LoanDepot VA Loans Review

LoanDepot VA loans help military members settle into temporary houses or forever homes. If you serve in the armed forces, LoanDepot VA loans offer rates not available to the civilian population, meaning you pay less over the life of the loan.

We review LoanDepot VA loans, giving you information about pros and cons, pricing, loan offerings and customer experience, so you can make the best decision for you and your family. You can check out our best VA loans article for a wider-net approach.

Best VA cash-out refinance loan

We selected LoanDepot as our best VA cash-out refinance loan. With a cash-out refinance loan, you can turn your home equity into cash. You take out a new mortgage loan that is greater than the amount of your previous loan, and the difference is paid out to you in cash.

You could use this money for home improvements, paying off credit cards or other personal expenses. Refinancing can also be a good option if loan rates have dropped since you bought your home. LoanDepot offers a smooth and simple process from the time you apply to the day the money hits your bank account and beyond.

LoanDepot VA loans pros and cons

Pros explained

Primarily online

Even if your orders change, your lender doesn't have to. LoanDepot is an excellent option for military members because it is an online-first company licensed in all 50 states. So whether you're stationed stateside or overseas, you're lender is still only a click away.

Depending on your state, you may be able to sign loan closing documents in the comfort of your home. Other states will require you to venture out to a designated settlement location, such as an escrow office or attorney's office in your area.

Simple customer portal

LoanDepot's customer portal is well-designed and easy to use. In particular, the document portal for uploading documents is easy to use and effective. With the portal, you can service your loan, apply for a new one or even keep track of your credit score.

LoanDepot servicing is also simple and easy to use in the company's portal. LoanDepot payment through the customer portal is straightforward and includes an autopay option to help you pay on time every month.

Fast and smooth application process

LoanDepot's fast and smooth application process won't slow you down if you're trying to make home improvements or pay off debt. LoanDepot claims most refinance loans can be completed within 45-60 days, but some customers report closing the loan within one month. Depending on your state laws, you may even be able to complete the process without leaving home.

Cons explained

Few brick-and-mortar locations

LoanDepot's online approach isn't for everybody, something the company has seemingly acknowledged with its recent investment in brick-and-mortar offices. Some customers may not feel comfortable conducting such important business without seeing another person and shaking their hands.

Rates are not available online

You can't access real-time information about LoanDepot rates online. Interest rates are essential in planning your financial strategy, and transparency around interest rates can help you make a borrowing decision. You must request informal mortgage quotes before you can see what rates you can get.

LoanDepot VA loans offerings

LoanDepot is a nationwide lender with offerings for both soldiers and civilians. You can learn a little bit about some of these loan options below. You may qualify for one or more of these, so talking with a knowledgeable lending agent can help you get into the right loan.

VA loans

LoanDepot is a direct mortgage lender for VA loans. These are purchase or refinance loans open to veterans who meet certain criteria. VA loans are guaranteed by the U.S. Department of Veterans Affairs, enabling lenders to offer competitive rates. You don't have to contribute a downpayment with a VA loan, so you can finance 100% of your home.

It's also worth mentioning VA loans don't require mortgage insurance, which can add to your monthly mortgage payments. Finally, VA loans don't have an upper loan limit, so you can apply to borrow what you can afford.

Conventional loans

Where VA loans are limited to veterans, conventional loans are open to all qualifying borrowers. Conventional mortgages include both conforming loans that align with the Fannie Mae and Freddie Mac guidelines and those that don't. For conventional loans, you must pay a minimum of 3% as a downpayment. Even so, any downpayment south of 20% will likely require you to carry private mortgage insurance (PMI). If you qualify for a VA loan, that may be your best bet, but a well-suited conventional loan is also worth considering.

FHA loans

Like VA loans, FHA loans are federally insured. If you have less-than-stellar credit or lack a large downpayment, LoanDepot's FHA loan offerings could be for you. Homebuyers with a credit score of 580 can make a downpayment of as little as 3.5%. The government backing allows lenders to offer money at a lower risk and accompanying lower rates. Unfortunately, FHA loans require costly mortgage insurance and set limits on the amount of money you can borrow.

