SoFi Mortgage Review
SoFi is a U.S.-based direct mortgage lender with business offices in California and New York. This company also offers mortgage refinancing, personal loans, student loan refinancing, and private student loans. You can apply for a conventional or jumbo mortgage with SoFi. They don’t handle government-backed loans like FHA or USDA, nor do they offer sub-prime mortgages for people with credit challenges.
With SoFi, borrowers must have a stable income, decent credit scores, and a good debt-to-income ratio. This company works best for people who would easily qualify for a mortgage through a bank or credit union but prefer to go through the process online. The company offers comprehensive online educational resources for those who want to learn about the mortgage process and requirements.
|Mortgage amount||Conventional: up to $$484,350
($726,525 in areas with more
expensive real estate prices)
Jumbo: up to $3 million
|Repayment terms||Fixed-rate 180 months
Fixed-rate 360 months
Adjustable-rate 60 months
Adjustable-rate 84 months
|APR||30 year fixed: 4.67% APR
15-year fixed: 4.29% APR
7/1 ARM with 30-year term:
5/1 ARM (interest only) with 30-
year term: 3.912% APR
All rates here include 2 points due at closing.
|Minimum credit score||Conventional: 660
SoFi Mortgage Loans: Pros
- SoFi offers conventional loans without PMI requirements with a 10% down payment
- The streamlined online process minimizes paperwork
- SoFi members get a 50% discount on origination fees
SoFi Loans: Cons
- SoFi is not licensed to originate mortgages in all states
- Must live in the home or second home for at least 12 months
- No FHA, VA, or USDA loans
You can find out your interest rate right away by filling out a short questionnaire with your name, state, email, and a password you’ll use to retrieve your information. After submitting information about the location and type of home you hope to purchase, your citizenship status, employment, and income, SoFi will access your credit records and conduct a soft credit pull. You’ll receive an estimate of your interest rate in about two minutes. This isn’t a guarantee that you’ll get that rate if you decide to pursue a mortgage through SoFi.
Getting pre-approved takes a bit longer, but it’s still quick. You’ll need your tax returns, bank account statements, pay stubs, W-2 forms, and documentation showing your assets. A SoFi mortgage representative may ask for additional information or documentation, as well. The company conducts a hard credit pull with pre-approval, which may decrease your credit scores by a few points.
After receiving your pre-approval and interest rate, you can choose to lock the rate for 45 days as soon as you have a signed purchase contract indicating that your offer on a property has been accepted.
The entire mortgage application process is online with SoFi. Underwriters look over the information you’ve already submitted and ask for any additional documentation they need to help you get through the underwriting process. The property must qualify for the mortgage with a property appraisal unless it qualifies for a Fannie Mae Property Inspection Waiver.
Terms & Requirements
- Must be at least 18 years old
- Applicant and co-borrower must be a U.S. citizen or eligible permanent resident or non-permanent resident alien
- The property must be located in a state where SoFi is licensed to offer mortgage loans
- The property must serve as a primary residence or second home of mortgage applicant for at least 12 months
Mortgage terms depend on the borrower’s ability to qualify for the mortgage. SoFi only offers conventional and jumbo mortgages. The minimum credit score for a conventional SoFi mortgage is 660. The minimum credit score for a jumbo loan is 720.
Conventional loans require a maximum debt-to-income ratio of 50%, while jumbo loans restrict debt-to-income ratios to 43% or lower.
Borrowers can avoid paying private mortgage insurance premiums on a conventional loan through SoFi if they put at least 10% down. Other lenders typically require a 20% down payment to avoid PMI premiums. They require a 10% down payment for jumbo mortgage loans with no PMI.
Fixed-rate mortgage loan:
You can choose from a 15-year or 30-year mortgage with SoFi. The interest rate remains the same throughout the life of the loan. The interest rate depends on the applicant’s credit status, income level, and other debts.
Adjustable-rate mortgage (ARM) 5/1 or 7/1 loan:
You may get a lower interest rate with an ARM loan, but it could change after the introductory period of either five or seven years. SoFi offers ARM loans with five-year or seven-year terms. After five or seven years, the interest rate adjusts up or down a maximum of one time each year until the end of the loan.
If you choose a seven-year ARM loan, you’ll have to make a 10% down payment. A five-year ARM loan requires a 25% down payment. With a SoFi 5/1 ARM loan, borrowers pay only interest charges for the first ten years; then, they pay down principal for the remaining 20 years of the loan.
Jumbo mortgage loan:
Government-backed mortgage corporations Fannie Mae and Freddie Mac set conforming loan limits to $484,350. The limit is $726,525 in areas where real estate is more expensive. If you want a mortgage for more than that amount, you’ll need a jumbo mortgage loan. With SoFi, borrowers can get a jumbo mortgage loan up to $3 million.
Refinance mortgage loan:
Borrowers who have a minimum of 10% equity in their home may be able to qualify for a refinanced mortgage loan through SoFi. Applicants with an FHA or VA loan will have to get a conventional mortgage through SoFi since the company doesn’t offer these types of loans. While refinancing could help save money if you qualify for a lower interest rate or better terms than you have with your current mortgage, you’ll still have to pay closing costs, which could cancel out the savings in some cases.
Privacy & Security
SoFi has 2,372 customer reviews on Trust Pilot, with an average score of four stars out of five. Although the reviews are for any of SoFi’s services, which include many loan types, the company has a great overall reputation for solid customer service.
The company has an A- rating with the Better Business Bureau (BBB). It’s important to note that the Federal Trade Commission entered a Consent Order with SoFi for overstating potential interest rate savings with student loan refinance products. The case was resolved in February of 2019.
Home loans support staff is available via phone between 6 am and 6 pm pacific time Monday through Friday. General customer support is available via phone between 4 am and 9 pm pacific time Monday through Thursday and between 4 am and 5 pm pacific time Friday through Sunday.
SoFi promises not to saddle their borrowers with hidden fees. There are no pre-payment penalties with a SoFi mortgage, and a conventional mortgage requires just 10% down to avoid PMI premiums.
If you decide to become a SoFi member, you’ll save $500 on your refinance or mortgage loan. The company has a great reputation for customer service and offers competitive APRs on a variety of mortgage types. If you have good credit and are shopping for a conventional or jumbo loan, SoFi is worth putting on your shortlist of mortgage company possibilities.
One Letterman Drive, Building A, Suite 4700
San Francisco, CA 94129
222 Sutter Street, 8th Floor
San Franciso, CA 94108
375 Healdsburg Avenue, Suite 280
Healdsburg, CA 95448
860 Washington Street, 2nd Floor
New York, NY 10014
SoFi Terms Disclaimer: Before you apply for a SoFi Home Loan, we’d like you to be aware that not all loan programs are available in all states. Learn more at SoFi.com/legal. SoFi Home Loans are eligible for Primary or Second Home residences. SoFi Home Loans are subject to additional credit, income, property, loan amount and other eligibility restrictions and limitations. Not all borrowers are eligible to receive our lowest rates. Product, rates, benefits, terms and conditions are subject to change without notice. Learn more at SoFi.com/eligibility. Licensed by the Department of Business Oversight under the California Financing Law, license # 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636 (www.nmlsconsumeraccess.org).