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LoanDepot: 2025 Home Equity Review

Written by

Linda Bell,

Edited by

Troy Segal

Expert verified

Updated on May 14, 2025

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NMLS: 174457

Bankrate score

3.7

Our methodology

Customer score

3.4

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SCORE BREAKDOWN

Affordability

3.2

Availability

4.5

Borrower experience

3.5

EDITOR'S TAKE

LoanDepot can be a good choice for homeowners in just about any state who want the ability to access as much as 90 percent of their home’s value and a choice between variable-rate HELOCs and fixed-rate home equity loans. However, its high draw requirements are a definite drawback.

PROS

• LoanDepot offers both HELOCs and HELoans.
• You might not need to pay for an appraisal, as the lender typically uses an automated valuation model (AVM) to determine your home’s worth.
• LoanDepot’s HELOCs and HELoans allow borrowers to access up to 90 percent of the equity in their homes.

CONS

• Homeowners may find the $35,000 HELOC loan minimum too high.
• Must withdraw the majority, if not all, of HELOC credit line early on.
• Both HELoans and HELOCs may not be available in all states.

Affordability

3.2

Availability

4.5

Borrower experience

3.5

• LoanDepot offers both HELOCs and HELoans.
• You might not need to pay for an appraisal, as the lender typically uses an automated valuation model (AVM) to determine your home’s worth.
• LoanDepot’s HELOCs and HELoans allow borrowers to access up to 90 percent of the equity in their homes.

• Homeowners may find the $35,000 HELOC loan minimum too high.
• Must withdraw the majority, if not all, of HELOC credit line early on.
• Both HELoans and HELOCs may not be available in all states.

Find competitive home equity rates near you

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.

Bankrate insight

Loan Depot introduced home equity loans (HELoans) to its product lineup in 2024., along with first-lien HELOCs. Also that year: A cyberattack exposed the personal information of more than 16 million LoanDepot customers. The company reported charges of $27 million in the first quarter of 2024 related to the incident.

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.

Bankrate insight

You can tap into your home equity — the difference between your home's worth and what you owe on your mortgage — with a home equity loan or a HELOC. With those funds, you can tackle a variety of expenses, like debt consolidation or home renovations.

However, before you dive in, it's important to figure out your loan-to-value ratio (LTV). Lenders use your LTV to determine how much of your equity stake you can actually borrow. (It’s typically 80 percent, although some lenders allow you to access as much as 90 percent.) The amount of equity they’ll let you tap is one consideration when choosing a lender. Be it a retail bank, online lender or credit union, it may offer different home equity loan rates and terms, too. That’s why it’s important to shop around for the best deal.

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.

To determine a home equity lender’s Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender’s products and services. To assign our ratings, we assessed each mortgage lender across three core areas:
- Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
- Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10%
- Borrower experience: Rate transparency - 35%; convenience - 35%; customer service - 20%; fixed-rate options - 10%
Learn more about our methodology.

To determine a home equity lender’s Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender’s products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10%
Borrower experience: Rate transparency - 35%; convenience - 35%; customer service - 20%; fixed-rate options - 10%

Learn more about our methodology.

Compare LoanDepot with other lenders

Selected lender LoanDepot NMLS: 174457 Bankrate score 3.7 Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score. Customer score 3.4 Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.	Bankrate score Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score. Customer score Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months. Read review	Bankrate score Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score. Customer score Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months. Read review
Loan amount
$35,000-$250,000
Min. credit score required
Undisclosed
Repayment terms
3-year draw period within 10-year interest-only period, 20-year repayment term (3-year draw/interest-only period and 27-year repayment term in Texas)
Funds available in
As little as 3 weeks
Recent customer review
It was ok It was ok Luis t.

To help you make the most informed decisions, our home equity lender reviews team suggests an alternative home equity lender for each lender reviewed. In most cases, this alternative 1.) shares the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rates highly for Bankrate Score. In the event more than one lender meets these standards, we suggest the one with the higher Bankrate Score.

loanDepot customer ratings and reviews

NMLS: 174457

3.4

27 ratings

Knowledge

Level of service

Professionalism

Responsiveness

67% of customers would recommend this lender.

of 7 reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.

Bankrate cannot guarantee or verify the accuracy of the opinions shared by individual reviewers, and reserves the right to reject or remove any review, at any time, for any reason at Bankrate’s sole discretion, including but not limited to those that Bankrate deems inappropriate, fraudulent, invalid, irrelevant, or otherwise outside the parameters of the Bankrate Review Guidelines, the Privacy Policy, or the Terms of Use.

In addition to collecting reviews on-site, Bankrate collaborated with third-party Slice MR to survey 450 users nationwide in July 2024. Bankrate and Slice MR collected, averaged and presented responses to nine questions. Users received an incentive for their feedback. Responses are based on individual experiences, and therefore cannot be verified for accuracy. Submissions with user ratings that are materially inconsistent with written sentiment have been removed. User ratings are unedited and have not been reviewed or approved by lenders, nor do these ratings reflect Bankrate’s own reviews of these lenders.

To help serve you with relevant information, the consumer reviews shown below are limited to only those that this advertiser has received during the past 12 months.

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