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LoanDepot mortgage review

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finder.com’s rating: 3.5 / 5.0

★★★★★

Get a mortgage up to $2 million — but watch out for high fees.

LoanDepot is one of the largest nontraditional lenders in the home loans space, offering mortgages in all 50 states. But high origination fees on certain mortgages means it’s not the best choice for everyone.

Details

Loan types Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Minimum credit 620
Minimum down payment 3.5%
Origination fee 1.0% to 5.0%
Other fees loanDepot doesn’t disclose this information on its website, so speak to your loan officer about additional home loan fees you might pay.
Available States Available in all states

Pros

  • No steering policy
  • High loan limits
  • Accepted loan-to-value ratios
  • No prepayment fee

Cons

  • High origination fees
LoanDepot has a strong online presence. The Better Business Bureau gives loanDepot an A rating, and it earns 4.42 out of 5 stars based on more than 750 reviews.

On Trustpilot, loanDepot gets an 8.7 out of 10 based on 326 reviews. Many borrowers speak highly of its loan officers, saying customer service is quick and professional.

Of the complaints, the most frequent is about loanDepot’s high origination fee, which can be as high as 5% of your loan’s total value. Many competitors offer origination fees of 0.5% to 1% of your loan amount.

LoanDepot offers a number of different loan types, including:

Conventional

Available with a fixed or variable interest rate, a conventional mortgage is a typical mortgage, usually with a 20, 25 or 30-year term.

Refinance

If you’re not happy with your current home loan, you can use LoanDepot to refinance your home and close out your old mortgage.

Jumbo

A jumbo loan is a mortgage that’s too big to be bought out by Fannie Mae or Freddie Mac, the two main government-backed lenders. As of 2019, the limit for conforming non-jumbo loans is $484,350.

Home equity

Also known as a second mortgage, a home equity loan allows you to borrow against the equity you’ve built up in your home. You’ll need to put your house up as collateral, and you’ll risk losing it if you aren’t able to pay back your home equity loan, along with your first mortgage, if you have one.

VA

VA loans are available to veterans, military service members and some military spouses. These loans are offered by private lenders and guaranteed by the VA, and they can get you into a house with $0 down.

USDA

USDA loans are available for $0 down for homes in certain rural areas for homeowners who fall below the required income threshold. You can use the USDA website to check if your home qualifies.

FHA

Backed by the Federal Housing Administration, FHA loans are designed for borrowers with low to moderate income. You can get approved for an FHA mortgage with as little as 3.5% down, and you may qualify even if your credit score isn’t high enough for a conventional mortgage.

LoanDepot fees

Fees you may be required to pay include:

  • Origination fee. Expect to pay between 1% and 5% of your loan’s total cost as an origination fee.
  • Late fee. If your payment is more than 15 days late, or if your payment method fails, you’ll be charged a $15 late fee.
  • Third party fees. These can include an application fee for your private mortgage insurance, taxes on the purchase and any other fees or charges not by LoanDepot.
  • Other fees. Mortgages can come with application, underwriting, rate lock and ongoing fees. LoanDepot’s website isn’t very forthcoming about what fees you’ll be charged, so check the fine print before submitting an application.

Requirements

To be eligible for a home loan with LoanDepot, you’ll need a minimum credit score of at least 620.

You’ll also need to be ready to put down a minimum down payment of at least 3.5%.

Documentation

To apply for a mortgage, you’ll need to provide:

  • Your full name and personal contact information
  • Your Social Security number
  • Pay stubs from the past 30 days
  • W2s and 1099s from the past two years
  • Personal tax returns from the past two years
  • A list of your assets, including savings, real estate, car titles and other investment records
  • A complete list of your debts, including student loans, auto loans, personal loans and credit cards

How to get a home loan with LoanDepot

To get started with your mortgage application:

  1. Go to LoanDepot’s site and select the loan product you’re interested in.
  2. Enter your ZIP code and click Get Started.
  3. Enter your basic details, including the sale price of the property you want, the loan amount you’re interested in and your credit score, full name, phone number and email address.
  4. Click Apply Now.
  5. Enter your loan and financial information, along with your address, Social Security number, date of birth, income and any available assets you hold.
  6. Wait for confirmation. After you submit your application, a LoanDepot loan officer will contact you to confirm your information and let you know which loan you qualify for.

Pros and cons of LoanDepot

Pros

  • No steering policy. LoanDepot holds its loan officers to a “no steering” policy, which means honest, impartial guidance when it comes to selecting the best loan for you.
  • High loan limits. Borrow up to $2 million through a jumbo mortgage loan. Fixed- and adjustable-rate loans are available, with ARM terms of three, five or seven years.
  • Accepted loan-to-value ratios. Refinance to access up to 90% of your home’s equity.
  • No prepayment fee. Pay off your home loan early with LoanDepot without worrying about fees or penalties.

Cons

  • High origination fees. Expect to pay as high as 5% of your total loan amount in origination fees.

What is LoanDepot?

LoanDepot is a direct lender based in Southern California and founded in 2010. Since launching, it’s funded over $165 billion in home, home equity and personal loans.

The company has an A- rating with the Better Business Bureau and 8.2 stars on Trustpilot as of August 2019. While most reviews are positive, the majority of negative reviews focus on a slower than expected application process and frustration waiting to hear back from the lender.

Compare LoanDepot to other lenders

Name Product Min. credit score State availability Loans offered
620
Not available in: HI, NY
Purchase, Refinance, Jumbo, HELOC, FHA, VA, USDA, Reverse
Loan officers work with you to find the right mortgage to fit your lifestyle and budget.
620
Not available in: HI, MA, NV, NY, ND, UT
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Explore financing options and home shopping services all on the same website.
620
Available in all states
Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA, USDA
A nontraditional lender offering impartial guidance on a range of loans, though with potentially high fees.
620
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Purchase, Refinance, Home Equity, HELOC, Jumbo, Reverse, FHA, VA, USDA
Connect with vetted home loan lenders quickly through this online marketplace.
620
Not available in: AZ, HI, IN, MO, NV, NY, RI, UT, WA, WV
Conventional, Refinance, Jumbo, Home Equiity, FHA, VA, USDA
Get personalized rates in minutes and then choose a home loan offer from several top online lenders.
620
Available in all states
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Flexible options, fast approvals and support online backed by a trusted brand.
620
Available in all states
Purchase, Refinance, Jumbo, FHA
A subsidiary of CIT Group, CIT Bank is a direct lender that offers a variety of mortgage loan options.
620
Available in all states
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Streamline your mortgage from quote to final payment — all from your computer or phone.
620
Available in all states
Purchase, Refinance, Jumbo, HELOC, FHA, VA, USDA
A national lender that offers the full selection of mortgage products.

Compare up to 4 providers

Bottom line

LoanDepot offers a strong selection of mortgage products. But it charges a higher origination fee than many of its competitors.

Before you sign a contract, compare other home financing options you might be eligible for.

Frequently asked questions about LoanDepot

Home loans ratings

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★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We analyze top home loan providers and rate them one to five stars based on factors that are most important to you. These factors include: rates and fees, product selection and borrower experience.

Read the full methodology of how we rate home loan providers.

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