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This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website. These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.

LoanDepot Review

Rachel Morey Rachel Morey Last update:
NMLS#
174457
Min Credit Score
620
Repayment Terms
120 - 360

LoanDepot uses proprietary software and technology to provide potential homebuyers with 100% digital verification of income, employment, and assets. They claim to cut an average of 17 days off a regular mortgage closing timeline. 

As a direct lender, loanDepot offers a wide range of mortgage types with fixed or adjustable interest rates. They also provide a lifetime guarantee of future fees if a current loanDepot borrower decides to refinance through the company. They promise to waive lender fees and reimburse the appraisal fees when refinancing a property they initially financed.

Mortgage types 
  • Fixed and adjustable-rate loans
  • Home purchase or home refinance
  • FHA
  • VA
  • FHA 203k
  • Fannie Mae HomeStyle
  • Jumbo
  • HARP
Mortgage amount No minimum; Jumbo loans maximum

is $2 million in high-valued counties

Repayment terms
  • 3/1, 5/1, 7/1, and 10/1 adjustable rate mortgages (ARM)
  • 120, 180, 240, or 360-month fixed rate mortgage
APR Determined by type of loan and borrower qualifications

Example assumes credit score of 740+, debt-to-income ratio of 35% or lower, and loan-to-value of 80% or less. APR may include up to 3 points including origination, lender, and discount fees. 

  • 5.443% APR: $300,000 fixed rate 360 month
  • 4.986% APR: $300,000 fixed rate 180 month
Minimum credit score 620 (500 for VA loans)
Lender type  Direct lender

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Loan Depot Mortgage Loans: Pros

  • Can choose face-to-face interaction by accessing over 150 affiliated loan stores in the United States
  • Experienced FHA and VA lender
  • Fannie Mae HomeStyle home improvement and FHA 302K fixer-upper loans available
  • 100% digital asset, employment, and income verification available

Loan Depot Loans: Cons

  • No home equity line of credit or loan products available
  • Three points of prepaid interest and fees included in all published mortgage rates
  • USDA Rural Development loans not available

Application Process

If you want to understand how much money you could get for a mortgage, but you just started house shopping, you can get prequalified by speaking with a loan officer. They’ll conduct a soft credit inquiry to determine how much money loanDepot may be willing to lend you. This preliminary credit check does not hurt your credit score. 

To get mortgage preapproval through loanDepot, you’ll fill out a short questionnaire on their website that includes your loan purpose, name, estimated loan amount, estimated property value, property zip code, your email address, and your phone number. A representative from loanDepot will call you to prequalify you for a mortgage or mortgage refinance. You’ll complete the preapproval process before making a formal offer on a home. 

LoanDepot will conduct a hard pull of your credit during preapproval. You’ll submit proof of income, employment, and provide tax returns and bank statements. Your loan officer uses this information to determine precisely how much money they will lend. After preapproval, you’ll also know your exact interest rate, and you may have the option to lock the rate. 

After you’ve made an offer on a home, your loan officer will send your mortgage application to an underwriter. This conditional approval phase includes home appraisal and income verification. Having conditional approval for a mortgage speeds the closing process. During final approval, you’ll transfer down payment funds and sign closing paperwork.

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Terms & Requirements

All APRs published on loanDepot’s website assume a 35% debt-to-income ratio and up to 3 points, including fees. VA loans and FHA loans have relaxed requirements, and since they are government-backed loan programs, loanDepot adheres to those guidelines. Making a 20% down payment helps borrowers avoid paying private mortgage insurance (PMI) premiums, but down payment requirements vary according to the type of loan and the loan-to-value ratio.

