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If you own an Airbnb property or are contemplating offering one on the popular rental platform, you probably know that doing so can bring in a welcome stream of income. You also probably know that it can take time and energy to keep things running smoothly. Guests may cancel at the last-minute; your property’s dishwasher might break; and an array of other scenarios may arise, demanding your attention.

In this situation, you might want to find a cohost to assist you. A cohost can simplify the process by assisting with bookings, housekeeping, answering guests’ questions, and more responsibilities.

A cohost could be a friend or family member, a person you find and pay for their services, or a professional with whom Airbnb connects you.

Here, you’ll learn more about this option including:

•   What is Airbnb?

•   How does Airbnb work?

•   How does Airbnb work for hosts?

•   How to become an Airbnb cohost?

What Is Airbnb?

Airbnb is an online marketplace for private home stays (whether that means renting out a room, a floor of a house, or a whole property) as well as vacation experiences.

How does Airbnb work for hosts? Owners sign up to rent out a room, apartment, or house for a home stay. (Even treehouses turn up among the properties.) The hosts set their rates, and share their rental policies. Guests can then book via the Airbnb platform, which assists with communications and administrative tasks for a commission.

More than four million hosts now operate worldwide, with over 150 million users globally who have booked over one million stays. It’s a proven platform for coaxing an income stream out of any property, and it can be an enticing endeavor for first-time homebuyers.


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Who Books on Airbnb?

All kinds of people book on Airbnb: Recent grads, families, retirees, wedding guests, digital nomads, and more. Both frugal travelers and posh jetsetters alike are looking for lodging. Many people prefer the authenticity of an Airbnb to a cookie-cutter hotel or motel room.

How does Airbnb work for guests? They search for and book a property based on location, price, available dates, and desired amenities, among other factors.

When potential guests submit inquiries, owners receive immediate notification of the reservation request. Airbnb has technology in place to block guests with a record of negative behavior (such as property damage) from reserving properties.

How Does Airbnb Work for Owners and Cohosts?

There are many things to know when renting out an Airbnb. Here’s how Airbnb works for owners: Those who list new properties on Airbnb receive step-by-step instructions for setting up their space. They can be matched with a successful Superhost (that’s Airbnb’s term for highly rated and reliable hosts) to assist them.

If you bring aboard a cohost, they will be verified by Airbnb (submitting ID may be required). Once approved, they will have full privileges to help you with managing and optimizing your listing(s). Tasks can include:

•   Managing booking and reservation-related tasks

•   Answering prospective and current renters’ questions

•   Stocking and otherwise maintaining the property

•   Updating the listing as needed

•   Enhancing guests’ experience.

Recommended: Is It Smart to Buy an Investment Property While Renting?

How Much Do Airbnb Owners Get Paid?

If you are offering a property for rent on Airbnb, you are probably interested in turning a profit. So how does Airbnb payment work? The price you charge for your property and the number of nights you book will determine how much you earn.

If you consider this in more detail, the income from an Airbnb depends on a variety of factors, including the size of the property for rent, amenities (does it have a spa-style bathroom? A swimming pool?), the tourism market, local housing market trends, and the number of other Airbnbs you’re competing with.

Looking at the Airbnb site and sizing up your competition can help you determine how much to charge and how rates vary over the year.

In terms of how much Airbnb owners get paid of the amount renters pay, consider that most hosts pay a service fee of 3% of the rental subtotal (the nightly cost plus any fees you charge guests, such as cleaning charges). Airbnb doesn’t charge its hosts a payment processing fee.

In addition, guests usually pay Airbnb a 14% service fee on top of the subtotal.


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How to Become an Airbnb Owner with a Cohost

Want to launch your property on Airbnb with the help of a cohost? The platform makes it simple:

•   Go to the listing(s) where you’d like to add a cohost.

•   Click on “Cohosts” and then “Invite a Cohost.”

•   Add their location and their email or phone number, and click “Next.”

•   You’ll be prompted to select permissions for this person; then click “Next.”

