LendingHome is an online real estate lending platform that offers hard money loans. Since 2013, it has funded over $5 billion to more than 23,000 projects. It can lend up to $5,000,000 and mainly serves real estate investors who want to finance a fix-and-flip project or fund a rental property.
LendingHome Pros & Cons
Quick application process
Offers to selected states only
No prepayment penalty
$179 to $199 for each draw
Shorter loan terms
Who LendingHome Is Best For
- Both novice and experienced real estate investors: Whether you do or do not have a history of flipping homes, you can still qualify for funding from LendingHome. However, keep in mind that the lender provides different interest rates for both types of borrowers.
- Those in need of quick financing: LendingHome offers a streamlined loan process and fast closing with the whole application done entirely online.
LendingHome Costs & Terms
Hard Money Loans
Up to $5,000,000
Start at 6.99% (bridge loans) and 5.25% (rental loans)
Five to 15 days
LendingHome’s costs (application, closing, and lender fees) vary depending on the borrower’s experience. For example, it can offer interest rates that are as low as 6.99% for bridge loans. However, in order to qualify for this rate, you must have a FICO score of 720 and above, a property in California, and at least 10 verified exits.
Experienced fix and flippers can borrow up to $5 million, while those without experience can qualify up to $600,000 in funding ($1 million to those flipping in California). LendingHome can provide up to 75% ARV, 85% LTC, 90% LTV, and 125% of the rehab cost. It usually takes five business days to close a loan for seasoned flippers, but it may take up to 15 business days for others.
Do You Qualify for LendingHome Financing?
Minimum Credit Score
LendingHome requires a credit score of at least 640 to qualify for a loan, but it only lends to non-owner-occupied properties. While real estate experience is not a prerequisite, it will give you a chance at better rates and higher loan amounts if you provide a list of past fix-and-flip projects to confirm it.
Additionally, you may be asked for more documents, like a business entity deed, a voided check, and a scope of work (if a holdback is requested). These qualifications are pretty lenient compared to traditional bank loan applications.
LendingHome Application Process
LendingHome prides itself on its quick application process, which takes less than 10 minutes. You may start by answering a few questions about your desired loan purpose, fix-and-flip experience, and property location. After that, you will be routed to a deal calculator, where you’ll be asked to input your credit score and the property value.
As you input these details, you will see your loanable amount—together with the interest rate and estimated monthly payment—change. Once you’ve agreed to your deal, the lender will run a soft credit check and evaluate your application. LendingHome will then fund your loan in five to 15 business days if you’ve received approval.
Landlords wanting to refinance or grow their rental portfolio
Short-term investors looking for a good residential fix-and-flip hard money loan option
Investors who want great customer service with a local bank feel from a 44-state lender
Fix and flippers who want an alternative to LendingHome, but with a commercial component
What Business Owners Should Know About LendingHome
- It offers financing in limited states: It lends only to those in Arizona, California, Colorado, Connecticut, Florida, Georgia, Kentucky, Massachusetts, Maryland, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, and West Virginia.
- It offers great broker deals: LendingHome is not only for borrowers but also for accredited investors. It provides competitive rates, performance-based monthly incentives, and broker protection. It even has a volume-based bonus scheme, which awards you an additional $2,000 for every $5 million worth of paid-off loans.
Most Helpful LendingHome Reviews
As of the date that this article was written (February 18, 2020), there aren’t many up-to-date LendingHome reviews available online. If you are a past or current LendingHome client, then leave a review to help others who are deciding whether or not to use the service.
LendingHome Frequently Asked Questions (FAQs)
How do I check the status of my application?
You can track the progress of your application through your borrower dashboard, which is automatically created upon application. There, you can view pending information requests, complete your borrower checklist, upload documents, and message your loan specialist.
Are rehab loans fully funded at closing?
No, LendingHome keeps rehab funds as a holdback. These are earmarked for the borrower but are not released until the work has been confirmed.
Does LendingHome offer rental loans for other property types?
No, it currently offers rental loans only to single-family homes and detached planned unit developments (PUDs).
LendingHome fits well with real estate investors who are looking for an easy application and fast funding. It provides a streamlined online application and closes loans in just a matter of days. It has more relaxed qualifications compared to traditional banks and offers high maximum loan amounts that go up to $5,000,000.
Borrowers must keep in mind that LendingHome’s loan terms are rather short compared to similar providers. It also doesn’t lend on commercial properties and in some states. While it doesn’t charge a prepayment penalty, it does impose draw fees that range from $179 to $199 per draw.