SoFi Mortgage Review: A Seamless Online Application Experience

SoFi is an online bank, lender, and robo-advisor that wants to be your one-stop shop for finances. One way it makes its menu of products available is by offering relationship discounts on home loans to eligible borrowers. SoFi customers also get exclusive perks, some of which carry a high price tag elsewhere. A SoFi Mortgage is a great choice for borrowers who are excited about taking advantage of SoFi's benefits.

Take a look at our SoFi Mortgage review to learn more about whether this is the best mortgage lender for your next home loan.

Full SoFi Mortgage review

This lender is a good fit for: Current SoFi customers who can take advantage of relationship discounts.

Top perks

Member benefits

SoFi Mortgage offers its mortgage borrowers and account holders various benefits, though eligibility varies depending on the benefit:

• Fee discount: Eligible SoFi members (current borrowers or investing clients) can get a one-time discount of $500 off processing and fees. One way to become eligible for reduced lender fees is to already have a personal loan with SoFi. Another way is to maintain a minimum balance in a SoFi Invest account. If you are a SoFi customer, check with the lender to see if you qualify for the member discount.
• Other financial benefits: Members can get a rate reduction on a future loan (not a mortgage), plus exclusive invitations and discounts on products, services, and experiences. Home loans are not eligible for rate discounts.
• Professional guidance: Members get free access to financial advisors.
• Community: Members get access to a private community.
• Rate discount: If you submit a fully executed purchase contract within 30 days of locking your rate, SoFi Mortgage will take one-eighth of a percent off your mortgage interest rate.

Online application

The SoFi Mortgage application is fully online and can connect to other financial institutions to get some of your required documentation (like account statements) automatically.

Custom rate available with soft pull

If you enter your personal information, you can get a custom SoFi Mortgage rate quote based on your credit profile. This does not result in a hard inquiry on your credit report or any damage to your credit score.

Low down payment mortgage options

SoFi Mortgage offers a 3% down payment mortgage to first-time homeowners, and a 5% down payment mortgage to all other borrowers. (If your down payment is less than 20%, you'll need to pay for private mortgage insurance (PMI).

What could be improved

Limited loan options

SoFi Mortgage covers the basics, but doesn't offer a wide selection of mortgages.

Rate lock fee

SoFi Mortgage offers a 90-day rate lock to borrowers who are pre-approved for a conventional (not government-backed) purchase loan, but may charge a fee. A fee-based rate lock makes it harder to shop around and compare loan officers. Many other lenders offer a free rate lock. Opt in to SoFi Mortgage's rate lock only if you've already researched loans and you're sure you don't want to consider other lenders.

Home equity loans

Some borrowers would prefer to tap their equity without refinancing their existing mortgage. SoFi is a HELOC broker. It'll help you borrow against your equity but it doesn't actually make the loan. It'll refer you to a third party.

How to qualify

To get a home loan from SoFi Mortgage, you must be a U.S. citizen or eligible resident alien and live in one of the 49 states (plus the District of Columbia) where SoFi Mortgage lends. SoFi Mortgage does not make loans in Hawaii.

You'll need a credit score of at least 620 to qualify with SoFi Mortgage. Your recent credit history should be free of late payments, unpaid collection accounts, bankruptcies, foreclosures, and short sales. If you have any of these derogatory items on your credit report, talk to a loan officer to find out whether a waiting period applies before you are eligible for a new mortgage.

The pillars of your mortgage application are DTI (debt-to-income ratio), credit score, and down payment (or equity if you're doing a refi). If any of those is weak, you need to make stronger showings in the other two. Ideally, your DTI should be under 36%, but don't worry too much if it's higher. In some cases, a well-qualified borrower (with a credit score over 670) with a DTI as high as 50% may qualify for a conventional loan at SoFi Mortgage.

When you're ready to officially start the loan process, you must provide all the standard documentation required by mortgage lenders, including the following, at a minimum:

• Last 1-2 years' tax returns, including W2s and/or 1099s
• Last 1-2 months' bank statements
• Last two pay stubs
• Proof of identity
• Proof of insurance

You can get a SoFi home loan for primary or secondary homes or for investment properties.

How are SoFi Mortgage's refinance rates?

SoFi's mortgage refinance rates are in line with the national average. To get the lowest advertised rate, you'll have to buy mortgage discount points. That's normal for most mortgage lenders. Also, the $500 member discount does apply to eligible refinance borrowers.

How are SoFi Mortgage's rates compared to the national average?

SoFi Mortgage's rates are in line with national averages. When we checked, the interest rate for a 30-year fixed-rate mortgage looked slightly lower than the competition, but again, you'll pay for mortgage discount points if you want the lowest rate. Points are prepaid interest. In exchange for the fee, the mortgage lender permanently reduces the interest rate on your loan.

SoFi Mortgage is right for you if:

You currently have a loan or investment account with SoFi. You could save money through its member discount.

You're someone who will appreciate the fully online application process. SoFi makes it easy to apply for your mortgage and submit all of your documents electronically.

You want to join SoFi. Members get free access to credentialed financial planners, estate planning services, plus other benefits. These are great perks you probably won't find with other mortgage lenders.