LoanDepot
- HELOC
- Not disclosed
- Not disclosed
- 866-790-3940
Founded in 2010, LoanDepot is one of the largest nonbank retail lenders in the US. It offers personal loans, mortgages, mortgage refinances and home equity lines of credit (HELOCs).
LoanDepot doesn’t provide a traditional fixed-rate home equity loan, but it may be a good option for borrowers who want fast and flexible access to cash. LoanDepot’s application process is 100% digital, making it possible to be approved for a HELOC in days.
However, the lender doesn’t advertise its average HELOC interest rates or specific qualifying requirements. You’ll need to start an application to find out your potential interest rate and other loan terms.
Read more: Best Home Equity Line of Credit (HELOC) Lenders
LoanDepot: At a glance
| Products offered | HELOC |
| APR range | Not disclosed |
| Loan amount | $35,000 to $250,000 |
| Credit score minimum | Not disclosed |
| Repayment terms | 10-year draw period, 20-year repayment period (In Texas, three-year draw period, 27-year repayment period) |
| Average time to fund | As little as three weeks |
Pros
Fast access to funds: You can be approved and close your loan in as little as three weeks. This is faster than the average lender turnaround time, which can sometimes take as long as two months.
Interest-only payments: During the first three years of your 10-year draw period, you’ll only have to pay interest on what you borrow. Your minimum monthly payment is $100.
Personalized rates without a hard credit check: LoanDepot doesn’t advertise average interest rates online. You can request a no-credit-check rate quote online without completing an application.
Cons
High minimum loan amount: $35,000 could be a lot for a homeowner who only needs funds for a small project. If you take out more money than you need, you’ll pay costly additional interest on those funds.
No fixed-rate option: LoanDepot doesn’t offer home equity loans or a fixed-rate option on their HELOC.
Minimum draw requirement: You must draw a minimum of 75% of your credit line at funding or 100% if your loan amount is less than $50,000.
Home equity loan options
LoanDepot offers HELOCs but not home equity loans. The HELOC has a standard 10-year draw period and a 20-year repayment period. During the draw period, you’ll make interest-only payments for the first three years. In Texas, however, borrowers have a three-year interest-only draw period followed by a 27-year repayment period.
According to LoanDepot, your minimum payment will always be at least $100 during the draw period.
Fees
LoanDepot charges an origination fee of up to 5% of the line amount (or the maximum allowed by state law, whichever is less). Besides that, the lender says it charges no third-party fees.
How to qualify
LoanDepot doesn’t advertise its minimum credit score requirements, but the higher your score, the better your chances are of being approved for a loan with a lower APR and more favorable terms. In addition to having sufficient home equity available, most lenders prefer to see a debt-to-income ratio of 36% or less to ensure you can comfortably afford a second monthly mortgage payment.
Property insurance is required with LoanDepot, and flood insurance is required where necessary. Although the application process is digital, you may need to be prepared to have your documents notarized in person in some cases.
Applying for a HELOC with LoanDepot
LoanDepot says its online application takes minutes to complete. But just like with a mortgage, you’ll still need to gather all of your personal and financial documentation for your lender to review.
You’ll need to show proof of adequate income and stable employment through documents such as your Form W-2, pay stubs and tax returns, and any paperwork related to your existing mortgage to show that you’ve been making timely payments.
Customer service
You can reach customer service at 888-337-6888 ext. 6789 from Monday to Friday, 10 a.m. to 9 p.m. ET (7 a.m. to 6 p.m. PT) or email at customercare@loandepot.com. For HELOC-specific inquiries, call 866-790-3940.
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