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An interest-only mortgage lets you pay just interest for a set period of time, typically up to 10 years, as opposed to paying interest plus principal from the beginning of the loan term.

While interest-only mortgages can mean lower payments for a while, they also mean you aren’t building up equity (ownership) in your home. Plus, you will likely have a big jump in payments when the interest-only period ends and you are repaying both interest and principal.

Read on to learn how interest-only mortgages work, their pros and cons, and who might consider getting one.

Note: SoFi does not offer interest only mortgages at this time. However, SoFi does offer conventional mortgage loan options.

How Do Interest-Only Mortgages Work?

With an interest-only mortgage, you make only interest payments for the first several years of the loan. During this time, your payments won’t reduce the principal and you won’t build equity in your home.

When the interest-only period ends, you generally have a few options: You can continue to pay off the loan, making higher payments that include interest and principal; you can look to refinance the loan (which can provide for new terms and potentially lower interest payments with the principal); or you can choose to sell the home (or use cash you’ve saved up) to fully pay off the loan.

Usually, interest-only loans are structured as a type of adjustable-rate mortgage (ARM). The interest rate is fixed at first, and then, after a specified number of years, the interest rate increases or decreases periodically based on market rates. ARMs usually have lower starting interest rates than fixed-rate loans, but their rates can be higher during the adjustable period. Fixed-rate interest-only mortgages are rare.

An interest-only mortgage typically starts out with a lower initial payment than other types of mortgages, and, depending on your loan conditions, you can stick with those payments as long as 10 years before making any payments toward the principal. However, you typically end up paying more in overall interest than you would with a traditional mortgage.

Interest-Only Loan Pros and Cons

Before you choose to take out an interest-only mortgage, it’s a good idea to carefully weigh both the benefits and drawbacks.

Pros

•  Lower initial payments The initial monthly payments on interest-only loans tend to be significantly lower than payments on other mortgages, since they don’t include any principal.

•  Lower interest rate Because interest-only mortgages are usually structured as ARMs, initial rates are often lower than those for 30-year fixed-rate mortgages.

•  Frees up cash flow With a lower monthly payment, you may be able to set aside some extra money for other goals and investments.

•  Delays higher payments An interest-only mortgage allows you to defer large payments into future years when your income may be higher.

•  Tax benefits Since you can deduct mortgage interest on your tax return, an interest-only mortgage could result in significant tax savings during the interest-only payment phase.

Cons

•  Costs more overall Though your initial payments will be smaller, the total amount of interest you will pay over the life of the loan will likely be higher than with a principal-and-interest mortgage.

•  Interest-only payments don’t build equity You won’t build equity in your home unless you make extra payments toward the principal during the interest-only period. That means you won’t be able to borrow against the equity in your home with a home equity loan or home equity line of credit.

•  Payments will increase down the road When payments start to include principal, they will get significantly higher. Depending on market rates, the interest rate may also go up after the initial fixed-rate period.

•  You can’t count on refinancing If your home loses value, it could deplete the equity you had from your down payment, making refinancing a challenge.

•  Strict qualification requirements Lenders often have higher down payment requirements and more rigorous qualification criteria for interest-only mortgages.

💡Quick Tip: When house hunting, don’t forget to lock in your mortgage loan rate so there are no surprises if your offer is accepted.

Who Might Want an Interest-Only Loan?

You may want to consider an interest-only mortgage loan if:

•  You want short-term cash flow A very low payment during the interest-only period could help free up cash. If you can use that cash for another investment opportunity, it might more than cover the added expense of this type of mortgage.

•  You plan to own the home for a short time If you’re planning to sell before the interest-only period is up, an interest-only mortgage might make sense, especially if home values are appreciating in your area.

•  You’re buying a retirement home If you’re nearing retirement, you might use an interest-only loan to buy a vacation home that will become your primary home after you stop working. When you sell off your first home, you can use the money to pay off the interest-only loan.

•  You expect an income increase or windfall If you expect to have a significant bump up in income or access to a large lump sum by the time the interest period ends, you might be able to buy more house with an interest-only loan.

Recommended: Tips for Shopping for Mortgage Rates

Qualifying for an Interest-Only Loan

Interest-only loans aren’t qualified mortgages, which means they don’t meet the backing criteria for Fannie Mae, Freddie Mac, or the other government entities that insure mortgages. As a result, these loans pose more risk to a lender and, therefore, can be more difficult to qualify for.

