Lenda Mortgage Reviews 2021: How It Works | Is It Legit Or A New Mortgage Scam

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If at one time in your life you had a real estate issue then you’d understand why it’s important that I review Lenda/Reali mortgage and loans.

Getting my first apartment wasn’t easy at all, I didn’t have enough money for it nor did I have a good job to leverage on. I had a broker and yet it felt like I was making no headways.

Because of the first awful experience, I’ve always appreciated the existence of good mortgage companies. Also, I’ve recognized how important they are in the lives of people looking to own their own houses.

If you have ever been in this situation, you’d understand how I felt then and you’d also understand this Lenda mortgage reviews will help those going through the same situation.

According to BusinessDictionary.com as cited by Wikipedia, The home-ownership rate in the United States is the percentage of homes that are owned by their occupants.

In 2009, it remained similar to that in some other post-industrial nations with 67.4% of all occupied housing units being occupied by the unit’s owner.

In 2018, homeownership dropped to a lower rate than it was in 1994, with a rate of 64.2%.

When you look at the figures above and the hassles one must go through to own a house, it might seem easier to pay rent. But really it isn’t, you just haven’t discovered the right mortgage company.

Mortgage companies like Lenda/Reeali exist for these times, and it’s even more interesting that they provide their loans and other services online. Get with the Program!!

Before we get into this article fully, take a look at our table of content for an overview of this piece.

What Is Lenda Mortgage?

Lenda Mortgage now known as Reali Loan is a lending company that was founded in 2011 by Jason van den Brand and Elijah Murray as Gorefi.

The company completed a Series A funding round in September 2017, raising $5.25 million in total. 

With their headquarters in San Francisco, Reali or Lenda is operational in twelve states. Its goal is to help Americans get a home loan in a manner that is easy, transparent, fast, and free of commissions and fees.

Lenda uses software to help people buy homes online. However, these mortgages are only available In 12 states of the United States.

They offer conventional fixed-rate loans to homeowners in five-time increments: 10, 15, 20, 25, and 30 years. Reali only offers the fixed-rate purchase and refinances. If you’re looking for more like USDA or VA loan, or an adjustable-rate mortgage, Lenda/Reali isn’t for you. At least not at the moment.

You could buy a house with lesser stress read How To Buy A House With No Money Down In 2021: 7 Legit Ways.

Where Can I Get Reali/Lenda Services?

Lenda/Reali loans and mortgages are available in only twelve states in the United States. They operate in Arizona, California, Colorado, Illinois, Georgia, Florida, Michigan, Oregon, Pennsylvania, Texas, Virginia, and Washington and plans to expand to more states as quickly as possible.

What Kind Of Mortgage Can I Get With Lenda/Reali?

Lenda/Reali offers only one type of loan system with three different timelines for home purchases. They also offer to refinance loans. The kind of loan Lenda offers is a Fixed Rate Mortage loan which is probably the most popular type in the U.S. A.

With a Fixed Rate Mortgage Lenda locks in your interest rate for either 30, 25, 20, 15, or 10 years.

Your monthly principal and interest payment will stay the same the entire time you’re paying the loan.

This can help with budgeting, as you’ll always know how much you need to pay each month. This is the only type of loan Lenda offers, either as a 10, 15, 20, 25, or 30-year note.

For Lenda to offer you a loan, you must have enough equity or good or better credits to qualify. You must also be able to pay a 3% down payment(for this to be accepted, you must have private mortgage insurance or an untraditional financing option such as a piggyback loan).

Read Also: 15 Real Estate Investing For Beginners In 2021

What Else Can You Do With lenda/Reali?

Lenda like we’ve been saying is a mortgage company that offers its services all online. They try to give their customers the best experience while applying for a loan.

They do this by creating a dashboard for each customer and assigning them to a loan advisor. This Advisor you can reach via Email text or phone when you need to.

Additionally, they have built-in some feature tat allows pre-qualify and apply for pre-approval all from any device with internet access.

How Can I Qualify For Mortgage With Lenda/Reali

To qualify for a loan with Reali or Lenda as it’s formerly called you actually need a better credit system. They have a minimum 620 FICO score and you need to meet that to qualify for a mortgage from Lenda.

