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SoFi originates mortgage loans in 42 states and Washington, DC. Your SoFi membership can earn you discounts on your lender fees, but the lender’s mortgage offerings are limited, and you have to be willing to live at the property for at least the first 12 months.
Loan products offered | Conventional, Home equity, Refinance |
---|---|
Minimum credit score | Conventional: 620 |
Minimum down payment | 10% |
State availability | Not available in: AK, HI, MO, NH, NM, NY, SD, WV |
NMLS # | 1121636 |
Yes. SoFi has an Unemployment Protection Program, which allows you to pause repayments on any loan in three-month increments if you lose your job. This can cover up to 12 months over the life of any loan.
And more assistance could be available if your income has been hurt by the coronavirus outbreak. “SoFi home loan members can request hardship relief online by accessing their home loans account and selecting Manage account from their home loans card,” SoFi CEO Anthony Noto tells Finder.
To be eligible for a mortgage loan through SoFi, you must be:
Ultimately, your loan eligibility depends on your creditworthiness, income, employment status and property eligibility. Any loan with a loan-to-value (LTV) over 80% requires private mortgage insurance (PMI).
Required documents and information varies slightly by the loan type you’re interested in, but in general you need to supply:
SoFi charges lender fees, but you’ll save $500 if you become a SoFi member.
In addition to lender fees, you are responsible for any third-party costs associated with buying or refinancing a new house, like getting an appraisal of the home, taking out a homeowners insurance policy and paying taxes.
To apply for a mortgage loan, start by viewing the interest rates available to you and get preapproved.
SoFi doesn’t currently offer specialty loans, but it may expand its mortgage offerings in the future.
Sofi doesn’t offer government-backed FHA, VA or USDA mortgages, but in addition to typical 15- and 30-year fixed-rate mortgage terms, the lender allows you to customize your loan by offering 10- and 20-year terms.
As of December 2020, SoFi has an A rating with the Better Business Bureau (BBB) for closing 165 complaints over the past three years, and it earned 1.68 out of 5 stars from customers based on 115 customer reviews. The lender fares much better on Trustpilot, where it gets 3.5 out of 5 stars based on reviews from 2,494 users.
Customers who like SoFi comment on the ease of applying online and the friendliness of customer service experts. But frustrated customers report difficulty being approved and applications that cite missing documents but don’t clarify what documents the borrower needs to upload.
A SoFi mortgage can be ideal even for applicants with high student debt, given SoFi’s relaxed debt-to-income limits and underwriting. But you’ll find other advantages over traditional lenders.
SoFi’s minimum mortgage loan starts at $100,000, which could be more than you need in some markets. Keep an eye out for a few other drawbacks as well.
Social Finance, known more commonly as SoFi, is a relatively new lender that got its start funding and refinancing student loans. In 2015, the company started offering mortgages, along with several other financial products.
In 2017, the company was heavily covered by the press as it faced a sexual harassment lawsuit centered on the behavior of its then-CEO Mike Cagney. The company replaced Cagney with a new CEO, Anthony Noto, and has stayed relatively scandal-free since.
In 2019, SoFi was accused by the Federal Trade Commission of falsely advertising how much customers can save by refinancing. There was no fine or monetary settlement, but the lender is required to make sure all of its future advertisements are fair and honest.
Review by
Heather Petty is a writer at Finder specializing in banking, investments and insurance. She's a self-proclaimed word nerd who worked as a technical writer and editor for the casino systems industry and is an internationally published young adult mystery author. Heather earned a bachelor’s degree in English from the University of Nevada, Reno.
If you’re looking to refinance with low rates with an online lender, SoFi delivers with its regular and cash-out refinancing options. But if you need a low down payment option, compare other lenders.