LoanDepot is America’s second-largest nonbank retail originator, and it’s the fifth-largest national retail mortgage lender.
The company was founded in 2010 by mortgage industry innovator Anthony Hsieh whose goal was to create a straightforward mortgage experience for customers. It has physical locations in all fifty U.S. states and Washington D.C. with its primary headquarters in Foothill Ranch, California.
LoanDepot, as its name would suggest, specializes in providing loans for a wide variety people across the country. The company is particularly adept at helping customers easily become homeowners by enabling them to borrow money so that they can refinance their homes, purchase new homes, and build new homes. Additionally, LoanDepot offers Joint Venture (JV) options to support their various builder and realtor partners with diverse product offerings, industry leading technology, and powerful partnerships.
LoanDepot physician mortgage loan program details
Among its regular home purchasing and refinancing loan options, LoanDepot has a doctor loan program that caters specifically to the needs of medical professionals. This program, known as the Physician Program, has options not only for practicing physicians, but also for residents and fellows, provided they close two months before their employment.
For fellows and residents, there are loan options of up to $2,000,000 that do not require private mortgage insurance (PMI). These options start at 95% for up to $1,500,000 without PMI, and go up to 80% for a $2,000,000 loan also without PMI. Practicing physicians are granted the same rates.
The loan comes at either fixed or adjustable rates, with fixed rates starting at only 5% down and gifts--including international gifts--allowed with a 5% personal funds minimum. Options are also available for purchase or rate/term refinance. Low reserves are required, and they may be 401K/retirement. Additionally, 1099 income is accepted, providing you have a year’s with of taxes showing a similar qualifying income. As a bonus, student loans may be excluded if you’ve deferred for more than twelve months.
Single family and condominiums are allowed under this program, but townhouses and second homes are typically not permitted.
Among those who qualify for LoanDepot’s program are included Doctors of Dental Medicine (DMD), Doctors of Dental Surgery (DDS), Medical Doctors (MD), Nurse Practitioners (NP), Optometrists (OD), Doctors of Osteopathic Medicine (DO), and Doctors of Podiatric Medicine (DPM).
Pros of financing your home with LoanDepot
National company with many locations
Unlike most other lenders, LoanDepot is equipped to operate across all fifty states and the District of Columbia. This makes it an excellent option for many people who want the security of a larger lending company without possibly needing to leave their state to conduct in-person business.
No private mortgage insurance required
LoanDepot, like many other physician mortgage lenders, doesn’t believe in charging their customers extra money to take out home loans. Traditional home loans are more likely to require the insurance as a safety precaution for themselves in the event that the borrower ceases payments, but this insurance can end up costing people approximately 20% of the total cost of their homes. This prevents them from being able to pay their homeloan debt off more quickly and keeps them from being able to invest that same cash in their futures, whereas loanDepot doesn’t require PMI, thereby allowing their clients to use that money to repay hefty school debts or make faster headway into loan repayment and investment options.
Options for non-physicians
LoanDepot, like many other lenders with doctor loan programs, offers options for a range of doctors from medical professionals to dentists and more. But where LoanDepot differs is that they don’t limit themselves to only providing discounted, tailored loan rates just for doctors. Instead, they offer options for other medical professionals like nurse practitioners (NP) so that they, too, are able to successfully navigate the home buying or refinancing processes.
High rate of customer satisfaction
Across various loan review sites, customer satisfaction is relatively high for LoanDepot, especially in comparison to other physician loan programs. Bankrate lists LoanDepot at a 3.9/5, NerdWallet lists them at 3.5/5, and even the Better Business Bureau ranks the lender with an A+for customer satisfaction and a 3.77/5 from more than 1,500 customer reviews..
Cons of financing your home with LoanDepot
Limited housing options
While other lenders offer physicians the option to use doctor loans to pay for townhouses, second homes, or even the construction of new homes with construction-to-permanent loans, LoanDepot does not. In fact, the company lists only two housing options that their loan can be used for: single-family homes or condominiums. This can be very limiting if a physician is in need of alternative housing solutions.