SoFi has been looking to make a mark in the space of mortgage lenders by welcoming large borrowers who earn high incomes but have not managed to save up for down payments.
This underwriting approach is significantly different from the other traditional lenders that are very cautious about venturing into the jumbo lending arena. With strict credit scoring criteria and strict debt-to-income ratios, almost all of the other lenders show great alacrity in rejecting applicants than what SoFi does. SoFi, on the other hand, will look minutely at the customer’s disposable income as a much more comprehensive way of assessing them for a home loan. SoFi was also amongst the very first mortgage lenders to start offering an entirely digital lending platform, coupled with a unique underwriting approach which was termed as risky by quite a few sources.
SoFi specializes in jumbo and interest-only loans. It has a slightly different assessment process than other lenders. Though it does analyse FICO scores as part of its application process, it also takes into account other factors such as professional history and career prospects, free cash flow (income) and history of responsible bill payments in order to determine an applicant’s overall financial health. Moreover, it does not even levy private mortgage insurance for loans where less than 20% down payment has been paid.