SoFi Mortgage Review
Rebecca, a freelance editor for LendingTree, is a marketing and content specialist who has worked in the personal finance space since 2017. A graduate of Millersville University of Pennsylvania, she received a degree in English with a minor in journalism. As a Taurus, Rebecca struggles with budgeting and tends to live by a “treat yourself” mindset. She’s working on it.
SoFi at a glance
 | Minimum credit score: 620 Minimum down payment: 3%-5% Available loan products and programs: Conventional, Jumbo, Home equity, VA |
Our verdict: SoFi will best serve buyers who want a fixed-rate conventional or jumbo loan, especially if they’re searching for a loan term that other lenders may not offer.
| Pros | Cons |
|---|---|
Several loan term options: choose from 10-, 15-, 20- or 30-year terms Cash-out refinancing and HELOCs also available Many types of financial services available under one roof, including personal loans, student loans, credit cards, insurance and investment products | No adjustable-rate purchase options No customer service access on weekends Not available in all states |
Social Finance Inc., which goes by SoFi, is an online personal finance company and lender founded in 2011 and based in San Francisco. The company began offering mortgages in 2014 and is now licensed to lend in 48 states and the District of Columbia.
SoFi’s mortgage products
Conventional
- Purchase mortgages with fixed 10-, 15-, 20- and 30- year loan terms are available with only a 3% down payment for first-time homebuyers or 5% down payment for other buyers.
- Rate-and-term refinances can help homeowners save on their monthly mortgage payments or shorten their loan term. Just be aware that Sofi can’t currently issue refinances in every state that it is able to issue purchase loans in.
- Cash-out refinances are available for homeowners who have at least 5% equity and want to use it to access cash.
Jumbo
- Jumbo home loans are offered to buyers in the market for high-priced homes. You’ll only have to put a minimum of 10% down, and no matter your down payment you won’t pay private mortgage insurance (PMI).
Home equity
- Home equity lines of credit (HELOCs) with SoFi are offered through a partnership with SpringEQ, which will issue the loan.
-
VA
- Military service members and veterans may be eligible for a loan backed by the U.S. Department of Veterans Affairs (VA). VA loans don’t require a down payment and are easier to qualify for than conventional loans. SoFi requires a minimum 600 credit score for their VA loans and won’t charge an origination fee.
SoFi mortgage rates and fees
Rates
SoFi does publish rates online, but they’re all based on a $325,000 loan with a 20% down payment. Rates aren’t customizable unless you enter a good deal of personal information, including your email address, phone number and residential address.
Compared to other large national banks, SoFi’s rates are quite competitive, and on average came in around 0.29 percentage points above the average prime offer rate (APOR) in 2022. The APOR is a benchmark rate that captures what is, in effect, the lowest APR a bank is likely to offer in the current market. Mortgage loans aren’t typically considered “higher-cost” until they reach 1.5 percentage points over the APOR.
Fees
The average total cost of taking out a mortgage with SoFi was $5,419 in 2022, according to data from the Federal Financial Institutions Examination Council (FFIEC). That included an average of $2,937 in origination fees.
| Mortgage rates published online? | |
| Rate information updated daily or weekly? | |
| Lender fees disclosed? |
SoFi application experience
You can begin the loan process by applying for prequalification online but, if you’re hoping to jump right in, know that you can’t apply for a SoFi mortgage online unless you first go through the prequalification process.
If you choose to proceed with a loan, expect to meet in person for your closing — SoFi doesn’t offer any electronic or remote notary closing options.
How to boost your loan approval odds
SoFi doesn’t publish the exact minimum requirements it uses to approve or deny your application. However, based on nationwide data from 2022, we can say that SoFi approved customers who — on average — had a 71% loan-to-value (LTV) ratio or better. Most had a debt-to-income (DTI) ratio below 40%.
In that same year, SoFi denied about 65% of its mortgage applications. That’s high when compared with other large, national mortgage lenders. For comparison, many large lenders have denial rates that range from the low teens up to the mid-thirties.
SoFi’s customer service experience
SoFi’s customer support is accessible through a variety of channels including phone, email and chat. But if you expect to need help outside of weekdays, or in the later hours of the day, SoFi might not be for you. You won’t be able to reach anyone on the weekends, and chat support is only manned during the same hours as the phone lines: 6 a.m. to 6 p.m. PT, Monday through Friday.
How does SoFi compare to other lenders?
| SoFi | Lower Mortgage | Better Mortgage | |
|---|---|---|---|
| Lender rating | |  | |
| Minimum credit score | 620 | 500 | 620 |
| Minimum down payment | 3%-5% | 0% to 3% | 0% to 3.5% |
| Loan products and programs |
|
|
|
| Rate spread* | 0.29% | 0.72% | 0.14% |
*Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) each lender offered to mortgage customers in 2022. The higher the number, the more expensive the loan.
How we rated SoFi
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
SoFi’s scorecard: 5/5
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application