Has anyone had experience with LendingOne? Good or bad?

Question

I'm looking for a good lender for purchasing long term rentals.  I'd like to go with someone local but I'm researching LendingOne because they seem to have better options but can you believe everything you hear?  Any feedback would be helpful.  Thank you, Joe

Timothy Hero · Answer

I broker for a list of lenders. L1 isn't my go-to.

Jeff Shumway · Answer

As with any big conglomerate online lender, they spend a lot of money on their online advertising and reviews to make sure their reputation looks super clean. Many companies finance this by charging slightly more on the interest rate and/or closing costs. I don't know that they spend resources to their processes/staff to make sure you loan closes smoothly and on time.

Joe Steffens · Answer

Kerry, thank you for that info.  I'm a little concerned about giving my information to someone over the internet and also making sure that what they are offering is what they can deliver on.

Kerry Baird · Answer

They fill a particular spot in the marketplace.  Once you have your 10 conventional mortgages, you can still have access to funds, so that you can keep going.  That's where LendingOne and similar companies pick up the torch, so investors can keep going.

These will have higher interest rates than you will see in government backed mortgages, as well as larger down payments required...however, there are  fewer hoops to jump through.  These lenders look at the income from the property and these are for investment or business purpose only, and they don't examine your individual finances. A FICO is still pulled.

I upload documents on their portal, pay for the appraisal, wait for an indeterminate period of time;  I close in an LLC, and don't have to show tax returns.  I have used Visio, and started down the path with Mofin before I had troubles with my property and didn't pick it back up again.  Questions?