•   You can add a note if you like, and then hit “Send.”

Airbnb will then handle inviting and verifying the cohost and adding them to your listing. You can have up to 10 cohosts per listing.

In terms of how to become an Airbnb cohost, the person you’ve invited will likely have to accept your invitation and then provide information and ID to Airbnb.

Airbnb Owner Requirements

Here are some of the owner requirements to offer a property as a rental on Airbnb:

•   Be of legal age. Perhaps it goes without saying, but minors shouldn’t be involved in renting out properties on the platform. While it may sound like a cool summer project for a teenage cousin to help manage a family lakehouse, that would be a no-go.

•   Make sure renting your property is legal. Depending on the home’s geographical area, a host may need to register the property or obtain a short-term rental license. Or you may not be allowed to rent out your property at all. A call to your city hall may be the best way to learn the details.

•   Know the tax implications. In some tax areas, Airbnb will handle the calculation, collection, and remittance of any local occupancy taxes on your behalf. In other locations, you may be responsible for this.

•   Cover yourself. Hosts should understand the liability insurance that Airbnb automatically applies to rentals. Hosts may want to also confirm that their homeowners’ insurance policy provides coverage for short-term rentals.

Recommended: What Is the Cost of Living by State?

Pros and Cons of Being an Airbnb Owner

As you consider becoming an Airbnb host with a cohost or without, you may want to review the benefits and disadvantages of renting in this way.

Pros of Being an Airbnb Owner

Are you thinking about how to become an Airbnb host for others? Among the upsides to consider are the following:

•   Hosting short-term rentals can bring in cash. This can help ensure you’ll have resources to make your home loan payments.

•   Income from rentals can fund renovations and other improvements, or it could help finance your long-term financial goals.

•   A successful rental history can increase the value of your property when you’re ready to sell.

•   Many people find hosting a rewarding activity, both as a business and a personal pursuit.

Cons of Being an Airbnb Owner

Here are some of the downsides of being an Airbnb owner:

•   It can be a big leap to give total strangers the key to your home. For instance, if the property is your primary residence, you will have to vacate for bookings. If your home contains treasured furniture or tableware, you may worry about damage.

•   Some cities, towns, and homeowners associations have passed legislation against short-term rentals.

•   Owners who rent their properties, even a few days a month, must pay taxes on the earnings.

•   While Airbnb provides insurance coverage automatically to hosts, you may want to make sure your homeowners insurance can cover short-term rentals as well.

•   It can be a time-consuming endeavor, and some people may find being a host to be frustrating in some ways.

Writing an Airbnb Host Listing

A successful Airbnb host listing is typically a combination of an enticing portrait of your property and all the vital, nitty-gritty details.

Usually, the listing will share:

•   A short introduction, which delivers an overview and highlights why it’s a terrific property

•   Room-by-room descriptions

•   Details about the property/outdoor features

•   Information about the location and things to do nearby.

Be sure to define terms that bookers may not know, such as what is a duplex or pergola.

Tips on Hosting on Airbnb as an Owner with a Cohost

Here are some ways to collaborate with a cohost:

•   Have your cohost manage the calendar, set holiday/peak rates, and answer questions.

•   Ask your cohost to share ideas for area attractions that draw guests. Mention these in your listing, including distances from your property.

•   Talk to your cohost about personal touches they think would please guests, like sharing a list of good local restaurants that don’t require reservations.

•   Ask your cohost to create house rules and determine how to share and enforce them with guests.

•   Have your cohost review the property and highlight anything that needs maintenance or that could be improved.

•   Give your cohost the job of restocking the property after each guest stay.

The Takeaway

If you’re considering offering a property on Airbnb or are already doing so, a cohost could make the management easier. A cohost could be a family member who helps out for free, or they could be a paid professional who manages a number of Airbnb rentals and has considerable experience. A cohost could help you boost the success of your hosting on this popular platform.

Are you just pondering becoming an Airbnb host and currently eyeing the perfect bungalow to rent out? Finding the best mortgage for your purchase is an important step.

