SoFi mortgage review: Guaranteed on-time closing

Man walking into his new house with his child, both carrying moving boxes and smilingImage: Man walking into his new house with his child, both carrying moving boxes and smiling
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SoFi mortgage loan at a glance

  • Conventional loans: Yes
  • FHA loans: No
  • VA loans: No
  • Refinancing: Yes
  • Jumbo loan: Yes
  • Adjustable rates: Yes — 5/6, 7/6 and 10/6 ARMs
  • Fixed rates: Yes — 10, 15, 20 and 30 years

SoFi is an online bank that started as a student loan refinance lender. Now, the bank offers various financial products and services, including mortgage loans. While the lender doesn’t offer government-backed loans, such as FHA, VA and USDA loans, it offers a good range of repayment options for conventional loans and some incentives for borrowers.


  • Offers guaranteed on-time closing
  • Rate locks up to 90 days
  • Eligible members can get a discount on the processing fee


  • No government-backed loans are available
  • Requires an account to view personalized rates
  • Loans aren’t available in Hawaii

3 things to know about a SoFi mortgage loan

If you’re considering a home loan with SoFi, here’s what you need to know before you get started.

1. Variety of loan options

You’ll need to look elsewhere if you want a government-backed loan. But SoFi offers several repayment options for both fixed-rate and adjustable-rate conventional loans.

It also offers traditional refinance loans. And if you want to tap some of the equity in your home, you can do so with a cash-out refinance loan or a home equity line of credit.

2. Several incentives

Prospective homebuyers can take advantage of one or more incentives when they borrow with SoFi. Here’s what the lender has to offer.

  • Guaranteed on-time closing — If you meet certain conditions and SoFi doesn’t close your loan on or before your closing date, the lender will give you $2,000.
  • Pricing special — When you lock in a rate on a 30-year loan, you’ll get a 0.25% discount on your interest rate.
  • Cheap refinancing — If you refinance your SoFi mortgage loan with the lender at a later date, it’ll waive the administrative fee.
  • Low down payment for first-time homebuyers — If you’re a first-time homebuyer, you can put as little as 3% down on your home purchase.
  • Real estate commission rebate — If you work with SoFi’s digital real estate company HomeStory to buy or sell your home, you could get a rebate of $350 to $9,500, depending on your home’s purchase or sale price.
  • SoFi member discount — If you have a SoFi personal loan or student loan, or you have a balance of at least $50,000 in a SoFi Invest account, you’ll get a $500 discount on the lender’s processing fee on your first SoFi mortgage — the standard fee is $1,495.

3. Lock in a rate for up to 90 days — or move fast and save

With SoFi, you can lock in rates for up to 60 days without a fee. If you need more time, you can extend your rate lock for up to 90 days for a $250 fee, but SoFi will credit that amount back to you when you close.

That said, if you submit a fully executed purchase contract within 30 days of your rate lock, SoFi will reduce the interest rate by 0.125% at no cost. If market rates have improved by at least 0.75 percentage points from the original rate, you may get an additional rate reduction.

Who is a SoFi loan good for?

Here are some situations where SoFi might be a fit for your next home purchase.

  • You like the idea of a fully digital mortgage experience.
  • You qualify for more than one of its incentives.
  • You want the option of a longer rate lock period.
  • You’re a first-time homebuyer and can’t afford a large down payment.
  • Interest rates are high, and you want to refinance later and save some money.

That said, if you’re having trouble qualifying for a conventional loan or have other needs better served by an FHA loan, VA loan or USDA loan, another lender could work better.

The lender’s home loans aren’t an option at all if you live in Hawaii, and if you’re a New York resident, you won’t be able to get a refinance loan.

How to apply for a SoFi mortgage

You’ll generally need a credit score of 620 or above, but SoFi specifies that borrowers with scores as low as 580 could qualify for a cash-out refinance.

To apply, start by creating an account and getting a personalized interest rate (this process doesn’t impact your credit score).

If you like what you see, you can complete the entire application process online through SoFi’s website. Plan to have the following documents — and possibly more, depending on your situation — ready when you start the application process:

  • Tax returns from the past two years
  • Two years’ worth of W-2s or year-end paystubs (if you are self-employed, other evidence of income)
  • Child support or divorce documents
  • Bank statements
  • Statements from additional assets
  • Gift letters
  • Photo ID
  • Rental history and contact information

Not sure if SoFi is right for you? Consider these alternatives.

If you want to compare rates with several lenders or your application is denied, keep in mind that you have a window of time where multiple hard credit inquiries by lenders only count as one for your credit scores. You typically have 14 days — though it could be longer depending on the scoring model.

  • Better Mortgage: This lender could be a better fit if you want a digital mortgage without lender fees.
  • Movement Mortgage: Consider this lender if you want more home loan options, including government-backed loans.

About the author: Ben Luthi is a personal finance freelance writer and credit cards expert. He holds a bachelor’s degree in business management and finance from Brigham Young University. In addition to Credit Karma, you can find his wo… Read more.