Originally founded as Social Finance in 2011 to help borrowers manage student loan debt, SoFi started offering mortgages in 2014. Today, the company has funded more than $50 billion in loans, which include everything from wedding loans to auto loan refinancing. The company offers a wide range of services including investing, credit cards and checking accounts for more than 2.5 million members. Those interested in a mortgage can prequalify online in two minutes, and closing on a home purchase takes an average of 24 days, according to a SoFi spokesperson.
Borrowers who prefer an all-online experience and want to use SoFi’s additional financial services
- Rate-and-term and cash-out refinancing
- Home equity loan
- Investment property
SoFi charges a $1,495 administration fee, according to a company spokesperson. SoFi members save $500 on this fee. Membership is free.
SoFi updates APRs daily on its website for 10-year, 15-year, 20-year and 30-year loans. All publicly advertised rates are based on making a 20 percent down payment, however. To get an estimate of your rate, you’ll need to submit some personal information.
While SoFi is not accredited by the Better Business Bureau, the company does qualify for an A+ rating from the organization. Based on more than 2,500 customer reviews, the company has an “average” rating on Trustpilot: 2.9 stars out of five.
SoFi is a digitally-focused company, and the company’s mobile app is in the top 100 finance apps in the Apple App Store. Prospective borrowers can complete the entire application for a mortgage online, and there is also a Home Loan Help Center with calculators, insights into local housing markets and other information to help with the home-buying process.
Minimum borrower requirements
You’ll need a credit score of at least 620 to be considered for a home loan from SoFi, and you’ll need a debt-to-income (DTI) ratio of 50 percent or less. SoFi does not consider alternative credit data such as your history of rent payments in underwriting, so you’ll need a credit report to qualify. Some mortgages through SoFi have a down payment requirement of as little as 3 percent. Any loan with a down payment of less than 20 percent will require paying private mortgage insurance (PMI), however.
Refinancing with SoFi
You can refinance your current mortgage with SoFi. With a traditional refinance, you only need to have 5 percent equity in the home. For a cash-out refinance, you’ll need at least 20 percent equity. The company also offers student loan cash-out refinances, which allow you to pay off your student debt and refinance your mortgage at the same time. You’ll need to do the math to determine if that move would actually save you money in the long run. Existing SoFi members can save $500 on refinancing costs.
Not sure if SoFi is right for you? Consider these alternatives
Breakdown of SoFi overall review score
- Affordability: 5/5
- Availability: 5/5
- Borrower experience: 4.3/5
To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.