LightStream Home Improvement Loan

Mikesan410 · ‎06-16-2021

Hi, I'm new tot he forum and am interested in applying for a home improvement loan through LightStream. I'm thinking about requesting 100k with a repayment term of 144 months. I have a new mortgage as of this April, zero delinquencies, zero credit card debt, and average age of my accounts is 8 years. I also have close to double the requested amount in savings. What I fear might hurt my chances at succeeding in obtaining this loan are the hard inquiries that I have from when I was rate shopping for my mortgage. I have a total of 6 on my file. Additionally, my DTI is currently at 43%. I'd appreciate it if I could hear some first hand accounts as I've heard that LightStream is a waste of an inquiry and deny nearly all who apply. Is this true? I can easily pay the $950/month but understand that lenders have their own criteria as to who qualifies for their loan products. Should I apply or is it a waste of time? Thanks in advance.

Mikesan410 · ‎06-16-2021

I'm interested in applying for a 100k loan through LightStream. Can anyone shed some light from personal experience or word of mouth as to what are acceptable DTI ratios? I'm currently at about 43. I need to know if I stand a chance at this loan with stellar credit

FinStar · ‎06-16-2021

Hi @Mikesan410 - welcome to the forums.

Yes, there can be certain DTI factors that will be considered based on what you already have reporting and/or current amounts owed. You mentioned you have a new mortgage, what was the full loan amount? Any current vehicle loans -- paid or with a remaining balance?

Mikesan410 · ‎06-16-2021

Will 53% or 56% DTI ratios be within an acceptable range when applying at LighStream? This info is unavailable anywhere it seems

hsfun2019 · ‎07-26-2021

Did you ever apply with them? We are considering them for a pool we want to install.

Mikesan410 · ‎07-26-2021

I did but I requested a bit less to not exceed 50% DTI. I was approved BUT I submitted documentation proving that I had over 3x the amount requested in investments. Also, my credit score is over 800 and has zero blemishes.

Note: After you apply you can request for a change in the dollar amount which will then be reviewed by the underwriters without an additional credit pull. I did that several times to see if I can get approved for an amount that stretches my DTI a bit over 50%. Sadly, it didn't work despite having a strong profile. I knew that applying for this loan was a hard gamble. That is why I initially applied for the amount that would put me at 50% DTI from the gate in order to increase my chances of approval. Funding took place 24 hrs after I submitted my app

Anonymous · ‎07-31-2021

@Mikesan410 wrote:
I did but I requested a bit less to not exceed 50% DTI. I was approved BUT I submitted documentation proving that I had over 3x the amount requested in investments. Also, my credit score is over 800 and has zero blemishes.

Note: After you apply you can request for a change in the dollar amount which will then be reviewed by the underwriters without an additional credit pull. I did that several times to see if I can get approved for an amount that stretches my DTI a bit over 50%. Sadly, it didn't work despite having a strong profile. I knew that applying for this loan was a hard gamble. That is why I initially applied for the amount that would put me at 50% DTI from the gate in order to increase my chances of approval. Funding took place 24 hrs after I submitted my app

Light Stream is Suntrust Bank. They just use this name to compete in the marketplace with other lenders. They do all origination and funding from the Suntrust office in the Carolinas.

Thanks

Mark

hsfun2019 · ‎08-03-2021

Good information here.

username7 · ‎02-22-2022

OP, they declined me too.. and I thought I had a good shot at it. 5% DTI, paid off car, no mortgage (inherited), 1%of $228k utulization and they came back with a denial. I'm certainly going to give them a call. This wasn't a "hey I need some extra money that I don't want to put on a cc because my furnace and hot water tank kicked the bucket 9 days ago, and im freeeeeezing. 769 TU

Citylights18 · ‎02-22-2022

I'm considering LightStream as an option, mainly because they don't charge origination fees and with the 12 year payoff period this is one you can actually get somewhere paying down monthly.

Planning to apply in branch though. Could that help my chances?