SoFi Mortgage Review

About SoFi

SoFi

SoFi is reinventing consumer finance for the better as a leader in marketplace lending. SoFi helps ambitious professionals accelerate their success with student loan refinancing, mortgages, mortgage refinancing, personal loans, parent loans and more. Their nontraditional underwriting approach takes into account merit and employment history, among other factors, to provide financial products that can't be found elsewhere.

review breakdown

Recommended
85%
Interest Rates
Fees & Closing Cost
Customer Service
Responsiveness

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Working with SoFi

SoFi is currently licensed to issue and refinance mortgages in 31 states plus Washington, D.C.:

  • Alabama
  • Arizona
  • California
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Maryland
  • Michigan
  • Minnesota
  • Montana
  • Nevada
  • New Jersey
  • North Carolina
  • North Dakota
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

SoFi’s all-digital model means the company has no branches staffed with loan officers. Instead, you can manage the entire process online or reach out to a company representative by phone to guide you through the application process.

SoFi issues loans for single-family homes, duplexes, condos, planned unit developments and modular homes. The company currently does not issue loans for multifamily homes, co-ops or manufactured homes.

SoFi does manual underwriting, and the minimum credit score accepted depends on if the loan is conforming or non-conforming (jumbo). For conforming loans, the minimum credit score is 660. For borrowers with scores between 660 and 679, the maximum loan-to-value ratio offered is 80% and will require at least 20% down. For nonconforming loans, the minimum credit score is 700 with 20% down. The minimum score is 720 for cash-out refinances, a higher loan-to-value ratio than 80%, loans for condo properties or loans that use restricted stock units as qualifying income.


SoFi products

Purchase

  • 30-year, fixed-rate
  • 15-year, fixed-rate
  • 7/1 adjustable-rate — the rate is fixed for seven years and then adjusts annually
  • 5/1 adjustable-rate — interest-only for first 10 years, then principal and interest for the next 20

 

Refinance

  • 90% loan-to-value maximum; competitive rate, no hidden fees

 

Cash-out Refinance

  • 80% loan-to-value maximum; can be useful for high-interest debt consolidation, home loans and more

 


Specialty Programs for SoFi

Student Loan Cash-out Refinance

  • This special SoFi loan program allows you to leverage home equity to pay down student loan debt

 


The mortgage application process

  • How to apply. Borrowers apply through a digital application on SoFi.com. You can also apply by dialing 855-763-4466 to speak with a loan originator.
  • Disclosure process. Borrowers can exchange all info with SoFi online through the company’s web portal, where you can review, download, upload and e-sign all documents.
  • Appraisal process. Once the borrower signs an intent-to-proceed form, they will see a to-do item in the online portal to authorize a credit card to order an appraisal.
  • Submitting loan for approval. SoFi has automated verification of income and assets capability as well as Day 1 Certainty from Fannie Mae for conforming loan products, which speeds up the process.
    • SoFi has an automated pre-qualification process for purchase loans, where the borrower can receive pre-qualification digitally.
    • Borrowers can obtain credit preapproval by submitting documents online to receive a preapproval letter.
    • Borrowers may also submit minimum-income documents online for initial underwriting approval.
  • Final approval. Customers can get from application to clear-to-close and sign closing disclosures through the digital process. But in order to lock the rate, borrowers still need to communicate with one of SoFi’s licensed mortgage loan officers.
  • Closing. Borrowers can choose the time and place for the closing, although certain states will require specific places for signage. SoFi permits traveling notaries in states where allowed.

Communication during the process

Borrowers will communicate with SoFi through a mix of phone, email and secured message via SoFi’s online portal. The borrower will have an assigned mortgage loan officer from the initial application through preapproval and locking of the loan, and a member specialist will help guide the borrower through the process.


Pros and Cons of a SoFi mortgage

Pros

  • Special programs. SoFi got its start refinancing student loans, and so it has a variety of proprietary loan programs tailored to younger, upwardly mobile borrowers. The student loan cash-out refinance, for instance, can help borrowers use their home equity to pay off student debt.
  • Good for people who want to manage the process online. Nearly the entire process is done digitally, which is great for younger, tech-savvy borrowers.
  • Members get perks. SoFi is a fast-growing financial tech startup, and borrowers who use its products are in turn offered deals on other products that might work for them. SoFi is getting into mobile banking and offers networking events and even career coaching for its members.

Cons

  • At least 10% down. SoFi requires at least 10% down on mortgage loans, making it a less-enticing option for borrowers who haven’t saved much for their down payment.
  • Not ideal for borrowers who prefer face-to-face interaction. The online process may be more difficult for less-tech-savvy borrowers.

 
Editorial Note: Parts of this article were reviewed by a lender to ensure accuracy prior to publication. The overall conclusions, recommendations and opinions are the author’s alone.

The information in this article is accurate as of the date of publishing.