Home Buying » Mortgage Lender Reviews » Sofi Mortgage Review 2021
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Sofi Mortgage Review 2021

Sofi is such a unique and interesting lender. So what are the different mortgage types,Sofi mortgage process and pros & cons as a mortgage lender?
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Sofi Mortgage Review

What is SoFi Mortgage?

Sofi is a newer company but is gaining popularity because of their flexible lending guidelines and online process. If you are seeking a process done solely online you should definitely check Sofi out. They have made it quick and efficient to financing to buy a home with their online forum and thirty-day closing window.

If you haven’t built up a credit history or carry high debt you may find it difficult to get approved by many lenders. Sofi welcomes these buyers and situations. Sofi also offers a very attractive no fee and low down payment approach. Bottom line is if you aren’t exactly a traditional type of buyer and are looking for the convenience of the online home loan process, Sofi should be at the top of your list.

Sofi Mortgage review

On Sofi Secure Website

Funding Options

Minimum credit score - 660

PROS

CONS

Sofi Mortgage Products, Fees, and Conditions

Available in 15 and 30 year terms with rates around 4.1 to 4.6%. Down payments can be as low at 10 percent and buyer does not pay private mortgage insurance. Fixed rate mortgages are ideal for home buyers who want to stay in their house long term.
Fixed rate mortgages also offer you predictability with a set interest rate and payment for the life of the loan. Most lenders require about 20 percent down a fixed rate mortgage and often times you will have to pay for mortgage insurance. Sofi’s are able to obtain a traditional loan with less down and no extra insurances.
Available in 5 and 7-year terms with rates around 3.9 to 4.4%. ARM borrowers can also take advantage of a possible down payment of ten percent and no private mortgage insurance. With these loans, buyers can get a lower rate for a fixed period of time, but after that the interest rate will adjust each year over the life of the loan.Adjustable rates mortgages are best for those who only want to live in their home for a short period of time. In most cases, home owners choose to refinance to a fixed rate mortgage before the loan adjustment period if they have decided to stay longer.
Sofi also offers mortgage refinance and cash out options. Refinancing is a great option for people who want to lock in a lower interest rate so save money. Cash out options can be a great way to get cash for home renovations or college tuition. Often times refinancing interest rates are substantially lower than credit cards.

Sofi Mortgage Pros & Cons

Pros

Cons

SoFi: What Is The Ideal Customer?

Sofi’s target customer would be young professionals, recently graduated with a bright future and high earning potential ahead. Sofi caters best to those looking for an entirely online loan process, but don’t worry a mortgage professional will still be assigned to you for assistance.

When you take a look at Sofi it is easy to why they are so popular by putting on community events, networking events, and career services. Sofi also has another swaying factor, the do not charge an origination or application fee. They are also flexible with borrowers having a limited credit history.

If you can prove you are earning a reliable income, chances are you fit Sofi’s bill. Things like career history, educational background, and even student loan debt factor into the applications process.

How Does Sofi Mortgage Work?

Sofi is such a unique and interesting lender is that they are really one of the first and few companies to provide an online only loan process. You can only get a loan through them by applying and completing the application process online.

Sofi will assign a loan officer to you, but you will not meet them face to face. All support will come from online and telephone communication. Sofi also does not charge any fees. You can apply and have your loan processed without selling out any cash. The majority of lenders will charge an application fee, origination charge, or both. The tradeoff to Sofi’s no fees approach is that you will most likely get a higher interest rate than some other lenders.

Sofi mortgages have another interesting advantage in that you do not have to pay private mortgage insurance. PMI protects the lender if the borrower defaults on their loan. This is a risky strategy for Sofi, but again it offers the buyer major savings.

Sofi Mortgage Application Proccess

If you are ready to check out what Sofi has to offer check out their website.

You will be able to view their products and rates at a glance. You are able to get a quick two minute prequalification with no commitment.

You will be promoted to create an account before moving on. Provide your name, location, and create a password to gain access.

