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As you sort through the many details that go into buying a home, have you wondered if there’s a best or worst day to schedule the closing? The answer is yes: Choosing the right date and/or day of the week to finalize your home purchase could help lower your stress — and potentially save you some money.

Read on for a look at how carefully timing your closing could have benefits for you as a homebuyer.

Who Chooses the Closing Date?

Generally, buyers suggest a tentative closing date when they make an offer on a home, but there may be some negotiations before this important day is finalized on the purchase contract. It’s also not unusual for the established closing date to be moved if the buyers or the sellers request a change.

It can be hard to predict how long it will take to close on a house. It may take the buyers longer than expected to get the home they hope to purchase inspected, for example, or to pull together all the necessary paperwork for their approval. Or the sellers may ask to modify the date to accommodate the purchase of their next home. The day also has to work for the mortgage lender, the title company, any cosigners, and others involved in the transaction.

Still, as the buyer, you can expect to have a say as to when you’ll head to the closing table. So it can make sense to be prepared to propose a day that works best for your needs.

Worst Day to Close on a House

Because the logistics can get complicated when you’re trying to find a closing date that works for everyone, you may want to focus first on avoiding what might be the worst day to close on a house. And surprisingly, that could be a Friday.

It might be tempting to schedule your closing for the end of the week — especially if there’s a holiday weekend coming up — so you can take advantage of those days off to move into your new home. But it can be a risk. If there’s a delay such as missing paperwork or a complication during the final walk-through, you may have to push the closing to the following Monday or even later in order to resolve the trouble and get back on track.

Mondays can also be problematic. Even if everything is in order for your closing, the professionals you’re dealing with may be swamped with a backlog of issues left over from the week before. Your experience may be more pleasant if you pick a day that’s not as busy.

If you can manage it, a Tuesday, Wednesday, or Thursday may be a better choice. Closing midweek can give you more time to overcome any last-minute hiccups and still get the transaction finalized without having to shift it to the next week.

Recommended: When Is the Best Time to Buy a House?

Best Day to Close on a House

The best day to close on a house for the buyer is the one that’s the right fit for your schedule as a busy employee, parent, etc. — and it must work for everyone else who plans to participate. You’ll also want to be sure to give yourself plenty of time to accomplish all the steps in the home-buying process, from getting an appraisal and inspection to arranging for homeowner’s insurance and planning and packing for your move.

Your financial needs can also play a significant role in choosing the right closing day. And getting that right can be more about finding the best day of the month to close than the best day of the week.

If you want the maximum breathing room between your closing and your first mortgage payment, for example, you may want to pick a day that’s early in the month. A buyer’s first mortgage payment is usually due on the first day of the month after a 30-day period following the closing. So if your closing is on, say, Sept. 3, you’d have nearly two months before your first payment was due on Nov. 1. But if you closed on Sept. 28, you’d only have about a month before the first mortgage payment was due, also on Nov. 1.

If you’re trying to save money on closing costs, however, you might want to avoid the start of the month. As the buyer, you can expect your lender to add any interest that will accrue between your closing date and the end of the month to your closing costs. With a date that’s later in the month, your first mortgage payment will come sooner, but you could substantially reduce the amount of interest you’ll have to prepay at your closing. Some lenders will roll closing costs into your home loan, but you will still pay them, perhaps by paying a higher interest rate on the loan.

You could also decide to compromise and shoot for a closing date in the middle of the month. With this option, you’ll pay less interest than if you’d closed at the start of the month and you’ll still have a month and a half before your first mortgage payment is due.

Recommended: VA Loan Closing Costs

Other Things to Consider When Choosing a Closing Date

Along with the money you could save on prepaid accrued interest by scheduling your closing toward the end of the month, here are a few other financial factors to consider:

Do You Have an Existing Lease?

If you’re a first-time homebuyer and you’re currently renting, you may want to time your closing so that you can avoid making another rent payment before you move into your new home. For example, if your rent is due on the first day of the month, your best closing date may be at the end of the month prior. (This could also allow you to reduce the amount of prepaid interest due at closing.)

Is the Home in an HOA?

Buyers often overlook the cost of Homeowners Association (HOA) fees when they prepare for a closing — but it’s possible those fees could rise or fall depending on the date you close. The difference in what you’ll pay might not be enough to make you want to change your closing date, but it’s worth checking out ahead of time.

Are You Asking for Seller Concessions?

Are you dealing with eager home sellers? You might be able to ask for some seller concessions as part of your home purchase. If the sellers agree to pay some or all of your closing costs, for instance, that amount could include the accrued interest the lender will charge. If that’s the case, you could close at the start of the month and enjoy a longer period of time before you must make your first mortgage payment without having to make a larger interest payment at closing. (Just be sure to check that the accrued interest will be included in the costs covered by the sellers.)

The Takeaway

So many decisions go into buying a home, it might not even occur to you to put some thought into choosing the best closing date. But picking the best day to close on a house as a buyer can have several benefits — including providing opportunities to save some money at a time when that can be so important.

The closing date is negotiable, and of course you’ll want to be open to finding a day that works for all involved. But as a buyer, you’ll have a chance to propose the best closing date for you when you make an offer on a home. So why not check your calendar, run the numbers, consult with your real estate agent and mortgage lender, and come prepared with a day in mind?