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 percentage does Airbnb take?

Airbnb typically collects a flat service fee of 3% of the rental fee subtotal. In addition, the guest pays Airbnb a 14% fee directly.

How much do owners have to pay Airbnb?

Airbnb will deduct a 3% fee from a rental subtotal (which includes the nightly fee, plus any other fees the host charges, such as a cleaning fee).

Do Airbnb hosts get all the money?

Here’s how Airbnb payment works: Airbnb hosts do not get all the money. They typically pay 3% of the subtotal (nightly plus other fees) to Airbnb and then get the rest. Airbnb doesn’t charge any payment processing fees.

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Photo credit: iStock/AJ_Watt

*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.

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.

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.

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If you’re a qualifying veteran, active military service member, or surviving spouse, a VA loan can be an incredible boon on your homeownership journey: It unlocks the opportunity to buy a house with zero down payment required, limited closing costs, competitively low interest rates, and no private mortgage insurance (PMI). What’s more, those who are eligible can take advantage of this benefit as many times as they like. There’s no limit to how many times you can use a VA home loan.

Here’s a closer look at this special and valuable option available to U.S. veterans and their families.

What Is a VA Loan?

Before we dive into how many times can you use a VA loan, let’s start with defining what a VA loan is in the first place.

VA loans are a type of mortgage that are offered by private banks, but backed by the U.S. Department of Veterans Affairs (VA). Because this type of loan is less risky for lenders, banks are able to offer much more favorable terms, including the ability to buy a home without making a down payment.

That means VA loans lower the barrier to entry for all buyers, but especially for first-time homebuyers, who usually find that saving up enough money for a down payment is one of the biggest challenges when it comes to breaking into property ownership. Even better, the cost of your mortgage won’t be inflated by PMI, which most lenders and mortgage programs require whenever a buyer puts less than 20% down. (You will most likely pay a one-time funding fee; more on that later.) There are other special advantages of a VA loan, so if you are considering one, take the time to learn all the ins and outs of how a VA loan works.

Recommended: The Cost of Living by State

How Many Times Can You Take Out a VA Loan?

It almost sounds too good to be true, but it’s not: You can take out a VA loan as many times as you like — as long as you’re eligible for one and you still have remaining entitlement, which we’ll get to in a moment.

In order to apply for a VA loan, you’ll need to first acquire a Certificate of Eligibility, or COE, from the VA. Specific requirements vary depending on which branch of the military you served in, when you served, and a few other factors. (Full details are available directly from the VA.)

How Many VA Loans Can You Have?

There’s no specific limit on how many VA loans you can take out. Some veterans have taken out two, three, or even eight or more! These are typically sequential loans. You wouldn’t be able to use a VA loan to purchase a second home or vacation home, as VA loans are for primary residences (the one exception to this rule is active-duty members who have received a permanent change of service, or PCS, which we will discuss below).

There is one important factor that can, in some instances, limit an eligible veteran or service member’s ability to take out a new VA loan: entitlement.

💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple.

What Is a VA Loan Entitlement?

As noted above, VA home mortgage loans are backed by the VA. Essentially, the VA promises to pay the bank a certain dollar amount if the borrower — that’s you, the veteran — defaults on the mortgage. That dollar amount is known as your entitlement.

The entitlement is the amount the VA guarantees your lender they’ll receive if you stop paying your loan. Basic entitlement is $36,000, but these days, that’s a very small fraction of most home loans — which is why the VA also offers bonus entitlement, which guarantees the lender the VA will repay 25% of a loan amount over $144,000 if you default.

Full Entitlement

If this is your first time using a VA loan, or if you paid off a previous VA loan in full and then sold the house, you have full entitlement — though the total amount of money you can borrow will still be limited by factors that typically determine whether you will qualify for a mortgage, such as your credit history, income, and assets.

Reduced Entitlement

If you already have an active VA loan, paid off a VA loan for a home you still own, refinanced the VA loan you took out on a home you still own, or had a foreclosure and didn’t pay back the VA in full, you may have reduced entitlement.