Jumbo loans

Your dream home may exceed the amount you can borrow using a conventional loan. LoanDepot also offers jumbo loans. A home loan that exceeds the annual conforming loan limits set by Fannie Mae and Freddie Mac guidelines is considered a jumbo loan. In 2023, the conforming loan limit for most areas is $726,200, so if you need more, your loan is considered a jumbo loan. LoanDepot offers both adjustable and fixed rates and jumbo loan options up to $3 million.

Renovation loans

LoanDepot offers several variations of renovation loans, including FHA and VA renovation financing options. VA renovation loans through LoanDepot can't exceed $35,000. Qualifying veterans may be exempt from VA funding fees using LoanDepot's VA renovation loans.

LoanDepot VA loan pricing

LoanDepot's biggest drawback might be its lack of transparent pricing. For the most up-to-date information about LoanDepot VA loan rates, you'll have to contact one of the company's loan officers. VA loan mortgage rates change quickly, so pay attention to when the rate in your quote expires. If you would like some tips to get the best VA loan rates, this article could be of assistance.

LoanDepot VA loans financial stability

LoanDepot received a B rating for financial stability from DBRS Morningstar. It projects that LoanDepot is stable and will have little trouble meeting its obligations and continuing operations.

LoanDepot VA loans accessibility

In this section, we review Loandepot's ease of access to its customers.

Availability

LoanDepot is available in all 50 states, though access to VA loans is restricted to those who have served or are currently serving in the armed forces. You may also qualify if you served 90 days of active service during wartime, are an active member of the National Guard or reserves for more than six years, or your spouse died in the line of duty or as a result of a service-related disability.

Your primary access to LoanDepot is through the company's website and online customer portal. You need to create a LoanDepot login username and password. You can also speak to someone on the phone if you prefer. LoanDepot has lines available so you can talk to licensed loan officers and customer service representatives.

Contact information

• If you need to get some quick info or request a quote, you can reach the main website at www.loandepot.com. You may also speak to a loan officer at your convenience between 8 a.m. and 10 p.m. EST at 1-888-983-3240.

• If you need support as an existing customer, you're covered. Customer service support is at (888) 337-6888. The phone lines are available weekdays from 10 a.m. - 9 p.m. EST.

• You can also email the company with any questions or concerns at customercare@loandepot.com

User experience

In online reviews, customers were pleased with the ease and speed of the loan process, customer service and customer portal usability. LoanDepot reviews complaints mostly centered around perceived aggressive sales tactics or delays in the application process.

LoanDepot VA loans customer satisfaction

LoanDepot faired well in online reviews, with customers frequently thanking the loan agents and those who assisted them by name. Customers also often mentioned the quick and easy process. The LoanDepot customer service team quickly reached out regarding customer complaints via online reviews. Better Business Bureau customer reviews gave the company a rating of 4.12 out of 5 stars based on over 3,800 reviews.

How we evaluated LoanDepot VA loans

Here's a rundown of our method for evaluating LoanDepot VA loans:

• Loan options: We analyzed LoanDepot's various loan offerings.

• Pricing: We checked online offerings for rates.

• Offerings: We summarized LoanDepot loan options.

• Customer experience & satisfaction: We read customer reviews to see common trends.

• Accessibility: We summarized how customers can interact with the company.

• Company website: We reviewed the company's webpage for relevant information.

Summary of Money's LoanDepot VA loans review

As few as 6% of eligible veterans are taking part in the VA loan benefit program. With a LoanDepot VA loan, you could get into a new home sooner rather than later. Similarly, with a LoanDepot VA cash-out refinance loan, you can pay off that high-interest credit card debt or make those home improvements you've been waiting for. If you're ready to make the move, we've got some VA loan tips to get you started.