loanDepot is a nonbank consumer lender that was founded by Anthony Hseih in 2010. He and his management team are no newbies to lending industry, having 25 years of combined experience.
Since its inception, loanDepot has funded more than $100 billion in loans, earning its place as the nation’s third-largest nonbank lender in 2016 (in terms of total originations). Click here for an in-depth comparison of loanDepot with Quicken Loans and Veterans United.
Are loanDepot’s offerings a good fit for your needs? Find out everything you need to know in this in-depth review.
loanDepot loan products
Home purchase loans
loanDepot is a direct mortgage lender, enabling lower rates and faster closing times (50% faster than the industry average). It offers a wide range of loan options including adjustable-rate mortgages, fixed-rate mortgages, and FHA, VA, and Jumbo loans.
Further, the company has a team of 1,700 state-licensed lending officers that abide by a “no-steering” policy, meaning they are not incentivized to sell one loan over another. Loan terms range from 10 to 40 years, depending on the loan type you choose. You can apply on the website to get a quote without impacting your credit score.k
Home mortgage refinance
Already have a loan and looking to refinance? loanDepot can help you there, too. Its loan products include all of the programs listed above under home purchase loans, plus the Home Affordable Refinance Program (HARP), which is a program created by the Federal government to help homeowners with little-to-no equity to lower their mortgage rate.
The company also offers a cash-out refinance option. Borrowers with enough equity in their homes can refinance their mortgage and take a portion of the remaining equity out as cash. Lastly, loanDepot offers the “Lifetime Guarantee” program in which it waives lender fees and reimburses appraisal fees for any refinances after the initial one.
Home equity loans
The company offers fixed-rate second mortgage loans that allow you to borrow up to 90% of your home’s value. Loan amounts range from $25,000 to $250,000, and terms go up to 15 years. You do not need to refinance your first mortgage, and closing is often done in a matter of days.
loanDepot personal loans
Lastly, loanDepot’s personal loans range from $5,000 to $35,000 and have fixed interest rates. They are unsecured and can be used for a wide variety of purposes. However, there are some exceptions. The loans can not be used for education, investments, or any illegal activity. Upon approval, funds will be transferred into your bank account within two to three business days.
loanDepot rates and fees
How much does it cost to borrow from loanDepot? Here’s what you should know.
The interest rate you qualify for will depend on your debt-to-income ratio, credit profile, and payment history. The best rates go to individuals with excellent credit.
The Annual Percentage Rate (APR) for a personal loan is the cost of borrowing on a yearly basis and includes your interest rate and any applicable fees. With loanDepot, there is a fee for the loan origination which ranges from 1% to 5% of the loan amount. The fee will be taken out of the loan, so borrowers should ensure they borrow enough to cover their needs and the fee.
The interest rates and fees on loans for purchasing, refinancing, or pulling equity out of a home will vary based on a variety of factors. For one, the loan program you choose will be a large determining factor (i.e., FHA, VA, Conventional, etc.).
Secondly, different lenders will have different fees. However, most charge for appraisal, processing, and underwriting, pulling credit reports, title, escrow, notary, and recording. Your credit, income, loan amount, loan term, and debt will also influence the rate you get.
The best way to find out is to get a free quote on the website as it won’t hurt your credit.
To qualify for loanDepot loans, you must meet the following eligibility requirements:
- At least 18 years old (19 in Alabama or Nebraska)
- S. citizen or permanent resident
- Verifiable income
- Verifiable bank account
- Valid email address
- Meet the credit criteria requirements
While cosigners are not allowed on personal loans, you can apply with one when purchasing or refinancing a home.
loan Depot application
You can apply for loanDepot loans online or over the phone. To do so, you will need to provide the following information:
- Date of birth
- Email address
- Employment details
- Social security number
- Bank account
- Supporting documentation
Here are the steps of the application process for a personal loan:
Visit the website, click “Loans,” and select “Personal Loans.”
Type in the loan amount you would like and click “Continue.”
Select the purpose of the loan and click “Continue.”
Enter an Invitation Code if you have one and click “Get My Offer.”
Register by entering your basic contact information.
Share your current home payment.
Finish setting up your account and agree to have your credit checked (without any impact on your credit report).
After this step, upon pre-qualification, you will receive personal loan offers which include interest rates and fees.
If you would like to apply for a home refinance, home purchase, or home equity loan, select that option from the first drop-down menu and follow the prompts. It will be a similar flow, but with more information required (i.e., property, identity, income, assets, etc.).
loanDepot account management
Once you have a loan with loanDepot, your payments will be automatically deducted from your bank account. You can call the service department to change the payment method, but there is no way to change the payment due date you are assigned.
However, you will have a 15-day grace period to pay your bill. If you don’t pay by the 15th day, a late fee will be assessed. A payment that is more than 30 days late may be reported to the credit bureaus.
If you can’t make a payment, you can contact loanDepot to speak with them about your financial hardship and work toward a solution. The company offers solutions, such as repayment plans, forbearance, loan modification, a partial claim, or a short sale, on a case-by-case basis.
Is loanDepot right for you?
Here’s a quick rundown of loanDepot’s pros and cons.
| Pros|| Cons|
loanDepot has consistently been a leader amongst other nonbank lenders in the mortgage and personal loan industry, so it’s a company to consider. While a main differentiating factor is that it offers home equity loans, it falls short of its competitor Quicken Loans when it comes to customer service.
It’s worth getting a risk-free quote and comparing it with quotes from a few different lenders so you can truly see if it is the best option for you. Read loanDepot reviews and see how it compares to the competition.