loanDepot 203(k) loan review

About loanDepot

loanDepot is a 10-year-old mortgage provider. loanDepot offers various types of mortgages, including refinance loans, adjustable rate mortgages, fixed rate mortgages, FHA loans (including 203(k) loans), HARP loans, jumbo loans, and VA loans. According to loanDepot, it is the second largest non-bank mortgage lender in the U.S. It has funded more than $100 billion in loans.

loanDepot 203(k) loans endorsed by the FHA

As part of the final approval for a 203(k) loan, the FHA has to “endorse” each loan application. In 2020 so far (between January to April) the FHA has endorsed 349 203(k) loans applied through LoanDepot. This is the highest number of 203(k) loan endorsements for a lender in 2020 so far. These endorsements are also much higher than endorsements for LoanDepot in the past years. The FHA endorsed 122 203(k) loans applied through LoanDepot in 2019 and 97 203(k) loans in 2018.

What makes loanDepot different from other lenders?

Online income, employment, and asset verification

loanDepot describes itself as a tech-enabled lending platform and continues to make investments in technology to improve the lending process and cut down on closing time. LoanDepot offers a technology service it calls mello smartloan™. With mello smartloan™, you can verify your income, employment and asset information online without having to submit paperwork. This may save you time and speed up the closing time.

No appraisal needed or faster appraisal turnaround

With loanDepot, in some cases, you may not require an appraisal. loanDepot’s loan officers use a digital service called mello smartdecision™ to instantly determine if you could qualify for an appraisal waiver. This could save you hundreds of dollars and eliminate the hassle of coordinating a time for the appraisal. According to loanDepot, even if you do not receive an appraisal waiver, you’ll know the results of your appraisal valuation much sooner. With mello smartloan™, home value approval and title clearance can be done within minutes.

No-steering policy

loanDepot has a no-steering policy, which means that none of its employees are incentivized to put you in one loan program over another.

Available in all 50 states

Mortgage lenders are required to be licensed in the state that they intend to provide mortgages. loanDepot is licensed to lend in every state. Not every lender is qualified to do so.

200+ locations nationwide

While you may apply for a loanDepot mortgage without having to visit a physical location, loanDepot has over 200 local locations nationwide if you prefer in-person interactions.

No lender and appraisal fee for refinancing a loanDepot-originated property

loanDepot offers something it calls Lifetime Guarantee. If you get a mortgage on a property directly through loanDepot and use loanDepot to refinance the same property, loanDepot will waive the lender fee and first appraisal fee. Note: you’ll receive a Lifetime Guarantee certificate when you get a mortgage through LoanDepot. You must have this certificate to qualify for the Lifetime Guarantee. There is also a 12-month waiting period before you may redeem the Lifetime Guarantee.