It is so because Lenda offers solely a conventional home loan. These loans have higher standards because the government does not provide a guarantee for untraditional borrowers. 

With this, what it also means is that you will need nothing less than 20% of the purchase price. If you have anything less, then you will need private mortgage insurance (PMI ).

There’s another way to qualify for Lenda’s loan and that’s the Debt-to-income-ratio (DTI) factor. This is simply how knowing how much of your income goes to service previous loans every month.

Having these numbers will help them ascertain if you’re capable of paying a mortgage every other month, say if they give you the loan. Debt like student loans, car payments credit cards debt, and child support factors into your monthly liabilities and thus, will be calculated.

Give yourself a head start of knowing if you can qualify through this method by calculating your monthly debt payments and dividing by your gross (pre-tax) monthly income.

To be on the safer side, keep the number at 45% or below. However, they might take 50% if you have a good credit score and enough money to make a 20% down payment.

People who read this content, end up reading
How To Buy A House With No Money Down In 2021: 7 Legit Ways

What Processes Will I go Through To Get A Loan From Lenda?

There are different processes to go through. You can start online and qualify for or skip tp pre-approval, or you can call the company directly to get started.

To get pre-approved you will need to sign up for an account, especially if you’re making an offer for a house.

When that is over, you will need to fill a form and fill out your asset and income details. You also need to input your social security number for a credit score check which is mandatory.

If you’re pre-approved someone will get to you within a business day and make you an offer for a clearly defined loan amount.

After this, you can apply for an actual home loan. However, the home seller must have accepted your offer to buy.

This time you’ll need a number of documents to substantiate your application, such as pay stubs, tax returns, bank statements, and profit and loss statements (for self-employed applicants)

When you get through with all this, Lenda will contact you within one business day. And if your application is approved, you can move on to finalize all the details after a home inspection.

Reali/Lenda Mortgage Rates

There’s no specified rate on their website and since they do not report to the Federal database, there was no ways to ascertain their actual mortgage rates.

However, we have pointed out earlier that Lenda/Reali loans request a 20% down payment for anyone to be given access to their mortgage. They can also accept 3% with a PMI.

That said, here’s the National Average Rate at the moment.

ProductTodayLast WeekChange
30 year fixed3.13%3.13%+0.00
15 year fixed2.80%2.69%+0.11
5/1 ARM2.81%2.81%0.00
30 yr fixed mtg refi2.74%2.73%+0.01
15 yr fixed mtg refi2.67%2.73%-0.06
7/1 ARM refi3.19%3.19%0.00
15 yr jumbo fixed mtg refi3.38%3.38%0.00

Lenda Mortage Reviews: Is It Scam Or Legit?

There’s nothing scammy about Lenda. The only issue is that they failed to explain in clear terms what conditions one must attain to have access to their loans.

Lenda offers a Fixed Rate mortgage of 10 t0 30 years with increment every 5 years and no other loan option. To qualify for their loan you really need to have a strong credit score and be able to afford a 20% down payment of the total loan amount.

Yes, Lenda is not like any other loan company that offers government-backed loan options or adjustable-rate mortgage terms. But hey, they have their market and it’s working for them.

Lenda Mortgage Review – ProsLenda Mortgage Reviews Cons
Fast web-based application processLenda can only be used in twelve states.

USDA and VA loans not offered 

Only one loan type available: fixed rate (in 10, 15, 20, 25 and 30 year terms
Detailed Home mortgage guide available on lenda website

Lenda Alternatives

  • Caliber Home Loan
  • Quicken Loans Mortgage
  • LendingTree Mortgage

Conclusion:

Lenda makes mortgage loan applications less stressful than It has always been. You get the help you need all online and in a short time frame.

Whatever you do make sure you get quotation from two different Companies, this will help you drive a better bargain with Lenda.

Remember, Lenda/Reali has very strong hurdles you must pass to meet up their requirement for a mortgage.

You’re a good fit for Lenda if you’re buying in one of the eleven licensed states, have strong credit and decent down payment savings, and desire a conventional fixed-rate loan through an online lender.

However, you can find that with other online lenders, as well, or can buy a house with no down payments. You only need to learn how.

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