In general, you may need the following to get approved for an interest-only loan:

•  A minimum credit score of 700 or higher

•  A debt-to-income (DTI) ratio of 43% or lower

•  A down payment of at least 20%

•  Sufficient income and assets to repay the loan

The Takeaway

An interest-only mortgage generally isn’t ideal for most homebuyers, including first-time homebuyers. However, this type of mortgage can be a useful tool for some borrowers with strong credit who fully understand the risks involved and are looking at short-term ownership or have a plan for how they will cover the step-up in payment amounts that will come down the road.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

When should you use an interest-only mortgage?

There are several situations in which it may make sense for homebuyers to consider an interest-only mortgage. If they are anticipating a windfall or increase in income before the initial interest-only period is up, these loans could allow them to buy a more expensive house. If they’re looking for a second home to retire to, they can eventually use the proceeds from the sale of their primary home to pay off principal. And if they plan to move and sell the house before the interest-only period ends, an interest-only loan may be practical.

What is a main disadvantage of an interest-only loan?

Interest-only loans have several potential disadvantages. Most notably, borrowers typically end up paying more interest over the life of the loan than they would with other loans, they do not build home equity during the initial, no-interest period, and when they do start paying principal, the size of the payments may be larger than they anticipated.

Do banks still do interest-only mortgages?

Not all banks offer interest-only mortgages, but some do. Be aware that banks that offer the loans may have more demanding criteria for borrowers, like a credit score of 700 or more, a DTI ratio of 43% or less, and a down payment of at least 20%.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOHL-Q225-068

The decision to buy a home is a significant milestone in life, representing stability, security, and investment. The process of purchasing a home, however, can be complex and overwhelming, especially for first-time homebuyers. There are numerous steps involved, some more complex than others, and you generally need to follow the steps in a certain order to ensure everything goes smoothly.

To help you navigate the home-buying process successfully, we’ve created a simple step-by-step home-buying checklist. Each item you cross off the list will bring you one step closer to achieving your dream of home ownership.

10 Key Steps to Buying a House

1. Determine How Much House You Can Afford

The first step in the home-buying process is to evaluate your financial situation and determine a realistic budget. While a lender can tell you how large of a mortgage you can get approved for, you may want to do some calculations on your own to make sure your budget doesn’t get stretched too thin. A general rule of thumb is to spend no more than 28% of your gross monthly income on housing costs, including mortgage (interest and principal), property taxes, insurance, and any association fees.

Using a home affordability calculator can help you determine how much house you can afford to buy by taking into account your income, debts, location, and down payment amount.

2. Make a Plan for the Down Payment

Once you have a budget in mind, you’ll need to plan for the down payment. You may have heard that you need to make a 20% down payment on a home, but that’s really just the threshold many lenders use for requiring private mortgage insurance (PMI) on a conventional loan.

The minimum down payment you need to make for a house will depend on the type of mortgage you’re planning to apply for. Loans guaranteed by the U.S. Department of Veterans Affairs (VA) usually do not require a down payment, while FHA loans, which are backed by the Federal Housing Administration, may require as little as 3.5% down.

When choosing how much to put down, however, you’ll want to keep in mind that a higher down payment brings down the principal (and lifetime interest payments), which can lower the total cost of homeownership.

💡 Quick Tip: Buying a home shouldn’t be aggravating. Online mortgage loan forms can make applying quick and simple.

3. Get Preapproved for Your Mortgage

Working with a lender to get preapproved for a mortgage is an essential step that demonstrates your seriousness as a buyer and strengthens your position in negotiations. You may want to shop around and look at mortgage offerings and rates from different lenders before you choose a lender for preapproval. Keep in mind, though, that you do not have to use the same lender to finance your loan that you use for your preapproval.

In order to get preapproved, a lender will usually require a significant amount of information and documentation. This may include:

•  Income statements (such as W2s, 1099s, and tax returns)

•  Proof of assets (such as bank statements and retirement accounts)

•  Debts (including student loans, credit cards, and any other mortgages)

•  Records of bankruptcies and foreclosures

•  Current rent

Once you submit all your paperwork, the lender will assess your financial situation and preapprove you for a specific loan amount, which will be spelled out in a preapproval letter. This letter will give you a clear understanding of your buying power. It can also come in handy when submitting an offer, since it shows sellers and real estate agents that you’re a serious buyer who will be able to get financing.

