LoanDepot is a mortgage lender that was founded by Anthony Hsieh, the same entrepreneur that founded LoansDirect.com. Technically, LoanDepot is an online mortgage lender. However, most customers need to make a phone call or contact a local loan officer at some point during their mortgage application process. Either way, LoanDepot is known for simplifying the process and will help you to purchase your new home.It 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.
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 that 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 renovations projects
- Considers homebuyers for jumbo loans when they need to borrow an amount that exceeds $417,000
- Has multiple mortgage and refinance calculators to help prospective borrowers meet their financial goals
- More than 200 brick-and-mortar locations can provide service in person.
- The entire loan process, from applying for a mortgage to closing, can be handled online.
- Borrowers can choose from a variety of mortgage products.
- A lifetime guarantee waives lender fees and reimburses appraisal fees on future refinances after your first refinance with the lender.
- LoanDepot doesn’t offer Department of Agriculture loans or home equity loans and lines of credit.
- The lender doesn’t provide a lot of information online about rates and fees.
- Conventional loans.
- Jumbo loans.
- FHA loans.
- VA loans.
- 3/1, 5/1, 7/1 and 10/1 adjustable-rate mortgages.
- Rate-and-term refinancing.
- Cash-out refinancing.
- Renovation loans.
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 $417,000 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 that 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 $355 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.
Our Review of LoanDepot Mortgages
At LoanDepot, you’ll have access to a wide range of mortgage products and competitive rates. While the company’s origination fees can be somewhat high, you won’t have to pay any lending fees if you choose to work with LoanDepot to refinance your home.
Since this lender makes the application process so easy, and provides loans to all 50 states, it’s not hard to see why it has grown into one of the industry’s biggest competitors and one of our best mortgage lenders.
If you’re wondering if LoanDepot is the best partner for your next home loan, it would be wise to take a look at the core features of this lender. In what follows, we will explore these features in detail.
- Borrowers who prefer a digital mortgage.
- Customers who want access to in-person service.
- Homebuyers who seek multiple loan options.