We do still give loans. Not to everyone. How it works if you are a member of a group we can and will fund any with credit worthiness. If the rate is too high then sorry. I wont lend either will my group in these times cheaper.
it sounds like you're assuming rates will climb. you're locking in the loan @ 3.5% and hoping cd's will pay a couple of % points above that in order to recoup the loss you're incurring now. is that right? where did the 8% come from? if i understand you right, you're getting 5% on 100k, paying 8% on 60k and paying 3.5% on 40k. that's not a money-maker.
I am about to close on a new home, have a FICO of about 785, and a little debt due to my son's college. I am still getting calls out of the blue from lenders, they were on me like stink on shit. It was extremely easy to get this loan, and the bonus is that the builder is hustling to please me as they are scared of walk-aways in this housing environment. There is, and never was, any credit problem for prime loans
what's your prosper handle look at this poor bastard http://www.lendingstats.com/lenders/carrey79 losing some 700,000$ prosper is one big scam, which ripped off alot of lenders I am surprised no one is attempting to sue prosper, and hopefully get some money back in the process --- http://blog.prosper.com/2008/05/30/debt-sale-update-2/
A Prosper scam: The story of Jessica Wolcott ... Jessica Wolcott, 22 years old, pleaded guilty to extorting $125,000 from a CEO of a fortune 500 company ... http://prosperlending.blogspot.com/2007/06/prosper-scam-story-of-jessica-wolcott.html
... We also now learn that because of this incident Wandschneider, the Pepsi Cola executive and father of three, is no longer employed at Pepsi Bottling Group. Company officials refuse to comment on whether he was fired or whether he resigned from his position which has a $6 million dollar annual salary. ... that is really sad, the guy lost his job for this bitch