A preapproval letter is typically valid for only 90 days (sometimes less), after which it will need to be updated.

4. Find the Right Real Estate Agent

The right real estate agent can make a significant difference in your home-buying experience. A knowledgeable and experienced agent will guide you through the process, provide valuable insights, and negotiate on your behalf. Ideally, you want to choose an agent who understands your needs, has expertise in the local market, and communicates effectively. You may want to ask for recommendations from friends, family, and colleagues, then interview at least three agents before choosing the one you want to work with.

Recommended: Preparing to Buy a House in 8 Simple Steps

5. Shop for Your Home

With the help of your real estate agent, you can begin the fun part of the home-buying process — searching for your dream home. Before you start, it can be a good idea to create a list of your must-haves and nice-to-haves, considering factors such as location, size, amenities, and proximity to schools, workplaces, and public amenities. This will help guide your real estate agent in finding the right homes to show you.

6. Make an Offer

When you find a home that fits the bill, you’ll want to work with your agent to make a competitive offer that reflects your budget and market conditions. Your agent will then prepare a complete offer package, which will include your offer price, any special terms or contingencies, your preapproval letter, and (in some cases) proof of funds for a down payment. If the seller accepts your offer, congratulations — you only have a few more steps left in the home-buying process. At this point, you will likely need to write a check that will serve as a deposit on the home. This typically goes into an escrow account.

7. Get a Mortgage

Once your offer is accepted, you’ll need to get official approval for a mortgage. You’re not obligated to go with the same lender that issued your preapproval, so you may want to shop around and compare rates and terms from different banks, credit unions, and online lenders.

If you do decide to officially apply for your loan with the same lender that did your preapproval, they already have many of the documents you’ll need for your application. However, you will likely need to provide updated and perhaps additional financial statements. If you apply with a new lender, you’ll need to supply much of the same information as you did for preapproval.

The lender will evaluate your financial information, review your creditworthiness, and conduct an appraisal of the property. You’ll want to be sure to work closely with your lender and respond quickly to any requests to ensure a smooth and timely mortgage approval process.

8. Get a Home Inspection

A home inspection is crucial to uncover any potential issues or defects in the property. For this step, you’ll likely need to hire a professional home inspector to assess the condition of the home, including its structure, systems, and components. The inspector will provide a detailed report highlighting any areas of concern. Once you receive the inspector’s report, you’ll want to review it with your real estate agent and discuss potential repairs or negotiating points with the seller.

9. Negotiate any Repairs or Credits with the Seller

Based on the home inspection and lender’s appraisal results, you may need to negotiate repairs or credits with the seller. Your real estate agent will guide you through this process, helping you assess the necessary repairs/credits and determine fair solutions.

Your ability to negotiate with the seller will likely depend on the current real estate market. If it’s a hot seller’s market, for example, it may be challenging to get concessions, since the seller can move on to the next offer. However, if it’s an issue that will likely come up with other buyers, you may have success. In a buyer’s market, there will typically be more room for negotiation at this stage of the process.

10. Close the Sale

The final step in the home-buying process is the closing. During the closing, you and the sellers will sign legal and financial documents and ownership of the property is transferred to you. It’s important to review all the closing documents carefully, including the settlement statement, loan documents, and homeowner’s insurance policy. You’ll also need to provide all the necessary funds, including the down payment and closing costs. Once the final paperwork is executed, you will receive the keys to your new home. Congratulations, you’re a homeowner!

The Takeaway

Buying a home is a multi-step process that starts with assessing your current income and expenses and determining how much you can afford to spend on a home. You then need to start saving up for a downpayment, get preapproved for financing, and find the right home. Once you have an offer accepted, it’s time to secure a mortgage, conduct an inspection, negotiate repairs, and close on the sale. It’s a lot. But taking a systematic approach — and following a home-buying checklist — can help ensure a smooth and stress-free home-buying experience.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

What are the 3 most important things when buying a house?

