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Best way to fund down payment or pay off mortgages?


Kale1986
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Posted (edited)

Hey everyone,

 

I went through a divorce a few years back and couldn’t even ask my uncles for a mortgage down payment, since it was too awkward. So, I am building on this idea to create a product. I want a way that people can get crowd-lending from their friends and families circles and wanted to run some thoughts by you:

 

Basically,

1. The platform will help you create a short summary of borrowing info including: use of money, borrowing rate, duration and send it to your friends & family members to collect any lending interest.

2. People within your friend & family circle can refer someone to you in their circle who has a lending interest and get a finder fee.

3. The platform will match you with interested lenders.

4. The platform will streamline the documentation/contract process to close the deal. Basically everything will be formalized for you.

 

This is a preliminary thought based on a premise that it is easier to get loans from our friends and families at a cheaper rate rather than going through a lengthy qualification with a lending platform paying high flying rates. Any thoughts and feedback would be greatly appreciated!

 

Kale

Edited by Kale1986
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  • Kale1986 changed the title to Best way to fund down payment or pay off mortgages?

1 hour ago, MarvBear said:

Isn't Prosper a remarkably similar platform to your proposal?

 

emm, i did some homework. Prosper is a typical peer to peer lending platform, where people lend to strangers. 

And I would doubt that if I can borrow money from strangers on peer to peer lending at a cheaper rate without going through all these credit score checking and qualification process?

 

So, what I'm thinking is a platform that only enables you to borrow and lend to someone you know within your network(example: a sibling or a close friend) so that lenders feel comfortable as they know you directly or indirectly. Also, the matchmaker mechanism would incentivize people in your network help you find capital sources?

 

I would describe it as a private crowdlending platform serving friends and families circles?

 

 

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55 minutes ago, hegemony said:

This is for raising a down payment? aren't there UW restrictions on using gifts for a down?

Yea, I'm thinking raising a down payment as a starting point as funds crowd-borrowed from friends and families can be used for mortgage payment, car financing, and other uses. 

 

My friend who recently bought a place told me that you can't get a loan for down payment as it'll be factored in your debt to income ratio for mortgage application. So, I guess downpayment would be tricky. 

 

But, would you use a platform like this to pay off debt or need money? 

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31 minutes ago, MarvBear said:

Good luck.  The security and privacy and legal concerns would be enough to discourage me from attempting this.  I couldn't offer your suggestions that might be helpful.

Yea, I know right. But would you use this platform for your own loan needs-i.e. would you be comfortable borrowing or lending this way?

 

I guess I am trying to gauge the potential utility of this platform from a user perspective?

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