Peer To Peer Lending

by Homeowner In Debt
(USA)

Ask Kate about peer to peer lending or FHA 203(k) rehab loan: Hi Kate, We bought our house in August, 2007 and started a major reconstruction in April, 2008.

Homeowner In Debt continues... Because we didn't take a construction loan, we maxed out our credit cards and fell into too much debt.

Our house is 80 percent complete as of now. But we can't finish it because of financial hardship such as reduced income and too much debt.

In order to improve our hardship situation, we tried to refinance our loan. But because we don't have a Certificate of Occupancy (COO) yet, we couldn't proceed with refinancing. We need approximately $40K in order to complete our reconstruction.

Our goal is to finish our reconstruction as fast as we can, then after we get COO, we could proceed with refinancing and get some equity out of the house in order to repay the loan.

1 -- Do you think 203K FHA Streamlined Loan could be applied to our situation?

2 -- How safe is trying to borrow from peer to peer lending at Lending Club?

Kate Answers: Peer To Peer Lending or FHA 203(k) Rehab Loan

Here are two truths. Don't turn your back on a wave and don't begin a remodel without the funds to finish it. They'll both catch you by surprise.

I can't tell you how many times I received calls from homeowners desperately seeking funds to complete remodels. But by the time it gets to this point, options become limited. Money is needed to complete the remodel but the no one will approve the refinance because the house is torn up.

Two Options For Finding Money

You bring up two options. An FHA 203(k) mortgage and peer to peer lending - a personal loan from Lending Club.

FHA Rehab Loan

FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. Since you would be refinancing, you would apply for the 203(k) program for the rehabilitation and repair of single family properties.

More on the birth of FHA loan guidelines here.

Peer To Peer Lending

Although there would be no need to refinance after the rehab is complete, the FHA 203(k) rehab loan process is known to be cumbersome. So another option is peer lending at Lending Club.

Peer to peer lending is an age old concept whose time may have finally come. Peer lending is about people helping people, matching borrowers with investors.

You can read more about getting personal loans at Lending Club Review by Super Kate. You will find links that take you to pertinent details on Lending Club. Peer to peer lending is a way to cut out the bank.

Please review the information, such as regulation by the Securities and Exchange Commission (SEC) to make sure it meets your standards. You can also read about personal loans taking place right now.

How To Buy A House

Have you seen my collection of articles at How To Buy A House? They will give you a unique view on home buying such as this one which is designed to prevent a wave from knocking you over!

I hope to hear your success story when your house is complete!

Best Wishes,



Click here to comment on peer to peer lending.
Click here to ask Kate a question.




Click here to post comments about Peer To Peer Lending.

Click here to ask Kate a question.

Hop back to Ask Kate Credit, Mortgage and Refinancing Questions from Peer To Peer Lending

Return to Prime-Real-Estate-Articles from Peer To Peer Lending

Spread The Word About Peer To Peer Lending

I depend on word of mouth. So help me spread the word by sharing Peer To Peer Lending with your friends using these easy buttons.

The information you obtain at Prime-Real-Estate-Articles.com is not, nor is it intended to be, a substitute for financial, real estate or legal advice. You should consult an attorney, accountant, lender or real estate agent, as applicable, for advice regarding your individual situation. Comments and opinions found here are not necessarily those of this site.