Loan Depot is a type of direct lender that offers services like home loans, refinancing mortgages, and other types of loan products. The company has invested heavily in technology and thus provides a digital mortgage experience to its customers. The online platform consists of an integrated online application process and other digital tools like a free calculator. The company came into operation in the year 2010, and since then, it has helped over a large number of people amounting to $275 billion as funds.

Basic Information

Loan Depot is considered an ideal choice for those considering getting into business with a company with brick-and-mortar stores and a national presence across the country. The company has a large network of agents, due to which they have a hold and presence in the industry. They were able to expand in the past decade due to their widely available services across the entire country. As a result, they can attract new customers and retain old customers.

Min.Credit Score

620 for conventional loans

580 for VA loans and FHA loans

700 for Jumbo loans

Min.Down Payment 0% to 5%
Loan Types



VA loans

FHA loans

Refinancing Mortgages

Moreover, the company has a strict policy regarding the minimum criteria it seeks in its clients. Each of their clients has fulfilled the entire requirement to get accepted for a loan. The company asks that the clients have a minimum score of 620 for conventional loans, 580 in the case of VA loans and FHA loans, and 700 for Jumbo loans. The minimum down payment that the client has to pay at the time of loan approval is between the radius of 0% to 5%, where 0% is the minimum rate and 5% is the highest rate. Since each application is weighed differently, the rate differs from person to person.

The company offers a wide variety of loan products, but the mainstream loans include conforming loans, jumbo loans, VA loans, FHA loans, refinancing mortgages. All of these loan products are offered in all the 50 states in the US.

Pros & Cons

To better evaluate Loan Depot mortgages, it is wise to look at the company's incentives, along with the costs that the individual would have to pay to enjoy those perks. It is advisable to consider the advantages and disadvantages of each loan separately and then decide which one is a good fit for you.

  • The company offers various loan products from which the customers can choose. The company gives a monopoly to customers to choose the type of loan that fits their needs.
  • Along with physical branches across all the states in the US, the company has also invested in the online platform, and people can apply online as well.
  • The company even offers refinancing options for conforming, VA, and FHA loans.
  • The company also provides a lifetime guarantee which further attracts customers.
  • The customer satisfaction rate for Loan Depot is quite high relative to other lenders.
  • The company is also known to close the mortgage in a timely manner. This is carried out with their state-of-the-art digital platform.
  • The company even waives all kinds of fees for its existing customers.
  • The company does not advertise the loan rates on their website, which creates inconvenience for the prospective customers.
  • Although there are several loan products being offered by the company, they do not include USDA loans, home equity loans, or reverse loans. So customers who are interested in those loans cannot do business with Loan Depot.
  • The company does not allow an alternative source of credit data. They only accept data from the three major credit bureaus. Hence, people with poor credit cannot use utility bills to apply for a loan as an alternative credit data source.
  • There is only one option for refinancing with jumbo loans: a cash-out refinance scheme.
  • Several customers have said that the website of the company is difficult to use or understand.
  • The customers of Loan Depot have recorded numerous customer service complaints.

Loan Types

As stated earlier, the company has a wide range of loan products and mortgages under its radius. Having a wide portfolio of loans attracts many customers and even keeps an existing customer interested in a different loan offering.

The different types of loans include conventional loans, jumbo loans, FHA loans, VA loans, Fixed-rate loans, adjustable-rate loans, rate-and-term, and cash-out refinancing, along with construction and renovation loans.

Each of the abovementioned loans has a different set of requirements and benefits. So it is advisable to carry out a due diligence process and see the type of loans that best fits your needs. The benefits and costs should be compared to make an effective decision.

Rates & Fees

The website of Loan Depot has limited fee transparency as they don't disclose information. As a result, customers would need to apply for a loan to get the information. Even though the company has posted links on their website to different loan products, they eventually just circulate to the definition of the loan, which can be very frustrating.

Once the rate quote has been received, a customer should check for the interest rate, the loan period, and any other fees related to the loans like discount points. These discount points can be used to lower the interest rate. To avail of this, customers need to pay some additional expenses.

The Annual Percentage Rate (APR) offered to the borrower depends on that individual's credit score. If the credit score is higher than the minimum requirement set by the company, the APR rate will be lower. This would mean that the customer would need to pay less expense.

Individuals also can lock the interest rate, which would mean that the interest rate would be fixed for a specified duration. In this case, the lock duration needs to be increased, and then the customer would need to pay an additional cost.

Loan Depot does not ask for any application fee, and neither does it ask its customers to pay any prepayment penalties two weeks past the due date. However, if the borrower is late on their payment past the two weeks, they would have to pay the penalty.

Some mandatory fees and costs that the borrower needs to pay include the Appraisal fee, Credit report fee, tax service fee, Flood certificate cost, Processing fee, Underwriting fee, Title search cost, and Recording Fees.

How Can You Qualify?

The following factors should be considered in order to qualify for a loan at Loan Depot.

An individual's credit score should be above average or at least more than the minimum requirement that the company is asking for since it would directly impact the interest rate. If the company finds the credit score to be satisfactory, not only will the APR rate be high, but there is a high chance that you will not get the loan because the company might believe that you will default on the payment. Hence, it is advisable to have a good credit line.

The Debt to income ratio should be as small as possible to ensure that the lender finds you in good financial condition. At times, the lenders ask that the DTI ratio be less than 35%, and if that is not the case, the loan gets rejected. So the person should pay their dues on time and keep their Debt small.


The general opinion of customers is that they are satisfied with the company's services. A census was carried out in which 85% percent of the customers rated the company to have a higher satisfaction score. Moreover, the company recorded less than one complaint against 100 customers registered with the Consumer Financial Protection Bureau.

According to credit karma, Loan Depot has a positive response from the people in a 3.7 out of 5 stars. The following are some positive reviews about the company.

Some negative reviews about Loan Depot include:

While a good proportion of people are highly dissatisfied with the company, it is apparent that the company has some shortcomings that they need to fix. While that is the case, some people still had a good experience with the company. Overall, the people had a decent experience with Loan Depot, but those who did not are surely not on the list to recommend the services and products of the company to others.


Although Loan Depot has some strict requirements to be granted a loan approval, the customers who have had dealings with the company feel that there might be better options in the market that a person should pursue. Since the customer satisfaction score is just average, it is apparent that the company has some shortfalls that the customers have experienced.

People need to first weigh all their options and check the requirement that the company is asking for the loan against their credit score, DTI ratio, Income, and other factors that contribute to the criterion set by the company.

If the person has a poor credit score, they should spend some time improving their credit line by paying bills on time. If they urgently need a loan, they would need to pay a high-interest rate against the loan value, which will be costly. But they can get help from someone who has a good credit score, which would decrease the interest rate.

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The information shared through this website is based on our team’s personal judgements and views. We use our own comparisons to assign values, which are not intended to reflect a certain benchmark of precision. To keep our website free for use, we accept referral fees from various service providers, which have the potential to influence their respective appointed scores. A third party’s participation on is not an indication of endorsement. The information and vendors which appear on this site is subject to change at any time.The site does not include all companies offering loan products or all available loan offers.

Canna Campbell

Canna Campbell

Canna is a financial advisor based in Australia and the author of a book called the $1,000 project. Her $1,000 project is a financial strategy that focuses on saving and earning money in smaller increments to accomplish big money goals. I'm also a huge fan of her YouTube channel called Suga Mamma TV.

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