Three of the most important things to consider when buying a house are its location, its condition, and its affordability. Where it’s located will affect your commute times, safety, and access to amenities, as well as its future property value. To assess the condition of the house, it’s a good idea to have a home inspection. Consider factors such as age, maintenance requirements, repairs needed, and potential future costs. Finally, in gauging affordability, look at not just the purchase price, but also ongoing expenses, such as mortgage payments, property taxes, insurance payments, and maintenance costs.

What is the most difficult step in buying a house?

Securing financing and obtaining a mortgage is often the most challenging step in buying a house. To qualify for a mortgage, you generally need to meet certain criteria, understand various mortgage options, and navigate the loan approval process, which involves providing extensive financial documentation and meeting strict timelines.

What are the 5 phases of buying a home?

The process of buying a home can be broken down into five phases: First comes planning, when you evaluate your finances, create a budget, start saving for a down payment, and get preapproval for a mortgage. Next is the property search, when you look for the house you want to buy. Third is the offer, when you submit your offer to the seller and, if necessary, negotiate. Once your offer has been accepted, the closing is scheduled, where you review and sign legal and financial documents. And once you have closed, the final stage is ownership, as you make the necessary payments and receive the keys to your new home.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOHL-Q225-069

Currently, the average cost for one in vitro fertilization (IVF) cycle in the United States is $12,400, according to data from the American Society for Reproductive Medicine. That alone is a steep price tag, and many patients go through several cycles of IVF before conceiving or attempting other options. Many clinics also charge fees for add-on procedures, which can bring the total cost of a single treatment to well over $20,000.

Fortunately, there are a number of different funding options for fertility treatments. These include budgeting and saving, insurance coverage, flexible spending accounts, IVF financing, loans, and grants. Read on for a closer look at ways to make the cost of IVF more manageable.

IVF Financing: 9 Ways to Pay for Treatment

For many prospective parents, the cost of IVF is worth every penny, as it can provide the chance to have children. If you’re wondering how to pay for treatment, consider these option for funding IVF.

1. Tapping into Your Health Insurance

A good first step is to check whether your health insurance will cover IVF. There are currently 21 states and the District of Columbia that require insurance companies to cover infertility treatment, but only 14 include IVF in the requirement.

You can contact your insurer to find out your specific benefits. Depending on where you live, coverage can run the gamut. Some plans will cover IVF but not the accompanying injections that women may also require, while other plans will cover both. Some insurers will only cover a certain number of attempts. And some plans do not cover IVF at all.

If you have the option and if the timing works out with your enrollment period, you might consider switching your insurance plan to one that covers, or partially covers, IVF.

2. Using Your Health Savings Account or Flexible Spending Account

A health savings account (HSA) allows you to put pre-tax money aside for medical expenses. Typically, you get an HSA in tandem with a qualifying high-deductible health plan. If you have funds in your HSA, you can use them to pay for IVF and related medical expenses. As long as you paid for the expenses after you opened the HSA, you can reimburse yourself for them at any time — it doesn’t have to be in the year that you incurred the costs.

If your employer offers a flexible spending account (FSA), you can also use those funds to pay for IVF. You don’t need a qualifying health plan to have and use this account. However, you can only use the funds for medical expenses incurred during the plan year. Also, if you don’t use all of the money you set aside, you generally lose it. However, you may be able to carry over a certain amount to the following year.

Bear in mind that there are annual limits on how much money you can contribute to either kind of account. For 2025, the individual cap on HSA contributions is $4,300 and the family cap is $8,550. Health flexible spending account limits are $3,300 for 2025.

3. Budgeting and Saving

If you’re planning to pay for IVF out-of-pocket and you don’t just have that kind of cash lying around, the most basic financial move is to save up, the way you would for any major expense. You may want to open a high-yield savings account dedicated to your IVF fund, then set up an automatic recurring transfer from your checking account into that account each month.

Depending on your timeline, you may need to cut back on discretionary expenses, such as meals out, streaming services, a gym membership, and non-essential purchases, at least temporarily. Any expense you cut can now get diverted into your IVF savings fund. You may want to investigate different types of budgeting methods to find a system that works best for you in this scenario.

4. Borrowing From a Loved One

If you have a friend or relative who is financially comfortable, you might consider asking them for a loan. There may be people in your life who would be happy to support your efforts to build your family. If you go this route, however, it’s a good idea to set out the terms of the loan clearly, including whether you’ll pay interest and, if so, at what rate, and when and how you’ll repay the loan. Setting out clear terms, and honoring those terms, can help ensure that the loan doesn’t damage your relationship in any way.

