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loanDepot Reviews

9.2

bestfor-icon Quick and efficient mortgage loan process

alirivzi
Written by Ali Rivzi

About loanDepot | Read More

9

LS Score

10

Credibility

10

Support

8

Accessibility

Visit Site
Opening Hours Opening Hours drop-down-btn
Mon-Fri 8:00am - 10:00pm (EST)
Sat 11:00am - 06:00pm (EST)
Sun Closed
Contact Information Contact Information drop-down-btn
  • customercare@loandepot.com
  • (888) 983-3240
  • Headquarters: 26642 Towne Centre Drive Foothill Ranch CA, 92610
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loanDepot Mortgages Review

loanDepot is a direct lender best known for its “equityFREEDOM” programs, which allow homeowners to quickly tap into their home’s equity for renovations or debt consolidation. They offer both variable-rate HELOCs and fixed-rate Home Equity Loans, featuring a digital-first application process that can fund in as little as seven days. Beyond equity, loanDepot is a full-service mortgage lender, offering competitive rates on purchase and refinance loans, including FHA, VA, Jumbo, and ARM options. Their strict no-steering policy ensures licensed loan officers match you with the right product for your specific financial goals.

 

 

loanDepot Mortgages Highlight

620

Min Credit Score

Max $3M

Mortgage Amount

up to 40 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

Undisclosed

Underwriting Fee

Yes

Other Fees

Undisclosed

Origination Fee

Undisclosed

Prepayment Fee

3 Days

Funding Time

174457

NMLS

Mortgage Refinance

Max $3M

Mortgage Amount

Home Equity

$35K-$250K

Mortgage Amount

Pros & Cons

drop-down-btn
  • con-icon Can choose face-to-face interaction by accessing over 150 affiliated loan stores in the United States
  • con-icon Close on time guarantee of $1,000
  • con-icon 100% digital asset, employment, and income verification available
  • con-icon USDA loans are not available
  • con-icon Mortgage rates not listed on its website

Mortgage Type

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  • Mortgage Purchase
  • Mortgage Refinance
  • Fixed
  • Adjustable
  • Home Equity Loan
  • Home Equity Line of Credit
  • FHA
  • VA
  • Jumbo
View rates

loanDepot Mortgages Terms & Requirements

Terms and Requirements

Home Equity Line of Credit (HELOC) loanDepot’s HELOC terms differ slightly from the industry standard, specifically regarding the draw period and initial withdrawal requirements:

  • Initial Draw Requirement: You must withdraw at least 75% of the line amount at closing (100% if the line is under $50,000).

  • Draw Period: 3 years (Note: This is shorter than the standard 10 years).

  • Repayment Terms: The total term is 30 years. The first 10 years are interest-only payments; the remaining 20 years are fully amortized repayment.

  • Draw Restrictions: No additional draws are allowed for the first 90 days following closing.

  • Fees: No third-party fees (appraisal/title are covered), but there is an origination fee of up to 5% ($500 minimum).

  • Rates: Variable interest rate based on Prime Rate + margin.

  • Collateral: Your home must be pledged as collateral; certain property types (like manufactured homes) may not be eligible.

Mortgage Terms (Purchase & Refinance) For standard mortgages, loanDepot offers competitive terms and a high-tech application process:

  • Digital Verification: They use proprietary technology (“mello smartloan”) to digitally verify income, employment, and assets, often eliminating the need for paper documents.

  • Lifetime Guarantee: If you refinance with loanDepot in the future, they will waive the lender fees and reimburse appraisal fees under their “Lifetime Guarantee” program.

  • Loan Types: Wide variety of fixed and adjustable-rate mortgages (FHA, VA, Jumbo, Conventional).

How to Apply

loanDepot uses a digital-first application for equity products designed for speed, often funding in as little as 7 days.

  1. Check Your Rate: You can check your eligibility and rate online with a “soft credit pull” (no impact to your credit score).

  2. Digital Application: If you proceed, you will complete the full application online, linking your income and assets digitally rather than faxing paperwork.

  3. Automated Appraisal: In most cases, they use an Automated Valuation Model (AVM) to assess your home’s value instantly, skipping the need for a slow, in-person appraisal.

  4. Closing: While the application is digital, you must meet with a notary in person to sign the final closing documents (Remote Online Notarization is generally not available).

Mortgage (Purchase & Refinance) For standard mortgages, loanDepot uses its proprietary “mello smartloan” technology:

  • Hybrid Process: You can start online, but a licensed loan officer will typically guide you through the specific loan structuring (FHA, VA, etc.).

  • Paperless Verification: The “mello” system connects directly to your bank and payroll providers to verify assets and employment, significantly reducing the amount of paperwork you need to upload.

  • No Steering: Loan officers adhere to a strict policy to match you with the loan that fits your financial profile, not the one that pays them the most commission.

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Step 1

Get started

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Step 2

Are you currently working with loanDepot?

Qualification Requirements

  • Qualifying for a HELOC is generally harder than qualifying for a purchase mortgage.

    • Credit Score: Minimum 660–680 (Higher than standard mortgages).

    • Equity: You generally need 15–20% equity remaining in your home after the new loan is taken out (Max 80–85% Combined Loan-to-Value ratio).

    • Debt-to-Income (DTI): Your total monthly debts (including the new HELOC payment) usually cannot exceed 43%–50% of your gross income.

    • Property Type: Must be an owner-occupied primary residence or eligible second home; manufactured homes are often ineligible for their HELOC product.