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.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Does the buyer or seller choose the closing date?

Both buyers and sellers may have some input into the closing date, but typically, the buyer first proposes a closing date on the purchase contract when making an offer on a home.

Is it better to close on a house at the beginning or end of the month?

There are several factors that may go into deciding the best timing for a closing. For example, If the buyer wants to pay less toward accrued interest, a closing date at the end of the month is generally better. But if the buyer wants to maximize the time between the closing and the first mortgage payment, closing at the start of the month may be the better choice.

Does it matter if I close on my house before a holiday?

You may want to avoid scheduling your closing right before a holiday weekend. The professionals who are working on your closing may be busier at this time of year, and if an issue comes up that can’t be resolved quickly, the closing might have to be delayed until after the holiday.

How does the closing date affect the first mortgage payment?

A buyer’s first mortgage payment is typically due on the first day of the month after a 30-day period following the closing.

Is there an optimal day of the week to close on a house?

Tuesdays, Wednesdays, and Thursdays are generally considered to be the best days of the week for a closing. If something goes wrong and the closing is early in the week, it’s more likely there will be time to fix the problem and get things back on track before the weekend.

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Photo credit: iStock/gorodenkoff

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.

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 requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
This article is not intended to be legal advice. Please consult an attorney for advice.

SOHL-Q225-037

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Buying a home is a big milestone, but with hefty housing prices and high mortgage rates, homeownership can feel out of reach for many Americans. And even if you can afford the down payment and monthly mortgage for your dream home, you may not have strong enough credit to qualify for the loan. So what can you do?

Adding a qualified cosigner to your mortgage is a great way to improve your approval odds when buying a house, but there are several risks the cosigner takes on when they help you out. Below, we’ll walk you through how cosigning a mortgage works, what the requirements are, and the pros and cons.

What Is a Mortgage Cosigner?

A mortgage loan cosigner is someone (usually a relative or close friend) who signs the mortgage alongside the primary borrower but has no ownership interest in the home (and does not live in the same home). Instead, the cosigner simply agrees to take full financial responsibility for the mortgage should the primary borrower miss payments or stop paying entirely.

This is a big deal: The lender has every right to come after the cosigner if the borrower defaults on the mortgage. The cosigner may have to pay missed payments and late fees, and in most cases, the lender is able to use debt collection methods (such as a lawsuit or garnishing wages) on the cosigner without first trying to collect from the borrower.

Having a mortgage cosigner can make a big difference in your approval odds if you don’t have a strong enough credit score to qualify for a mortgage otherwise. However, there are clearly tremendous risks to the cosigner that you should take seriously as the borrower.

How Cosigning a Home Loan Works

Whether your credit score is so low that you can only qualify for a mortgage with an extremely high interest rate — or so low that it precludes you from qualifying for a mortgage altogether — you can get a cosigner on your mortgage loan to help smooth your path.

A well-qualified cosigner should have a strong credit score and a low debt-to-income ratio (DTI); that is, they should make significantly more money than they pay in debts each month. Adding this person, such as a parent, spouse, grandparent, or sibling, can suddenly make your application way more attractive to a mortgage lender. After all, the lender knows that if you fall behind on payments, your cosigner is well within their means to take over.

Assuming you are approved for a mortgage with a cosigner and close on the home, the mortgage will proceed as usual. You’ll move into the house, and the cosigner will continue living separately. They have no further responsibility — unless you stop making payments.

Because your failure to pay can negatively impact your loved one’s credit score and finances — and thus your relationship with that relative or friend — it’s imperative that you do everything within your power to stay on top of mortgage payments. Communicate with your cosigner regularly about the mortgage, and let them know the instant you suspect you’ll struggle to make a payment.

Conventional Mortgage Cosigner Requirements

If you’re using a cosigner to get a conventional mortgage, you’ll still need to meet basic conventional loan requirements. For instance, you’ll still need a minimum credit score for a mortgage with a cosigner of 620 — but if your credit score isn’t strong enough, you can rely on your cosigner’s high credit score to increase your approval odds.

There are a few other conventional mortgage cosigner requirements to keep in mind:

•   Down payment: If you’re using a cosigner, you still must use your own funds to make at least 5% of the down payment (in most circumstances).

•   DTI: Using only your income (but the debt of both you and your cosigner), your DTI must be no greater than 43%.

•   Loan-to-value ratio: When using a cosigner, the loan-to-value ratio (LTV), combined loan-to-value ratio (CLTV), and home equity combined loan-to-value ratio (HCLTV) usually cannot exceed 90%.

FHA Loan Cosigner Requirements

Similarly, FHA loans, backed by the Federal Housing Administration, have special cosigner requirements for a mortgage to bear in mind. FHA loans are ideal because you only have to put 3.5% down, which makes them great for first-time homebuyers who have limited savings to rely on.

However, if you’re adding an FHA loan cosigner, the down payment requirement jumps to 25% — unless the cosigner is a family member. In that case, the down payment remains at 3.5%.

Can parents cosign an FHA loan? Yes. But fortunately, the FHA is pretty liberal with the term “family member,” and also allows it to include:

•   A child or grandparent (including step and foster)

•   A spouse or domestic partner

•   An adopted child or foster child

•   A sibling (including step)

•   An aunt or uncle

•   An in-law (son, daughter, mother, father, brother, or sister)

The cosigner (which the FHA calls a “nonoccupying co-borrower”) must be a U.S. citizen or have a principal residence in the country.

