If you can't qualify for a traditional home mortgage, but you can qualify for one using a peer-to-peer lending program, is there a downside to going with the peer-to-peer?
The downside is that usually the interest rates are higher. This means paying more overall. You may also be more limited by term lengths, too. For example, a regular mortgage can normally be set to be paid off over 30 years. Peer-to-peer lending programs don't have options that long. So if the house is cheap and you think you'll be able to pay for it entirely within a few years, then it's worth looking into.
Jessi is right. Peer-to-peer groups lending only offer financial help on a short term basis and I doubt they'll be willing to furnish the sort of money that can be used to buy a home unless they'd consider it as an investment which can be liquidated fast should you default on payment. It's not worth it in my opinion.