SoFi Mortgage Review
Kimberly has been a personal finance writer/editor, consumer credit expert, and financial literacy advocate since 2001. Tweet her @rotterwrites.
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SoFi (short for Social Finance) is a great fit for jumbo mortgage loan borrowers, and especially those looking for a more affordable low down payment mortgage. SoFi offers its members a large menu of exclusive benefits, including financial perks like rate reductions on future loans and unemployment forbearance options on some of its loan products.
SoFi also goes beyond just mortgage loans to provide its members with a suite of products to ease managing your money across banking needs under one roof. These additional core offerings include personal loans, investing, banking, and other wealth management services.
These additional offerings offset the downsides for some borrowers, as it offers just 15- and 30-year fixed-rate mortgages and a 7/1 adjustable-rate mortgage, including refinance options.
Our SoFi mortgage lender review will cover the pros and cons in more depth to help you decide if it's the best mortgage lender for your needs.
Best for: Jumbo home loans and online application SoFi Mortgage
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.
Fast prequalification, membership discounts, and a modern experience explain its top pick status. A potential fit for self-employed borrowers, based on SoFi’s nontraditional underwriting process that focuses less on credit history and more on income and assets.
Min. Credit Score
- N/A: Uses alternative data
Min. Down Payment
- Borrow up to $3mm
- No PMI offering
- $500 membership discount
- Fast prequalification
Fixed Rate Terms
- 30 year, 15 year
Adjustable Rate Terms
Jumbo loan advantages: A jumbo mortgage loan is one that exceeds conforming loan limits set by the government, currently $510,400 in most of the U.S. These SoFi mortgage features are designed to help jumbo loan customers:
- 10% down payment: Minimum down payment of 10% on loans of up to $3 million. This may be appealing to high earners whose income is too high for very low down payment programs and who need a large loan.
- No PMI on jumbo loans: Most lenders require private mortgage insurance (PMI) on any loan with a down payment of less than 20%. SoFi has no PMI requirement on jumbo home loans, even with a 90% loan-to-value ratio. (Non-jumbo loans with a loan-to-value ratio greater than 80% do still require PMI.)
Online application: SoFi offers digital mortgage applications and can connect to other financial institutions to pull some of your required documentation, like account statements, automatically.
Member benefits: SoFi offers its borrowers and account holders various benefits, though eligibility varies depending on the benefit:
- Mortgage fee discount: Eligible SoFi members (current borrowers or investing clients) can get a one-time discount of $500 off the $1,495 loan processing fee.
- Other financial benefits: Members can get a rate reduction on a future loan, plus exclusive invitations and discounts on products, services and experiences. Home loans are not eligible for the rate reduction.
- Professional guidance: Members get free access to financial advisors and personalized career advice.
- Community: Members get access to a private community
What could be improved
Low down payment options: SoFi does not participate in low down payment loan programs or down payment assistance programs. Even with a very low debt-to-income ratio (DTI) and an excellent credit score, you can't get a loan from SoFi without a 10% down payment.
Government-backed loans: Although SoFi caters to jumbo loan borrowers, it doesn't offer any government-backed loan products, including jumbo VA loans. In that program, the VA guarantees 25% of the purchase price up to conforming loan limits (currently $510,400 for a single-family home in most U.S. counties). Lenders who make jumbo VA loans then require a down payment equal to a percentage of the amount of the purchase price that exceeds the conforming loan limit. This makes for a very affordable jumbo loan, but it is not an option at SoFi.
Rate transparency: You can't view SoFi's current mortgage rates online. You have to enter personal information and allow the company to do a soft pull on your credit in order to see what rate you're likely to be offered.
Rate lock: SoFi does not offer an automatic rate lock, even to borrowers who complete a purchase loan application and are pre-approved by SoFi’s underwriters. Instead, SoFi will only consider requests for a 45-day rate lock after receipt of a signed purchase contract or fully completed refinance application. Since mortgage rates tend to change on a daily basis (or more often), the absence of a rate lock could make it harder to compare options when you shop around.
Home equity loans or home equity lines of credit (HELOCs): Some borrowers would prefer to tap their equity without refinancing their existing mortgage. SoFi refers home equity customers to a third party.
How to qualify
To obtain a mortgage from SoFi, you need to be a U.S. citizen or eligible resident alien and live in one of the 42 states plus the District of Columbia where SoFi lends. SoFi does not make loans in Alaska, Hawaii, Missouri, New Hampshire, New Mexico, New York, South Dakota, or West Virginia.
Your credit score should be at least 660. SoFi offers conventional mortgages to well-qualified borrowers (credit score over 700, more cash reserves) with a debt-to-income ratio as high as 50%.
You'll be asked to provide all the standard documentation required by mortgage lenders, including these, at a minimum:
- Last two years' tax returns, including W2s and/or 1099s
- Last two months' bank statements
- Last two paystubs
- Proof of identity
SoFi makes mortgage loans for primary and secondary homes only, not for investment properties. The property must be your primary residence or secondary home for at least 12 months after receiving the loan.
Alternatives to consider
If you need a loan with a lower down payment requirement, Bank of America could be the right fit. It participates in multiple low down payment programs, offers its own non-repayable down payment grants, and helps connect borrowers with other assistance programs. Bank of America's menu of services for borrowers with fewer resources is quite comprehensive. If you're considering a cash-out refinance, it also offers very low-cost HELOCs that are worth your consideration.
Rocket Mortgage by Quicken Loans is another lender that could make your shortlist. Quicken Loans offers a free 90-day rate lock (called RateShield) when your application is pre-approved. This rate lock has a float-down feature. That means if rates go down, you get the lower rate. But if rates rise, your rate is locked in and does not go up. Some borrowers will appreciate the security those 90 days will give them.
SoFi Mortgage is right for you if:
If you currently have a loan or investment account with SoFi, you could save money on a mortgage loan from SoFi, due to its member discount.
If you're a well-qualified applicant looking for a jumbo loan with a lower down payment requirement and lower ongoing costs, you'd also be a good candidate for a SoFi loan. The ongoing monthly savings on jumbo loan private mortgage insurance could add up to a significant amount of money in your pocket.