Recommended: Guarantor vs. Cosigner: What Are the Differences?

Benefits of Mortgage Cosigners

The benefits of a mortgage with a cosigner belong primarily to the borrower. Here are a few pros of mortgage cosigners to consider:

•   Improved approval odds: Adding a qualified cosigner to your mortgage increases your approval odds, assuming the cosigner has a healthy credit score and stable income. This can be especially helpful for borrowers with low credit scores or unconventional income (such as self-employment income).

•   Lower interest rate: Even if you can qualify for a mortgage without a cosigner, you might face high interest rates. Adding a well-qualified cosigner could help you secure a lower mortgage interest rate, which means less money spent over the life of the loan and a lower, more manageable monthly payment.

•   Larger loan: You may be able to qualify for a more expensive house with the help of a cosigner. This could be crucial if you live in an area with a high cost of living (and thus more expensive real estate).

Drawbacks of Mortgage Cosigners

As you’d imagine, the cons primarily apply to the cosigner, not to the borrower. Here a few cons of mortgage cosigners to consider:

•   Huge financial risk: Cosigning a mortgage poses a huge financial risk. If the borrower stops making payments, you’re on the hook. The lender could potentially sue you or garnish your wages to cover the payments. Plus, late payments by the borrower don’t only impact their credit score; the cosigner’s credit score will take a hit, too.

•   Difficulty getting other loans: The mortgage you cosign will impact your debt-to-income ratio. Until that mortgage is paid off (which could take three decades), your DTI might be too high for you to qualify for your own loans, such as a mortgage on a new house, a personal loan, or a car loan.

•   Relationship issues: If the borrower isn’t taking enough responsibility for their home loan, you’ll have to have some difficult conversations. Disputes over money could even end your relationship (and yes, you’ll still be on the hook for the mortgage, even if you and the borrower no longer speak).

Recommended: Refinance Your Mortgage and Save

Other Factors to Consider When Cosigning a Mortgage

Planning to cosign a mortgage? Here are a few things to consider:

•   Cosigner release: Read the contract carefully to understand what your options are for eventual cosigner release. Some lenders may include a clause outlining cosigner liability release; if the primary borrower meets the lender’s strict requirements (credit score, income, history of on-time payments), you may be able to request to be released from the loan.

•   Credit monitoring: Regularly check your credit report for missed payments. While you can communicate with the borrower about how the payments are going, it’s always good to verify with an unbiased resource.

•   Long-term commitment: Remember, mortgages typically last between 15 and 30 years. Cosigning one is a long-term commitment. Make sure cosigning won’t impede any of your financial goals during that time period, and think carefully about whether the borrower is responsible enough to manage a loan of this magnitude for that long.

The Takeaway

Adding a cosigner to a mortgage loan can improve the approval odds if your credit score isn’t strong enough to get approved on your own. A cosigner can also help you secure a larger loan and/or a lower interest rate. However, cosigners assume a major financial risk when getting involved — and disagreements over money can easily end even the strongest of relationships. Proceed with caution.

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.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Who can be a cosigner on a mortgage?

Technically, anyone can cosign on a mortgage, but because it’s a big financial risk, people usually rely on family members or very close friends. For FHA loans, cosigning with a family member is ideal; using a cosigner who is not a relative means you have to put 25% down, instead of 3.5%.

Do I need my parents to cosign a home loan for me as a first-time homebuyer?

You do not need your parents to cosign a home loan as a first-time homebuyer. If you have a strong credit score and enough income to handle the loan on your own, you can proceed without a cosigner. But if you need help with your first home purchase, asking a parent to cosign is an option.

Can retired parents cosign a mortgage?

Yes, retired parents can cosign a mortgage. Lenders analyze cosigners’ credit scores, debts, and incomes when making an approval decision. A retired parent’s income will simply look different from a working parent’s income; for instance, a retired parent’s income might include Social Security payments, investment income, a retirement account distribution, or a pension.

Does having a mortgage cosigner affect my home loan approval chances?

Adding a mortgage cosigner can and should affect your home loan approval chances. The whole reason to add a cosigner is to use their stronger credit score and higher income to make you a more attractive applicant and thus improve your approval odds — perhaps at a lower interest rate or for a larger loan amount.

Is it possible to remove a cosigner from a mortgage in the future?

While challenging, it’s technically possible to remove a cosigner from a mortgage in a few ways. Assuming your own credit and income are strong, you can just ask the lender to remove the cosigner. But they won’t always say yes. Your next move, then, is to refinance the mortgage without the cosigner or wait until you sell the property, at which point you can buy your next home without a cosigner.

How do cosigners on home loans affect taxes?

Borrowers get to deduct mortgage interest and property taxes when filing their tax returns, but you as the cosigner don’t reap these benefits. Plus, if you help the borrower by giving them money for the down payment, it may be subject to the gift tax on your tax return.

Can you have a cosigner on a VA mortgage?

Yes, you can have a cosigner on a U.S. Department of Veterans Affairs loan, but unlike other types of mortgage cosigners, the cosigner must live with the borrower in the home. In addition, the cosigner needs to be another qualifying veteran, service member, or a spouse of a qualifying buyer.

What’s the difference between a cosigner and a co-borrower?

