LoanDepot Mortgage Review 2024
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- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
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Our Take
4.0
LoanDepot is a large nonbank lender that's equal parts convenient and clunky. Working with LoanDepot partners offers the potential for a streamlined mortgage process and cash back, but to start an application or get a rate quote you have to work with a loan officer over the phone. Most likely to appeal to borrowers looking to close quickly.
Pros
- Offers a variety of repayment terms for fixed-rate loans.
- Does a substantial amount of business in FHA lending.
- mello smartloan product can streamline mortgage application, appraisal and title search.
Cons
- Interest rates are not available on the website.
- Origination fees are on the higher end, according to the latest federal data.
Lender | Min. credit score | Min. down payment | |
|---|---|---|---|
580 | 3% | Visit Lenderat New American Funding at New American Funding | |
620 | 3% | Visit Lenderat NBKC at NBKC | |
580 | 3.5% | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
LoanDepot is a nonbank lender based in Irvine, CA. Mortgages are available in all 50 states, as well as Washington, D.C.
🏠 Popular loan types include: Fixed or adjustable rate; conventional; FHA; VA; jumbo; rate-and-term or cash-out refinance.
🔑 Specialty loan options include: FHA 203(k).
💵 Home equity borrowing options: HELOC; home equity loan.
Through its subsidiary mellohome, LoanDepot offers ways to save money, speed up the lending process, or both.
First-time home buyers who work with a real estate agent referred by mellohome can receive a closing credit of up to $4,500.
With a digital application process dubbed the mello smartloan, borrowers can find out right away whether they might qualify for an appraisal waiver. Actual appraisal info, as well as title search, also moves more quickly than in a typical application process. LoanDepot claims mello smartloan can cut more than two weeks off the closing timeline.
» MORE: How to apply for a mortgage
How we score LoanDepot Mortgage
Every year, NerdWallet writers and editors use the latest data and independent research to score lenders on an overall rubric, reflecting factors that are most important to mortgage borrowers. Select Why This Category Matters below to learn more.
LoanDepot has a NerdWallet home loans rating of 4 stars overall. Here’s a breakdown of this year’s score.
Category | Star rating |
|---|---|
Average mortgage rates and fees | |
Mortgage rate transparency | |
Variety of loan types | |
Customer experience |
- Why This Category Matters
Average mortgage rates and fees (30%)
Our team analyzes federal data to compare mortgage lenders’ origination fees and offered mortgage rates, measuring annual averages across all loan types, as reported by the lenders. The lowest combination of average rates and fees earns the highest star rating in this category. (It’s worth noting that loans considered higher risk, including those such as FHA loans that are easier to qualify for, often have higher interest rates and fees.) Pro tip: In some cases, paying upfront fees may lower a borrower’s mortgage interest rate.
Mortgage rate transparency (25%)
We check how straightforward it is to comparison-shop rates online. NerdWallet’s transparency ratings are higher for lenders that post sample rates on their sites, and highest for sites with self-serve tools that allow shoppers to see what rates might be like for their particular loan. Pro tip: Borrowers who compare customized rate quotes by applying to three or more lenders could save thousands of dollars over the life of their loan.
Variety of loan types (25%)
Finding the right mortgage is different for each borrower. The highest star ratings in this category are awarded to lenders that our research shows offer a wide range of loan types, improving the odds that a borrower will find the best match for their needs: options for purchase and refinance; fixed-rate and adjustable-rate loans; government-backed FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.
Customer experience (20%)
How easy is it to interact with this lender? The highest-rated lenders in this category offer features that are convenient and clarifying for borrowers, such as: an online application, multiple customer service options, a helpful mobile app and candid closing timeline communications.
LoanDepot earned bonus points for expanding homeownership opportunities through first-time home buyer assistance, credit score flexibility and loans for manufactured homes.
What borrowers say about LoanDepot Mortgage
NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To help you understand borrowers’ subjective experiences, NerdWallet has gathered customer satisfaction ratings from J.D. Power and Zillow. We also contacted LoanDepot customer support.
→ Second-lowest score in J.D. Power’s 2023 U.S. Mortgage Origination Satisfaction Study. Mortgage origination covers the initial application through closing day.
Score: 692 out of 1,000. Industry average for origination is 730.
→ Above-average score in J.D. Power’s 2024 U.S. Mortgage Servicer Satisfaction Study. A mortgage servicer handles loan payments.
Score: 628 out of 1,000. Industry average for servicing is 606.
→ Excellent customer rating on Zillow.
Customer rating: 4.92 out of 5, as of the date of publication. Rating reflects more than 8,500 customer reviews.
🤓 Our Nerds say...
LoanDepot has a highly rated mobile app, but it's for helping existing customers with mortgage servicing. If you're applying for a mortgage, you'll need to use your phone as a phone, since LoanDepot's online preapproval forms all require providing contact information. For more general questions, customer service is available by phone or email. When we called, we were connected to a representative right away.
LoanDepot and consumer trust
LoanDepot has been in the news for two reasons in 2024. The first occurred when LoanDepot disclosed a cyberattack on January 8, 2024. In a statement on a webpage dedicated to the incident, the lender announced that it "determined that an unauthorized third party gained access to sensitive personal information of approximately 16.6 million individuals in its systems.” The company said it would notify those affected and offer free credit monitoring and identity protection services. On March 18, 2024, the company said that the services could be accessed via a team at Experian. Eligible borrowers can call 833-918-0895, reference number B114814.
The lender also made headlines with the resolution of a civil lawsuit, in which two plaintiffs claimed that racial bias during their home appraisal undervalued their property. The case was settled in March 2024, with LoanDepot agreeing to pay an undisclosed sum. Terms of the settlement also required changes to the lender’s appraisal policy and procedures within 120 days.
The lender emailed the following statement: “LoanDepot strongly opposes bias in the home finance process. While we continue to deny the specific allegations in this lawsuit and have made no admission of fault, we’re proud of the commitments announced today, which will formalize many of our existing practices and provide additional resources to help our customers in the appraisal and review process.”
While significant, these events did not affect LoanDepot’s NerdWallet star rating.
Alternatives to a home loan from LoanDepot
We recommend comparing mortgage rate offers from three or more lenders.
PNC Bank won NerdWallet’s 2024 award for Best Mortgage Lender for FHA loans.
Rocket Mortgage and Rate are also large nonbank lenders that emphasize efficiency. If you're looking for a less common type of home loan, both offer more different mortgage options than LoanDepot.
» MORE: Best nonbank mortgage lenders
More from NerdWallet
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: average mortgage rates and origination fees, rate transparency to consumers, variety of loan types (purchase, refinance, fixed and adjustable, for example) and customer experience. Among the factors we consider in these categories are: options to apply for home loans online, typical time to close, mobile app experience, level of detail about mortgage rates on lender websites, and NerdWallet’s own analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These and other items inform detailed rubrics, which generate ratings from 1 star (poor) to 5 stars (excellent). Read more about how we rate mortgage lenders here.
