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When I was looking into applying for a loan with them I saw multiple posts like these in forums and was so appreciative of their transparency. I promised myself I would post something of my own if all went well with the capital. Here are the details of my recent loan with LC:
$40,000
Purpose: Home Renovation
Credit: Fair
Income: $30,000
Co-borrower Credit: Good
Co-borrower Income: $75,000
Applied: 12/7
-LC asked for income verification for myself, as well as a phone verification. They asked my co-borrower for a D/L as well as a phone verification.
Kickback: 12/11 (weekend)
-LC asked for notarized D/L from co-borrower
Kickback: 12/13
-LC asked for the D/L to be copied onto the notary before signing it
Status Update: 12/14
-Logged into the online portal and noticed it said the loan was approved and that it may take up to four additional business days to see funds in my account. (No email sent to me directly regarding this).
Status Update: 12/15
-Received an email stating that the loan was approved/up to four more business days for the funds, however I noticed that in the email it specifically stated that the loan was “backed by investors”. My guess is that 12/14 is when the underwriting criteria had been met, but they did not send out an email until it was 100% funded.
Funds Received: 12/18 (weekend)
-The funds were deposited one business day after the email was sent out.
Terms:
Term: 60 Months
Monthly Payment: $848
Interest: 9.93%
Origination Fee: 5% (Which was taken out of the loan, not out-of-pocket. The exact amount wired to my account was $38,000).
Prepayment Penalty: None
I hope this helps someone if not today months down the line! Ciao!
When I was looking into applying for a loan with them I saw multiple posts like these in forums and was so appreciative of their transparency. I promised myself I would post something of my own if all went well with the capital. Here are the details of my recent loan with LC:
$40,000
Purpose: Home Renovation
Credit: Fair
Income: $30,000
Co-borrower Credit: Good
Co-borrower Income: $75,000
Applied: 12/7
-LC asked for income verification for myself, as well as a phone verification. They asked my co-borrower for a D/L as well as a phone verification.
Kickback: 12/11 (weekend)
-LC asked for notarized D/L from co-borrower
Kickback: 12/13
-LC asked for the D/L to be copied onto the notary before signing it
Status Update: 12/14
-Logged into the online portal and noticed it said the loan was approved and that it may take up to four additional business days to see funds in my account. (No email sent to me directly regarding this).
Status Update: 12/15
-Received an email stating that the loan was approved/up to four more business days for the funds, however I noticed that in the email it specifically stated that the loan was “backed by investors”. My guess is that 12/14 is when the underwriting criteria had been met, but they did not send out an email until it was 100% funded.
Funds Received: 12/18 (weekend)
-The funds were deposited one business day after the email was sent out.
Terms:
Term: 60 Months
Monthly Payment: $848
Interest: 9.93%
Origination Fee: 5% (Which was taken out of the loan, not out-of-pocket. The exact amount wired to my account was $38,000).
Prepayment Penalty: None
I hope this helps someone if not today months down the line! Ciao!
First congrats on "winning the loan".....
Second 10% seems kind of high for a home renovations loan, but is in line with nonsecured personals or signature loans.
Third it sounds like a lot of hoops , but the hoops seem doable if all they really wanted was a d/l certified as belonging to the other party, especially since the coborrowers income appears higher in your example.
Can you tell us exactly what renovations you are doing?
Our payment for renovations is $852 for 46 months for renovating the bath and adding cabinets to the kitchen (it had very few), and finishing off the bonus room ( it was a loosly enclosed room, no ceiling no HEAT no florring , no insulations etc). So you're in the ball park. ( we have only 35 more months to go!!! Yay)
OP, I am curious, would you not qualify for a bank loan or HELOC? That interest rate seems REALLY high, especially when combined with the origination fee (5%?!!).
My bank has HELOCs in the 6-point-something range right now, with a $99 origination fee. My credit is in the 800s, though (wasn't always that way so I am ULTRA-careful now!!).
I'm glad you are satisfied, but that seems really, really expensive ...
OP, I am curious, would you not qualify for a bank loan or HELOC? That interest rate seems REALLY high, especially when combined with the origination fee (5%?!!).
My bank has HELOCs in the 6-point-something range right now, with a $99 origination fee. My credit is in the 800s, though (wasn't always that way so I am ULTRA-careful now!!).
I'm glad you are satisfied, but that seems really, really expensive ...
That's because OP's credit is shot and is trying to renovate his home which he can't afford so he has to pay the high interest just to keep up with the jones.