Both cosigners and co-borrowers sign a mortgage with the primary borrower to help strengthen the application; they’re also both on the hook financially should the primary borrower not keep up with payments. However, cosigners only guarantee the loan, but they do not live in the home, nor do they have any ownership in the home; co-borrowers on a mortgage share ownership of the home, and their name appears on the title.

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Photo credit: iStock/tonefotografia

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.

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 requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
This article is not intended to be legal advice. Please consult an attorney for advice.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

SOHL-Q225-036

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Cosigning a mortgage is a tremendous thing to do for a loved one. Your income and credit history can help someone whose finances aren’t on solid footing still get the house they want (or need). But being a cosigner can also be disastrous for your finances: Any missteps by the borrower could impact your credit score and ultimately leave you on the hook for paying the mortgage.

So once the paperwork is signed and the borrower is making progress on repayment, can the cosigner be removed from the mortgage? The path isn’t easy, but there are ways of doing it. Below, we’ll walk you through how to remove a cosigner from a mortgage in a few different ways.

Ways to Remove a Cosigner from a Mortgage

It’s a common scenario: At one point in time, you cosigned a mortgage but no longer wish to be on it. Maybe you helped out a loved one who was a first-time homebuyer and who needed assistance getting a loan. And now, perhaps to more easily secure a loan for yourself, or maybe just for financial peace of mind, you want to be relieved of your responsibilities. Here’s how to remove yourself as a cosigner from a mortgage — but fair warning, it’s not easy. (Before following any of these steps, make sure you are in fact a cosigner vs. a guarantor; the two are somewhat different.)

1. Mortgage Refinancing

The easiest way to remove a cosigner from a mortgage is to have the primary borrower refinance it. As the cosigner, you can’t force this; the borrower is the only one who can choose to refinance, and they have to meet mortgage refinancing eligibility requirements to do so.

When can a cosigner be removed from a mortgage? The timing is right if the borrower:

•   Needs a strong enough credit score to qualify on their own

•   Needs a steady enough (and high enough) income to qualify on their own

•   Must be willing to refinance — including paying mortgage refinance fees, such as closing costs

If the borrower is unable, or unwilling, to get a mortgage refinance, you won’t be able to remove yourself as cosigner using this strategy.

Recommended: Cosigner Responsibilities on a Loan

2. Mortgage Loan Assumption

How to get a cosigner off a mortgage loan without refinancing? If a mortgage is assumable, it means you can sign it over to another qualified borrower, with the same terms and interest rates. This is a potential tactic when selling your home during times of high mortgage interest rates; if you have a low interest rate, you can make your home more attractive to buyers by letting them assume the loan rather than get a new loan at a higher rate. (The buyer will also likely have to take out a separate loan to pay the difference between the remaining mortgage balance and the sale price.)

But assumable mortgages can also be a handy tool for mortgages with co-borrowers and cosigners. For instance, spouses or domestic partners who plan to separate but are co-borrowers on a loan might be able to use an assumable mortgage to simply put the mortgage fully in one person’s name. If the borrower on a cosigned loan is willing, this could also be a way to get the cosigner off a mortgage.

Not all mortgages are assumable, but government-backed loans, such as FHA loans or VA loans are. Even so, the lender has to approve the mortgage assumption, and the borrower for whom you cosigned has to be on board, so it’s not a done deal.

3. Requesting a Mortgage Cosigner Release

In some instances, a loan may have language in the agreement about a “cosigner release,” which simply means the cosigner can ask to be removed if certain conditions are met (though the lender can still say no). This is more common for other types of loans, such as student loans, but you can absolutely ask the mortgage lender if they’d include a cosigner release in the contract before signing on the dotted line.

Even if there’s nothing in the mortgage agreement about cosigner release, you can always reach out to the mortgage lender and ask to be removed. While it’s a long shot (there’s really no benefit to the lender), it could work if the borrower has strong credit, few debts, and a lot of income.

Even if there’s nothing in the mortgage agreement about cosigner release, you can always reach out to the mortgage lender and ask to be removed. While it’s a long shot (there’s really no benefit to the lender), it could work if the borrower has strong credit, few debts, and a lot of income.

4. Selling the House

Finally, at any point, the borrower can sell the home. The proceeds from the sale first go toward the existing mortgage to pay it off before they can pocket any profit. And as soon as that mortgage is paid off, you’re home free (or home-loan free, rather).

How to Remove Yourself as a Cosigner on a Mortgage

No matter which tactic you take — refinancing, loan assumption, cosigner release, or selling the house — you as the cosigner have little control over the process. Instead, the borrower has to take action, and in most cases, the lender has to agree.

Here are some tips if you want to be removed from a mortgage you cosigned:

•   Help the borrower improve their credit score: You could help the borrower make a budget and set up automatic payments so they can stay on top of on-time payments for all their bills.

•   Help the borrower increase their income: Tailor your help to where the borrower is on their career journey. If the borrower is fresh out of college, help them improve their resume or make connections that could lead to a job. If the borrower is already established in a career, provide coaching for how they might negotiate a raise, or help them find a side hustle or part-time job.

•   Have a frank discussion: Because the borrower essentially holds all the power, make sure they understand why you want to be removed from the loan. Help them understand the financial pressures you may be facing. If your relationship is solid, the borrower should hopefully want to do what they can to remove you from the loan.

