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SoFi Mortgage Review

SoFi, short for Social Finance, is an online lender offering a new approach towards home loan products like a mortgage refinance loan, jumbo mortgages, conventional loans, and adjustable-rate loans as well as other personal financial products.

Operational since 2011, has its headquarters in San Francisco and is currently licensed (NMLS# 1484615) to originate mortgage products across 42 States to U.S. Citizens.

With no physical branches, SoFi loans embrace the digital age with a fully online platform. It is geared towards young professionals just starting out their personal finance journey.

SoFi member services include loan types such as student loan refinancing, mortgages, personal loans,  as well as wealth management and life insurance.

If you’re considering a SoFi mortgage loan, here’s the need-to-know.

Table of Contents:

  • About SoFi Mortgage Lender
  • Mortgage Options
  • Qualifications
  • Company Ratings
  • Pros & Cons

Is Sofi a Good Mortgage Lender?

SoFi is a suitable mortgage lender if you’re on a relatively high income but lacking any considerable downpayment on a new home.

It caters to the online market with an easy and transparent online application process.

Pre-approval on multiple loan options can take only a couple of minutes, and the remainder of the process is just as simple.

SoFi is different in that it considers the non-traditional incomes of restricted stock units and the self-employed.

This helps target their market of young, high-paid professionals able to make monthly payments for higher loan amounts.

Sofi Mortgage Options

SoFi offers a variety of different mortgages including:

Fixed-Rate Mortgage

A fixed-rate SoFi mortgage is available over a 15 or 30-year loan term, however, you must put at least 10% down and have a good credit history with a credit score of at least 660.

The benefits of a fixed-rate mortgage are that your interest rate, and therefore your repayments, will remain the same for the full term of the loan.

This can be a comfort when making one of the most significant financial commitments of your life.

The main drawback of a fixed-rate mortgage is that the interest tends to be a bit higher than an adjustable-rate mortgage.

Another disadvantage is that 30, or even 15 years, is a very long time.

Markets will fluctuate, and you may miss out on the opportunity for an even lower interest rate down the line.

However, if you’re planning on not selling (for the term of the loan) and fixing when interest rates are low, the stability of a fixed-rate mortgage outweighs any drawbacks.

Adjustable-Rate Mortgage (ARM)

Adjustable-rate mortgages tend to have a lower interest rate than fixed-rate mortgages.

With a SoFi mortgage, you have the opportunity to fix for a set period of time at the beginning of the term.

After this time, the interest rate and your repayments will fluctuate depending on market conditions. SoFi offers a 5/1 ARM and a 7/1 ARM.

5/1 ARM

With a 5/1 ARM, the rate is fixed for the first five years then adjusts annually. There is an option to pay interest only for the first 10 years and principal and interest for the remaining 20 years.

The advantage of opting for interest-only is smaller repayments initially. The disadvantage is that you’re not building up equity in your home for the first 10 years.

SoFi requires 25% down for 5/1 ARMs.

7/1 ARM

The same goes for a 7/1 ARM; the rate is fixed for the first 7 years, then adjusts annually. This loan carries full principal and interest payments for 30 years.

Repayments may initially be higher than an interest-only repayment option, but you will start building equity in your home immediately.

SoFi requires 10% down for 7/1 ARMs.

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Jumbo Loan

SoFi offers jumbo loans of up to $3,000,000 with a down payment of as little as 10%, which is lower than other lenders.

This caters to young first-time homebuyers with good incomes that have not yet had the time to accumulate a large down payment.

A jumbo loan is considered to be any mortgage lending over the conforming loan limit of that area.

Currently, that limit is set at $484,350 in average income areas, with a higher limit of $726,525 in areas with a higher average real-estate value.

Mortgage Refinancing

If you’re looking to free up some equity in your home, SoFi offers mortgage refinancing.

To qualify for this, you will need a minimum of 10% equity built up in your home.

Refinancing or cash-out refinance is a great way to access equity and free up cash-flow for debt consolidation or renovations.

However, it is effectively starting a new mortgage all over again, and your new loan conditions will be dependent on current market interest rates.

Mortgage Options Not Available with SoFi

There are some mortgage options that are not available with SoFi that is worth mentioning:

  • Federal Housing Administration (FHA loans)
  • Home Equity Loans (HELOCS)
  • Veteran Affairs/VA loans

SoFi Mortgage Qualifications

To qualify for a SoFi mortgage, you will be assessed on different criteria.

Your credit score, your down payment, tax returns, and your credit card or other debt-to-income ratios will all be taken into consideration as part of the loan application process.

Credit Score

A SoFi mortgage will require a minimum credit score of 660. This applies to a conventional fixed-rate or ARM mortgage. For a jumbo loan, a minimum credit score of 720 is required due to the higher risk associated with the greater lending amount to gain pre-qualification.

Down Payment

Unlike other lenders, however, SoFi is a bit more flexible on their downpayment. You may qualify for a SoFi mortgage with as little as 10% down, assuming you meet the other criteria. Make sure to speak with your loan officer to gain the specifics concerning your loan.

This is lower than the industry standard of 20% and also does not require you to have Private Mortgage Insurance (PMI), which protects the lender against losses if you default.

Debt-to-Income Ratio

Your debt-to-income ratio is a generous 50%  with a conventional SoFi mortgage. However, if you’re applying for a jumbo loan, you will need a debt-to-income ratio of no more than 43%.


SoFi is not available for mortgages in every state, including:

  • Alaska
  • Hawaii
  • Massachusetts
  • Missouri
  • New Hampshire
  • New Mexico
  • New York
  • South Dakota
  • West Virginia

They also do not allow mortgage applications on investment properties.

Company Ratings

SoFi rates well among young professionals that appreciate an effective online platform and a certain level of autonomy in the application process.

A Trustpilot rating of 4.3 stars from 2,280 reviews and a NerdWallet rating of 4 stars confirms their popularity in the market.

The ease of use, high level of efficiency, and speedy outcome of the application process appeal to their target market.

However, if you prefer a higher level of face-to-face interaction, or you’re looking for an FHA, VA, or USDA loan, SoFi may not be right for you.

Pros and Cons


  • Fully online application process.
  • Pre-qualify in 2 minutes
  • Does not require private mortgage insurance for jumbo loans
  • It considers nontraditional incomes
  • 50% discount on your closing costs/origination fees
  • ​The parent company is LendingTree


  • No government-backed FHA, VA or USDA loans are available.
  • No physical offices.
SoFi Mortgage