SoFi Mortgage Review 2024: A Comprehensive Analysis of SoFi's Mortgage Offerings and Customer Experience

If your credit score is below 620, SoFi is an excellent lender option due to its low interest rates and approval of borrowers with scores as low as 600.

SoFi is an online lender that enables first-time homebuyers to put as little as 3% down and guarantees closing time with a $10,000 closing cost credit. Although SoFi doesn't have any physical branches, its website is user-friendly, and you can get prequalified online in minutes.

SoFi mortgage pros and cons

SoFi mortgage types

Sofi provides a range of mortgage options, including conventional, jumbo, FHA, VA, jumbo, and Fannie Mae and Freddie Mac mortgages in all states except Hawaii. However, it does not offer USDA loans.

• Fixed-rate mortgages provide borrowers with a consistent rate throughout the loan term. Sofi offers fixed-rate terms of 10, 15, 20, and 30 years.
• ARMs from Sofi come with a fixed rate for a specified time before adjusting at regular intervals. Sofi offers adjustable rate terms of 10/6, 7/6, and 5/6.
• These loans, backed by the Federal Housing Administration (FHA), require a minimal down payment of 3.5% for borrowers with a 580 FICO score or 10% for borrowers with a 500 credit score.
• This mortgage option is accessible to veterans and service members, who can apply without needing a down payment or private mortgage insurance.
• Jumbo loan: A loan exceeding the conforming limits of the Federal Housing Finance Agency is known as a jumbo loan. SoFi offers jumbo loans of up to $3 million.
• These mortgages, backed by Fannie Mae and Freddie Mac, require only a 3% down payment and have lower financing and PMI costs. To qualify, you must earn at least 80% of the area median income, have a credit score of 620, and a debt-to-income ratio of 50%.

How to qualify for a SoFi mortgage

• The minimum credit score for successful borrowing is 600, with an average score of 750.
• Minimum down payment: Conventional loans 3%, VA loan 0%
• The debt-to-income ratio (DTI) is the percentage of your monthly income used to repay debts. SoFi sets a maximum DTI ratio of 50%.

SoFi mortgage fees

• Discounted origination fee: $995 for existing SoFi customers.
• Prepayment penalty: Sofi does not charge a prepayment penalty
• Rate lock fees: No lock fee for up to 90 days
• An earnest money deposit, also known as good faith deposit, is a payment made by the buyer to demonstrate their commitment to purchasing. It is usually between 1% to 3% of the purchase price.

SoFi benefits and discounts

SoFi offers a variety of features that benefit homebuyers.

On-time closing guarantee

If your SoFi mortgage doesn't close on schedule, you may be eligible for a $10,000 credit toward closing costs.

HomeStory Rewards

You may earn a rebate of up to $9,500 when working with HomeStory, SoFi's partner real estate network, and closing on your new home.

Relationship discount

Qualified SoFi customers with a personal or student loan, a SoFi Money account, or a SoFi Invest account can receive a $500 origination fee discount.

SoFi mortgage refinancing

SoFi offers cash-out and rate-and-term refinancing, as well as closed-end second mortgages and home equity lines of credit. However, refinancing is not available in New York or Hawaii.

• Credit score: 600
• SoFi's preferred maximum DTI ratio is 50%.
• To refinance with SoFi, you should have 20% equity in your home.
• Home appraisal: A complete appraisal is necessary for most refinancing.

SoFi mortgage customer service

JD Power's 2023 mortgage origination and servicer satisfaction surveys did not include SoFi, but the online bank scored below average in the U.S. Direct Banking Satisfaction Study, which evaluates banks based on customer service, fees, trust, online account management, and money growth assistance.

While SoFi's AI-powered virtual assistant is available 24/7 to answer questions or connect you with a live agent during working hours, the Better Business Bureau gave SoFi an A+, its highest score, based on corporate transparency, truthful advertising, response to consumer complaints and other factors.

How does SoFi compare to other mortgage lenders?

Here's how Sofi ranks next to two other online mortgage providers.

SoFi vs. Rocket Mortgage

Rocket Mortgage has higher rates than SoFi, and it requires a higher FICO Score of 620 for conventional loan approval, while SoFi approves borrowers with a FICO Score of 600.

While SoFi requires at least 3% down on conventional mortgages, Rocket allows qualified homebuyers to put as little as 1% down.

Rocket offers several programs for lower-income homebuyers, including a $7,500 closing cost credit and the ONE+ mortgage. However, Rocket does not have a comprehensive range of banking services. If you prefer to have all your loans, checking, savings, investments, and other accounts in one place, SoFi is the better option.

SoFi vs. Better

Both Better and SoFi have similarities in many aspects: Both require a 3% down payment for a conventional mortgage and neither charge lender fees. Moreover, they both offer a maximum of $3 million for jumbo loans.

Better has better average rates but SoFi has more lenient credit requirements.

Neither JD Power's 2023 mortgage origination nor servicer surveys included Better or SoFi. However, SoFi received an A+ from the Better Business Bureau while Better was given an A-. Both companies offer incentives for working with their partner real estate networks, but SoFi's is more generous: using HomeStory could earn you up to $9,500 after closing, while finding your home through Better Real Estate only gets you a $2,000 rebate on closing costs.

While SoFi offers discounts and a closing-time guarantee for its customers, it does not have programs specifically designed for lower-income homebuyers. In contrast, Better provides a $5,000 closing cost grant to qualified homebuyers who earn 80% of the area median income.

How do I apply for a mortgage with SoFi?

Apply for prequalification on the SoFi website to begin the entirely online mortgage application process.

The preapproval process requires your Social Security number, photo ID, pay stubs, tax returns, bank account records, and other information. Additionally, you must specify the amount of money you plan to put down for a down payment.

During the underwriting process, SoFi will verify your documents and run your credit. However, it does not provide online closing, so you'll need to meet with a representative to finalize your mortgage.

If you have questions, customer service support is available via chat and by phone at 844-763-4466, Monday to Friday, 9 a.m. to 9 PM ET.

Is SoFi mortgage right for me?

If you're concerned about your creditworthiness when it comes to obtaining a mortgage, SoFi's more relaxed standards may make it the ideal option for you. With purchase mortgages available in all states except Hawaii, it also offers great accessibility.

If you require in-person assistance for the homebuying process, you should look into other options as SoFi is a digital-only platform.

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