loanDepot was founded in 2010. This online lender services all states across the nation, offering plenty of mortgage and refinance options for individuals in all regions. It currently has over $150 billion in assets, a large number considering it is a relatively new lender.
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loanDepot Mortgage Facts
- Founded in 2010 by CEO Anthony Hsieh
- Currently has over $150 billion in assets
- Headquartered in Southern California
- Has a BBB rating of just under 4 out of 5 stars and a Trustpilot score of 9.1 out of 10 stars
- Offers fixed- and adjustable-rate mortgages with multiple different term lengths
- Provides government-sponsored VA and FHA loans to qualifying borrowers who cannot afford to put 20 percent down on their home
- Has 203k loans that combine FHA loans with construction loans, helping homebuyers fund home building and renovation projects
- Considers homebuyers for jumbo loans when they need to borrow an amount that exceeds $726,200
- Has multiple mortgage and refinance calculators to help prospective borrowers meet their financial goals
Overview
loanDepot’s current CEO, Anthony Hsieh, launched loanDepot in 2010 after working for years in the mortgage sector. He was the prior owner of LoansDirect.com, an online lender that was eventually acquired by E*TRADE Financial.
He then founded HomeLoansCenter.com, a national online lending organization that ultimately merged with Lending Tree. Hsieh used the mortgage expertise and leadership skills he gained from his years with LoansDirect.com and HomeLoansCenter.com to develop loanDepot into the major online lender it is today.
loanDepot matches loan borrowers through technology and hands-on customer care. This company prides itself on its impressive performance and leadership in the modern lending sphere. The organization operates with the mission and values of ethics and integrity, transparency, customer care, and excellence.
This online lender services all 50 states and Washington, D.C. loanDepot is currently the fifth largest retail mortgage originator in the country, a great feat considering its founding only nine years ago. Also, it is the second largest nonbank consumer lender after Quicken Loans. It provides extensive mortgage options for home purchase and refinance.
Current loanDepot Mortgage Rates
loanDepot Loan Specifics
This popular online lender offers a variety of home loan options to cater to different homebuyer needs and budgets.
Fixed-Rate Loans
These standard home loans provide consistent monthly payments over the lifetime of the mortgage. loanDepot recommends fixed-rate loans for buyers who plan on staying in their new homes for more than five years.
These loans allow for easy long-term budgeting, which makes them an ideal choice for money-conscious buyers. Thirty-year fixed-rate mortgages are the most popular choice for loanDepot borrowers, but term lengths of 10, 15, and 20 years are also available for those who would like to pay off their loan faster.
Adjustable-Rate Loans
Adjustable-rate mortgages (ARMs) have monthly payments that may change throughout the lifetime of the loan. ARMs begin with a fixed term, in which payments are typically low for a predetermined number of years.
Once this initial period is over, the rates can rise and fall based on market trends. loanDepot offers an interest cap to its ARM borrowers to prevent rates from increasing too much. loanDepot recommends their 3/1, 5/1, 7/1, and 10/1 ARMs to borrowers who plan on selling or refinancing their home in the next few years.
Jumbo Loans
loanDepot offers jumbo mortgages to homebuyers who need a loan that exceeds the limits set by Fannie Mae and Freddie Mac. While many lenders constitute jumbo loans as those that exceed the limits set by Fannie Mae and Freddie Mac, loanDepot considers loans that exceed $726,200 to be jumbo.
This online lender can provide borrowers with up to $2 million in financing for high-value homes. It offers both fixed- and adjustable-rate jumbo mortgages.
FHA Loans
These types of loans, which are assisted by the Federal Housing Authority, assist homebuyers who cannot afford to put 20 percent down on their homes. loanDepot allows borrowers to take out FHA loans at fixed- and adjustable-rate payment styles and with a 3-percent down payment.
VA Loans
The Department of Veterans Affairs assists veterans, current service members, and their spouses in finding home loans with low monthly costs. VA loans are a popular form of government-assisted mortgage and refinance option for eligible Americans.
HARP Loans
loanDepot can help homeowners refinance their home loans to a lower rate through the Home Affordable Refinance Program (HARP). This program allows homeowners who have loans owned by Fannie Mae or Freddie Mac on or before March 31, 2009, and are up-to-date on their mortgage payments.
Savings from loanDepot’s HARP refinancing program average $300-$400 or more per month. This program allows homeowners to refinance their loans with no equity or private mortgage insurance. In addition, there is no credit minimum required to take out loans through the HARP.
203k Loans
loanDepot provides borrowers with these types of FHA home construction loans that include the cost of the home as well as the funds to cover renovations. loanDepot holds the funding in an escrow account that can be released to pay construction staff once home renovation landmarks have been made.
Borrowers of 203k loans have the opportunity to pay only 3.5 percent down on their home, making it a viable option for those who cannot typically afford to put 20 percent down.
loanDepot Mortgage Customer Experience
loanDepot provides customers with plenty of online tools that can educate them on the home mortgage and refinance processes. They offer clear descriptions of their home loan offerings, as well as updated interest rate estimations based on each of these options.
This online lender has multiple different mortgage and refinance calculators. These calculators help buyers see if they can afford to buy a home, compare the rates of different loans, and predict their monthly payments based on several factors, including:
- Home cost
- Down payment
- Term length
- Annual income
loanDepot allows its borrowers to apply for a mortgage online by filling out a quick form. This questionnaire asks for several pieces of information, including full name, address, phone number, and email.
