LoanDepot mortgage review 2024

One of the nation’s largest mortgage companies, online lender LoanDepot boasts lower rates and a variety of down payment assistance programs.

We like that LoanDepot has taken a lot of the sting out of the mortgage process, with remote closings and a typical closing timeline that’s 50% shorter than the industry average. If an eligible mortgage doesn’t close on time, there’s even a closing guarantee of $1,000 to both the buyer and seller.

You can’t get information about LoanDepot’s rates and fees without applying for preapproval, however, which can make it harder to shop for the right home loan.

LoanDepot offers conventional and government-backed loans in all 50 states.

• Fixed-rate: Borrowers keep the same rate for the life of their loan. LoanDepot offers fixed-rate terms between 10 and 30 years.
• Adjustable-rate: Adjustable-rate mortgages (ARMs) start with a fixed rate for a set period and then adjust at regular intervals. LoanDepot offers ARMS with a fixed rate for the first three, five, seven or ten years.
• FHA loans: Backed by the Federal Housing Administration (FHA), FHA loans only require 3.5% down for borrowers with a 580 FICO score or 10% for borrowers with a 500.
• VA loans: Veterans and active-duty service members can apply for this lower-rate loan without a down payment or private mortgage insurance. Lenders typically require a 620 for a VA loan, but LoanDepot approves borrowers with scores as low as 520.
• USDA loans: Backed by the U.S. Department of Agriculture, USDA loans allow eligible homebuyers to get zero-down-payment mortgages in rural areas.
• Jumbo loans: A jumbo loan exceeds the conforming limits set by the Federal Housing Finance Agency. LoanDepot issues jumbo loans of up to $5 million.
• HomeReady and Home Possible: Backed by Fannie Mae and Freddie Mac, these loans require just 3% down and have lower financing and PMI costs. You should earn no more than 80% of the area median income, have a credit score of 620 and a max DTI of 50%.
• HomeOne: Freddie Mac‘s fixed-rate loan for first-time homebuyers requires only 3% down and has no income or geographic requirements.
• Renovation loans: LoanDepot offers FHA, VA and conventional renovation loans.

• Credit score: 620 for conventional, 520 for FHA, 620 for USDA, 520 for VA, 660 for jumbo and accepts alternative forms of credit for some loans.
• Down payment: 3% for conventional, 3.5% for FHA, 0% for VA, 0% for USDA, 10% for jumbo
• Debt-to-income ratio: Varies. Lenders typically require borrowers to have a DTI of no more than 50%.

LoanDepot offers a variety of unique programs for borrowers.

Lifetime guarantee

Borrowers who take out a purchase mortgage with LoanDepot can refinance with the company without paying lender fees, which can equal 2% of the loan at closing.

Grand Slam program

First-time homebuyers who use a real estate agent referred by LoanDepot’s partner company, mellohome, can get up to $4,500 in closing credits.

AccessOne+

Borrowers in eligible census tracts can qualify for up to $8,000 toward closing costs or a down payment. AccessOne+ is available in 21 metro areas, including Atlanta, Baltimore, Cleveland, Dallas, New York, Oklahoma City and Washington, D.C.

AccessOne

Borrowers who earn up to 80% of the area median can get a 2% grant for their down payment, up to $3,000.

Access Zero

A zero-down FHA mortgage with 5% of the home’s value offered as a second mortgage to use for closing costs or a down payment.

LoanDepot offers cash-out and rate-and-term refinancing, as well as home equity loans and lines of credit.

• Credit score: 620 for conventional, 520 for FHA, 520 for VA, 680 for home equity products
• Debt-to-income ratio: Varies.
• Home equity: 0% for conventional, 20% for FHA and 0% for VA.

LoanDepot scored below average on J.D. Power’s 2024 Mortgage Origination Satisfaction Study but ranked well above average for mortgage servicing, which involves managing the loan after closing.

It has an easy-to-use online application and offers e-closing in states where it’s allowed. While most of LoanDepot’s business is online, there are also 200 branches nationwide.

LoanDepot’s customer service line is not available on weekends, but you can speak to a representative Mondays through Fridays from 10 a.m. to 9 p.m. ET at 888-983-3240.

There is also an online chat feature and mobile app, where you can view your loan details, pay your mortgage and schedule payments.

Here’s how LoanDepot stacks up to two leading mortgage providers.

LoanDepot vs. Better Mortgage

As online lenders, Better Mortgage and LoanDepot but have relatively low rates, bt Better does not charge lender fees, which can equal 2% of your loan total.

Better also has a rate match guarantee: If you’re quoted a lower rate by a competitor, it will match it or give you a $100 credit after you close with the other lender.

While Better is strictly online, though, LoanDepot has hundreds of locations nationwide. It also offers remote and hybrid closings.

LoanDepot also has more down payment assistance programs compared to Better, which only has the HOPE Grant, which provides 2% of your purchase price toward a down payment orclosing costs.

LoanDepot vs. PNC Bank

PNC outshines LoanDepot in loan options, offering construction and medical professional loans, and more homebuyer assistance programs — including a credit of up to $10,000 for borrowers in certain census tracts.

It also come out ahead in customer service, with thousands more locations, weekend phone hours and a higher-than-average score on J.D. Power’s mortgage origination survey.

As a full-service bank, PNC also enables borrowers to keep their banking, mortgage and investing accounts with the same institution. LoanDepot is a non-bank lender that strictly deals with home loans.

You can apply for a LoanDepot mortgage online, over the phone or in person at one of 200 branches nationwide.

You should be prepared with your ID proof of income, bank statements, and other documents to verify your credit score, assets and debts.

If you’re approved, you’ll need to provide information about the property you want to buy and schedule an appraisal. LoanDepot offers e-closings in states where it is allowed.

LoanDepot is an excellent option if you’re looking for lower-than-average rates or the convenience of an online application and closing process. It also has a variety of ways to help you with your down payment.

However, if you’re looking for specialty loans or want a full array of banking services you may need tofind another lender.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.

CNBC Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, availability, fees, down payment options, online experience and customer satisfaction. 

In addition, we incorporate findings from independent sources, including lender scores from J.D. Power’s U.S. Mortgage Origination Satisfaction Study and ratings from the Better Business Bureau.