Note payments “when, when, and if” net transaction expenses arise. In the case of default or delinquency, LendingHome will handle all servicing, and you will still get a percentage of the payback.

To mitigate the risks of investing in Platform Notes, LendingHome takes the following precautions:

  • For the loan amount, LendingHome acquires a first lien position against the underlying real estate asset. This lien takes priority over all other liens or claims on the property in the case of a default. With a weighted average loan-to-value of 70%, the borrower is likely to lose a large amount of equity before your loan is badly affected.
  • A title insurance policy from the lender is purchased for each loan to safeguard your financial interests against title flaws or third-party claims.
  • In the case of accidental damage or destruction caused by fire, smoke, wind, hail, theft, vandalism, or any similar incident, the Hazard Insurance policy identifies LendingHome as the first loss payee to safeguard your loan. No subordinate liens may be registered against the property to assist the special servicing procedure.
  • LendingHome provides loans to the underserved, such as rehabbers who are unable to secure regular loans in a timely manner. There is just not enough historical data to establish if the risk of default is greater or lower.

According to LendingHome, they had a 7.2 percent default rate (60 days or more), four foreclosures, and historical losses of less than 0.01 percent of the 3,500+ loans they had provided as of June 30, 2016.

Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Maryland, Michigan, Oregon, Pennsylvania, South Carolina, Missouri, North Carolina, Nevada, New Jersey, New York, Ohio, Tennessee, Texas, Virginia, Washington, and West Virginia are among the states where LendingHome offers loans.

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