Pros and cons of loanDepot
Pros:
- Offers a wide variety of loan types, including conventional, FHA, VA, and USDA loans
- Works with borrowers who have lower credit scores or nontraditional income
- Provides online and mobile-friendly preapproval and application process
- Licensed loan officers available by phone and email
- Has strong customer reviews and few complaints with the CFPB
Cons:
- Charges higher-than-average origination fees
- Offers rates that may be above market for some borrowers
- Doesn’t publish mortgage rates on its website
- May not be the best fit for highly qualified borrowers seeking the lowest possible rates
loanDepot mortgage rates
These average loanDepot interest rates reflect what customers received last year and can help you gauge how their pricing compares to other lenders.
| Loan Type | Average Interest Rate |
| Conventional 30-Year | 7.25% |
| Conventional 15-Year | 5.85% |
| FHA 30-Year | 6.16% |
| VA 30-Year | 5.91% |
Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).
Remember that interest rates vary a lot by customer. Your own rate depends on factors like your credit score, down payment, loan type, and home price.
That means you shouldn’t take average rates (or advertised rates) at face value. Instead, pick three to five lenders you’re interested in and get rate quotes from each one. Then compare the interest rates, closing costs, and other fees you’re offered to see which lender can give you the best deal.
Find your lowest mortgage rate. Start hereLoanDepot lender review for 2025
loanDepot is still a go-to lender for buyers who want digital convenience backed by human support. It has developed a hybrid approach that appeals to a diverse range of borrowers, including first-time home buyers seeking quick online service and traditional borrowers who value phone support and personal guidance. The company has invested heavily in its “mello” tech platform, which streamlines document uploads, income verification, and communication with your loan team.
loanDepot isn’t trying to be the cheapest lender in town. Instead, it leans into flexibility and accessibility. It often wins over borrowers who may not qualify elsewhere, especially those who are self-employed, carry credit dings, or have uneven income.
Affordability
loanDepot ranks below average in affordability. Its origination fees sit well above the industry average, and rates can be higher than what some competitors offer. That said, these numbers skew high because loanDepot serves a broader borrower profile. Many of its customers wouldn’t qualify for ultra-low-rate promotions elsewhere. If you’re a well-qualified borrower with strong credit and stable W-2 income, you may find better pricing with a more rate-focused lender.
Lending flexibility
This is where loanDepot shines. The lender offers all the core mortgage products: conventional, FHA, VA, and USDA loans. Borrowers need a 620 credit score and at least 3% down for conventional loans. For FHA loans, loanDepot accepts credit scores as low as 580 with a 3.5% down payment. USDA and VA loans are available with zero down for qualified applicants. In addition, loanDepot offers jumbo loans and refinancing options, including streamlined FHA and VA refis. This variety helps borrowers in unique financial situations stay in the game.
Trustworthiness
loanDepot has a strong track record. It underwrote over 70,000 mortgages last year with very few formal complaints logged with the Consumer Financial Protection Bureau (CFPB). Customers also rate the lender 4 out of 5 stars on Trustpilot. These scores suggest loanDepot operates with consistency and integrity. It’s a lender that most borrowers can trust to follow through.
Customer experience
loanDepot blends automation with human support. You can apply online, get preapproved quickly, and manage your application digitally via the mello platform. Borrowers can also connect with loan officers by phone if they prefer hands-on help. One drawback is that loanDepot does not publish live mortgage rates online, so you won’t be able to compare offers without submitting an application. That said, once you’re in the system, the digital experience is fast, clean, and relatively stress-free.
Time to make a move? Let us find the right mortgage for youFAQs about loanDepot
loanDepot provides conventional, FHA, VA, and USDA mortgage loans. These options cover most types of home buyers, from first-timers to veterans.
Yes, loanDepot often works with self-employed borrowers or those with nontraditional income. However, these borrowers may face higher fees or rates depending on their financial profile.
loanDepot requires borrowers to apply to receive a personalized rate quote. This helps them tailor interest rates based on your specific financial situation, but it also makes comparison shopping harder upfront.
loanDepot’s rates tend to be higher than average, especially for borrowers with stronger credit. However, they may still be competitive for those with less conventional profiles.
The timeline varies, but most borrowers can get preapproved quickly online. Full approval depends on the loan type, documentation, and underwriting process, which typically takes a few weeks.
Is loanDepot the best mortgage lender for you?
loanDepot is a strong choice for borrowers who need flexibility, support, and a lender that welcomes a wider range of credit and income scenarios. It may not offer the lowest mortgage rates for top-tier borrowers, but it delivers on customer service, trustworthiness, and loan variety. If you’re shopping for a home loan and want a smooth digital experience with access to human help, loanDepot could be a smart fit. This loanDepot lender review shows they continue to earn their spot among the top mortgage lenders in 2025.
How the Mortgage Reports scored loanDepot
The Mortgage Reports evaluates and ranks lenders based on four key factors, each weighted to reflect its impact on the borrowing experience.
- Customer experience (20%): Examines the lender’s digita and service accessibility, including the availability of an online pre-approval or pre-qualification process, ease of contact, and the presence of a current rates page on their website.
- Affordability (20%): Assesses the average origination charges and the average interest rate offered by the lender.
- Lending flexibility (40%): Evaluates the lender’s minimum down payment and credit score requirements, as well as the availability of FHA, VA, and USDA loan options.
- Trustworthiness (20%): Measures customer satisfaction and reliability based on Consumer Financial Protection Bureau (CFPB) complaints per 1,000 loans and ratings from reputable third-party review platforms such as Trustpilot.