Mortgage Requirements 

  • Must be a U.S. citizen with a social security number
  • Consistent employment history with adequate income level
  • FHA loans require a 3.5% – 10% down payment, a maximum debt-to-income ratio of 43%, and minimum FICO credit score of 500
  • Conventional loans require a 5% – 20% down payment, a maximum debt-to-income ratio of 35%, and minimum FICO credit score of 620
  • VA loans require zero down payment, a maximum debt-to-income ratio of 41%, and no minimum FICO credit score

Mortgage Purchase Requirements

Here are Loan Depot’s requirements listed for a mortgage loan:

  • US citizen or non-citizen permanent or non-permanent resident 18 years or older
  • 5% minimum down payment
  • 620 FICO score (conventional and VA), 580 (FHA)

It doesn’t provide much information beyond those few data points. Of course, exact requirements vary depending on the type of mortgage you get. For example, you must be a qualifying veteran or the spouse of one to get a VA loan.

Mortgage Terms

Loan terms vary widely according to the type of loan, whether it’s government-backed, borrower qualifications, and down payment amount. 

LoanDepot offers example rates that assume the borrower has a FICO credit score of 740 or higher with no option to adjust that score to see the corresponding interest rate. Published rates also include up to three points, including fees.

Repayment Terms 

Fixed interest rate terms:

  • 30-year
  • 20-year
  • 15-year
  • 10-year

ARM interest rate terms:

  • 10-year fixed (followed by 20 years of adjustable rates)
  • 7-year fixed (followed by 23 years of adjustable rates)
  • 5-year fixed (followed by 25 years of adjustable rates)
  • 3-year fixed (followed by 27 years of adjustable rates)

Privacy & Security

loanDepot has a comprehensive and updated privacy and security policy on their website. They do not sell or share personal information with other companies unless it’s necessary to facilitate approving your loan application or closing the loan. 

loanDepot has a Better Business Bureau (BBB) rating of “A” and a four-out-of-five star average with 964 customer reviews. Many recent one-star reviews note a lack of customer service response and problems with closing delays. 

Customer Support

loanDepot has 6,400 team members, including more than 2,000 licensed loan officers. With more than 150 local loan offices across the nation, it’s possible to get face-to-face interaction with a loan expert if you live in the right geographical areas and choose not to conduct the process fully online. Live customer support is also available for new customers by calling (888) 983 – 3240 Monday through Friday between 5:00 am and 7:00 pm and Saturday 8:00 am to 3:00 pm pacific standard time. 

The company may sell your loan to a new service provider after it closes. They send a notification letter with the contact information for your new service provider before this happens.

Final Thoughts

loanDepot offers the attractive option of 100% online digital verification of income, assets, tax returns, bank statements, and other paperwork required to complete the mortgage application process. While other mortgage companies may take between one and two months to close, loanDepot claims to cut up to 17 days off the process with their proprietary verification methods. 

Recent negative reviews note a disturbing lack of customer service during the closing process, however. Those with complicated finances may fare better elsewhere. 

The company’s APRs are challenging to compare. You can’t customize the rate by zip code or credit score. The company adds up to three points, including fees, making it impossible to check their rates against competitors. The only way to know if they are competitive is to compare the Loan Estimate form to other lender’s numbers after going through the preapproval process.

Address

26642 Towne Centre Drive
Foothill Ranch CA, 92610

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LoanDepot Disclaimer:  loanDepot Lifetime Guarantee (“Guarantee”) — Subject to the conditions and contact requirements outlined below, the Guarantee applies to the refinancing of an outstanding loan originated by loanDepot that is secured by the same property upon which that borrower previously received from loanDepot a loan and “loanDepot Lifetime Guarantee” certificate. The Guarantee is non-transferable and does not apply to loans obtained to purchase a new property, new loans that result in the creation of a separate lien on the current property (i.e., a “home equity loan”), renovation loans, bond loan programs and down payment assistance programs. The Guarantee also does not apply to loans applied for through third parties (e.g., Lending Tree) or originated through loanDepot’s Wholesale division. The Guarantee may only be used by submitting an application directly to loanDepot.

Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website. These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.
Rachel Morey Rachel Morey
Rachel Morey is a journalist specializing in finance content. She has written for some of the major lenders in the online personal and business finance industry. She has been writing professionally for nearly a decade and has projects in print and broadcasting. A native Iowan, Rachel has a special fondness for the open roads of rural America.
This review is based on the writer's personal opinion.