Many borrowers are considering peer-to-peer lending after having frustrating experiences with overly-cautious banks.

My Bank Tracker explains:

“Because banks are now taking a more cautious position, peer-to-peer (P2P) lending networks have been making headway for both borrowers and lenders. For many prospective borrowers who cannot obtain a loan through traditional methods, P2P loans may be the next viable alternative to a bank.”

Currently, most peer-to-peer lending offers cannot cover an entire mortgage. However, many borrowers choose peer-to-peer lending in order to consolidate debt or make purchases for their business.

In some cases, home buyers are able to take out a peer-t0-peer mortgage from a family member or friend using private programs such as Virgin Money. Total costs including escrow and closing are about $3k.

See Also:

List of Peer-to-Peer Lenders

Tags | creative financing, Peer-to-Peer Lending