Enjoy an entirely paperless application process with no origination fees, but availability is limited.
If you’re interested in the convenience of an online application process for a home loan, Lenda could be the solution you’ve been looking for. With an entirely paperless approach, it’s loans come with no origination fees and a free credit check. But its product range, customer service options and state availability are limited.
Product details
| Product name | Lenda mortgage |
| Rates | Fixed |
| Terms | 15 or 30 years |
| Repayment type | Principal and interest |
| Fees | Vary |
| Loan purposes | Owner-occupied, refinancing, investment |
| Service limitations | Limited to residents of Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia and Washington |
| Customer service | Phone, email |
What does Lenda do best?
- Fully online process. From supporting documentation to signing off on your loan, Lenda’s mortgage application takes place entirely online.
- Quick loan decision. After you submit your application, a Lenda loan officer contacts you within one business day.
- Free credit check. Lenda checks your credit score to get you the best rates at no extra cost.
- No origination fees. Thanks to its online lending model, Lenda can offer its fixed-rate home loans without any origination or application fees.
What can I expect with a Lenda mortgage?
- Preapproval. Fill out a full mortgage application and upload supporting documents to validate your information for preapproval.
- Mortgage points. Lower your interest rate and monthly payments by paying loan points against the cost of your loan.
- 30-day turnaround. Lenda claims that it closes most home loans within 30 days or less.
- Loan-to-value ratios. Lenda suggests that a loan-to-value ratio of less than 80% can help secure a lower interest rate.
Are there any special programs?
As of this writing, Lenda offers home loans and loan refinancing for residential and investment properties only.
It doesn’t offer adjustable-rate mortgages or home equity lines of credit, although it’s working to expand its products and hopes to offer a greater selection soon.
What types of fees come with this loan?
Lenda’s online lending model enables it to offer home loans without origination fees. Where other lenders typically charge a loan processing fee of 0.5% to 1%, you save on this cost with Lenda.
While saving on the application fee is a perk, closing costs are unavoidable. Be ready for appraisal fees, signing fees and other associated costs. Lenda’s online mortgage calculator can help estimate your closing costs based on the information you provide.
What are the drawbacks of a Lenda mortgage?
While Lenda’s convenient online application and swift processing times count in its favor, there are several potential drawbacks to be wary of:
- Limited availability. Lenda is currently only available to residents of Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia and Washington.
- Limited support. Lenda is an online lender, which means support is limited to email and phone inquiries weekdays from 9 a.m. to 5 p.m. PT.
- Limited loan options. Lenda’s loan product selection doesn’t includew VA, USDA or adjustable-rate mortgages.
Compare alternative mortgage providers
What do customers really say about Lenda?
Lenda is not accredited with the Better Business Bureau, though it receives an A+ rating as of September 2018 based on factors like how it handles customer complaints and business practices. Trustpilot is unable to assign Lenda a TrustScore due to a lack of customer reviews.
While online reviews of Lenda aren’t plentiful, those out there indicate that the straightforward process of uploading documentation helps speed along application times. In fact, one customer was able to complete the refinancing of her home in just 19 days.
However, some Lenda customers complained that without in-person customer support, the application process was confusing and resulted in multiple communication errors and delays.
How do I get started?
- Go to Lenda’s website and click Get a Home Loan.
- Click Apply Now.
- Enter your personal details and click Save & Continue.
- Tell Lenda more about your living situation. Click Save & Continue.
- Enter details about your employment history and income. Click Save & Continue.
- List any available assets you have, including your checking and savings account balances. Click Save & Continue.
- Choose whether you’d like to provide info about your ethnicity, gender and race, or opt out. Click Save & Continue.
- Review Lenda’s qualification questions and click Save & Continue.
- Enter your Social Security number for Lenda to complete a credit check on your behalf.
- Upload supporting documentation, then submit your application.
You’ll hear back from a Lenda loan specialist within one business day to discuss your application.
Eligibility requirements
- US citizen.
- At least 18 years old.
- Resident of Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon,
- Pennsylvania, Texas, Virginia or Washington.
Required documentation
- W2s and 1099s from the past two years.
- Personal tax returns from the past two years.
- Current monthly housing expenses such as rent or mortgage payments.
- Driver’s license, state ID or passport.
- Bank statements from the past two months.
- Business tax returns from the past two years, if self-employed.
I got the loan. Now what?
- Review your loan agreement. Discuss your loan agreement with your Lenda specialist to make sure you understand the fine print and any potential fees you could incur.
- Keep up with payments. Know your loan schedule and do your best not to miss a payment.
- Reach out to Lenda. If you have any questions or concerns, contact Lenda’s customer support team at 855-846-7334 or support@lenda.com.
Bottom line
Lenda’s online lending model makes for an easy, paperless application process, made all the more appealing thanks to no origination fees. However, a lack of in-person support could result in communication hiccups, slowing your funding process and causing more hassle than you bargained for.
Review your options with other providers to get the best loan to fit your needs.
