LoanDepot: 2025 Home Equity Review

LoanDepot overview

Founded in 2010, LoanDepot is one of the largest non-bank lenders in the U.S., and among the top 10 mortgage originators. It went public in 2021. LoanDepot’s products include home purchase loans, home equity loans and cash-out refinances. Headquartered in Southern California, it serves more than 27,000 customers a month.

Pros and cons of LoanDepot

How Bankrate scored Loan Depot

Affordability: 3.2/5

• APR: LoanDepot doesn’t advertise its rates online, but you can receive an online quote in minutes without a hard credit check.  
• Fees: LoanDepot charges an origination fee for its HELOC, which costs up to 5 percent (or the maximum allowed in your state) of what you borrow. Several upfront fees are required for LoanDepot’s home equity loan, including AVM and credit report fees. 

LoanDepot scores 3.2 out of 5 for affordability because of its high origination fee, lack of an introductory APR and absence of advertised rates. 

Availability: 4.5/5

• Loan products: In addition to HELOCs, LoanDepot began offering home equity loans in 2024. Some lenders offer just one product.
• Credit score: You need a minimum 680 credit score, about average by home equity lending criteria.
• Loan minimum: $35,000 for HELOCs and $20,000 for home equity loans are average minimums.  
• Draw requirement: At closing, you have to withdraw at least 75 percent of the funds; 100% if the amount is less than $50,000. Many lenders don’t impose such large minimum draws.
• Where to find: Loans Depot’s home equity products are available in all states,  though not all states carry both. 

LoanDepot scores a 4.5 out of 5 for availability due to its national reach, and the addition of home equity loans to its portfolio.

Borrower experience: 3.5/5 

• Rate transparency: No rates are posted online. You will not be able to get a rate quote unless you enter some of your information online. 
• Convenience: For HELOCs, 27 days; for home equity loans, 36 days. Both are in the range of average application-to-funding times. 
• Customer service:  LoanDepot offers various contact methods, including branch locations, phone, online form, email, online chat or text. You can also manage your loan and make payments through LoanDepot’s app. 
• Fixed-rate options: LoanDepot offers fixed-rate home equity loans, but no lock-in option on its HELOCs.  

While LoanDepot offers convenience for borrowers through multiple customer service options and convenience through its app, the lack of upfront access to rate quotes lowers the company to a 3.5 out of 5 for borrower experience.

LoanDepot’s reputation 

LoanDepot has an A+ rating from the Better Business Bureau and has been accredited since 2014. TrustPilot gives the company a 3.8-star rating based on over 4,000 reviews. LoanDepot also earned an above-average score in the J.D. Power 2024 U.S. Mortgage Servicer Satisfaction Study.

In 2024, LoanDepot settled a lawsuit in which it was accused of appraisal bias. It agreed to pay an undisclosed amount to plaintiffs  but did not admit it was at fault.

What consumers say about Loan Depot 

LoanDepot’s reviews on Bankrate highlight a mix of experiences. Some praised the straightforward application process and “responsive and communicative” customer service. Others reported frustration with high fees and pushy sales tactics, including one customer who said claimed that, “I filled out the form to get a ‘quick quote’ quote and [ever] since I have been bombarded with spam calls from all sorts of lenders.”

Home equity products offered

LoanDepot offers variable-rate home equity lines of credit (HELOCs) in amounts ranging from $35,000 to $250,000. You’ll be required to draw a minimum of 75 percent of the line of credit at funding, or 100 percent if the credit line is less than $50,000.

The HELOC has a 30-year term, structured as a three-year draw period within an initial 10-year, interest-only payment period, followed by a 20-year repayment term. The lender requires at least a $100 repayment during the interest-only phase.

How to qualify for a home equity loan with LoanDepot

The lender looks for a minimum 680 credit score. It’ll also evaluate your home’s value. It doesn’t reveal any other criteria. For most home equity lenders, the typical requirements include a debt-to-income (DTI) ratio under 43 percent, a minimum amount of equity in your home (typically 15 percent to 20 percent) and consistent income.

How to apply for a home equity loan with LoanDepot

You can request a no-credit check quote from LoanDepot online. You’ll need to enter some basic information, including your personal information, the property’s address and when you purchased the home. You can complete the entire application online, too, but you’ll need to meet with a notary in-person to close, which will be arranged by LoanDepot. If you’d prefer to speak with a loan officer by phone, you can call 888-983-3240 Monday through Friday, 8 a.m. to 10 p.m. ET or Saturdays, 11 a.m. to 6 p.m. ET.