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SoFi is a financial services company that aims to help its customers with every aspect of their finances. It offers personal loans, investing, banking, financial planning, mortgages, and more. SoFi customers have access to exclusive relationship benefits, which for some borrowers will offset the somewhat limited loan options. A SoFi mortgage is an especially good fit for a jumbo mortgage loan borrower looking for a more affordable mortgage with a low down payment.
Our SoFi mortgage review will cover the pros and cons in depth to help you decide if it's the best mortgage lender for your needs.
Best for: Jumbo home loans and online application
Rating image, 4.5 out of 5 stars.
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.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.
Bottom Line
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
- 10%
Key Features
- Borrow up to $3mm
- No PMI offering
- $500 membership discount
- Fast prequalification
Loan Types
- Conventional
- Jumbo
Fixed Rate Terms
- 30y, 15y
Adjustable Rate Terms
- 7/1
Full SoFi mortgage review
This lender is a good fit for: Jumbo loan borrowers. SoFi's jumbo loan has a low down payment requirement and no private mortgage insurance (PMI). SoFi mortgages are also great for current SoFi customers who can take advantage of relationship discounts.
Pros
- Jumbo loan perks
- Relationship discounts
- Member benefits
- Custom rate with soft credit inquiry
Cons
- Limited low down payment options
- No government-backed loans
- Rate lock is not automatic
Top perks
Jumbo loan advantages
A jumbo mortgage loan is one that exceeds "conforming loan" limits set by the government, currently at $548,250 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 up to $3 million. This may be appealing to high earners whose incomes are 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 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. (But non-jumbo loans with a loan-to-value ratio greater than 80% do still require PMI.)
Member benefits
SoFi Mortgage offers its borrowers and account holders various benefits, though eligibility varies depending on the benefit:
- Mortgage origination 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. 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 have a SoFi product, 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 and personalized career advice.
- Community: Members get access to a private community.
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.
What could be improved
Low down payment options
SoFi Mortgage offers just one low down payment loan program, and no down payment assistance. You can get a SoFi mortgage with 5% down, but you'll pay PMI on any conforming (not a jumbo) loan with a loan-to-value greater than 80%. That's true even if you have a very low debt-to-income ratio (DTI) and an excellent credit score.
Government-backed loans
SoFi Mortgage caters to jumbo loan borrowers. It does not offer any government-backed loan products, including the very affordable jumbo VA loan.
Rate transparency
You can't view SoFi mortgage rates online. You have to enter personal information and allow the company to do a soft pull on your credit to see what rate you're likely to get.
Rate lock
SoFi does not offer an automatic interest rate lock, even when the borrower completes a purchase loan application and is pre-approved by SoFi's underwriters. SoFi considers requests for a 45-day rate lock only after receipt of a signed purchase contract or fully completed refinance application. Since mortgage interest rates tend to change daily (or sometimes even more often), the absence of a rate lock could make it hard 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 are SoFi's refinance rates?
SoFi Mortgage does not publicly disclose its mortgage refinance rates. The $500 member discount does apply to eligible refinance borrowers.
How to qualify
To obtain a home loan from SoFi, you must 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.
Most conventional loan lenders want the borrower to have a credit score of at least 660. 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, 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. Well-qualified borrowers (credit score over 700, more cash reserves) with a debt-to-income ratio as high as 50% can get conventional loans at SoFi.
When you're ready to officially start the loan process, you must 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 pay stubs
- Proof of identity
You can get a SoFi home loan for primary or secondary homes or for investment properties.
Alternatives to consider
If you need a home 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 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 worth your consideration.
Rocket Mortgage by Quicken Loans is another lender that could make your short list. Quicken Loans offers a free 90-day interest rate lock when your application is pre-approved. This rate lock has a float-down feature -- if rates go down, you get the lower rate. If rates rise, your rate is locked in and does not go up. Some borrowers appreciate the security that comes with those 90 days.
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 a well-qualified applicant looking for a jumbo loan with lower down payment requirements and lower ongoing costs. The ongoing savings on jumbo loan private mortgage insurance could add up to a significant amount of money in your pocket.
Ready for mortgage pre-approval?
Getting pre-approved for a mortgage loan is an important step in the home buying process. Our experts recommend mortgage pre-approval before you begin looking at houses or deciding on a real estate agent.
About the Author
Kimberly is a personal finance writer/editor, consumer credit expert, and financial literacy advocate. She has lots of degrees and personal experience that make her really good at helping people separate the good from the bad in financial products and habits. She likes to roller skate. Tweet her @rotterwrites.
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