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.

Best for Member Benefits – SoFi

Getting a mortgage with SoFi is like joining an exclusive club. Membership has plenty of perks, but you have to bring a lot of money to the table. A solid lender option for SoFi members who already invest in other banking products with this lender.

Term
N/A
Min. Credit
660
Min. Down Payment
10%
SimpleScore
3.5 / 5.0
close
SimpleScore SoFi 3.5
Perks 2
Credit Impact 5
Customer Satisfaction N/A
Product Variety 3
Fees 4

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In this article

    SoFi Mortgage at a glance

    Been in business since2011
    Customer service based inUnited States
    Down payment required?Yes, 10%
    Mortgage terms10, 15, 20 and 30-year fixed-rates
    Offers government-backed loans (FHA, VA)No
    Discounts?Eligible members receive $500 off closing costs

    Read: Here’s How APR Affects Your Mortgage 

    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.

    Low rates

    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.

    Flexible terms

    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.

    Read: What Home Insurance Discounts Are Available?

    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. For example, New American Funding offers terms starting as low as 2.81% 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.

    Read: How to Calculate Your Mortgage

    SoFi in the news 

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    Sean Jackson

    Contributing Writer

    Sean Jackson is a creative copywriter living in Florida. He’s had work published with Realtor.com, theScore, ESPN and the San Francisco Chronicle. In his free time, Sean likes to play drums, fail miserably at improv and spend time at the beach.