SoFi mortgage review 2024

SoFi has low interest rates and approves borrowers with scores as low as 600, making it an excellent option if your credit score is lower than the 620 required by most lenders.

We also love that this online lender allows first-time homebuyers to put as little as 3% down and that it guarantees your closing time with a $10,000 closing cost credit.

SoFi doesn’t have any physical branches, but it’s made sure its website is easy to use and that you can get prequalified online in minutes.

Sofi offers conventional, jumbo, FHA, VA, jumbo and Fannie Mae and Freddie Mac mortgages in all states except Hawaii. It does not issue USDA loans.

• Fixed-rate: With a fixed-rate mortgage, borrowers have the same rate for the duration of the loan term. Sofi offers fixed-rate terms of 10-, 15-, 20- and 30-year.
• Adjustable-rate: Adjustable-rate mortgages (ARMs) start with a fixed interest rate for a set period and then adjust at regular intervals. Sofi offers adjustable rate terms of 10/6, 7/6 and 5/6.
• FHA:  Backed by the Federal Housing Administration (FHA), these loans only require a 3.5% down payment for borrowers with a 580 FICO score or 10% for borrowers with a 500 credit score.
• VA: Veterans and service members can apply for this lower-rate mortgage without a down payment or private mortgage insurance.
• Jumbo loan: A jumbo loan exceeds the conforming limits of the Federal Housing Finance Agency. SoFi issues jumbo loans for up to $3 million.
• HomeReady and Home Possible: Backed by Fannie Mae and Freddie Mac, these mortgages require just 3% down and have lower financing and PMI costs. You should earn 80% of the area median income, have a credit score of 620 and a debt-to-income ratio of 50%.

• Minimum credit score: 600. The average score for successful borrowers is 750.
• Minimum down payment: Conventional loans 3%, VA loan 0%
• Debt-to-income ratio (DTI): The portion of your monthly income that goes toward paying off debts. SoFi requires a DTI ratio of 50% DTI or less.

SoFi offers a variety of features that benefit homebuyers.

On-time closing guarantee

If your SoFi mortgage doesn’t close on time you may be eligible for a $10,000 credit toward closing costs.

HomeStory Rewards

If you work with HomeStory, SoFi’s partner real estate network, you may earn a rebate of up to $9,500 after you close on your new home.

Relationship discount

Existing SoFi customers with a personal or student loan, a SoFi Money account or a SoFi Invest account with at least $10,000 can qualify for a $500 origination fee discount.

SoFi offers both cash-out and rate-and-term refinancing. It also offers closed-end second mortgages and home equity lines of credit — something not all lenders provide. Refinancing is unavailable in New York or Hawaii.

• Credit score: 600
• Debt-to-income ratio (DTI): SoFi prefers a DTI ratio of no more than 50%. 
• Home equity: You should own 20% of your home outright to refinance with SoFi
• Home appraisal: A complete appraisal is necessary for most refinancing. 

SoFi was not included in JD Power’s 2023 mortgage origination or servicer satisfaction surveys, but the online bank scored well below average in JD Power’s U.S. Direct Banking Satisfaction Study, which reviews banks on customer service, fees, level of trust, online account management and how they help customers move and grow their money.

The Better Business Bureau gave SoFi an A+, its highest score, based on corporate transparency, truthful advertising, response to consumer complaints and other factors.

SoFi doesn’t have customer service for mortgage applicants on the weekends but SoFi’s AI-powered virtual assistant is available 24/7 to answer questions or connect you with a live agent during working hours.

Here’s how Sofi ranks next to two other online mortgage providers.

SoFi vs. Rocket Mortgage

If cost is your main consideration, SoFi has lower rates than Rocket Mortgage. It also approves conventional loans for borrowers with a FICO Score of 600, lower than Rocket’s 620.

If you’re more concerned about the down payment, however, Rocket takes the lead: Qualified homebuyers can put as little as 1% down, while SoFi requires at least 3% on conventional mortgages.

Rocket also has several programs that benefit lower-income homebuyers, including a $7,500 closing cost credit and the ONE+ mortgage.

But while Rocket has emerged as a leader in the mortgage industry, it lacks a full roster of banking services. If you like having your loans, checking and savings, investments and other accounts all in one place, SoFi is the better choice.

SoFi vs. Better

Better and SoFi line up fairly closely in many regards: Both require a 3% down payment for a conventional mortgage and neither requires lender fees. In addition, they both max out at $3 million for jumbo loans.

Better has better average rates but SoFi has more lenient credit requirements.

Neither Better nor SoFi were included in JD Power’s 2023 mortgage origination or servicer surveys, but SoFi received an A+ from the Better Business Bureau while Better was given an A-.

While both offer incentives for working with their partner real estate networks, SoFi’s is more generous: If you use HomeStory, you could earn up to $9,500 after you close. Finding your home through Better Real Estate, however, only gets you a $2,000 rebate on closing costs.

While SoFi has discounts for existing customers and a closing-time guarantee, it doesn’t have programs for lower-income homebuyers. Better offers a $5,000 closing cost grant to qualified homebuyers who make 80% of the area median income.

SoFi‘s mortgage application process is entirely online. Start by making an account on the SoFi website and applying for prequalification.

Next, you’ll move on to the preapproval process: You’ll need your Social Security number, a photo ID, pay stubs, tax returns, bank account records and other information,. You’ll also need to indicate how much money you intend to put down for a down payment.

SoFi will run your credit and verify your documents during the underwriting process. It doesn’t offer online closing, so you’ll have to meet with a representative to finalize your mortgage.

If you have questions, customer service support is available via chat and by phone at 844-763-4466, Monday to Friday, 9 a.m. to 9 PM ET.

If you’re worried about having good enough credit to get a mortgage, SoFi’s more lenient requirements could make it the right choice for you. With purchase mortgages available everywhere but Hawaii, It’s also great for great availability.

SoFi is a digital-only operation, however, so if you want in-person assistance in navigating the homebuying experience you should explore other options.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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