5. Applying for a Fertility Loan or IVF Loan

Some fertility clinics work with lenders that specialize in IVF financing. This allows you to pay for your out-of-pocket IVF costs in installments over time. These loans can offer anywhere from $5,000 to $100,000, and interest rates can range from 0% to 35.99%. IVF lenders typically determine whether you qualify for financing, and at what rate, based on your financial qualifications and credit. With this type of loan, the money is usually paid directly to the clinic rather than you, the borrower.

In addition, there are personal loans designed to help people pay for treatment costs. These are offered by banks and other lenders, and you may see them called fertility loans, IVF loans, and family planning loans. (Learn more about personal loans below.)

6. Applying for a Grant

A number of nonprofit organizations offer grants and scholarships to those who cannot afford to pay for IVF. These grants are usually income-based, meaning you must demonstrate a need to qualify. Organizations that offer IVF grants include the Cade Foundation, Journey to Parenthood, Gift of Parenthood, the Baby Quest Foundation, and the Starfish Fertility Foundation.

Resolve offers a list of fertility treatment scholarships and grants on their site. It’s also a good idea to ask your fertility clinic about any local or national grant or scholarship opportunities they know of.

7. Taking Out a Home Equity Line of Credit

If you own a home, you may be able to take out a home equity loan or home equity line of credit (HELOC) and use the funds to pay for IVF. The amount you can borrow and the terms depend on the amount of equity you have in your home, as well as your credit history, debt-to-income ratio, and other factors.

The advantage of this type of IVF financing is that home equity loans and credit lines often have lower interest rates than credit cards and other types of loans. The downside is that you need to have equity in order to qualify, and you must use your home as collateral for the loan (which means that if you have trouble making payments, you could potentially lose your home).

Recommended: How to Avoid Loan Origination Fees

8. Borrowing From Your Retirement Account

You generally don’t want to tap your retirement nest egg before retirement, but if no other funding sources are available, borrowing from your retirement account, such as an 401(k), could be an option.

You may be able to borrow up to $50,000 or half of the amount vested in your 401(k) — whichever is smaller. If you take this path, you are basically lending the money to yourself at market interest rates for up to five years. Keep in mind, though, that 401(k) plan providers will typically charge fees to process and service a loan, which adds to the cost of borrowing and repayment. Also, not all employers offer these loans.

In addition, you might qualify to withdraw money from your individual retirement account (IRA) or 401(k) to pay for IVF treatment if your plan allows what’s called a hardship withdrawal. This allows you to avoid the 10% early withdrawal penalty, but you’ll still have to pay income tax on any withdrawals you make.

9. Taking Out a Personal Loan

Compared to using high-interest credit cards or tapping your IRA, a personal loan might be a better option for many people. A personal loan can be used for almost any expense, including IVF, and typically comes with a fixed interest rate that is lower than most credit cards.

Unlike a home equity loan or credit line, personal loans are typically unsecured, which means you don’t need to put your home or any other asset at risk. Also, you do not need to have any equity in your home to qualify. Instead, a lender will look at your overall financial qualifications to determine whether or not to approve you for a loan and, if so, at what rate and terms.

Recommended: Personal Loan Calculator

The Takeaway

IVF might be one of the most meaningful investments you’ll ever make, but it can be a major expense. You can look to your insurance, health savings accounts, cash savings, or a loved one for help with IVF funding. If that’s not enough, an unsecured personal loan may be a smart way to finance treatment and help make your dreams a reality.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What is an IVF loan?

An IVF loan is typically a kind of personal loan designed to pay for fertility treatment costs. It’s an installment loan: You receive a lump sum of cash and then repay it, with interest, over time.

Can I get a personal loan for fertility treatments?

Personal loans can be used for almost any purpose, and fertility treatments are one option. You may see personal loans specially designed for this purpose. To qualify, you will need to go through the application process, have your credit reviewed, and see what terms you are offered.

Are there medical loans that cover IVF?

Yes, you can likely find loans that cover IVF in two ways. Some fertility clinics partner with lenders to offer funding, or you can apply for a personal loan to finance the expense of IVF treatments.

What is the best way to finance IVF?

