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SoFi Mortgage Review
Are you looking for an easier way to receive a mortgage? Then, SoFi might be the right fit for you. Launched in 2011, SoFi has quickly become the go-to online lender for borrowers of all types. When you apply with this lender, you can receive a pre-qualification for a SoFi mortgage in just two minutes.
If you receive pre-approval, you have a plentiful selection of mortgage options available through this lender. You can choose between 10, 15, 20 and 30-year fixed rate loans, allowing you to discover the best fit for your needs.
SoFi works best for those who can make a sizable down payment, as this lender requires 10% at closing. However, the lender also offers a $500 discount on closing costs for eligible members, and with mortgage advisors standing by to guide you along the way, you will find the process as smooth as ice.
To see how the lender compares to other mortgage companies, we used our SimpleScore method. SimpleScore compares lenders based on loan amounts, terms, interest rates, transparency, and fees. This, along with our SoFi review, will help you decide if it is the right choice for you.
SoFi Mortgage at a glance
|Been in business since||2011|
|Customer service based in||United States|
|Down payment required?||Yes, 10%|
|Mortgage terms||10, 15, 20 and 30-year fixed-rates|
|Offers government-backed loans (FHA, VA)||No|
|Discounts?||Eligible members receive $500 off closing costs|
What we like about SoFi
Easy application process
SoFi makes it easy to apply for a mortgage online. You can pre-qualify in as little as two minutes on the website. When you apply for prequalification, you can choose the loan terms that work best for you.
The whole prequalification process is online, giving you the ability to do everything quickly and from the comfort of your own home. If you need help at any time, this lender has mortgage advisors who are ready to assist you.
Many borrowers receive low rates with this lender. While the rates vary depending on the type of mortgage you want, as well as your credit and financial picture, having to make a down payment of at least 10% helps lower your total loan costs.
Discount on closing costs
If you’re a SoFi member, you’ll benefit from that relationship. Joining SoFi entitles you to its member perks. One of the best perks for home borrowers is the $500 discount you receive off mortgage fees if you have at least $50,000 in an investment account with SoFi or you have a personal or student loan with them.
SoFi makes it easy to find the best mortgage solution for your budget. With flexible terms like 10, 15, 20 and 30-year fixed options, you can find a repayment solution that allows you to maximize savings while staying budget-friendly.
Things to consider
10% down payment required
SoFi requires its members to put down 10% on their mortgage. For some households, this will not be an affordable option, especially compared to other mortgage solutions that do not require as much upfront on the loan.
No government-backed loan options
SoFi doesn’t offer any government-backed loans, including FHA and VA loans. These low-cost loans are popular with first-time homebuyers, making SoFi a less than stellar option for those seeking this type of loan.
SoFi vs. the competition
SoFi vs. Truist
When it comes to lender reviews, Truist earns a higher SimpleScore than SoFi for several reasons. For starters, Truist has a lower down payment requirement than SoFi, and Truist applicants can pay as low as 3% down. Truist also scores well in J.D. Power’s customer satisfaction ratings, earning a 4 out of 5 for the rating — so it’s not only easier to come up with the down payment, but you’ll also get excellent customer service from Truist, too. You’ll get the same easy application process with Truist, too. Learn more about Truist by reading our Truist review.
SoFi vs. Rocket Mortgage
Both lenders allow you to complete all your paperwork online, so SoFi and Rocket Mortgage are on even footing when it comes to the application processes. Where Rocket Mortgage stands out, though, is the JD Power rating for customer service. This rating shows Rocket Mortgage is the gold standard, receiving a 5 out of 5 rating.
Rocket Mortgage also has a lower down payment requirement, with some customers putting down as little as 3% in some instances. and Rocket Mortgage’s minimum credit score is a little lower too at 620.
SoFi vs. New American Funding
While SoFi is good for some borrowers, New American Funding is a better fit for borrowers who have experienced credit problems in the past and need a home loan. New American Funding only requires 3% down while SoFi requires 10%, so it’s not only easier to get a loan through New American, but it’s also easier to afford the down payment.
One thing to consider is that New American Funding deals with higher risk loans, which means the interest rate could also be higher than what SoFi charges. You can read more about New American Funding review.
How much does a SoFi mortgage cost?
The benefit of being a SoFi member is that you won’t be charged loan origination fees or prepayment penalties for paying off the mortgage early. You will, however, be required to pay the rest of the typical closing costs on your loan. If you have a personal loan or investment account of at least $50,000 with SoFi, you receive $500 off mortgage fees, which makes this loan cheaper than many of the alternatives.
Cheaper alternatives to SoFi mortgages
Several lenders offer more affordable loan terms than SoFi. Chase has mortgage rates as low as 2.821% APR on a 30-year fixed-rate mortgage, which is incredibly low for a mortgage loan. New American Funding also offers terms starting as low as 2.940% APR.
Along with rates, the fees lenders charge is of utmost importance. SoFi charges a processing fee of $1,000. However, you could receive a $500 discount if you are a member with student loan debt or an investment account.
Meanwhile, Bank of America also offers its preferred members a sizable discount, and they could get a reduction of between $200 to $600 for a mortgage loan origination fee. For comparison’s sake, Chase charges around 1% of the total balance for its mortgage loan origination fee. If you have a $200,000 mortgage, you would pay a $2,000 origination fee — which is higher than what you’d pay with SoFi or Bank of America if you were able to get a discount.
SoFi in the news
- SoFi recently unveiled a new credit card that offers a double cashback bonus if you plan to save, invest or pay off a SoFi student loan.
- The U.S. Office of the Comptroller of Currency conditionally approved SoFi’s application for a national bank charter. While the application still needs final approval from the FDIC, it is another step closer to SoFi being able to offer their services without a need for a partner bank.
- SoFi entered into an exciting partnership with Honda Scouting Grounds. The League of Legends event will provide each participant with a $250 investment account from SoFi. And with SoFi Money Moves, the brand is on all the event’s replays.