LoanDepot mortgage review
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.
|Loan types||Conventional, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA, USDA|
|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|
- No steering policy
- High loan limits
- Accepted loan-to-value ratios
- No prepayment fee
- High origination fees
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:
Available with a fixed or variable interest rate, a conventional mortgage is a typical mortgage, usually with a 20, 25 or 30-year term.
If you’re not happy with your current home loan, you can use LoanDepot to refinance your home and close out your old mortgage.
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 2020, the limit for conforming non-jumbo loans is $510,400.
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 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 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.
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.
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.
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%.
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:
- Go to LoanDepot’s site and select the loan product you’re interested in.
- Enter your ZIP code and click Get Started.
- 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.
- Click Apply Now.
- Enter your loan and financial information, along with your address, Social Security number, date of birth, income and any available assets you hold.
- 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
- 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.
- 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.
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Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.
LoanDepot is best for borrowers who want to work directly with a representative. While you can start the application process online, you either need to call or visit an agent in person to complete your application.