The Yahoo view: SoFi offers a lot of buyer incentives and a variety of loan products, but its rates are higher than most competitors, and there are no physical locations.

SoFi is an online bank that offers a wide variety of banking, investing, and borrowing options. Its mortgage products run the gamut and include conventional, FHA, VA, jumbo, and HELOCs, among others.

The mortgage lender’s standout features are its lengthy mortgage rate locks, free rate float-downs, and close-on-time guarantee, which offers up to $10,000 in credits if your loan doesn’t close on time.

In this article:

• Types of home loans

• SoFi for first-time home buyers

• SoFi for home equity lending

• SoFi home mortgage loan rates 2024

• How SoFi scores on mortgage rates and loan costs

• SoFi mortgage application

• SoFi home-buyer calculators and tools

• Pros and cons

• How SoFi compares to other mortgage lenders

• FAQs

Key benefits

• SoFi offers several loan options and term lengths to choose from.

• Its close-on-time guarantee offers up to $10,000 in credits if you don’t close by the time set in your contract.

• Rate locks are 91 days and include a free float-down option if market rates fall by 25 basis points or more.

Need to know

• There are no physical branches; SoFi is a fully online bank.

• The mortgage application is all online or over the phone.

• SoFi offers no USDA or home equity loans.

• The bank does not offer mortgages in Hawaii and only offers purchase loans in New York (no mortgage refinances).

SoFi home loan product offerings

SoFi offers the following home loan types:

• Purchase

• Conventional loan

• Fixed-rate mortgage

• Adjustable-rate mortgage

• Jumbo loan

• FHA loan

• VA loan

• Refinance

• Cash-out refinance

• HELOC

SoFi does not offer the following types of home loans:

• USDA loan

• Interest-only mortgage

• Land loan

• Construction loan

• Guest house loan

• Investment property loan

• Non-qualified mortgage

• Energy-efficient loan

• Renovation loan

• 1% down mortgage

• Buydown loan

• Bridge loan

• Manufactured home loan

• Piggy-back loan

• ITIN mortgage

• Medical professional loan

• Home equity loan

Learn more: Types of mortgage loans

SoFi for first-time home buyers

SoFi offers many incentives for first-time home buyers, including a verified preapproval program, cash-back options, a 91-day mortgage lock, rate float-down options, and a close-on-time guarantee, which will give you up to $10,000 in closing credits if you don’t close on time.

It also boasts a number of loan programs that can be smart for first-time buyers, such as conventional loans and FHA loans, as well as VA loans that don’t require a down payment.

Dig deeper: Best mortgage lenders for first-time buyers

SoFi for home equity lending

SoFi offers home equity lines of credit (HELOCs), which allow you to turn your home’s equity into a line you can tap into as needed. HELOCs work much like credit cards, allowing you to withdraw money over an extended period and use it however you’d like.

The online bank offers a cash-out refinance option. This is another strategy for using your home equity, though this replaces your existing mortgage loan with a new, larger one. You’ll then get a new payment and interest rate too.

Learn more: HELOCs vs. cash-out refinancing

SoFi home equity line of credit (HELOC)

With SoFi’s HELOCs, you can borrow up to 90% of your home’s equity, with a maximum borrowing limit of $500,000. The draw period is 10 years, and you’ll make interest-only payments during that period, with full principal and interest payments after that.

SoFi HELOC fees

SoFi does not disclose its HELOC-related fees, though it does note that closing costs typically run between 2 to 5% of the total credit line — this doesn’t include certain lender fees, such as annual fees, transaction fees, or charges for inactivity or early loan termination.

SoFi home mortgage loan rates 2024

SoFi clearly advertises its current rates and APRs for 10-, 15-, 20-, and 30-year fixed-rate loans. However, these rates assume a loan amount of $362,200, a down payment of 20%, and $6,530 to $7,092 in discount points at closing, and do not include taxes or insurance. SoFi updates them daily.

You can see a more tailored rate by clicking “View your rate” and filling out some basic information. This results in a soft credit pull, which will not affect your credit score.

How SoFi scores on mortgage rates and loan costs

Yahoo Finance uses 2023 Home Mortgage Disclosure Act data consisting of 10 million home loan applications to score mortgage lenders on issued mortgage rates and total loan costs. We score each lender on a scale of 1 (lowest) to 5 (highest).

Regarding mortgage interest rates, a lender with a lower score charged a higher-than-median mortgage interest rate for loans issued in 2023. A higher score would indicate a lender granted lower-than-median home loan interest rates to borrowers.

For total home loan costs, a lower score would indicate that a mortgage lender issued higher-than-median total home loan costs in 2023. A high rating would mean a lender offered lower-than-median all-in home loan costs.