Recommended: Does Being a Cosigner Show Up on Your Credit Report

Factors to Consider Before Removing a Cosigner from a Mortgage

Before you attempt to remove yourself as a cosigner from the mortgage, consider a few factors:

•   The borrower’s situation: As much as you may want to take your name off the mortgage, you won’t get very far if the borrower doesn’t have a good credit score and steady income. In addition, if the borrower has no interest in removing the cosigner, there’s very little you can do.

•   Lender policies: Some mortgage lenders may not allow cosigner release. While it doesn’t hurt to ask, this is not a common practice among lenders.

•   Assumable mortgages: Not all mortgages are assumable. While a government-backed loan is typically assumable, most conventional mortgages are not.

•   Costs: If the primary borrower could theoretically refinance the mortgage on their own (and is willing), keep in mind there will be closing costs. You may need to step in and help the borrower cover these costs if that’s the only thing preventing them from moving forward.

The Takeaway

Cosigning a mortgage is a generous act for a loved one, but it also puts your finances in jeopardy. Luckily, there are ways to remove yourself, as long as the borrower is willing and able. And if you’re a homeowner wondering can you remove a cosigner from a mortgage, the answer is yes. The easiest path forward is refinancing the mortgage, but you can also explore strategies such as cosigner release, mortgage assumption, and when all else fails, selling the house.

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.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

What is a cosigner release on a mortgage?

A cosigner release is an option in the mortgage agreement that allows a cosigner to request to be removed from the mortgage, usually once the borrower has improved their credit score, increased their income, and made a series of on-time payments. Cosigner releases are uncommon for mortgages; it’s more likely to find a cosigner release on a student loan.

Is it easy to remove a cosigner from a mortgage?

Releasing a cosigner from a mortgage is not easy. The borrower must be willing to take action, and they’ll need to have strong credit and steady income. Even then, not all lenders will allow for the cosigner to be released or the mortgage to be assumed by the primary borrower. The easiest path forward is for the primary borrower to refinance the mortgage, if they can qualify on their own.

Can a cosigner be removed from a mortgage without refinancing?

Yes, a cosigner can be removed from a mortgage without refinancing, though refinancing is the easiest path forward. Alternate options include asking for a cosigner release; having the primary borrower assume the mortgage; and selling the house to pay off the mortgage

When can a cosigner be removed from a mortgage loan?

A cosigner can be removed from a mortgage loan when the borrower meets all the requirements to qualify on their own. Even if a borrower can qualify, however, lenders can reject requests for cosigner release and mortgage assumption. Borrowers and cosigners may have more luck by having the borrower refinance on their own.

Are there any fees associated with removing a cosigner from a mortgage?

There may be fees associated with removing a cosigner from a mortgage, depending on the route you take. The easiest way to remove a cosigner is to refinance the mortgage without them. However, there are mortgage refinance costs to consider, including closing costs, which are usually 2% to 5% of the new mortgage; loan application fees; title search; and a home appraisal. Similarly, assuming a mortgage may include a one-time funding fee.

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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.

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 requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
This article is not intended to be legal advice. Please consult an attorney for advice.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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As of 2025, the average cost of a wedding is approximately $36,000, according to data from Zola, a wedding registry platform. When you think about all that goes into a wedding, you may understand how the figure can get so high. There’s the venue (whether you book an event space or have a party tent in a backyard), food and drink, music, photography and videography, the dress and the ring, hair and makeup, flowers, and more.

But whether you want to have a destination wedding or one at home, you’ll likely want to understand what others spend, whether the average expense accurately reflects what most people pay, and how you can develop and wrangle your own budget. Read on for the need-to-know info so you can plan for what may just be the happiest day of your life.

What Is the Average Cost of a Wedding?

As noted above, the average cost of a wedding ceremony and reception for 2025 was documented at $36,000, according to Zola, a wedding registry platform. However, before thinking that you need to spend that much to get hitched, keep in mind a bit of basic math about average vs. median wedding costs.

•   Averages can be inflated by a few super-luxe weddings in the mix. To get the average, you add up the data points and then divide by the number of data points.

For instance, if eight out of 10 people spend $10,000 for their big day and two people spend $125,000 each, the average cost would be $33,000. Even though just two couples splashed out, it looks as if everyone is spending a sum of over $30K.

•   Because of how a few high figures can skew data, it may be more meaningful to look at the median cost. When a median is calculated, the data points are arranged from smallest to largest, and the median is the middle value for sets with an odd number of data points. When there is an even number of data points, the median is the average of the middle two.

If you use the same values as above, the median would be 10,000, because you are only looking at the middle two values when the 10 data points are arrayed from smallest to largest. In other words, the big spenders get eliminated.

So what would the current median cost of a wedding be? SoFi’s most recent research found that the median cost of a wedding is about $10,000.

Wedding costs will vary based on how elaborate the event and the unique vendor and venue costs of the region.

And whether typical costs are closer to $10,000 or $36,000, that’s a considerable investment: a five-figure amount to pull together or to finance with, say, a personal loan.

Average Wedding Cost by State

You’ve just learned that average wedding costs may be inflated vs. median costs. However, most of the world tallies data as averages. Here, you’ll see how much an average wedding costs by state, according to the most recent data from the wedding platform The Knot. Keep in mind that if you were to use medians, the dollar amounts could be significantly lower.

