Non-bank lender LoanDepot, headquartered in both California and Texas, says it will now provide home equity products in addition to its current offerings. As such, the company claims to be the first marketplace lender to offer American consumers a choice of credit products through purchase and refinance home loans, unsecured personal loans, and now also home equity loans on one tech-enabled lending platform.
The announcement comes just two months after LoanDepot launched a platform for personal loans, which quickly gained market acceptance.
‘This is a substantial step forward for consumers and marketplace lending after the financial crisis. The delivery of a home equity product immediately following the launch of our personal loan product confirms the agility and scalability of our tech-enabled lending platform,’ says Anthony Hsieh, LoanDepot's CEO and chairman, in a release.
The company will now offer home equity products that incorporate the following: loan amounts ranging from $25,000 to $250,000 for cash-out financing or home purchase; up to 95% loan to value for certain borrowers and transactions; fixed terms up to 30 years; and no prepayment penalties.
LoanDepot says that by eliminating higher jumbo loan rates with its home equity product as a piggyback to a traditional home loan, borrowers can keep loan amounts under current agency limits, take advantage of historically low interest rates and decrease the down payment needed to purchase a home.