SoFi Mortgage Review
SoFi is a San Francisco-based fintech company that specializes in online and mobile-first personal finance solutions. The company offers a complete suite of financial products. So, you can turn to SoFi for everything from home loans and credit cards to student loan refinancing and personal banking. In this SoFi mortgage review, we’ll take a look at the company’s home purchase, home equity, and mortgage refinance loans.
Pros and Cons of SoFi Mortgage
- Pre-qualify in less than two minutes
- 100% digital mortgage applications
- Established customer satisfaction record
- Special discounts and bonuses for SoFi members
- Not available in every state
- Doesn’t offer government-backed loans
What Does SoFi Mortgage Offer?
SoFi offers home financing solutions in four major categories: home purchase loans, home equity loans, mortgage refinance loans, and cash-out refinance loans.
Firstly, let’s take a closer look at SoFi’s home purchase loans:
- Purchase a home with as little as 5% down
- Choose from 10-year, 15-year, 20-year, and 25-year fixed-rate mortgages
- Your credit score, income, and debt-to-income ratio affect interest rates and terms
- Mortgages with a loan-to-value ratio beyond 80% require private mortgage insurance
- SoFi members automatically save $500 on processing fees
Secondly, there are a few key details to know about SoFi’s home equity loans:
- Access up to $500,000 of your locked-up home equity
- Borrow as much as 90% of your home’s market value
- Get funding within two weeks with only a few documents
- SoFi’s home equity loans are in partnership with Spring EQ
Thirdly, SoFi has two types of mortgage refinance loans:
- Rate-and-term refinancing empowers homeowners to access lower interest rates. SoFi offers loans of up to 90% of the borrower’s LTV ratio.
- Cash-out refinancing simultaneously refinances the homeowner’s existing mortgage and unlocks some of the built-up home equity. SoFi offers cash-out refinance loans of up to 80% of the borrower’s LTV ratio.
What To Expect on the Site
In order to get a detailed quote, first, fill out a pre-qualification form on the SoFi website or mobile app. The entire process can be completed online in less than two minutes.
SoFi asks that borrowers meet the following criteria:
- Borrowers and co-borrowers need valid U.S. citizenship, permanent residency, or eligible nonpermanent alien residency status
- The property being financed will serve as the borrower’s main or secondary residence for at least one year
SoFi doesn’t attach contingencies to its pre-approvals, and it accepts applicants with debt-to-income ratios of up to 50%. Loan finalization requires proof of income.
Specific pricing details are only available when you complete the pre-qualification process, so the two-minute process is a good place to start. We can outline a few key factors that will affect your offered annual percentage rate (APR):
- Annual income
- Debt-to-income ratio
- Credit score
In general, borrowers with higher annual incomes, relatively low debt-to-income ratios, and strong credit scores will qualify for lower APRs.
Fees vary, but SoFi states that they average $995 per loan as of June 2021. As of that date, the maximum amount a customer can borrow through SoFi’s home loan programs is $548,250. But SoFi extends this limit to $825,450 for customers buying homes in areas with unusually high median home values.
What People Are Saying About SoFi
As of June 2021, SoFi has an average TrustPilot score. Based on nearly 2,500 customer reviews, SoFi has a rating of 3.2 out of 5 stars:
- 79% of customers give SoFi a 5 out of 5 stars
- 86% of customers give SoFi at least 4 out of 5 stars
We should note that this score is based on all of SoFi’s services, not just its home loans. Customers who left a SoFi mortgage review emphasize the accuracy and transparency of interest rates and quotes.
The Bottom Line
SoFi is a well-established online lender with a proven record for transparency, reliability, and value. The company offers a complete lineup of home loans. So, it can help first-time homebuyers secure a mortgage. And it can also help current homeowners tap into their equity and refinance for a better rate.
With this and its fast, no-obligation quote process in mind, SoFi merits consideration as you consider top mortgage lenders, home equity lenders, and mortgage refinance lenders.