LoanDepot Mortgage Review 2024

LoanDepot operates in all 50 states as well as Washington, D.C. Unfortunately, it doesn’t publish its interest rates online—to see your rates, you’ll have to fill out an application.

Loan Types

LoanDepot offers the following types of mortgages:

• Conventional
• Jumbo
• Construction
• Cash-out refinance
• FHA
• FHA standard 203(k) loan
• FHA streamline 203(k) loan
• FHA cash-out refinance
• FHA streamline refinance
• VA
• VA cash-out refinance
• VA interest rate reduction refinance loan (IRRRL)

Adjustable-rate mortgages (ARMs) are also available through loanDepot with three-, five-, seven- or 10-year terms. You can also opt for an FHA ARM when buying or refinancing a home.

Loan Minimum

LoanDepot has not publicly disclosed a minimum loan amount.

Loan Maximum

Borrowers can access up to $3 million with a loanDepot jumbo loan.

Loan Servicing

LoanDepot services some of the loans it offers. This includes:

• Freddie Mac and Fannie Mae loans that have been recently funded
• Ginnie Mae loans (FHA and VA)

In 2021, loanDepot upgraded its servicing portal to allow borrowers to set up one-time or recurring payments, send secure messages and opt for paperless notifications.

A wide variety of mortgage products, all of which (except for jumbo mortgages) are available in amounts as low as $25,000. Everything from conventional mortgages to VA loans can be customized according to a borrower’s needs, such as year terms, and loanDepot does consider alternative data, such as rent or utility payments, in its underwriting process.

Here are the basic criteria that borrowers must meet to qualify with loanDepot:

Minimum Credit Score

LoanDepot’s minimum credit score requirements are:

• 620 for conventional mortgages
• 500 for FHA loans
• 620 for VA loans
• 700 for jumbo loans

Note that while borrowers might qualify for an FHA loan with a score as low as 500, you’ll need a score of at least 580 to be able to qualify for a 3.5% down payment. If your score falls between 500 and 579, you must make a 10% down payment.

Minimum Down Payment

LoanDepot accepts down payments as low as 5% for conventional mortgages and 3.5% for FHA loans (10% for borrowers with credit scores from 500 to 579). VA loans require no down payment.

Maximum Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is the amount you owe on monthly debt payments compared to your income. Like most major mortgage lenders, loanDepot requires DTI ratios in line with federal underwriting standards—typically no higher than 43% (up to 50% in some cases, depending on your financial circumstances) and as high as 55% for jumbo loans.

LoanDepot is not transparent with the fees it charges on its loans. Like with rates, you’ll need to contact the lender to see what rates might apply. Potential fees might include charges for underwriting, loan processing and required appraisals.

Keep in mind that if you’ve already taken out a mortgage with loanDepot, you’re eligible for its Lifetime Guarantee. Through this program, the company will reimburse your appraisal fee and waive its lender fees if you opt to refinance your mortgage with them.

If you decide to apply for a mortgage through loanDepot, you can complete your application online. You also have the option to visit one of the company’s 200-plus lending stores throughout the U.S.

Be prepared to provide documentation that illustrates your income and financial history, such as pay stubs, two years of employment history and mortgage statements (if applicable).

Approval, Underwriting and Closing Timelines

After submitting your application, you can typically expect to receive a pre-approval decision within 48 hours—though in some cases, pre-approvals can be issued immediately by loan officers at branch locations.

Additionally, because loanDepot is a direct lender, it’s able to offer quicker closing times compared to other mortgage companies. According to the company, it closes loans “up to 50% faster than the industry average.”

While loanDepot provides options for borrowers with fair credit or higher DTI ratios, it’s possible to have your application denied. If you’re unable to qualify, it’s likely a good idea to focus on building your credit, increasing your income or paying down your debt to improve your approval odds in the future with loanDepot or another lender.

You could also consider applying with a co-signer or co-borrower. Keep in mind that this person would share responsibility for the loan, which is a huge deal—especially if they won’t be living in the home. To get an idea of what you can afford on your own, try our mortgage calculator.

Also be sure to shop around and compare your options from as many mortgage lenders as possible. This can help you figure out where you might qualify as well as lock in a favorable rate. Keep in mind that submitting multiple mortgage applications within 45 days will have the same impact as submitting a single application, according to the Consumer Financial Protection Bureau (CFPB).

As of March 2023, loanDepot’s rating on the Better Business Bureau (BBB) is 4.08 out of 5 stars, based on 3,822 customer ratings. The BBB closed 196 complaints in the last 12 months and 1,096 complaints in the last three years. Some recent complaints highlighted billing and late payment issues with the lender.

Note that while loanDepot has an A+ rating with the BBB, this doesn’t take customer complaints into account. Instead, this letter grade is based on how the company responds to complaints, its time in business, its size and other factors. Furthermore, these complaints only represent a small percentage of loanDepot customers—your experience with the lender may vary.

The CFPB’s Consumer Complaint Database shows 201 mortgage complaints about loanDepot from December 2019 to March 2023. Many of these complaints concerned borrowers having trouble during the application process and being able to easily make their payments, as well as with loanDepot’s customer service. Also, keep in mind that the CFPB doesn’t verify the accuracy of consumers’ complaints.

LoanDepot ranks highly on Forbes Advisor’s list of best online mortgage lenders, but if you’re looking to shop around with different companies, here are a few to consider.

LoanDepot vs. Rocket Mortgage

Rocket Mortgage has a much larger footprint compared to loanDepot. It offers a completely online experience and most major mortgage types. However, it doesn’t offer home equity loans or HELOCs.

LoanDepot vs. Better

With fast preapproval times as well as no commission or lender fees, Better is one of the most popular online lenders in the mortgage business. That said, it’s not available to lend in Hawaii, Massachusetts, Minnesota, Nevada, New Hampshire, Vermont and Virginia. In addition, it doesn’t offer USDA, VA or home equity loans.

LoanDepot vs. Chase

Chase is a top-rated mortgage lender, offering competitive interest rates, loan programs for first-time homebuyers and low-income borrowers and relatively quick closing times. With branches nationwide, Chase may be a good option if you’re looking for a more traditional mortgage lender capable of offering an in-person and online experience.

We graded loanDepot based on features that have a meaningful impact on the cost of a mortgage and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.

We award bonus points if a lender offers a specialty rate discount or mortgage product, a home equity product or maintains a fully online mortgage application process.

Our scoring method is broken down as follows:

• Interest rate. 20%
• Loan options. 20%
• Time to close. 20%
• Accessibility. 20%
• Customer service experience. 20%
• Bonus points. Up to 25 points

We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.