SoFi operates as an online mortgage lender and bank, providing banking, investing, and borrowing services. The company offers conventional, FHA, VA, jumbo, and HELOC mortgage products.
Key features include lengthy mortgage rate locks, free rate float-downs, and a close-on-time guarantee that provides up to $10,000 in credits for delayed closings. SoFi offers several loan options and term lengths.
The lender maintains a fully online presence with no physical branches. Applications are processed online or by phone. SoFi does not offer USDA or home equity loans and provides only purchase loans in New York, excluding mortgage refinances.
Available home loan types include purchase, conventional loan, fixed-rate mortgage, adjustable-rate mortgage, jumbo loan, FHA loan, VA loan, refinance, cash-out refinance, HELOC, and home equity loan. Unavailable loan types include USDA loan, interest-only mortgage, land loan, construction loan, guest house loan, investment property loan, non-qualified mortgage, energy-efficient loan, renovation loan, 1% down mortgage, buydown loan, bridge loan, manufactured home loan, piggy-back loan, ITIN mortgage, and medical professional loan.
First-time home buyers can access incentives such as a verified preapproval program, cash-back options, a 91-day mortgage lock, rate float-down options, and the close-on-time guarantee. Loan programs include conventional loans, FHA loans, and VA loans that require no down payment.
For home equity lending, SoFi offers HELOCs that function like credit cards, home equity loans providing lump sums, and cash-out refinancing that replaces existing mortgages. HELOCs and HELs allow borrowing up to 90% of home equity with a $500,000 maximum limit. HELOCs have a 10-year draw period with interest-only payments initially. Home equity loans are fixed-rate products.
SoFi charges no application fee but notes closing costs typically range from 2% to 5% of the total credit line, excluding certain lender fees.
The company advertises current rates and APRs for 10-, 15-, 20-, and 30-year fixed-rate loans, assuming a $362,200 loan amount, 20% down payment, and $5,000 to $6,000 in discount points. Rates are updated daily. Users can view tailored rates through a soft credit pull that doesn't affect credit scores.
Yahoo Finance analyzed 2024 Home Mortgage Disclosure Act data from nearly 5,000 mortgage companies to score lenders on issued mortgage rates and total loan costs using a 1 to 5 scale. SoFi received a 2 out of 5 stars for home loan rates and 3 out of 5 stars for total loan costs. In 2024, SoFi offered a higher-than-median mortgage rate of 6.625% and a near-median total loan cost of $5,275.852.
The mortgage application process is fully digital, including for HELOCs, though loan officers are available by phone. Prequalification with interest rate estimates takes minutes using a soft credit pull. Full preapproval requires an application and financial documentation.
SoFi provides homebuyer tools including mortgage-related calculators, FAQs, a learning center, and a first-time home buyer guide.
Pros include great online features with calculators, FAQs, and educational articles. Cons include average total loan costs compared to other lenders, slightly higher mortgage rates, transparency issues where sample rates include significant discount points without point-free options, and so-so affordability with no down payment assistance or loans for nontraditional credit.
Compared to Better Mortgage, SoFi offers similar loan options and buyer incentives, with Better featuring a "one-day mortgage" and SoFi having a close-on-time guarantee and lengthy rate locks. Compared to Rocket Mortgage, both have comparable loan options, with Rocket offering a 1%-down mortgage, grants up to $7,500 for first-time buyers in 21 metro areas, closing cost credits with partner agents, and above-average customer satisfaction ratings from J.D. Power, while SoFi is not rated.
SoFi is a legitimate company originally named Social Finance, Inc., founded in 2011 by Stanford business students and based in Cottonwood Heights, Utah. Loan difficulty varies by type, with FHA loans typically allowing lower credit scores than VA and conventional loans.