Once they have submitted this form, a lender from loanDepot will get in contact with the hopeful borrower, working with them to figure out what type of loan they could use. Prospective borrowers do not need to fill out all this information at once.
Instead, they can create an account and save their progress at any time. This initial form does not require a Social Security number or any other compromising information.
loanDepot requires borrowers to submit different forms of documentation during the underwriting process. They will need to submit the following information to attain a home loan:
- Identification, such as a passport, license, voter ID, Social Security number, tax identification number, or birth certificate
- Information related to income, via pay stubs or Social Security income records
- Credit score
- Mortgage statement
- W-2 forms from the past two years
loanDepot has a Nationwide Multistate Licensing System number of 174457. It has thousands of licensed loan officers that can help borrowers find the best loans for their budgets and goals.
Webster Bank Lender Reputation
loanDepot is a national consumer lender that was launched in 2010. Currently headquartered in Foothill Ranch in Southern California, loanDepot has over 150 loan locations across the country.
This lender is comprised of 6,400 staff members, including over 1,700 qualified licensed loan officers. The organization has funded over $150 billion since its founding less than a decade ago.
loanDepot has a TrustPilot score of 9.1 out of 10 stars with 1,488 reviews. Of these ratings, 85 percent of customers considered the lender to be “excellent,” while 10 percent deemed it “great” or “average” and only 5 percent considered it “poor” or “bad.”
- Information collected on February 20, 2018
loanDepot Mortgage Qualifications
When applying for a mortgage through loanDepot, borrowers typically need to meet the requirements associated with standard home loans. Typically, this lender will offer the best rates to customers who put 20 percent down on their homes.
However, if the borrower qualifies for government-assisted loans, such as FHA or VA mortgages, loanDepot allows them to make down payments as low as 3 percent.
loanDepot offers the best mortgage rates to individuals with high credit scores. Typically, prospective borrowers with credit scores in the good or excellent range should have no trouble securing a loan through loanDepot.
It is still possible to get a mortgage with bad credit or no credit history, but it won’t be easy. Here are the typical ranges of credit scores in the U.S.:
Credit Score | Quality | Ease of Approval |
|---|---|---|
760+ | Excellent | Easy |
700-759 | Good | Somewhat easy |
621-699 | Fair | Moderate |
620 and below | Poor | Somewhat difficult |
No credit score | n/a | Difficult |
loanDepot Phone Number & Additional Details
- Homepage URL: https://www.loandepot.com/
- Company Phone: 888-983-3240
- Headquarters Address: 26642 Towne Centre Dr., Foothill Ranch, CA 92610
How We Review Mortgage Lenders:
Good Financial Cents evaluates U.S. mortgage lenders with a focus on loan offerings, customer service, and overall trustworthiness. We strive to provide a balanced and detailed perspective for potential borrowers. We prioritize editorial transparency in all our reviews.
By obtaining data directly from lenders and carefully reviewing loan terms and conditions, we ensure a comprehensive assessment. Our research, combined with real-world feedback, shapes our evaluation process. Lenders are then rated on various factors, culminating in a star rating from one to five.
For a deeper understanding of the criteria we use to rate mortgage lenders and our evaluation approach, please refer to our editorial guidelines and full disclaimer.
loanDepot Review
Product Name: loanDepot
Product Description: loanDepot is a contemporary lending company offering a variety of mortgage and non-mortgage loan products to customers across the U.S. Leveraging technology and a direct-to-consumer model, loanDepot aims to simplify the lending process while providing competitive rates and terms.
Summary of loanDepot
Founded in 2010, loanDepot stands as one of America’s leading retail mortgage lenders, having funded billions in loan originations. The company’s integrated digital platform streamlines the entire lending process, offering customers an efficient, transparent, and convenient borrowing experience. From home purchase loans and refinancing options to personal loans, loanDepot offers a diverse range of financial products tailored to various consumer needs. Its team of licensed loan consultants provides expertise and guidance, ensuring borrowers make informed decisions.
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Cost and Fees
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Customer Service
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User Experience
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Product Offerings
Overall
Pros
- Innovative Technology: loanDepot’s mello™ platform offers a seamless digital lending experience, simplifying application, approval, and loan management processes.
- Wide Product Range: The company provides an array of loan options, catering to diverse borrower needs, from home purchases to personal loans.
- Transparent Process: loanDepot emphasizes clear communication, ensuring customers are well-informed throughout the lending journey.
- Expertise: Their team of loan consultants offers personalized advice, tailoring solutions to individual financial situations.
Cons
- Customer Experience Variability: While many customers have positive experiences, others have reported inconsistencies in service quality and responsiveness.
- Potential for Higher Rates: Some borrowers have found better rates with competitors, emphasizing the need for thorough rate shopping.
- Closing Costs: Some reviews have pointed out higher closing costs compared to other lenders.
- Limited Physical Presence: While the digital platform is robust, borrowers looking for in-person interactions might find limited branch locations.
You’re a Veteran and yet miscariterize VA home loans? A VA home loan is NOT for people who can’t afford a down payment, it’s also NOT a government assistant program in the same framework of an FHA loan! Government assistant programs have caps on how much an individuals income! I served 21 year Active Duty U.S. Army retired Major, 100% VA rating. My income was $910K last year that’s not including my EARNED VA BENEFITS and Retirement. I just closed on a home using my VA loan with an 820 credit score and MORE THEN ENOUGH savings and income for a 50% down payment THAT WAS NOT REQUIRED!
My point is don’t lump Veterans EARNED benefits in with other loan products. It’s lazy on your part and offensive to those who served!