The price tag associated with this fantastic celebration for the couple and their friends and family differs by state. The variations in amounts may reflect how the cost of living by state can vary. This is where things stand as of 2025:

•   Alabama: $27,000

•   Alaska: Not available

•   Arizona: $26,830

•   Arkansas: $18,700

•   California: $39,170

•   Colorado: $31,130

•   Connecticut: $40,300

•   Delaware: $38,880

•   District of Columbia: $42,480

•   Florida: $32,560

•   Georgia: $28,800

•   Hawaii: $32,280

•   Idaho: $17,380

•   Illinois: $38,100

•   Indiana: $24,380

•   Iowa: $20,080

•   Kansas: $20,000

•   Kentucky: $21,680

•   Louisiana: $33,240

•   Maine: $36,000

•   Maryland: $39,460

•   Massachusetts: $45,000

•   Michigan: $28,330

•   Minnesota: $27,440

•   Mississippi: $21,280

•   Missouri: $25,040

•   Montana: $20,050

•   Nebraska: $20,870

•   Nevada: $19,890

•   New Hampshire: $36,080

•   New Jersey: $54,500

•   New Mexico: $22,260

•   New York: $47,800

•   North Carolina: $29,060

•   North Dakota: $21,080

•   Ohio: $28.300

•   Oklahoma: $19,590

•   Oregon: $23,290

•   Pennsylvania: $35,310

•   Rhode Island: $49,180

•   South Carolina: $36,170

•   South Dakota: $20,750

•   Tennessee: $24,040

•   Texas: $30,000

•   Utah: $17,380

•   Vermont: $44,720

•   Virginia: $33,760

•   Washington: $26,380

•   West Virginia: $19,080

•   Wisconsin: $28,730

•   Wyoming: $16,750

Recommended: Wedding Cost Calculator

Average Wedding Cost in Major US Cities

In general, cities can be expensive. The cost of living can be higher because the demand is more intense.

Here, according to The Knot, is how much it costs on average to finance a wedding in some popular American cities, in descending order:

•   New York City: $87,700

•   Chicago: $54,190

•   San Francisco: $51,500

•   Boston: $51,260

•   Los Angeles County: $44,740

•   Philadelphia: $40,230

•   Houston: $33,000

•   Detroit: $32,000

•   Dallas/Fort Worth: $31,580

•   Denver: $31,440

•   Seattle: $31,320

•   Phoenix: $27,040

•   Las Vegas: $22,140

•   El Paso: $20,490

Average Wedding Cost by Number of Guests

If you’re curious about how the number of guests will impact your wedding costs, consider this data about getting married from The Knot. In 2025, the most recent year studied, the average number of guests at a wedding was 116, up slightly from the year prior.

Of course, just because that’s the average number of attendees doesn’t mean it’s right for you. Some people with large families and circles of friends could have twice that amount, while others might prefer an intimate ceremony with just one or two dozen guests.

In terms of cost per guest, the latest figures are $284 per person. Once again, keep in mind that these are averages, and the median cost could be significantly lower. Nevertheless, that can be a considerable sum to pay. Looking into wedding loans could be a wise move.

Average Wedding Cost by Generation

Here’s a look at how age may impact your wedding costs. The wedding cost data from the most recent year studied (2025) reveals the following:

•   Average cost for Gen Z wedding: $27,000

•   Average cost for Millennial wedding: $38,000

•   Average cost for Gen X wedding: $23,000

Notably, Gen Z weddings tend to be smaller in size than those of older couples, which could explain the lower price. In addition, Gen Xers (born between 1965 and 1980) may have lower costs since they are older and have other financial priorities than a blowout bash (such as educational costs for children from a prior marriage or a mortgage).

Average Wedding Cost by Month

The time of year during which you host your wedding can impact the cost. Interestingly, in generations past, June used to be the most popular and in-demand month for weddings. That’s a factor that can drive up costs. Now, September and October are the most popular months to get hitched.

However, there are regional differences in when people marry (for instance, a Florida February wedding will be very different from one in Maine), and many other factors impact which date you’ll pick. Here, a look at average costs by time of year to help you plan your budget well:

•   January-March wedding: $32,000

•   April-June wedding: $33,000

•   July-September wedding: $34,000

•   October-December wedding: $32,000

Recommended: The Cost of Being in Someone’s Wedding

The Takeaway

The current average cost of a wedding in the U.S. according to the data is $36,000. However, median costs of a wedding reveal a significantly lower figure of $10,000 for the big day. Keep in mind that average costs are just that: an average made up of numerous data points. It’s not how much you will or must spend. Planning a wedding doesn’t have to be a budget breaker, and there are various ways to finance the event, including gifts from family and personal loans. Think twice before turning to high-interest credit cards; a personal loan could be a wiser choice.

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.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What is the average cost of a wedding in the United States compared to the rest of the world?

The average cost of a wedding in the U.S. is currently $36,000, and the median is $10,000. Wedding costs in America tend to be higher than elsewhere in the world, but figures vary tremendously depending on location, wedding size, and details of the ceremony and celebration.

What is the average cost of a destination wedding?

The current average cost of a destination wedding is $39,000, although the exact price can vary depending on where the wedding takes place, travel expenses, and size and style of the wedding.

