Fintech Lender SoFi has started providing investment real estate loans


SoFi, short for Social Finance, has been in the news lately due to its recent announcement to go public through a merger with a special purpose acquisition company, or After-sales service. However, many people missed the announcement of SoFi’s decision to open its mortgage business in investors.

If you’re looking for a mortgage for an investment property, or will be soon, here’s a quick rundown of what SoFi is and how its mortgage platform aims to make the process as efficient as possible.

What is SoFi?

Social Finance, better known as SoFi, is a financial technology startup that initially provided private student loans. Over the years, the platform has grown to offer personal loans, credit cards, a stock trading platform and, most importantly for our purpose, mortgages.

The general idea behind SoFi’s business is that the company aims to remove pain points from the consumer credit process. SoFi subscribers consider alternative information to help borrowers who have difficulty qualifying with other lenders to access loans. For example, SoFi views vested restricted stock units (RSUs) as income – a type of compensation common among workers in the tech industry. SoFi is also much more accommodating than most lenders when it comes to assessing self-employment income.

Additionally, although many SoFi borrowers only get one product (like a personal loan), the platform aims to be a financial community. There are member meetings (in non-pandemic time), services such as career coaching, toll-free financial planners available to members, and more.

SoFi’s target clientele are high-income people who are either underserved by traditional financial institutions (self-employed people are a large part of SoFi’s business), or who just don’t like the inconvenience and fee structures associated with in-branch lenders.

SoFi mortgage

You can read a SoFi Mortgage reviews on The Ascent, which is The Motley Fool’s personal finance website, but here’s some basic information.

SoFi’s mortgage application process is fully online, and the platform can even connect your application directly to your other financial institutions to retrieve the required statements and documents. The company offers mortgages with down payments as low as 5% (although unlikely for investment property) and offers jumbo loans as well as mortgages with compliant balances. If you are currently a SoFi member, you can get a $ 500 rebate on mortgage origination fees.

Unlike many other lending platforms, SoFi only offers conventional mortgages. It doesn’t offer FHA or VA loans (although these aren’t used by investors anyway). Borrowers can choose mortgage terms of 10, 15, 20 or 30 years, all with fixed interest rates. And like many online lenders, you can view your rate and loan offers on SoFi’s platform without any effect on your credit rating.

Millionacres net profit

SoFi Mortgage is a high tech mortgage lender that has been a favorite with homebuyers and refinancers for some time. Now investors can also take advantage.

To be clear, I’m not necessarily saying SoFi Mortgage will be the better choice for your next Investment property. It is quite possible that you will find a interest rate or better terms through another lender. But this lender has very high ratings and might be worth a look when you start shopping for your next investment home loan.

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