    Mortgage (Purchase & Refinance)

    • General: Must be at least 18 years old, a US citizen/permanent resident, and have a clear title with no outstanding tax liens.

    • Credit Score & Down Payment:

      • Conventional: 620+ score (Minimum 5% down payment typically required).

      • FHA: 580+ score (3.5% down payment).

      • VA: 580–620+ score (0% down payment; specific score requirements can vary by borrower profile).

      • Jumbo: 700+ score (Requires higher reserves and strict DTI).

    • Income: Must have stable, verifiable employment and a DTI ratio typically below 43% (though FHA/VA can sometimes go higher).

Required Information

To check your rate and eligibility for a HELOC without affecting your credit score, loanDepot requires specific details about the property you already own:

  • Property Address (Critical for the Automated Valuation Model)

  • Estimated Home Value

  • Current Mortgage Balance (To calculate your available equity)

  • Social Security Number (For a soft credit inquiry)

  • Digital Banking Credentials (To link income/assets instantly via Plaid/Finicity)

Mortgage (Purchase & Refinance) For a standard mortgage pre-approval, the process focuses on your ability to buy. You will need to provide:

  • Proof of Identity: Government-issued ID (Driver’s License or Passport)

  • Social Security Number: For a hard credit check (Pre-approval)

  • Income Verification: W-2s, pay stubs, or tax returns (often retrieved digitally)

  • Asset Documentation: Bank statements to prove down payment funds

  • Employment History: 2 years of work history

  • Debts: Information on other loans (auto, student, personal) if they don’t appear on your credit report.

Application Steps & Time Frames

loanDepot’s equity process is faster than traditional banks, with a focus on speed-to-funding:

  1. Soft Credit Inquiry: You start by checking your rate online. This takes minutes and does not affect your credit score.

  2. Digital Application: If you like the rate, you complete the full application online, linking your bank accounts for instant verification.

  3. Appraisal: An Automated Valuation Model (AVM) typically assesses your home value instantly. If a full appraisal is required, the timeline will extend.

  4. Closing: You must meet a notary in person to sign final documents.

  5. Funding: The company claims funding can happen in as little as 7 days from application to cash-in-hand, though 2–3 weeks is a more conservative estimate if manual verification is needed.

Mortgage (Purchase & Refinance) For standard mortgages, the timeline is slightly longer but still accelerated by technology:

    1. Prequalification: Takes a few minutes online or over the phone. A licensed loan officer will issue a “pre-approval” letter after a hard credit pull.

    2. Processing: Using the “mello smartloan” engine, the lender digitally verifies income and assets, often bypassing the need to upload PDFs.

    3. Underwriting & Appraisal: This is the longest step, usually taking 1–2 weeks depending on appraisal availability.

    4. Closing: While the industry average is 30–45 days, loanDepot’s digital platform allows some clean files to close in as little as 15–20 days.

State Availability

- Available in all states

alirivzi
Written by Ali Rivzi linkedin-icon

Ali Rizvi is a published author, financial analyst, and market researcher. He's passionate about providing in-depth insights and analysis in the finance and blockchain industries. With a Bachelor's in Finance from Purdue University and a background studying abroad at the University of Cambridge, he brings a wealth of knowledge and expertise to the table.

faq-icon

FAQ’s

What is the process for applying for a mortgage with loanDepot?

To apply for a mortgage with loanDepot, customers can either fill out an online application or speak with a loan officer to start the process. The loan officer will provide information on the available loan options and guide the customer through the application process.

What is the loanDepot Lifetime Guarantee?

The loanDepot Lifetime Guarantee is a promise to waive lender fees and reimburse appraisal fees for current borrowers who decide to refinance their property through loanDepot.

Does loanDepot offer any assistance for first-time homebuyers?

Yes, loanDepot offers a variety of loan options and expert guidance from loan officers to assist first-time homebuyers in finding the right loan solution for their needs. They also provide resources and tools on their website to help educate first-time homebuyers on the home buying process.

Customer Support

The customer support available by loanDepot is focused on providing exceptional care as customers achieve their financial goals. The company has assembled a team of experts who provide guidance throughout the mortgage journey. The representatives are living human beings, not bots, and they offer a call-back option for added convenience. loanDepot has a good reputation for solving customers’ problems and is committed to providing exceptional value, ethics, and transparency in all its actions.

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 4.17/5 stars ranking with 2,236 customer reviews. Some one-star reviews claim a lack of customer service response and/or problems with closing delays.

In Conclusion

For Home Equity (HELOC) loanDepot is an excellent choice for homeowners who need fast cash and plan to use the money immediately. Their digital-first process can fund loans in as little as 7 days, which is significantly faster than traditional banks. However, it is not ideal for those looking for a “rainy day” emergency fund. The requirement to withdraw 75% of the loan immediately and the short 3-year draw period (compared to the industry standard of 10 years) limits its flexibility. Choose loanDepot if speed is your priority and you have a specific, immediate project to fund.

For Mortgages (Purchase & Refinance) For standard home buyers, loanDepot remains a top-tier contender. They bridge the gap between an online lender and a traditional bank, offering the convenience of the “mello smartloan” digital platform alongside the security of licensed loan officers who can guide you through FHA, VA, or Jumbo options. Their “Lifetime Guarantee” on refinance fees makes them particularly attractive if you plan to refinance in the future.

Brand 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.