How much should I plan to spend for a wedding with 100 guests?

Currently, the average cost per person for a wedding is $284, so a wedding for 100 guests would require a budget of $28,400.

What’s the best way to estimate the costs of a wedding?

In addition to looking at the data and talking to friends and wedding professionals, you can develop a budget and research costs for your intended ceremony, such as venue rental, flowers, music, dress, catering, and more.

Are there different ways to pay for a wedding?

Yes, there are options for financing a wedding, including savings, gifts of money from family and friends, and securing a personal loan.

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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.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If you’re cash poor and home equity rich, a cash-out refinance could be the ticket to funding home improvements, consolidating debt, or helping with any other need. With this type of refinancing, you take out a new mortgage for a larger amount than what you have left on your current mortgage and receive the excess amount as cash.

However, getting a mortgage with a cash-out isn’t always the best route to take when you need extra money. Read on for a closer look at this form of home refinancing, including how it works, how much cash you can get, its pros and cons, and alternatives to consider.

What Is a Cash-Out Refinance?

A cash-out refinance involves taking out a new mortgage loan that will allow you to pay off your old mortgage plus receive a lump sum of cash.

As with other types of refinancing, you end up with a new mortgage which may have different rates and a longer or shorter term, as well as a new payment amortization schedule (which shows your monthly payments for the life of the loan).

The cash amount you can get is based on your home equity, or how much your home is worth compared to how much you owe. You can use the cash you receive for virtually any purpose, such as home remodeling, consolidating high-interest debt, or other financial needs.

💡 Quick tip: Thinking of using a mortgage broker? That person will try to help you save money by finding the best loan offers you are eligible for. But if you deal directly with a mortgage lender, you won’t have to pay a mortgage broker’s commission, which is usually based on the mortgage amount.

How Does a Cash-Out Refinance Work?

Just like a traditional refinance, a cash-out refinance involves replacing your existing loan with a new one, ideally with a lower interest rate, shorter term, or both.

The difference is that with a cash-out refinance, you also withdraw a portion of your home’s equity in a lump sum. The lender adds that amount to the outstanding balance on your current mortgage to determine your new loan balance.

Refinancing with a cash-out typically requires a home appraisal, which will determine your home’s current market value. Often lenders will allow you to borrow up to 80% of your home’s value, including both the existing loan balance and the amount you want to take out in the form of cash.

However, there are exceptions. Cash-out refinance loans backed by the Federal Housing Administration (FHA) may allow you to borrow as much as 85% of the value of your home, while those guaranteed by the U.S. Department of Veterans Affairs (VA) may let you borrow up to 100% of your home’s value.

Cash-out refinances typically come with closing costs, which can be 2% to 5% of the loan amount. If you don’t finance these costs with the new loan, you’ll need to subtract these costs from the cash you end up with.

💡 Quick tip: Using the money you get from a cash-out refi for a home renovation can help rebuild the equity you’re taking out. Plus, you may be able to deduct the additional interest payments on your taxes.

Example of Cash-Out Refinancing

Let’s say your mortgage balance is $100,000, and your home is currently worth $300,000. This means you have $200,000 in home equity.

If you decide to get a cash-out refinance, the lender may give you 80% of the value of your home, which would be a total mortgage amount of $240,000 ($300,000 x 0.80).

From that $240,000 loan, you’ll have to pay off what you still owe on your home ($100,000). That leaves $140,000 (minus closing costs) you could potentially get as cash. The actual amount you qualify for can vary depending on the lender, your creditworthiness, and other factors.

Common Uses of Cash-Out Refinancing

People use a cash-out refinance for a variety of purposes. These include:

•   A home improvement project (such as a kitchen remodel), a replacement HVAC system, or a new patio deck

•   Adding an accessory dwelling unit (ADU) to your property

•   Consolidating and paying off high-interest credit card debt

•   Buying a vacation home

•   Emergency expenses, such as an unexpected hospital stay or unplanned car repairs

•   Education expenses, such as college tuition

Qualifying for a Cash-Out Refinance

Here’s a look at some of the typical criteria to qualify for a cash-out refinance.

•  Credit score Lenders typically require a minimum score of 620 for a cash-out refinance.

•  DTI ratio Lenders will likely also consider your debt-to-income (DTI) ratio — which compares your monthly debt payments to monthly gross monthly income — to gauge whether you can take on additional debt. For a cash-out refinance, many lenders require a DTI no higher than 43%.

•  Sufficient equity You typically need to be able to maintain at least 20% percent equity after the cash-out refinance. This cushion also benefits you as a borrower — if the market changes and your home loses value, you don’t want to end up underwater on your mortgage.

•  Length of ownership You typically need to have owned your home for at least six months to get a cash-out refinance.

Tax Considerations

The money you get from your cash-out refinance is not considered taxable income. Also, If you use the funds you receive to buy, build, or substantially improve your home, you may be able to deduct the interest you pay on the cash portion from your income when you file your tax return every year (if you itemize deductions). If you use the funds from a cash-out refinance for other purposes, such as paying off high-interest credit card debt or covering the cost of college tuition, however, the interest paid on the cash-out portion of your new loan isn’t deductible. However, the existing mortgage balance is (up to certain limits). You’ll want to check with a tax professional for details on how a cash-out refi may impact your taxes.

