SoFi® Mortgage Review: A Seamless Online Application Experience
Review
Updated
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SoFi® Mortgage might be for you if: You are a current SoFi® customer who can take advantage of relationship discounts. Take a look at our SoFi® Mortgage review to learn more about whether this is the best mortgage lender for your next home loan.
Best for: Online application process
SoFi® Mortgage
Bottom Line
SoFi® has a complete digital mortgage and refinance application process. It offers membership discounts and a modern experience. It's a potential fit for self-employed borrowers, based on SoFi®'s nontraditional underwriting process that focuses on a combination of credit history, income, and assets.
Min. Credit Score
600
Min. Down Payment 0% VA loan 3% first-time borrowers 3.5% FHA loan 5% everyone else
Key Features
Loan Types
Fixed Rate Terms
Adjustable Rate Terms
It's important to consider multiple mortgage lenders to find a good fit for you. We've listed one of our favorite lenders below so you can compare your options:
| Lender | Min. Down Payment | Credit Score | Next Steps |
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Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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At Motley Fool Money, mortgages are rated on a scale of one to five stars, with five stars meaning "best." We primarily focus on rates and fees, customer service, and loan versatility. This includes factors like application process, customer service channels available, and a variety of loan products.
See our full methodology here: Ratings Methodology
I'm a mortgage writer and researcher for Motley Fool Money. I'm also a financial counselor. I've been through the mortgage process five times. It's my job to give you important details about the nation's most popular mortgage lenders so that you can make an informed decision in less time.
SoFi® Mortgage (NMLS#696891) is an online bank, lender, and robo-advisor. SoFi® wants to provide all essential financial services to its members. One way it makes its menu of products accessible is by offering member benefits, including discounts on home loans to eligible borrowers.
SoFi® customers 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.
SoFi® Mortgage's mortgage rates trend about the same as the national average. When we checked, the interest rate for a 30-year fixed-rate mortgage looked lower than the competition. But on a closer look, we saw that it came at a higher cost than what some other lenders charge.
SoFi®'s lowest rate costs two mortgage discount points. Points are prepaid interest. Each point costs 1% of your loan amount and gets you a small, permanent discount off your mortgage interest rate.
SoFi® Mortgage's refinance rates trend about the same as the national average. SoFi®'s mortgage refinance rates are in line with what other lenders charge, but you'll need to buy mortgage discount points to get a competitive rate.
SoFi®'s fees are competitive, especially for SoFi® members.
There is no fee to apply for a mortgage with SoFi®.
SoFi® charges a $1,495 origination fee ($995 for SoFi® members), and recommends borrowers get a loan estimate to get an idea of how much they will pay in closing costs.
In addition to the lender fee, borrowers may be responsible for paying the following fees:
The total amount of applicable fees depends on your location and transaction type. SoFi® estimates that closing costs for a refinance tend to range between $3,000 and $5,000.
Some lenders charge an origination fee equal to 1% or 2% (or more) of the loan amount. On a $300,000 mortgage, a 1% fee would be $3,000. In this light, even the nonmember fee at SoFi® is reasonable.
How you qualify: Meet all conditions and experience a closing delay.
What you get: SoFi® offers an on-time closing guarantee. A missed closing could cause you to lose your earnest money or your mortgage interest rate. If all conditions are met and your loan doesn't close on time, SoFi® will give you a credit of up to $10,000 that can be applied toward closing costs or expenses caused by the delay. The offer does not apply to all loans.
How you qualify: Use a HomeStory real estate agent -- this offer isn't valid on all loans or in all states. The SoFi® Real Estate Center can help you find a participating real estate agent.
What you get: Eligible SoFi® borrowers who use a HomeStory real estate agent can get cash back after closing. You can earn up to $9,500, but the average cash back reward is $1,700.
The reward amount is based on the value of the home that is being purchased or sold.
SoFi®'s reputation is very good, and customer reviews about the mortgage and refinance loan processes are overwhelmingly positive. That said, there isn't a mortgage lender this large that is fortunate enough to have 100% happy customers.
Like any other lender, SoFi® has mixed reviews online. Some reviewers said their mortgage process was quick, and their loan officer helpful and knowledgeable. Others were happy with the application process, but disappointed that their loan was sold soon after closing.
A few people have commented online that SoFi® could not get them the lowest mortgage interest rate. Now and then, SoFi® does make a mistake, and unhappy customers are typically faster to leave reviews than satisfied customers.
You can start the mortgage application online. The lender doesn't give an estimate of how long it takes to hear back for different types of approval, but says that its mortgage loan officers offer personal loan coaching and offer borrowers different options during their initial phone call.
Have these ready when it's time to apply:
You'll need a minimum credit score of 600. For some loans, the credit score requirement may be higher. Depending on the type of loan you want, you will need a down payment of 3%-5% of the purchase price (VA loans have no down payment requirement).
Stanford business school students founded Social Finance, Inc. in 2011. Originally, it was an alumni-financed lending system built for connecting recent graduates with local alumni. SoFi® caters to consumers who are younger and tech-savvy.
SoFi® started offering mortgages in 2014 and personal loans in 2015. In 2019, it launched two brokerage products: SoFi® Money and SoFi® Invest.
Some people have called SoFi®'s growth "meteoric." By 2020, SoFi® had 1 million members. In 2022 it was approved for a national bank charter, meaning it's allowed to operate as a full-service bank. Since then, SoFi® has grown to more than 8.8 million members and transformed from a fintech startup to a major player in the banking industry.
SoFi® Mortgage's rates are about the same as national averages.
Yes. SoFi® used to have more stringent qualification guidelines that shut out many borrowers. It has expanded mortgage loan options to include more borrowers at different incomes and credit score levels.
SoFi® Mortgage is a great choice for current SoFi® members or anyone who is interested in SoFi®'s exclusive member benefits. SoFi® Mortgage is also good for borrowers looking for a low down payment loan.
SoFi® Mortgage is a great choice for refinancing for current SoFi® members, or anyone who is interested in SoFi®'s exclusive member benefits, like loyalty discounts and free financial planning help.
Most borrowers need at least a 3% down payment and a 600 credit score. Also, your debt-to-income ratio should be below 50%. DTI is how much of your before-tax income you spend on debt payments and housing.
SoFi® Mortgage offers conventional fixed-rate purchase and refinance home loans. SoFi® Mortgage also offers investment property loans, FHA loans, and VA loans.
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