Deciding how to finance IVF is a very personal decision, based on a variety of factors. Homeowners with equity might choose a HELOC; others might apply for a personal loan; and still others might seek a grant or a loan from a family member.

Does insurance cover IVF?

Some health insurance policies cover IVF. Check your policy for details; the amount of coverage and its details can vary greatly.

Can I use an HSA or FSA for IVF expenses?

Yes, you may be able to use HSA or FSA funds for IVF expenses, but it’s important to check the eligibility guidelines to see which aspects of your treatment are covered.

What are alternatives to IVF loans if I have bad credit?

If you have bad credit and are seeking IVF financing, you may find lenders, albeit with higher interest rates and less favorable terms. Other options include payment plans with your healthcare provider, a loan from a family member or close friend, and/or applying for grants.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-040

Buying new furniture can be an exciting way to personalize and update your home, whether your taste runs towards a sleek, modern look, a funky boho vibe, or anything in between. But furniture can be expensive, so you’ll likely want to shop at the right time to get the best possible deal.

When precisely that is will vary based on what you are hunting for. Indoor furniture may be on sale in the late winter and summer, but outdoor pieces may be marked down at the end of summer and in the fall.

To help you save a bundle on your new furnishings, no matter what you may be looking for, read on for smart intel and advice.

When Is the Best Time to Buy Furniture?

The best time of year to buy furniture depends on which kind of furniture you’re talking about. Here are some rules of thumb to keep in mind as you redesign your living space.

Indoor Furniture

Like many other manufactured goods, sales on indoor furniture are generally dependent on the release of new pieces: When a showroom needs to make room for next season’s stock, they typically put the older stuff on sale. New furniture designs tend to be released in spring and fall, which means the best sales generally happen at the end of the winter and during the summer.

So for indoor furnishings like beds and couches, shopping at your local furniture stores in January/February and July/August and paying special attention to any seasonal or holiday sales like Black Friday may offer decent savings on the cost.

Outdoor Furniture

Outdoor furniture, on the other hand, tends to be released in the late winter and spring between February and April. That may seem like the best time of year to buy furniture for outdoor spaces, since there’s plenty of new stock and plenty of time before the long, sunny days of summer.

However, furniture shops also generally want to have that stock off their floor by August, which means there are usually some great outdoor furniture sales to shop over the summer and particularly in August and towards early fall.

Recommended: Savings Calculator

Custom Furniture

Having a piece (or three) hand-built to your specifications can bring your interior design dreams to life. However, on-demand, custom-built furniture typically costs more and is less likely to go on sale the way ready-made furniture does.

That said, buying custom furniture can be better for your budget in the long run if it means you won’t be itching to change your furniture again in a couple of years — or if it means your furnishings are of higher quality and, hopefully, have a long lifespan. Plus, buying custom designs from a small business, or even an individual crafter, can feel more rewarding than purchasing something from a big box store.

Recommended: Tips to Managing Your Money Better

Furniture Shopping on Holiday Weekends

As is true of many major purchases, holiday weekends and annual sales can offer excellent opportunities to buy furniture on the (relatively) cheap. Some holidays that routinely bring furniture sales include:

•   Presidents Day

•   Memorial Day

•   Fourth of July

•   Labor Day

•   Black Friday and other winter holiday sales events.

Many retailers offer regular sales in addition to these events, so it’s always a good idea to watch for promotions. Signing up for the store’s email newsletter can help keep you apprised of their ongoing sales events, and many dealers also offer clearance stock year-round that could be worth perusing.

Recommended: 25+ Tips for Buying Furniture on a Budget

General Furniture Buying Tips

No matter what time of year you shop for your furnishings, the following tips can help you find a good deal and get the most for the money you do spend.

You can also benefit from them if you’re budgeting to buy a house and putting in offers; you want to get the best possible price if you’ll be filling a home with new furniture.

Being Patient

Furniture — especially furniture you want to keep around for a decade or longer — is a big purchase. It’s worth waiting to find the right piece rather than dropping a bunch of money on one that’s only okay.

If you’re furnishing your new home for the first time and need something fast, consider visiting a local thrift shop or surfing Facebook Marketplace. You might be able to find an inexpensive, pre-owned piece that’s only temporary, but still workable — and won’t eat too much into your budget.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Shopping Around

With so many design aesthetics and price points to choose from, furniture shopping is not a time for brand loyalty. You likely shop around for the best deals on groceries or when looking to switch bank accounts, so apply the same principle here. Shopping around at different retailers can not only help you find the best deals, but also give you more ideas and inspiration when it comes to creating a cohesive look for your home.

