What Is SoFi Mortgage?
SoFi is a San Francisco-based online lender formed in 2011 that offers fixed-rate mortgages. There are also refinance, jumbo, and home equity loans available.
It was first a company founded to assist borrowers in managing their student loan debt and then began selling mortgages in 2014. SoFi is an online bank, lender, and robo-advisor that aims to be your financial hub.
The company has funded over $50 billion in loans, from wedding loans to auto loan refinancing. More than 2.5 million members have access to a variety of services, including investing, credit cards, and checking accounts.
According to a SoFi spokesperson, anyone interested in a mortgage can prequalify online in two minutes, and closing on a house purchase takes an average of 24 days.
Offering eligible borrowers relationship discounts on home loans is one way the company makes its product selection available. SoFi customers also receive exclusive benefits, some of which are expensive elsewhere.
Sofi Mortgage Review
So far, SoFi Mortgage has a good standing with an average rating of 4 to 5 stars out of 5 according to many legitimate sources such as U.S. News, Bankrate, and NerdWallet.
Some of the best features SoFi Mortgage offers include:
- First-time buyers are eligible for down payments as low as 3 percent of the loan amount.
- Applicants can expect a quick online application and prequalification process.
- They provide a wide variety of fixed-rate term loans.
- Borrowers who already have an existing loan or investment account with SoFi may be eligible for a discount of up to $500 on their mortgage fees.
- The most recent data from the latest federal findings reveals that mortgage rates offered by SoFi tend to be among the lowest available.
- They provide jumbo loans that need a minimum down payment of 10 percent.
- Members are given free access to financial advisors and individualized career advice.
However, despite that, it also has some disadvantages too, such as:
- SoFi mortgage loans do not provide loans backed by the government, such as those offered by the Federal Housing Administration, the Department of Veterans Affairs, or the United States Department of Agriculture.
- Conforming mortgages offered by SoFi are not available in the state of Hawaii.
- It requires a lender fee.
- There are no branches in the country (everything happens online or in the app)
- Users are required to sign up for an account before they can view customized mortgage rates.
Borrowers that prefer an entirely online experience and are interested in utilizing other financial services offered by SoFi are suitable candidates for the SoFi Mortgage loan.
SoFi Mortgage Offerings
For first-time homebuyers, SoFi offers to conform to conventional mortgages with a minimum down payment requirement of as low as 3%. There are 10-, 15-, 20-, and 30-year fixed-rate mortgages available. The lender originates conforming mortgages in most states and Washington D.C., but not Hawaii. After a temporary halt during the coronavirus outbreak, SoFi has resumed offering jumbo mortgages in all 50 states.
SoFi has an A+ rating with the Better Business Bureau but is not accredited by the BBB. According to more than 2,500 Trustpilot reviews, the lender has a bad rating of 2.7 stars out of 5.
Fourteen mortgage-related complaints were filed with the Consumer Financial Protection Bureau in 2021 against SoFi Mortgage, a subsidiary of SoFi Lending Corp. The most frequent complaints include the following:
- Problems closing on a mortgage.
- Problems with the payment process.
- Problems with mortgage applications and mortgage refinancing.
Each complaint received a quick response and an explanation from the company.