LoanDepot Personal Loans Review

LoanDepot is becoming a powerful force in the industry, offering competitive personal and home loans to rival even the biggest banks.

LoanDepot is the fifth-largest mortgage lender in the nation, offering conventional fixed- and adjustable-rate mortgages, as well as HARP, Jumbo, FHA, VA, and home equity loans. Interest rates are competitive and you can choose between 10- and 30-year terms. If you’re looking to refinance, loanDepot can help you there as well. It offers a unique lifetime guarantee, which waives any future lender and appraisal fees after you’ve refinanced once with loanDepot.

Recently, the company has also begun branching out into personal loans. It’s not for those who only need to borrow a small sum, though, since the minimum amount you can borrow is $5,000. You must have a FICO credit score of at least 600 in order to qualify for any type of loan through LoanDepot, so those with bad credit will have to look elsewhere. Those with excellent credit could be eligible for rates as low as 6.17% APR on personal loans, while those closer to the 600 FICO score minimum could see rates as high as 29.99%. That’s still a bargain compared to what some of LoanDepot’s competitors charge for personal loans, however.

The Specs

Interest RatesVaries, depending on your credit score
Personal Loan Amounts$5,000 to $35,000
Personal Loan APRs6.17% to 29.99%
Mortgage TypesFixed- and adjustable-rate conventional, FHA, VA, Jumbo, HARP
Mortgage Terms10 to 30 years
Home Equity Loan Amounts$25,000 to $250,000
Best ForPeople with excellent credit
Not ForPeople who only need to borrow a small sum, or are looking for a USDA mortgage
Standout FeaturesLifetime guarantee
Offers most major mortgage types
150 branch locations nationwide

Check Your Personal Loan Rates

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

The Claim

LoanDepot is an alternative lender that promises affordable rates and flexible loan terms, backed by outstanding customer service. Whether you’re looking to purchase a home, consolidate credit card debt, or refinance an existing loan, loanDepot can get you the funds you need quickly and without hassle.

Is it True?

Yes. LoanDepot offers personal loans up to $35,000 and home equity loans up $250,000. It also provides fixed- and adjustable-rate conventional, HARP, Jumbo, FHA, and VA mortgages. If you’re looking to refinance existing loans, loanDepot can help you there as well. It is one of the only companies in the industry to offer a lifetime guarantee, which waives any future lender or appraisal fees after you refinance with loanDepot.

You must have a minimum FICO of 600 in order to apply for a loan through LoanDepot. You can check your rate online without affecting your credit score. Interest rates for personal loans through LoanDepot vary from 6.17% for those with the best credit to 29.99% for borrowers with lower scores. This is comparable to many of LoanDepot’s competitors in the personal loan space, and better than some. There are no hidden fees and you won’t be charged for paying your loan back early. There is a small origination fee of 1% to 5%, which comes off your loan amount, so take this into consideration when calculating how much you need to borrow.

If you’re looking to buy or refinance a home, you can get an instant rate quote online. You’ll be presented with several options, which you can narrow further by selecting your term (between 10 and 30 years) and reviewing the interest rates and monthly payments. There’s no way to apply for a mortgage online, though. All you can do is fill out a contact form and wait for one of LoanDepot’s agents to get back to you. The same is true if you’re interested in a home equity loan.

