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LoanDepot Review

LoanDepot or is a sizeable online lender that focuses on providing mortgages to clients throughout the United States.

On top of the company’s online lending platform, there is also a range of physical locations that customers can use to apply for loans in person.

Unlike many online lenders, LoanDepot also caters to customers who want to head into a branch to apply for a loan.

At present, there are over 150 LoanDepot locations around the country.

Keeping in line with the SAFE Act, LoanDepot has a license to operate called the NMLS or NMLS Id.

Let’s dig into the deeper details of this unique lender.

Table of Contents:

  • About LoanDeport
  • Mortgage Options
  • Is LoanDepot FDIC Insured?
  • Qualifications
  • Fees
  • Pros & Cons
  • Is LoanDepot for You?

About LoanDepot

The firm’s founder, Anthony Hsieh, is famous for creating many popular lending platforms.

After selling his previous ventures, LoanDepot, operating out of Foothill Ranch, California, is his most recent project. It remains privately owned.

While LoanDepot originally required human approval for certain loan options and loan products, it has developed an automated application process system that uses a technology-based approach for streamlining the approval process called “Mello Smartloan”.

If you’re looking for a large online lender that offers considerable convenience, there’s a chance LoanDepot is the right partner for you.

Is LoanDepot a Reputable Lender?

If you’re going to obtain a mortgage from a lender, you need to make sure you can trust them.

One of the best ways to gauge a lender’s reputation is to look at their customer satisfaction ratings.

LoanDepot is accredited with the Better Business Bureau (BBB), which is one of the nation’s largest consumer watchdog groups.

The company’s current rating with the BBB is an ‘A+’ and has a 4 out of 5 stars as well.

Another major rating company to check out is the JD Power rating. The most recent LoanDepot mortgage review ratings, released in 2018 are promising.

Coming in with a 4 out of 5 rating and passing the typical lender score of 836 with an 847 score.

So, Is LoanDepot Legit?

While there is plenty of positive feedback about LoanDepot on various consumer watchdog groups, it’s important to note that the company has recently had to settle a court case in the state of New York.

While many lenders face legal challenges, it’s important to keep in mind that LoanDepot doesn’t have a perfect record.

Either way, LoanDepot is a large lender with an extensive client base throughout the country and claims customer satisfaction is a top priority.

This is certainly a legitimate lending partner if you’re looking for a reputable mortgage company.

Mortgage Options with LoanDepot

If you do decide to seek a mortgage via LoanDepot, you’re probably curious as to which mortgage products they offer to their customers.

Fortunately, LoanDepot has a wide range of mortgage products that can cater to the needs of various types of borrowers.

LoanDeport Mortgage Options

  • Fixed-Rate Mortgage
  • Variable Rate Mortgage or Adjustable-rate mortgages
  • Jumbo Loans
  • Conventional Loans (Conventional Mortgages)
  • FHA Loans (Renovation Loans included)
  • VA Loans
  • ​Cash Out Refinance

In addition to mortgages, you can also apply for a mortgage refinance option. Again, LoanDepot offers both fixed and variable interest rates for mortgage refinancing.

Unfortunately, you won’t be able to find any USDA loans or home equity loans or home equity lines of credit (HELOC) at LoanDepot.

While the lender offers most of the popular government-backed loans, this is a notable exception. But don’t worry, there are plenty of other options available on the market.

LoanDepot previously offered personal loans such as credit card consolidation to its clients, but it recently ceased this lending service.

It now offers mortgage-type products exclusively.

To get started, go to their site and choose if you are purchasing a home or would like to refi, it’s that simple!

Please note that die to COVID-19 or Coronavirus, customer service wait times may be slightly increased.

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Is LoanDepot FDIC Insured?

The LoanDepot FDIC insurance status is slightly vague. While LoanDepot itself is not FDIC insured, the lender used for personal loans is FDIC insured.

LoanDepot makes personal loans via Cross River Bank, a New Jersey-based lender.

The FDIC, which stands for Federal Deposit Insurance Corporation, is a corporation run by the United States Government.

Its primary purpose is to insure the deposits of depository institutions. The FDIC guarantees deposits of up to $250,000 for eligible institutions.

This insurance program protects consumers and instills confidence in the banking system.

If you’re someone who is responsible with their money, it’s critical to work with an institution that is FDIC insured — it’s the only way to guarantee your deposit.

LoanDepot Mortgage Qualifications

LoanDepot’s loan process has a minimum credit score of 620, but you should have a much higher credit score if you want a chance of being approved for a good interest rate.

The best interest rates and monthly payments on the company’s website typically assume that you have a 740 credit score — you will also need a debt-to-income ratio of 35% or lower.

In addition, the minimum down payment for a loan is 3.5%. Again, you will need a very high credit score to access this low of a down payment.

LoanDepot Fees

In terms of fees, LoanDepot is quite secretive about its financing or origination fees. It appears that the company sometimes imposes a fee of between 1% and 5% of the loan amount.

The higher end of this range is extremely unreasonable when you compare it against other mortgage lender fees on the market.

It’s a good idea to clarify any fees with your loan officer before applying for a loan at LoanDepot.

They do however claim should you need to refinance a loan through them again, you will be reimbursed the appraisal fees as a repeat customer.

Pros and Cons

There’s no such thing as a perfect lender. If you want to ensure you choose the best lender for your mortgage needs whether its a home purchase or refi, it’s important to understand the pros and cons of each provider.

Below, let’s explore the advantages and disadvantages of LoanDepot.


  • You can pay your mortgage monthly payments online
  • You can apply for a loan with a 620 credit score
  • You can complete your entire loan application online
  • The firm offers both in-branch and online loan applications
  • LoanDepot has a strong reputation on consumer watchdog groups
  • Backed by an experienced mortgage lending team


  • There is potential for high lending fees
  • No USDA loans available
  • You need a high credit score to access the best rates at this lender
  • You have to input personal information to get a rate, all but guaranteeing a future sales phone call, despite not choosing them as a loan provider.

Is LoanDepot Mortgage Right for You?

The answer to this question will depend on your financial situation and the type of loan that you’re hoping to obtain.

While LoanDepot offers a broad range of mortgage products, it’s inconvenient that there aren’t any USDA loans available.

If you have a good credit score, you can access a good interest rate. Unfortunately, fees can be quite high with LoanDepot.

Either way, if you do decide to work with LoanDepot, you’ll be partnering with a lender that has a strong reputation with consumers.

LoanDepot Review