SoFi was founded in 2011 and is headquartered in San Francisco, California. The financial startup has raised billions in funding and caters to early-stage professionals, providing student loan refinancing, mortgages, personal loans, wealth management, insurance, deposit accounts and business services. In 2023, SoFi acquired Wyndham Capital Mortgage, a leading fintech mortgage lender.
Since its humble beginnings as a startup, SoFi has gone public, with its shares trading on the stock market. The company has a plethora of conventional, fixed-rate mortgages with four different terms to pick from. In addition, its loan approval criteria is relatively forgiving compared to some major lenders.
|30 year fixed||6.89%||6.76%||+0.13|
|15 year fixed||5.97%||5.95%||+0.02|
|30 yr fixed mtg refi||8.02%||7.85%||+0.17|
|15 yr fixed mtg refi||6.06%||6.06%||0.00|
|7/1 ARM refi||7.63%||7.63%||0.00|
|15 yr jumbo fixed mtg refi||3.06%||3.10%||-0.04|
National Mortgage Rates
Regions Served by SoFi
Does SoFi Operate in My Area?
SoFi is licensed to issue mortgage and refinance loans in every state except for Hawaii; and can only issue mortgages for purchase in New York. SoFi is also licensed to issues mortgages and refinance loans in the District of Columbia.
What Kind of Mortgage Can I Get With SoFi?
Conventional fixed-rate mortgage: SoFi offers a variety of fixed-rate mortgages, including 10-, 20-, 15- and 30-year fixed-rate loans. This type of mortgage has the same interest rate over the life of the term. That means your monthly principal and interest payments stay the same. Remember that SoFi currently doesn't offer jumbo loans, so your loan size will need to be below the loan limit of the county you're purchasing a home in. For 2023, this limit is $726,200 in most counties, though limits can reach as high as $1,089,300 in wealthier areas.
Refinancing: If you have at least 5% equity in your home, you can apply for a refinance with SoFi. Keep in mind the company doesn’t offer FHA or VA loans, so you won’t be able to refinance those loans unless you’re switching to a conventional mortgage. Refinancing only makes sense if you qualify for a lower rate or more favorable terms. However, you’ll have to pay closing costs on the loan again.
Jumbo loans: These mortgages are available nationwide again after SoFi had suspended them temporarily during the coronavirus pandemic. If you’re purchasing a single-family home and your loan is larger than $726,200, you will need to apply for a jumbo mortgage. SoFi offers loans up to $3 million for qualifying borrowers. You can pre-qualify online with a minimum down payment of 10 percent.
Adjustable-rate mortgage (ARM): The interest rates on these are subject to changes based on market fluctuations. Although adjustable-rate mortgages have maximum interest caps, the fluctuation makes them a less stable option for borrowers. ARMs typically offer lower initial interest rates than fixed-rate mortgages do. SoFi has resumed offering ARM loans with fixed payments for five, seven and 10 years; and get adjusted every six months. The lender does not currently offer Interest Only ARM loans.
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What Can You Do Online With SoFi?
As you would expect with an online-based startup, SoFi has a robust digital experience. You can prequalify and get preapproved online, and you can complete the entire application process online from your home computer. In addition to applications, SoFi offers online homebuyer education with a PDF that covers topics ranging from how to budget for a mortgage to what to expect during the closing process.
For visual learners, there are a few brief videos that help you get a sense of SoFi as a mortgage lender. You can also find current rates for the offered loan terms.
There’s a detailed frequently-asked-questions section as well. The company has customer service hours from 6 a.m. to 3 p.m. PT, Monday thru Friday for home loans.
Would You Qualify for a Mortgage From SoFi?
For a conventional loan (under the 2023 standard jumbo loan limit of $726,200), SoFi requires a 620 credit score or better.
SoFi will closely consider your debt-to-income ratio (DTI), an important financial health marker. Again, these requirements differ depending on the type of mortgage you're applying for. As of the time of this writing, the maximum debt-to-income ratio SoFi allows on conventional loans is 50%.
Down payment size is the next consideration in the qualification process. SoFi offers mortgages with as low as 5% down, which opens the door for qualification to a lot more homebuyers than some other lenders. In fact, most lenders require 20% down unless you’re getting a government-backed mortgage, such as a VA, FHA or USDA loan, which SoFi doesn't have.
While you may not need as much in savings with SoFi as you would with another lender, you will need to have enough cash saved up to cover closing costs, homeowners insurance and the first few months of your mortgage, at the very least.
What’s the Process for Getting a Mortgage With SoFi?
Through SoFi, you can start by getting your rates in only a few minutes through a prequalification process. You sign up for an online login and proceed to the prequalification application right after. You’ll need to provide your personal contact information, citizenship status, current homeownership status, employment and income information and property details. In addition, you’ll need to specify details such as the property type and location as well as whether the loan is for a new property, refinance or cash out.
To get your rate, SoFi will run a soft credit pull. After you see if you qualify for a loan, and what rates you could get if you do, you can move forward to preapproval if you wish. Preapproval takes more time and is more in-depth than a prequalification. You’ll need documents such as your W-2, tax returns, pay stubs, bank account statements, assets and retirement documentation and any additional paperwork requested by SoFi mortgage representatives.
After preapproval, SoFi allows you to request a 45-day rate lock. Before you can do that, however, you need to show a signed purchase contract. That means you can lock a rate only after your offer on a home is accepted.
If you proceed with the home loan, SoFi will process and underwrite it, followed by a closing. That’s when you’ll sign final documents with your real estate agent and lawyer, and get the keys to your new home. SoFi is known for its fast processing times too, as purchases have been known to close in as fast as about a month.
How SoFi Stacks Up
While SoFi is still a fairly young lender, it’s well-funded and relatively transparent. You can find fees, rates and all the information you need online without having to call a representative or fill out a form, something many competitors require. The average lender processing fee at SoFi is $1,495.
That said, if you want to compare your government loan options, SoFi isn’t for you. The company doesn’t offer FHA, VA, USDA loans or any type of down payment assistance programs or other loan options for underserved homebuyers. The company’s target market is young professionals working in technology. That’s a population that generally doesn’t opt for government-backed options, so it’s clear who SoFi wants as a customer. However, it's also important to note that SoFi now offers mortgages on rental properties as well as primary residences.
If you’re looking for a lender that offers a wide array of options as well as online access, you might need to look elsewhere. Rocket Loans (Quicken’s online-only mortgage arm) is online-only with specialized government options like VA and FHA loans. Big bank lenders such as Chase or Bank of America allow you to choose whether you want to work with your loan officer online or in-person while offering a larger variety of loan types.
Tips to Narrow Down Your Mortgage Options
- Mortgages quickly become more understandable if you can take the time to figure out how long you want to live in your new home. By acknowledging that this will likely be either a long- or short-term committment, you'll find that a fixed-rate or adjustable-rate mortgage, respectively, would better suit you.
- A financial advisor can help you choose a mortgage that fits into your financial plan. SmartAsset free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.