OP, I am curious, would you not qualify for a bank loan or HELOC? That interest rate seems REALLY high, especially when combined with the origination fee (5%?!!).
My bank has HELOCs in the 6-point-something range right now, with a $99 origination fee. My credit is in the 800s, though (wasn't always that way so I am ULTRA-careful now!!).
I'm glad you are satisfied, but that seems really, really expensive ...
I was taken aback by that origination fee too. Wow.
Second 10% seems kind of high for a home renovations loan, but is in line with nonsecured personals or signature loans.
Third it sounds like a lot of hoops , but the hoops seem doable if all they really wanted was a d/l certified as belonging to the other party, especially since the coborrowers income appears higher in your example.
Can you tell us exactly what renovations you are doing?
Our payment for renovations is $852 for 46 months for renovating the bath and adding cabinets to the kitchen (it had very few), and finishing off the bonus room ( it was a loosly enclosed room, no ceiling no HEAT no florring , no insulations etc). So you're in the ball park. ( we have only 35 more months to go!!! Yay)
Good luck picking out finishes!!!
Sure thing! This project is a full remodel minus roofing. Flooring (tile and carpet), full electrical re-wire, bathroom guts, kitchen is bare so adding in cabinets/countertops etc., carpentry (baseboards, trim, windows etc.), some minor siding work, landscape etc. Virtually every component that a property is comprised of. Obviously have a great crew that loves me! Lol. Best of luck with yours as well.
OP, I am curious, would you not qualify for a bank loan or HELOC? That interest rate seems REALLY high, especially when combined with the origination fee (5%?!!).
My bank has HELOCs in the 6-point-something range right now, with a $99 origination fee. My credit is in the 800s, though (wasn't always that way so I am ULTRA-careful now!!).
I'm glad you are satisfied, but that seems really, really expensive ...
Hi there!
So a couple of things. I do not have a mortgage, so no HELOC’s for me.
This loan has zero discount points upfront so that also comes into play when comparing loans. Technically I was charged 5 points in origination, and 0 in discount, which was more than likely where your 6 points came from.
Also, I went with a peer-to-peer loan instead of a bank or smaller credit union because I already had a loan out on this property. I am rehabbing (fix-and-flip) a house for business purposes and had an investor’s loan (called hard-money loan) for the property itself, and was seeking capital for the repairs. If I went for a traditional loan, that bank or institution would be 2nd position and finding one willing to accept that would be virtually impossible.
Thanks for inquiring and hope that provided some insight!
Hi there!
So a couple of things. I do not have a mortgage, so no HELOC’s for me.
This loan has zero discount points upfront so that also comes into play when comparing loans. Technically I was charged 5 points in origination, and 0 in discount, which was more than likely where your 6 points came from.
Also, I went with a peer-to-peer loan instead of a bank or smaller credit union because I already had a loan out on this property. I am rehabbing (fix-and-flip) a house for business purposes and had an investor’s loan (called hard-money loan) for the property itself, and was seeking capital for the repairs. If I went for a traditional loan, that bank or institution would be 2nd position and finding one willing to accept that would be virtually impossible.
Thanks for inquiring and hope that provided some insight!
Thanks for responding!
I don't think you have to have a mortgage to get a HELOC -- just equity in the house. (It's called a first-lien HELOC.) But it sounds like the lack of equity would be a problem since you already have other loans on the property.
Also, sorry, when I wrote this (bolded part) ...
Quote:
Originally Posted by karen_in_nh_2012
OP, I am curious, would you not qualify for a bank loan or HELOC? That interest rate seems REALLY high, especially when combined with the origination fee (5%?!!).
My bank has HELOCs in the 6-point-something range right now, with a $99 origination fee. My credit is in the 800s, though (wasn't always that way so I am ULTRA-careful now!!).
... I meant that my bank's HELOC interest rate is 6-point-something PERCENT right now -- they don't charge ANY points! The only fee is the $99 origination fee. So right now I qualify for a $40,000+ HELOC and the fee would be $99 -- not the $2,000 that you paid to the Lending Club! THAT's what I was so shocked by.
Sorry I wasn't clear, and good luck with the renovations!
I was taken aback by that origination fee too. Wow.
I checked them out for a quote..
For $33,600 for credit card consolidation they want a 6% origination fee for 60 months 20% (APR 22.99%)
and a payment of $890.20.
I have just paid off a $25000 loan from them.
My credit is shot...but at these rates I will just have to keep biting the bullet and pay my minimums until
I can no longer pay..
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Best of luck with yours as well.
