SoFi Mortgage Review 2024

SoFi overview

SoFi has funded more than $7.5 billion in mortgages since it began offering them in 2014. The membership-based financial services company has more than 6 million members taking advantage of everything from credit cards to wedding loans. Those interested in and eligible for a mortgage can prequalify online in less than two minutes. The lender typically issues conditional approvals in one to two business days, with closings on purchases averaging 30 days.

Pros and cons of SoFi

How Bankrate scored SoFi

• Affordability: As an online lender, SoFi’s mortgage rates are very competitive (as of this review). Notably, you’ll pay a flat lender fee instead of a percentage-based fee. Depending on how much you borrow, this might mean you save some money.
• Availability: SoFi lends to borrowers in the majority of states in the U.S. It has limited mortgage options, however, and requires a higher down payment for a conventional loan (unless you’re a first-time homebuyer).
• Borrower experience: SoFi is a membership-driven company that does business primarily online, so you can expect convenience when working with this lender. You’ll need to become a member to take full advantage of some of its perks, however.

Affordability: 9.8/10

SoFi updates its 10-year, 15-year, 20-year and 30-year APRs daily on its website. These advertised rates assume you’re making a 20 percent down payment, however. To get loan offers tailored to you, you’ll need to provide some contact information and other details via an online form.

SoFi charges a $1,495 administration fee, according to a company spokesperson, but SoFi members get $500 off this cost. (Membership is free.) Note: You can lock in your rate with SoFi for 90 days at the time you’re preapproved. However, if you don’t enter into a purchase agreement by day 60 of the 90-day window, you’ll be subject to a $250 fee. This’ll be refunded at closing. On the plus side, if you do sign a purchase agreement by day 30 of the 90-day period, you’ll get a 0.125 percent further discount on your rate.

Availability: 10/10

SoFi is licensed to lend mortgages in most states and offers conforming and non-conforming (jumbo) conventional loans, FHA loans and VA loans. To qualify for a conventional loan, you’ll need a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 50 percent. If you’re an eligible first-time homebuyer, you can get a conventional loan for as little as 3 percent down. If it’s not your first home, however, you’ll need to put down 5 percent. For an FHA or VA loan, you’ll need a credit score of at least 600.

Borrower experience: 7.6/10

SoFi has been providing mortgages since 2014. While the company isn’t accredited by the Better Business Bureau, it does have an A+ rating from the organization, along with “Excellent” reviews from Trustpilot. SoFi is a digitally-focused company, and its mobile app is in the top 50 finance apps in the Apple App Store. You can complete the entire application for a mortgage online; there’s also a Home Loan Help Center with calculators, insights into local housing markets and other information to help with the home-buying process.

How to apply for a mortgage with SoFi

You can apply for a mortgage with SoFi online or by phone at 833-408-7634. Its business hours are Monday through Friday from 8 a.m. to 8 p.m. CT, and Saturday, 10 a.m. to 2 p.m. CT. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with SoFi

SoFi offers both rate-and-term and cash-out refinancing options. As with a home purchase loan, you’ll save $500 on the lender’s fee.

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability. Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%

  • Availability. Loan products - 50%; licensing - 40%; credit score - 10%

  • Borrower experience. Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.