SoFi mortgage review: Easy online lending experience, but mortgage options are limited

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Overall lender rating

Feature	Insider rating (out of 5)
Loan types	2.5
Affordability	4
Customer satisfaction	4.5
Trustworthiness	4.5
Total	3.88

Pros and cons

Pros	Cons
Easy online experience Offers a relatively wide range of fixed-rate mortgage terms, including 30 years, 20 years, 15 years, and 10 years. Previous or current SoFi customers may be able to get $500 off their loan processing fee	Can’t see personalized rates without creating an account Doesn’t offer government-backed mortgages like FHA, VA, or USDA mortgages Only offers fixed-rate mortgages Borrowers who aren’t first-time home buyers must put at least 5% down

SoFi mortgage interest rates and fees

SoFi Home Loans shows a small sampling of interest rates on its main “home loans” page. To get there, hover over the “products” menu at the top left of the page. These sample rates are based on a $325,000 mortgage amount and a 20% down payment.

Your own rate will depend on a variety of factors, including your credit score and how much you plan to put down. If you want to see rates that are personalized to your financial situation, you’ll need to create an account, at which point SoFi will do a soft pull of your credit (meaning your credit score won’t be impacted).

SoFi charges a $1,495 loan processing fee, which is what you pay for the service of having SoFi originate your mortgage. Most mortgage borrowers will pay some lender fees, such as a loan processing fee, as part of their closing costs, regardless of the lender.

If you’ve previously gotten a personal loan or student loan from SoFi or have a $50,000 minimum balance in your SoFi Invest account, you may be able to get $500 off your loan processing fee on your first SoFi mortgage. This means you’d only pay $995.

SoFi mortgage vs. Better.com

Types of mortgages Conforming, jumbo, fixed-rate mortgages	Types of mortgages Conforming, jumbo, FHA, fixed-rate mortgages, ARMs
Alternative forms of credit No	Alternative forms of credit No
SoFi Home Loans	Better.com Mortgage

Better.com has a few more mortgage options than SoFi, including FHA mortgages and adjustable-rate mortgages, also known as ARMs. SoFi’s mortgage options are limited to fixed-rate conventional mortgages, including conforming and jumbo mortgages. 

When it comes to mortgage term options, SoFi has a slight edge over Better.com: SoFi offers 30-year, 20-year, 15-year, and 10-year terms on their mortgages, while Better.com only offers 30-year, 20-year, and 10-year terms. Since 15-year terms are relatively popular, borrowers looking for a shorter term might prefer SoFi over Better.com. 

When it comes to closing costs, Better.com’s lack of lender fees gives it an advantage over SoFi’s $1,495 loan processing fee. Keep in mind, though, that lender fees only make up a small portion of your closing costs, and you’ll need to pay closing costs regardless of which lender you end up choosing.

Because these lenders are so similar, it may ultimately come down to which lender has the specific mortgage you’re looking for. If both lenders meet your needs, you might want to consider getting preapproved with both SoFi and Better.com to see which one offers you a better rate. 

Sofi mortgage vs. Rocket Mortgage

Types of mortgages Conforming, jumbo, fixed-rate mortgages	Types of mortgages Conforming, jumbo, FHA, VA, fixed-rate mortgages, ARMs
Alternative forms of credit No	Alternative forms of credit No
SoFi Home Loans	Rocket Mortgage by Quicken Loans

Rocket Mortgage has relatively robust mortgage offerings compared to SoFi, offering FHA mortgages, VA mortgages, and a couple of different ARM options. Thanks to its government-backed mortgage options, Rocket Mortgage might be a better choice for borrowers looking for more affordability or easier qualifications – FHA mortgages, for example, typically allow for lower credit scores and down payments as low as 3.5%.

Jumbo mortgage borrowers might prefer SoFi’s slightly higher borrowing limits: SoFi will approve jumbo mortgages of up to $3 million, while Rocket Mortgage’s jumbo option only goes up to $2.5 million.

How SoFi mortgages work

SoFi offers mortgages through a completely online lending experience. SoFi lends in most of the US, but doesn’t originate mortgages in the following states:

• Hawaii
• Missouri
• New Mexico
• New York
• West Virginia

SoFi offers conventional mortgages (both conforming and jumbo). You can also use SoFi to refinance your current mortgage, either with a rate-and-term refinance or a cash-out refinance. This lender doesn’t offer government-backed mortgages such as FHA, USDA, or VA mortgagess, and it only offers fixed-rate mortgages.

When it comes to your down payment, SoFi allows first-time home buyers to put down as little as 3%. All other borrowers will need to make a down payment of at least 5%.

When you get a mortgage from SoFi, you’ll pay a loan processing fee as part of your closing costs. This fee is $1,495, though existing SoFi customers may be eligible for a $500 discount.

Some lenders let you apply with alternative credit data if you don’t have a credit score or if your current score is poor. Alternative credit data can include things like paid utility bills or your rent payment history. SoFi doesn’t accept alternative credit data, making it a better fit for borrowers who have a traditional credit score of at least 620.

You can call, email, or chat online with customer service Monday through Friday from 6 a.m. to 6 p.m. PT.

Is SoFi trustworthy?

SoFi currently has an A+ rating with the Better Business Bureau. BBB ratings indicate a company’s level of honesty in its advertising, transparency about its business practices, and effectiveness in responding to customer complaints.

SoFi has, however, been the subject of some legal action in recent years, including a complaint filed by the Federal Trade Commission that alleged SoFi misrepresented how much consumers could potentially save by refinancing their student loans with the company. SoFi settled the FTC charges in 2018.

More recently, SoFi is a defendant in a class action lawsuit filed in 2020 claiming that SoFi unlawfully denies DACA recipients equal access to their lending products. In 2021, SoFi Wealth settled a charge from the Securities and Exchange Commission alleging the company breached its fiduciary duties when it moved some account holders’ assets into its own ETFs, which caused many of these customers to incur capital gains. 

SoFi mortgage FAQ

Are SoFi mortgage rates competitive?

SoFi’s listed rates are relatively low and competitive with other lenders’ rates. 

However, your own rate will depend on a variety of factors, including ones related to your personal financial situation. Raising your credit score, lowering your debt-to-income ratio, and saving for a larger down payment are all ways you can help ensure you get a better rate.

Is SoFi a good mortgage lender?

If you’re looking for a lender with a simple online process, SoFi might be a good fit for you. SoFi also has good reviews on its Zillow lender profile, with many customers praising the easy process and great communication.

How long does a SoFi mortgage refinance take?

According to a 2019 article on its site, SoFi refinances typically close in less than 30 days. Refinances often take  between a month and 45 days to complete, so SoFi may have slightly faster closing times than competitors.