loanDepot HELOC Review 2025: Rates, Terms, and Alternatives

3.1 _/5

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Our take: loanDepot’s HELOC offers a fast, mostly digital application with no appraisal requirement, but its short draw period and lack of published rate details limit its appeal.

If you’re seeking clearer terms and a longer draw period, you may find better options with higher-rated HELOC lenders, including Figure, Aven, and FourLeaf Credit Union.

HELOC

• Fast online application
• No hard credit pull to see potential rates and terms
• Funding available in as little as 3 weeks
• No in-person appraisal required (uses AVMs)
• No prepayment penalty

• Variable-only interest rates may raise payments
• Must draw at least 75% (or 100% if below $50,000) at funding
• Origination fee up to 5% or state cap
• Rates and state availability not disclosed
• Short 3-year draw period

Rates (APR)	Not disclosed (variable, capped at 18%)
Funding amounts	$35,000 – $250,000
Repayment terms	30 years total: 3-year draw, 10-year interest-only, 20-year repayment (27 in Texas)
Min. credit score	520

Table of Contents

1. At a glance
2. What is the loanDepot HELOC?
3. How it works
4. Costs and fees
5. Repayment
6. Eligibility
7. Pros and cons
8. Alternatives
   1. vs. Figure
   2. vs. AvenCash
   3. vs. FourLeaf
9. Customer reviews
10. How to apply
11. Contact loanDepot

loanDepot HELOC at a glance

What is the loanDepot HELOC?

LoanDepot offers a home equity line of credit (HELOC) that lets you borrow against your home’s equity for home improvements, debt consolidation, or large purchases. It functions like a revolving credit line: You can draw funds as needed and repay them over time.

The company highlights a digital, no-obligation quote with no hard credit pull and an automated property valuation process that eliminates the need for a full appraisal. Borrowers can apply online and close in person through a notary, typically receiving funds within three weeks.

However, loanDepot’s HELOC details, such as rate ranges, eligible states, and loan-to-value requirements, aren’t disclosed publicly, which makes it difficult to compare with competitors.

How it works

LoanDepot’s application process is straightforward and largely digital. The company outlines three main steps:

1. Click: Get a no-obligation quote online in minutes with no credit impact.
2. Complete: Apply from your couch, no branch visits or meetings required.
3. Close: Sign documents with an in-person notary and access your funds shortly after.

Once approved, you can draw from your credit line during a three-year draw period. During this time, you must draw at least 75% of your credit line (or 100% for lines under $50,000). You can access funds through ACH or wire transfer.

LoanDepot uses automated valuation models (AVMs) instead of in-person appraisals to determine your property’s value, helping speed up approvals. Still, you may need to provide additional income and property documentation during the underwriting process.

Costs and fees

LoanDepot’s HELOC has a variable interest rate tied to the Wall Street Journal Prime Rate plus a margin. Your rate may rise or fall with market conditions. The company does not disclose its rate range.

• Origination fee: Up to 5% or the maximum allowed by state law
• Third-party fees: None listed
• Minimum monthly payment: $100 during the interest-only phase

Because the rate is variable, monthly payments can increase during the loan’s term. Borrowers seeking predictable payments may prefer a fixed-rate HELOC or home equity loan from another lender.

Repayment

LoanDepot’s HELOC includes both an interest-only phase and a full repayment period:

• First 10 years: Interest-only payments (including a three-year draw period)
• Remaining 20 years: Full principal and interest payments

In Texas, repayment works differently: Bborrowers make interest-only payments for the first three years, followed by 27 years of full repayment.

You can pay off a HELOC early without penalties. However, the required minimum draw and variable rate can make managing this HELOC less flexible than other options. For example, with Figure, our pick for best HELOC lender, you can borrow from your credit line for the entirety of the 10-year draw period.

Eligibility

LoanDepot requires borrowers to meet income, property value, and credit score requirements, but it doesn’t disclose full criteria online.

To confirm eligibility, borrowers must check rates or contact a loanDepot representative directly at 866–790–3940.

Pros and cons

Pros

• Fast, mostly online application

• No hard credit check to get a rate quote

• Funding in as little as three weeks

• Automated valuation (no full appraisal required)

• No prepayment penalty

Cons

• Variable rate only; payments can rise

• High required draw (75% – 100%) at funding

• Origination fee up to 5%

• No published rate range or state list

• Short draw period (3 years versus 10 at many lenders)

Alternatives to loanDepot

LoanDepot earns a 3.1 out of 5 from our editorial team, mainly due to its lack of transparency and short draw period. Before applying, check out how it stacks up against three higher-rated HELOC lenders that offer clearer terms and broader flexibility.

loanDepot vs. Figure

Figure stands out as the best overall HELOC lender for its speed, transparency, and fully digital experience. Unlike loanDepot, Figure publishes its rates and offers a 10-year draw period, which can give you far more flexibility. Figure also provides funding in as little as five days, compared to loanDepot’s three weeks.

If you value predictable, upfront terms and a longer draw window, Figure is the clear choice over loanDepot. However, Figure requires a high FICO score (applicants with 720+ scores are strongly preferred).

loanDepot vs. AvenCash

Aven’s HELOC offers transparent fixed rates, no hidden fees, and a flexible draw period, making it a stronger option for most borrowers. Its customer reviews are excellent.

While both lenders feature quick online applications, Aven stands out for its clear rate structure and longer draw flexibility. Borrowers seeking transparency and ease of use will likely find Aven’s HELOC a better fit than loanDepot’s shorter-term, less transparent line. However, Aven also requires a high FICO score (applicants with 720+ scores are strongly preferred).

loanDepot vs. FourLeaf

FourLeaf Credit Union earns high marks for offering larger HELOC limits and competitive rates. While both lenders provide a digital application, FourLeaf stands out for its personalized support and 20-year repayment period with more borrower flexibility.

LoanDepot may fund faster, but FourLeaf’s clarity on terms and loan size range make it better for homeowners seeking substantial borrowing power or long-term projects.

Customer reviews

Customer feedback for loanDepot focuses mainly on mortgage services but still offers insight into its general reputation. Borrowers frequently praise its customer support but cite inconsistent communication during the loan process.

Source	Customer rating	Number of reviews
Trustpilot	3.8/5	4,317
Better Business Bureau (BBB)	4.07/5	1,084
Google	4.3/5	2,732

LoanDepot is BBB-accredited with an A+ rating, signaling strong responsiveness to customer issues, though reviews specific to the HELOC are limited.

How to apply

You can start your loanDepot HELOC online and get a personalized quote without affecting your credit score.

1. Visit loanDepot.com/HELOC and click “Check My Rate.”
2. Provide information about your home, income, and desired credit amount.
3. Review your prequalification results (soft credit inquiry).
4. Complete the full application and finalize documents with an in-person notary.

Funds are typically available within three weeks of closing.

Contact loanDepot

• Email: [email protected]
• Phone: 888–337–6888 ext. 6789
• HELOC inquiries: 866–790–3940

Bottom line

LoanDepot’s HELOC offers fast digital access to home equity but lacks transparency and flexibility compared to leading lenders. With its short draw period and variable-only rates, it’s best suited for homeowners who plan to use most of their line immediately and can handle potential rate increases.

For most borrowers, Figure, Aven, or FourLeaf provide stronger options with more clarity and control.

How we rated loanDepot

We designed LendEDU’s editorial rating system to help readers find companies that offer the best home equity products. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared loanDepot to several home equity companies, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating, recapped below.