LoanDepot: 2024 Home Equity Review

At a glance

Benefits

• LoanDepot offers online quotes, and can fund your HELOC in as few as two weeks.
• 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.

Drawbacks

• LoanDepot currently doesn’t offer lines of credit in every state, including New York and Texas.
• The lender charges a HELOC origination fee of up to 5 percent.

Home equity loan 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 payment during the interest-only phase.

Unlike some other home equity lenders, LoanDepot’s HELOC doesn’t have a fixed-rate option. Your variable rate won’t ever exceed 18 percent, however.

Types of fees charged

LoanDepot charges an origination fee for its HELOC. This fee costs up to 5 percent (or the maximum allowed in your state) of what you borrow.

How to qualify for a HELOC with loanDepot

To be eligible for a LoanDepot HELOC, the lender looks for sufficient credit and income. It’ll also evaluate your home’s value. For most home equity lenders, the typical requirements for a HELOC include a good credit score (740 and above could qualify you for the lender’s most competitive rates), 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 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. 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.

How Bankrate scored LoanDepot