Cash-Out Refi vs Home Equity Loan or HELOC

If you’re looking to access a lump sum of cash to consolidate debt or to cover a large expense, a cash-out refinance isn’t your only option. Here are some others you may want to consider.

Home Equity Line of Credit

A home equity line of credit (HELOC) is a revolving line of credit that works in a similar way to a credit card — you borrow what you need when you need it and only pay interest on the amount you borrow. Because a HELOC is secured by the equity you have in your home, however, it usually offers a higher credit limit and lower interest rate than a credit card.

HELOCs generally have a variable interest rate and an initial draw period, which can last as long as 10 years. During that time, you can make interest-only payments. After the draw period ends, the credit line closes and payments of principal and interest begin. Keep in mind that HELOC payments are in addition to your current mortgage (if you have one), since the HELOC doesn’t replace your mortgage.

Home Equity Loan

A home equity loan allows you to borrow a lump sum of money at a fixed interest rate you then repay by making fixed payments over a set term, often five to 30 years. Interest rates tend to be higher than for a cash-out refinance.

As with a HELOC, taking out a home equity loan means you will be making two monthly home loan payments: one for your original mortgage and one for your new equity loan. A cash-out refinance, on the other hand, replaces your existing mortgage with a new one, resetting your mortgage term in the process.

Personal Loan

A personal loan provides you with a lump sum of money, which you can use for virtually any purpose. The loans typically come with a fixed interest rate and involve making fixed payments over a set term, typically one to five years. Unlike home equity loans, HELOCs, and cash-out refinances, these loans are typically unsecured, meaning you don’t use your home or any other asset as collateral for the loan. Personal loans usually come with higher interest rates than loans that are secured by collateral.

Pros of Cash-Out Refinancing

•  A lower mortgage interest rate With a cash-out refinance, you might be able to swap out a higher original interest rate for a lower one.

•  Lower borrowing costs A cash-out refinance can be less expensive than other types of financing, such as personal loans or credit cards.

•  May build credit If you use a cash-out refinance to pay off high-interest credit card debt, it could reduce your credit utilization (how much of your available credit you are using), a significant factor in your credit score.

•  Potential tax deduction If you use the funds for qualified home improvements, you may be able to deduct the interest on the loan when you file your taxes.

Cons of Cash-Out Refinancing

•  Higher cost than a standard refinance Because a cash-out refinance leads to less equity in your home (which poses added risk to a lender), the interest rate, fees, and closing costs are often higher than they are with a regular refinance.

•  Mortgage insurance If you take out more than 80% of your home’s equity, you will likely need to purchase private mortgage insurance (PMI).

•  Longer debt repayment If you use a cash-out refinance to pay off high-interest debts, you may end up paying off those debts for a longer period of time, potentially decades. While this can lower your monthly payment, it can mean paying more in total interest than you would have originally.

•  Foreclosure risk If you borrow more than you can afford to pay back with a cash-out refinance, you risk losing your home to foreclosure.

Is a Cash-Out Refi Right for You?

If you need access to a lump sum of cash to make home improvements or for another expense, and have been thinking about refinancing your mortgage, a cash-out refinance might be a smart move. Due to the collateral involved in a cash-out refinance (your home), rates can be lower than for other types of financing. And, unlike a home equity loan or HELOC, you’ll have one, rather than two payments to make.

Just keep in mind that, as with any type of refinance, a cash-out refi means getting a new loan with different rates and terms than your current mortgage, as well as a new payment schedule.

The Takeaway

A cash-out refinance can be a useful way to obtain better mortgage terms and get extra money to fund important projects or emergency needs. Since it draws on the equity in your house, it can be a particularly good strategy to use when you want to make improvements in your home that will increase its value.

Turn your home equity into cash with a cash-out refi. Pay down high-interest debt, or increase your home’s value with a remodel. Get your rate in a matter of minutes, without affecting your credit score.*

Our Mortgage Loan Officers are ready to guide you through the cash-out refinance process step by step.

FAQ

Are there limitations on what the cash in a cash-out refinance can be used for?

No, you can use the cash from a cash-out refinance for anything you like. Ideally, you’ll want to use it for a project that will ultimately improve your financial situation, such as improvements to your home.

How much can you cash out with a cash-out refinance?

Often lenders will allow you to borrow up to 80% of your home’s value, including both the existing loan balance and the amount you want to take out in the form of cash. However, exactly how much you can cash out will depend on your income and credit history. Also, you typically need to be able to maintain at least 20% percent equity in your home after the cash-out refinance.

Does a borrower’s credit score affect how much they can cash out?

Yes. Lenders will typically look at your credit score, as well as other factors, to determine how large a loan they will offer you for a cash-out refinance, and at what interest rate. Generally, you need a minimum score of 620 for a cash-out refinance.

Does a cash-out refi hurt your credit?

A cash-out refinance can affect your credit score in several ways, though most of them are minor.

For one, applying for the loan will trigger a hard pull, which can result in a slight, temporary drop in your credit score. Replacing your old mortgage with a new mortgage will also lower the average age of your credit accounts, which could potentially have a small, negative impact on your score.

However, if you use a cash-out refinance to pay off debt, you might see a boost to your credit score if your credit utilization ratio drops. Credit utilization, or how much you’re borrowing compared to what’s available to you, is a critical factor in your score.

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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.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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