To say that SoFi (SOFI +1.95%) has grown impressively would be an understatement. Over the past three years, SoFi's membership base has grown by 142%, revenue has grown by even more, and the company is now consistently profitable.
A few major growth drivers have been responsible for the stellar recent performance. Personal loan originations have soared, and net chargeoffs have declined. The "loan platform business" that originates loans on behalf of third parties and provides referrals to partners has become a rapidly growing source of high-margin fee income. And the SoFi Invest platform has launched some exciting features, such as options trading and access to private companies. These are just a few examples.
One future billion-dollar revenue stream
For the time being, personal loans are by far the largest part of SoFi's lending business, accounting for about 77% of loan originations through the first three quarters of 2025. Student loans, the original loan type marketed by the company, is the second largest.
Image source: SoFi.
However, one part of SoFi's business that is overlooked, and shouldn't be, is home loans.
To be sure, I wouldn't call SoFi a major mortgage lender by any definition. The company originated about $2.3 billion in mortgages over the past three quarters. For context, Rocket Companies (RKT +0.66%) originated $32.4 billion during the most recent quarter alone.
NASDAQ: SOFI
Key Data Points
Although home loans aren't a big part of SoFi's business yet, it's tough to overstate what a massive opportunity this is. For one thing, the real estate market itself is still historically slow, as interest rates have remained high. Not only is home purchase activity slow, but refinancing is, too.
Second, as SoFi's member base grows, it creates cross-selling opportunities for other products, including home loans. In fact, in the most recent quarter, SoFi's home loan volume nearly doubled from $490 million to $945 million, so it's already seeing quite a bit of traction.
As rates (hopefully) come down over the next couple of years, and SoFi's ecosystem grows by millions of new members, it could create a perfect storm of home loan demand. SoFi could even replicate its personal loan platform and incorporate third-party mortgage originations and referrals. In a typical year, roughly $6 trillion worth of existing homes are sold in the United States. Plus, American homeowners are sitting on $35 trillion in home equity, the most in history. SoFi is well positioned for its home loan business to grow significantly in the years to come.