SoFi home loan rates score: 1 out of 5 stars

SoFi total loan costs score: 4 out of 5 stars

What this means: SoFi offered a high mortgage rate of 6.875% and a lower-than-median total loan cost of $5,042 to borrowers in 2023.

SoFi mortgage application

SoFi is a fully online bank, so its application is all digital. This includes HELOCs. There are no physical branches to visit, though you can call up one of its dedicated mortgage loan officers if you need help along the way.

SoFi mortgage preapproval

SoFi lets you get prequalified and see your interest rate within minutes. It requires only a soft credit pull (which won’t hurt your credit) and a little information about yourself and where you’re buying. You will then see your personalized rates.

If you want a full mortgage preapproval, you’ll need to fill out an application and provide the required financial documentation. SoFi will then give you a verified preapproval letter you can use as you shop for a home.

SoFi home-buyer calculators and tools

SoFi offers several home buyer tools. It only has two calculators: a home affordability calculator and a mortgage payment calculator. But there are also FAQs, a learning center, and a first-time home buyer guide that can help you learn more about the buying and mortgage lending process, from deciding whether it’s a good time to buy to navigating closing day.

Dig deeper: How much house can I afford? Use Yahoo Finance’s free home affordability calculator.

SoFi mortgage pros and cons

Pros

• Low total loan costs compared to other lenders. We gave it 4 stars in terms of total loan costs.

• Great online features. The lender offers calculators, FAQs, and a ton of educational articles and blog posts.

Cons

• High mortgage rates compared to other lenders. We gave it 1 star in terms of interest rates.

• Transparency. SoFi shows rates for multiple loan terms on its website, but sample rates include significant discount points — and it doesn’t give you the option to see your rate without points. We gave it a 2 for transparency.

• So-so affordability. The lender offers government loan programs and low-down-payment options but lacks any down payment assistance or loans for nontraditional credit. It earned 3 stars in this category.

• Few calculators. Although SoFi has many solid online features, it only offers two calculators: one for mortgage payments and one for home affordability. The combination of great online resources but skimpy calculator offerings results in a 3 score in our online features category.

How SoFi compares to other mortgage lenders

SoFi mortgages vs. Better Mortgage

SoFi and Better Mortgage offer almost identical loan options, and both have a number of buyer incentives too. Better offers a “one-day mortgage” that locks in your rate and offers a commitment letter in 24 hours, as well as lightning-fast closing times. SoFi has a close-on-time guarantee and lengthy rate locks. Unfortunately, Better is rated below average on J.D. Power’s customer satisfaction study. (SoFi isn’t part of the J.D. Power study, so it isn’t rated at all.)

Better Mortgage review

SoFi mortgages vs. Rocket Mortgage

SoFi and Rocket Mortgage have comparable loan options too, though Rocket offers a home equity loan to SoFi’s HELOC. Both offer a slew of buyer incentives, with Rocket’s 1%-down mortgage being the standout. The company also offers grants of up to $7,500 for first-time buyers in 21 metro areas and closing cost credits if you use a partner real estate agent. Rocket also ranks very highly in customer satisfaction, according to J.D. Power, while SoFi is not rated.

Rocket Mortgage review

SoFi mortgage FAQs

Can you get a mortgage through SoFi?

Yes, you get a mortgage loan through SoFi. The online bank offers several home loan products, including FHA, conventional, and VA loans, as well as home equity lines of credit (HELOCs).

Is SoFi a legitimate company?

SoFi is an online bank and legitimate company. It was originally named Social Finance, Inc. and was founded in 2011 by Stanford business students. The company is based in Cottonwood Heights, Utah.

Is it difficult to get a SoFi loan?

It depends on the type of mortgage loan you’re applying for through SoFi. FHA loans typically allow for lower credit scores than other options, like VA and conventional loans.

How does SoFi mortgage work?

Since SoFi is an online bank, its mortgage application is fully digital. You can get preapproved and apply for your loan all online, though the company does have loan officers you can call if you need help.

Methodology:

Yahoo Finance reviews and scores mortgage lenders with quintile scoring in five primary categories: 1) Interest rates. Using 2023 Home Mortgage Disclosure Act data comprised of 10 million home loan applications, we score mortgage lenders on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and lenders are rated based on total loan costs compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We score lenders based on whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.

Review of Nationwide Multistate Licensing System (NMLS) data on regulatory actions can trigger a penalty to the score of any lender with a consumer mortgage-related administrative or enforcement action within the past five years.

Advertisers or sponsorships do not influence ratings.

Editorial disclosure for mortgages:

The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers.

This article was edited by Laura Grace Tarpley.