Our Deep Dive

  • Personal loans up to $35,000: LoanDepot offers personal loans ranging from $5,000 to $35,000. This is good news if you need to borrow a large sum of money, but for those who only need a small amount of cash, there are better options out there for you.
  • Offers most major mortgage types: LoanDepot offers fixed- and adjustable-rate conventional mortgages, as well as FHA, VA, Jumbo, and HARP loans. It doesn’t offer USDA loans, which may disappoint some rural property owners, but the majority of borrowers should be able to find something to suit them. Mortgage terms range from 10 to 30 years.
  • Home equity loans: You can borrow between $25,000 and $250,000 against your home’s equity. Of course, not everyone may be eligible for a $250,000 loan. It depends on how much equity you’ve built. You can only borrow up to 90 percent of that value. So, if you have $100,000 in equity, you’re limited to a $90,000 loan.
  • Lifetime guarantee: Those interested in refinancing their home will appreciate LoanDepot’s lifetime guarantee. This waives any future lender and appraisal fees after you’ve refinanced with the company once. That’s good news for those with 30-year mortgages, who may refinance several times within that period. However, if you’re going to take advantage of this guarantee, you’re limited to LoanDepot’s products.
  • 600 minimum credit score: In order to qualify for a loan through LoanDepot, you must have a FICO score of at least 600. This shouldn’t be an issue for most prospective borrowers, but if it’s a problem for you, you’ll need to explore some other options.
  • No hidden fees: Apart from a small origination fee of one to five percent, you won’t incur any additional charges down the road. So if you’d like to pay your loan off early, you can do so without being penalized for it.
  • Receive funds in two to three days: After you’ve applied for a loan and your information has been verified, your funds will be deposited into your account within two to three business days.
  • Learn the ins and outs of loans: LoanDepot’s Knowledge Cafe includes articles and videos designed to educate borrowers about the loan products the company offers to help them make smarter decisions. If you’re new to loans, this is a valuable resource. The company also offers mortgage and refinance calculators to help you determine how much your mortgage will cost you.

Cost Rundown

The cost of your loan depends on several factors, including how much you’re borrowing, your loan term, current interest rates, and your creditworthiness. In order to get an idea of how much you’re going to pay, you can fill out an instant rate quote on LoanDepot’s website. If you’re interested in a home equity loan, you’ll have to contact the company directly for more information.

LoanDepot’s interest rates are reasonable compared to its competitors, however. Borrowers with the best credit could secure a personal loan for as little as 6.17%. On the opposite side of the spectrum, you could be charged as much as 29.99% APR if your credit score is closer to the 600 minimum. This may seem high, but many personal loan providers charge up to 36% APR to “high risk” borrowers, and payday loans could run you over 500% in interest.

Cheaper (or Free!) Alternatives

You should compare rates from several lenders before making any decisions to ensure you’re getting the best deal. Check with your local bank, online banks and alternative lenders to see what they can offer you. Though the differences in interest rates may be slight, they can have a big impact over the life of your loan.

Say you take out a $200,000, 30-year mortgage at 3.375% APR. Over the lifetime of your loan, that will cost you $318,309.27.  That same loan at 3.5% APR suddenly jumps to $323,312.18. An eighth of a percentage point just cost you $5,002.91. If you’d rather hold onto that money, it’s worth taking an hour or two to research your options before committing to a lender.

The Competition

Wells Fargo: Like LoanDepot, Wells Fargo offers both personal loans and mortgages with no hidden fees. You can borrow up to $100,000 for a personal loan, so it’s a good choice if you need to borrow a larger sum. Once you’re approved, you often receive your funds the same day. Wells Fargo offers fixed- and adjustable-rate conventional mortgages, as well as FHA, VA, HARP, and new construction loans. There are also options for those with a low down payment.

Quicken Loans: A top mortgage provider, Quicken Loans has become famous for its Rocket Mortgage tool. It enables prospective borrowers to get approved for a mortgage entirely online in as little as eight minutes. Its rates are generally competitive and you can sign up for email or text alerts so you know as soon as it changes. Quicken Loans offers conventional fixed- and adjustable-rate mortgages, as well as FHA, VA, and Jumbo loans.

LendingClub: LendingClub is a popular peer-to-peer lender offering personal loans from $1,000 to $40,000. There are no hidden fees, though you will be charged an origination fee between 2% and 6% that comes out of your loan amount. You can choose between three- and five-year loan terms, but if you want to pay it off early, you won’t be penalized. A minimum credit score of 600 is required to apply. Interest rates vary depending on your credit history, but they range between 10.68% – 35.89%.

Disclaimer: All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 10.68% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 9.56% and a 5.00% origination fee of $300 for an APR of 13.11%. In this example, you will receive $5,700 and will make 36 monthly payments of $192.37. The total amount repayable will be $6,925.32. Your APR will be determined based on your credit at time of application. *The origination fee ranges from 2% to 6%; the average origination fee is 4.86% (as of 9/30/19 YTD).* There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the website. All loans via LendingClub have a minimum repayment term of 36 months or longer.

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The Bottom Line

Whether you’re looking for a mortgage or a personal loan, LoanDepot likely has something that will appeal to you. Take some time, get a quote, and speak to a company representative to learn more about your options.