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LoanDepot mortgage review

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

finder.com’s rating: 3.5 / 5.0

★★★★★

As one of the largest nontraditional lenders, LoanDepot offers a wide array of mortgage products, with higher loan limits than you can find with other banks and mortgage lenders. But high origination fees and lack of home equity products may lead some borrowers to look elsewhere.

Details

Loan products offeredConventional, Jumbo, FHA, VA, USDA, Refinance
Minimum credit scoreConventional: 620
FHA: 580
VA: 620
Minimum down payment (Conventional)3.5%
State availabilityAvailable in all states
NMLS #174457

Our take on LoanDepot

LoanDepot is a good choice for borrowers who qualify for standard loan products and like the idea of working with a specialized lender. Despite its focus on a digital loan experience, LoanDepot still requires you to work directly with a representative, even to find out what mortgage rates the lender offers.

But its award-winning customer service may ease the process. And its no-steering policy can keep you from facing a hard sale on any loan, ensuring your loan officer is working to find the best loan for you.

LoanDepot’s requirements are standard

Not all of LoanDepot’s eligibility requirements are listed on its website, but listed requirements are pretty typical for a lender of its size. 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%.

But if you’re looking to refinance, LoanDepot’s loan-to-value (LTV) ratio can go as high as 90%, which can give you more access to your home’s equity.

Documentation

To apply for a mortgage, you need to provide:

  • A copy of your Social Security card.
  • 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.

Costs and fees are unclear

LoanDepot doesn’t disclose its mortgage fees online, only that it doesn’t charge an application fee. But once you’re approved, you may be required to pay the following fees:

  • Lender fees ranging between .5% and 1% of your loan’s total cost to cover origination fees. These include underwriting and the costs associated with that.
  • Third-party fees that can include an application fee for your private mortgage insurance, taxes on the purchase and any other fees or charges not from LoanDepot.
  • Other fees like attorney fees, rate lock and ongoing fees often associated with mortgages. But this lender doesn’t charge prepayment fees.

LoanDepot also rewards loyalty with a guarantee that once you finance a loan with the company, they’ll waive the lender fees for any refinance you do in the future and reimburse your appraisal fees.

6 steps to apply for a mortgage with LoanDepot

Get started with your mortgage application, following these steps:

  1. Go to LoanDepot’s site and select the loan product you’re interested in.
  2. Enter your ZIP code and choose Get Started.
  3. Provide 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. Choose 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.

What types of mortgages can I get through LoanDepot?

  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
This company accepts mortgage refinance applications.

3 other mortgage products LoanDepot offers

LoanDepot offers the following specialty mortgage products:

  • Refinance loans. Whether you want to lower your rates or cash out to access your home equity, LoanDepot offers refinancing options to meet your financial goals.
  • Mello Smartloan. LoanDepot offers an end-to-end digital mortgage experience that promises to save time and find areas to save you money by digitizing the entire process, even through closing. This process can sometimes remove the need for a home appraisal.
  • FHA 203k refinance. This loan works as a kind of construction loan in addition to your refinance for renovations aimed at improving your home’s value. The estimated costs of your renovation are combined with the amount of your first mortgage for the loan but are held in an escrow account and released when you hit milestones in your renovation project.

LoanDepot’s reviews and complaints are mostly positive

As of September 2021, the Better Business Bureau gives LoanDepot an A+ rating after having closed 937 complaints over the past three years. The lender earns 3.97 out of 5 stars based on almost 2,853 customer reviews. On Trustpilot, LoanDepot receives 3.6 out of 5 stars based on 3,502 reviews.

Many borrowers speak highly of its loan officers, saying customer service is quick and professional. The most frequent complaints are about LoanDepot’s slow closing times, poor communications and being charged hefty appraisal fees only to be denied the loan.

LoanDepot pros and cons

A lenient fee structure and fair guidance look good, but are countered by lack of rate transparency and no home equity products.

Pros

  • No steering policy. LoanDepot holds its loan officers to a “no steering” policy, which means honest, impartial guidance when selecting the best loan for you.
  • Waives lending fees on refinancing for existing customers. Once you originate a loan with LoanDepot, the lender doesn’t charge its lender fees on any future refinance.
  • No prepayment fee. Pay off your home loan early with LoanDepot without worrying about fees or penalties.
  • Award-winning customer service. LoanDepot has earned certification from the Eliant homebuyer survey company for exceeding 90% on customer satisfaction surveys for five years in a row.

Cons

  • No home equity products. LoanDepot doesn’t offer home equity lines of credit (HELOCs) or home equity loans.
  • No advertised mortgage rates. LoanDepot is a direct lender and claims to have access to low-rate home loans, but you’ll have to go through the preapproval process and speak to a representative to see what kinds of rates this lender offers.

4 fast facts about LoanDepot

Founded in 2010, LoanDepot is headquartered in Southern California. Here are a few quick facts to help you decide whether to work with this lender:

  1. LoanDepot is the fifth-largest retail mortgage lender in the US and second-largest nonbank loan originator.
  2. It has more than 200 branches across the US.
  3. The lender has funded over $248 billion in mortgage products.
  4. As of November 2020, LoanDepot no longer offers personal or other loans and focuses solely on mortgages.

Historical mortgage data for LoanDepot

All numbers based on 2019 nationwide data from the Home Mortgage Disclosure Act.

Loan typeApplications deniedLoans originated$ Amount (originated loans)
Conventional28,455102,100$32,494,610,000
FHA12,72725,472$6,110,840,000
VA8,59521,044$6,143,360,000
USDA95705$121,175,000

Alternatives to LoanDepot

This lender’s standard mortgage products may not cover every homebuyer’s needs. If your financial circumstances require you to find a more specialized loan, consider a lender like New American Funding. Its full suite of mortgage products covers everything from self-employed borrowers to homebuyers interested in fully customizing their loan’s terms and options.

If you’re interested in finding a lender that offers home equity products — which LoanDepot doesn’t — consider the lenders on our best HELOC lenders and best home equity loan lenders guides, so you don’t have to fully refinance your home to access its equity.

No matter which lender you’re interested in working with, it’s important to shop around before you make your final choice to make sure you get the best deal. Select See rates next to one of the lenders below to provide the company with basic property and financial details in exchange for personalized rates.

Name Product Loan products offered State availability Min. credit score
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY, WV
620
No hidden fees, multiple loan terms, and member discounts available.
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
LendingTree
(NMLS #1136)
LendingTree
Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance
Available in all states
620
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