Sofi’s pre-qualification process does not affect your credit score. If you decide to get a loan through Sofi, you’re entire application process will be done online.You can apply and upload any documents you need virtually. Sofi will assign a team member to your loan to advise and walk you through the process.

Unlike some lenders with Sofi most loans average a 28 to 30 closing time frame.

You can use our extensive set of calculators determine which of the loans are better for you, whether to get a 15 or 30-year loan,  ARMs or fixed  rate mortgagewhether to refinancecalculate your APR, whether to make extra payments and more.

Alternatives Lenders For Consideration

We’ve summarized some of the most popular mortgage lenders which can use as an alternative to the Sofi mortgage:

Chase Mortgage is one of the top-rated lenders in the lending industry. Serving more than 60 million households in the U.S with home lending advisors in about 30 states readily available on phones and email shows how credible chase mortgage is.
The Bank offers a full menu of fixed and adjustable-rate loans, including the federal housing administration loan, veteran administration loan and jumbo loan of up to $3Million. Chase also offers a low-down payment and a low-income option called the DreaMaker Mortgage.
The DreaMaker mortgage program is designed to assist individuals buying a home for the first time, and individuals with low to moderate-income afford a mortgage and buy home. The DreaMaker program also helps individuals buy a home with a down payment of 3% and no minimum borrower contribution. To qualify for the DreaMaker Mortgage, you need a minimum credit score of 620. However, borrowers should have a credit score of 720 in other to be eligible for the lowest interest rate.
Chase bank has an A+ rating with the Better Business Bureau. Also, this Bank had 3 out of 5 stars in the J.D. Power rating in 2019. The Bank received 939 complaints from the consumer financial protection bureau in 2019.  

Quicken Loans is best suited for the borrower who embraces technology, who meets reasonable standards for credit score (620 – 740), and can qualify based on their income and ability to demonstrate down payment and reserve requirements for Quicken Loans’ programs. If you have low credit scores or unverifiable income, Quicken Loans is probably not where you would go for your financing. Otherwise, they are the industry gold standard.

Quicken Loans is a major nationwide lender with a variety of loan options that can meet almost any customer’s needs. Quicken Loans has an abundant and robust online presence. You apply from your phone, your iPad, any mobile device, as well as your computer and conduct the entire process online. There are many calculators and resources to help any borrower on their web site.

Quicken Loans does not have to boast about its Customer Service ratings (usually obtained by internal polling of customers) – it is a widely respected company by both consumers and major and minor ratings agencies (BBB.com, JD Powers & Associates, ConsumerAdvocate.org, etc.). Negative ratings can be found, but they are in the minority. 

Suntrust is best suited for the borrower who can deal with technology (if not located in the Southeastern United States) and who meets reasonable standards for credit score (620 – 850), can qualify based on their income and demonstrate down payment and reserve requirements for Suntrust’s programs.

You do not have to have the highest credit scores or significant cash down payment for their loans. Suntrust has a solution for most borrowers, including some that require no cash down and a workaround for jumbo borrowers who cannot meet the reserve requirements.

While Suntrust doesn’t have the highest customer satisfaction ratings on the major rating sites, such as J.D. Power and Bankrate.com, they were very responsive to our requests for information.  

Sofi – About The Lender

Sofi is changing the mortgage game as one of the first online only lenders. They began originating home loans in 2014 so they are still very new on the scene. There are currently only a handful of registered complaints against the lender. This might be due to their newness, but could also mean that people are really happy with their services. Sofi mortgage products are available in 42 states including Washington DC.

Unfortunately, you will not get to take advantage of Sofi’s offers in Virginia, West Virginia, Ohio, Massachusetts, Missouri, South Carolina, Nevada, and Hawaii. Besides mortgages, you can get refinancing for mortgages and students loans as well as personal loans. More than half of their home loans are for first time home buyers and about half of their home loans are in California.

Mortgage Reviews Methodology

The Smart Investor’s selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. We also look at types of loans and what specific products are available. Finally, we look at the ability to get information online and to carry out online processes as well as customer service, rate information and complaints that have been filed.