Recommended: Passive Income Ideas to Build Wealth

Consider Shopping Online

Online shopping for furniture can open a whole new world of color and design options. But some discount furniture retailers don’t offer physical storefronts, which can make virtual shopping a little tricky. Choosing certain pieces of furniture, like couches and armchairs, for example, may be easier if you try them before you buy them.

Many online furniture retailers do offer return policies. That can help make your purchase less stressful, since you know you won’t be stuck with the product if it doesn’t work out. And at online stores that do have brick-and-mortar locations, you could visit in person, try out certain models, and then order online later, which may give you a better opportunity to compare the pieces you’re considering side-by-side.

Asking About the Warranty

Since furniture does tend to be a major expense, you want to make sure it’s built to last and has some guarantee to go with that. Many furniture sellers do offer warranties, and the fine print will specify what’s covered and how long you have to get your money back if something goes wrong. In short, it’s worth getting familiar with these details.

💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.

The Takeaway

Shopping for furniture during certain times of the year can help you save money on a potentially expensive project like furnishing your home. When budgeting to buy a house, keep in mind that furniture is one of the costs of homeownership you’ll want to save up for in advance, on top of the down payment and closing costs.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What is the cheapest month to buy furniture?

The cheapest month to buy furniture is often January, following the holiday season. Retailers tend to clear out old inventory to make room for new arrivals, offering significant discounts. If you’re looking for outdoor furniture, consider shopping in late August to find the best deals. That’s when stores are typically looking to get rid of summer inventory to make space for incoming merchandise.

What month are most furniture sales?

Most furniture sales occur in January and July. January sees post-holiday clearance sales, while July benefits from mid-year sales and Independence Day promotions. These months can be ideal for finding deals on a wide range of furniture items, from sofas to dining tables.

What time of year is it cheapest to buy a sofa?

The cheapest time to buy a sofa is typically in January, during post-holiday sales, and July, with mid-year clearance events. Retailers often offer significant discounts to clear old stock and make room for new models. Black Friday and Cyber Monday in November are also good times to find deals.

What month is the best time to buy bedroom furniture?

The best time to buy bedroom furniture tends to be January and July. January features post-holiday clearance sales, and July has mid-year sales and promotions. These months often offer substantial discounts on items like beds, dressers, and nightstands. Also consider shopping during Black Friday and Cyber Monday to find deals on bedroom furniture.

Photo credit: iStock/fizkes

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SOBNK-Q225-064

Congratulations: You’re on your way to college. You can put all the standardized tests, the applications, and the rest of the stress behind you and embark on this new adventure. Education and independence await, but you have to prepare for it.

And that starts with packing. Which clothes, books, and artwork are coming with you? What do you need to go shopping for?

To help you prepare, follow this list of what every new student might need.

School Supplies

Don’t be fooled into thinking that the only necessary supplies are a laptop and phone. Additional supplies can help students manage their college courses.

Even though phones and laptops have built-in calendars, having a physical planner can be a good idea, as well. Writing information down can help you remember it better, and it can be less distracting having school information in a physical planner, away from all those social media apps.

When it comes to taking notes, some professors don’t want everyone on their computers during class, and some don’t mind. It’s a good idea to have a notebook for each class just in case, along with pens, pencils, and highlighters.

Make sure to check the specific course requirements, as well. You’ll likely need some textbooks (you may be able to pay for books with student loans, if you have taken any out). Also check the syllabus for each class. It should be available early enough to read through and see if the professor lists any required materials. If you’re taking a math class, for example, a specific type of calculator may be required.

(Tip: Since paying for college can be a stretch, look into renting books and equipment instead of buying them outright.)

Depending on how many books you have to lug around campus, you may want to invest in a new backpack or messenger-style bag. Some students like a small bag with roll-aboard-style wheels if they have to lug it long distances. The most suitable bag will likely depend on students’ schedule, how big their campus is, and how many classes they have in a row.

It might be good to wait to choose this item after you’ve selected your courses and can see what each day is going to require.

💡 Quick Tip: With benefits that help lower your monthly payment, there’s a lot to love about SoFi private student loans.

