Easy online lender, but few mortgage types

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Types of loans offered

Compliant, jumbo, fixed rate mortgages

Types of loans offered

Compliant, jumbo, fixed rate mortgages

Benefits
  • Easy to use
  • Multiple tenure options
  • Member benefits available to past customers
The inconvenients
  • You must create an account to see the personalized rates
  • Does not offer government guaranteed loans
  • No adjustable rate options
  • 3% down payment is only available to first-time home buyers – others must pay at least 5% down payment
More information
  • Mortgage lender online only
  • Does not offer mortgages in Hawaii, Missouri, New Mexico, New York or West Virginia
  • This lender does not accept alternative credit data
  • Minimum credit score and down payment shown are for conforming mortgages. The 3% down payment option is only available to first-time homebuyers; other borrowers must put a minimum of 5% down.

Overall Lender Rating

Advantages and disadvantages

SoFi Mortgage Interest Rates and Fees

SoFi displays a small sample of interest rates on its main “home loans” page. To access it, hover over the “products” menu at the top left of the page. These sample rates are based on a mortgage amount of $325,000 and a 20% down payment.

Your own rate will depend on a variety of factors, including your credit score and the amount you plan to pay. If you want to see personalized rates based on your financial situation, you’ll need to create an account, in which case SoFi will do a soft extraction of your credit (meaning your credit score won’t be affected).

SoFi charges a loan processing fee of $1,495, which is what you pay for the service of having SoFi originate your mortgage. Most mortgage borrowers will pay some lender fees, such as loan processing fees, as part of their closing costs, regardless of the lender.

If you have already obtained a personal loan or student loan from SoFi or have a minimum balance of $50,000 in your SoFi Invest account, you may be able to get $500 off your loan processing fee on your first SoFi mortgage. That means you would only pay $995.

SoFi Mortgage vs. Better.com

Better.com has a few more mortgage options than SoFi, including FHA mortgages and adjustable rate mortgages, also known as ARMs. SoFi’s mortgage options are limited to conventional fixed rate mortgages, including conforming and jumbo mortgages.

When it comes to mortgage term options, SoFi has a slight advantage over Better.com: SoFi offers 30-year, 20-year, 15-year, and 10-year terms on their mortgages, while Better.com only offers terms of 30 years. , 20 years and 10 years. Since 15-year terms are relatively popular, borrowers looking for a shorter term might prefer SoFi over Better.com.

When it comes to closing costs, Better.com’s lack of loan fees gives it an edge over SoFi’s $1,495 loan processing fee. Keep in mind, however, that lender fees are only a small part of your closing costs, and you will have to pay closing costs regardless of which lender you choose.

Since these lenders are so similar, it may ultimately come down to which lender has the specific mortgage you are looking for. If both lenders meet your needs, you might want to consider getting pre-approved with SoFi and Better.com to see which offers you a better rate.

Sofi Mortgage vs. Rocket Mortgage

Rocket Mortgage has relatively robust mortgage offerings compared to SoFi, offering FHA mortgages, VA mortgages, and a few different ARM options. With its government-backed mortgage options, Rocket Mortgage might be a better choice for borrowers looking for a more affordable price or easier qualifications — FHA mortgages, for example, typically allow for lower credit scores and down payments as low as 3.5%.

Jumbo mortgage borrowers might prefer SoFi’s slightly higher borrowing limits: SoFi will approve jumbo mortgages up to $3 million, while Rocket Mortgage’s jumbo option only goes up to $2.5 million. dollars.

How SoFi Mortgages Work

SoFi offers mortgages through an entirely online lending experience. SoFi lends in most of the United States, but does not originate mortgages in the following states:

  • Hawaii
  • Missouri
  • New Mexico
  • new York
  • West Virginia

SoFi offers conventional mortgages (both conforming and jumbo). You can also use SoFi to refinance your current mortgage, either with a rate and term refinance or a cash refinance. This lender does not offer government-backed mortgages such as FHA, USDA, or VA mortgages, and they only offer fixed rate mortgages.

When it comes to your down payment, SoFi allows first-time home buyers to put down as little as 3%. All other borrowers will be required to make a down payment of at least 5%.

When you get a mortgage from SoFi, you pay a loan processing fee as part of your closing costs. That fee is $1,495, though existing SoFi customers can get a $500 discount.

Some lenders allow you to apply with alternative credit data if you have no credit score or your current score is poor. Alternative credit data may include things like paid utility bills or your rent payment history. SoFi does not accept alternative credit data, making it a better choice for borrowers who have a traditional credit score of at least 620.

You can call, email, or chat online with customer service Monday through Friday from 6:00 a.m. to 6:00 p.m. PT.

Is SoFi trustworthy?

SoFi currently has a A+ rating with the Better Business Bureau. BBB ratings indicate the level of honesty a company has in its advertising, the transparency of its business practices, and the effectiveness of its response to customer complaints.

SoFi has been the subject of lawsuits in recent years, however, including a lawsuit filed by the Federal Trade Commission alleging that SoFi misrepresented the amount consumers could potentially save by refinancing their student loans with the company. SoFi paid the FTC fees in 2018.

More recently, SoFi is a defendant in a class action filed in 2020 claiming that SoFi unlawfully denies DACA recipients equal access to their loan products. In 2021, SoFi Wealth settled a Securities and Exchange Commission charge alleging that the company breached its


fiduciary

obligations when it transferred the assets of certain account holders into its own ETFs, which resulted in charges for many of these clients


capital gains

.

SoFi Mortgage FAQs

Are SoFi mortgage rates competitive?

SoFi’s posted rates are relatively low and competitive with other lenders’ rates.

However, your own rate will depend on a variety of factors, including those related to your personal financial situation. Raising your credit score, lowering your debt-to-equity ratio, and saving for a larger down payment are all ways to ensure you get a better rate.

Is SoFi a good mortgage lender?

If you’re looking for a lender with a simple online process, SoFi might be right for you. SoFi also has great reviews on its Zillow lender profile, with many customers praising the simplicity of the process and the excellent communication.

How long does a SoFi mortgage refinance last?

According to a 2019 article on his website, SoFi refinances typically close in less than 30 days. Refinances often take between a month and 45 days, so SoFi may have slightly faster closing times than competitors.