Shower Supplies

Students who choose to live in the dorms will need to bring shower supplies with them. Sharing a bathroom is going to be another adjustment when starting college. There are a few must-haves for a comfortable experience.

•  Shower shoes are one of these musts. A cheap pair of flip-flops will do the trick. These are shoes that are worn only while taking a shower. What’s the deal? They help to prevent athlete’s foot, a fungal infection that can result from public showers. Just make sure to rinse and dry off the shoes after each use.

•  A shower caddy is another essential. Most students will likely be walking from the dorm room to the shower, so they’ll have to bring all shower supplies with them. A portable container makes this much easier.

•  Shower supplies are a must, too. The caddy will have room for your shampoo, conditioner, body wash, and so on, and some of them also come with hangers, so they could potentially be hung up in the shower. In choosing a shower caddy, look for one that is waterproof and has holes in it so it doesn’t fill up with water.

•  Don’t forget the towels. At home, there’s always a stack of clean towels ready to be used. This won’t be the case in the dorms.

•  You might also want to have a robe that can be thrown on while walking from the dorm room to the bathroom and back.

Recommended: What Is College Like?

Wardrobe

This can be one of the most fun parts of packing: Thinking about what you’re going to wear. After all, it’s an opportunity to present your best self or a whole new you on campus.

You may have a stellar closet full of clothes you can’t wait to take with you. Or you may want to go shopping and take a break from the looks that you loved in high school. You’ll also have to consider the weather. If you grew up in Florida and are heading to Maine for freshman year, you are going to have to get gear that’ll keep you warm.

If you’re the sort of person who wants an entirely new wardrobe for college, it’s wise to learn how to save money on clothes, and uncover the joys of everything from couponing to hitting thrift stores.

Recommended: What Is the Average Cost of College Tuition

Don’t Forget Shoes

College campuses are much bigger than most high schools, so investing in a good pair of walking shoes is important. Classes may end up being a solid 15- to 20-minute walk away from each other.

It’ll take a toll on a student’s mood and physical comfort if they try to handle that walk in heels, unsupported sandals, or ill-fitting shoes.

Shoes take up a lot of space while packing, so trying to bring just the necessary pairs is wise. If your college is in a state that will experience cold or snowy winters, make sure to invest in some warm boots.

Recommended: Guide to Private Student Loans

Bedding and Room Necessities

What else do students need to bring to a college dorm? Most dorm rooms will come with a bed but not sheets. Pack a couple of sets of sheets and a nice comforter. Some college students also recommend bringing a mattress pad and backrest pillow because you may spend more time in that bed than expected. Not living on campus? If you’ll be staying off-campus, look for furnished apartments to minimize your costs.

One important note: It’s vital to look into the school’s list of restricted items so you know what you should not bring to college. The college may also list the furnishings that come with the room. Check out your school’s website first so you don’t buy something that’s already there.

It can also be helpful for students to contact their roommates ahead of time and see if they’re planning to bring anything that could be shared. That could be a move that helps make college more affordable.

It’s not a bad idea to pack on the light side; it can help you avoid overbuying and spending too much on things you don’t need. If you get there and need things, most items can be ordered online anyway.

Planning how to make the most of the small space provided in a college dorm is going to be great practice for when students are ready to move into apartments.

💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

The Takeaway

The packing list has been made and the shopping trip planned, so what’s next? Paying for everything. There are many options for financing the entire college experience, and students can try to get help from more than one avenue if they need to.

Students seeking financial aid should look into scholarships and grants and then federal aid.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

What are the essential bedding items to bring to college?

Most dorm rooms provide a bed frame and mattress but not bedding. It’s recommended to bring two sets of sheets (often twin XL), a comforter, pillows, and a mattress pad for added comfort. A backrest pillow can also be useful for studying or relaxing on the bed.

How can students avoid bringing unnecessary items to college?

To prevent overpacking, students should consult their college’s list of provided items and prohibited belongings. Additionally, coordinating with roommates can help avoid duplicate items, and packing lightly allows for purchasing additional necessities after arrival if needed.

What is a practical approach to packing for college?

Adopting a minimalist approach by bringing only essential items can make the move-in process smoother. Since most items can be purchased or ordered online after arrival, starting with the basics and acquiring additional items as needed is often more manageable.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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