Reduced entitlement limits the amount the VA will guarantee to your lender in the event that you default. The limit is the conforming loan limit in your area, minus whatever amount of entitlement you’ve already used. If you have reduced entitlement, you may be required to make a down payment.

Calculators are available online to help you determine how much entitlement you have left, but essentially, the equation is this: your maximum entitlement (one quarter of your county’s conforming loan limit) minus the entitlement you’ve used (one quarter of the VA loan you’ve already taken out) equals your remaining entitlement. Here’s the formula:

Conforming loan limit ÷ 4 = maximum entitlement

Existing loan amount ÷ 4 = entitlement you’ve used

Maximum entitlement – entitlement you’ve used = remaining entitlement

Recommended: How Government-Backed Mortgages Work

When You Might Have More Than One VA Loan at a Time

All of this begs the question: Why would you have more than one loan at a time, anyway? One home, one loan, right?

Well, if you’re an active-duty military member, you might receive permanent change of service (PCS) orders, which would require you to move to a new duty station — and therefore find new housing. Under those circumstances, you might have two active VA loans at one time.

Pros and Cons of Taking Out a Second VA Loan

If you’re taking out a second VA loan to fund a home purchase, there are both drawbacks and benefits to consider.

Pros:

•   If your remaining entitlement is high enough, you may still be able to avoid making a down payment

•   You will still benefit from other VA benefits, including competitive low interest rates and easier qualification standards

Cons:

•   If you don’t have enough remaining entitlement, you may still be required to put a down payment on the home — though possibly less of one than you would have otherwise

How to Take Out a Second VA Loan

To take out a second VA loan, you must get approved for the loan by a qualified VA lender. The first step is to determine how much remaining entitlement you have, as this will illuminate how much house you can afford to purchase — and how large of a down payment you’ll be required to make, if any. (Remember, your new home loan must be for a primary residence, so you can’t take out a second VA loan to fund a vacation home or investment property.)

💡 Quick Tip: Backed by the Federal Housing Administration (FHA), FHA loans provide those with a fair credit score the opportunity to buy a home. They’re a great option for first-time homebuyers.

Tips on Taking Out a Second VA Loan

Your lender will give you step-by-step instructions on how to apply for a second VA loan, including which documents and identification you’ll need to supply to prove your income, credit history, and more. Keep in mind that your remaining entitlement will determine how much money you’ll need to put down at closing. If you explore the second VA loan and aren’t sure it is right for your situation, consult a home loan help center to learn about more options.

The Takeaway

How many times can you use a VA home loan? While there’s no limit to how many VA loans you can take out in one lifetime, entitlement does limit how much the VA backs those loans for lenders involved — and could limit your ability to qualify for a no-down-payment VA loan.

SoFi offers VA loans with competitive interest rates, no private mortgage insurance, and down payments as low as 0%. Eligible service members, veterans, and survivors may use the benefit multiple times.

Our Mortgage Loan Officers are ready to guide you through the process step by step.

FAQ

Is there a limit on how many times you can use a VA loan?

No — you can use your VA loan benefit as many times as you would like in your lifetime. However, your entitlement, or the amount of money that the VA pledges to back the loan for the lender, can be reduced if you’ve already taken out a VA loan.

Can a VA loan be used multiple times?

Yes — you can use your VA loan benefit multiple times. Your amount of entitlement can change the qualification process, however. If you have reduced entitlement, you may be required to make a down payment on the new loan.

How soon after using a VA loan can you use it again?

While there’s no specific time limit, VA loans can only be used for primary residences, and your entitlement will likely be reduced if you’re still living in the home you purchased with your original VA loan.

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Photo credit: iStock/LumiNola

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.

^†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.
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.

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Buying a home can bring some changes to your financial situation and how you manage your budget. But how does buying a house affect taxes, specifically? The short answer is that owning a home can yield some tax breaks if you’re able to deduct mortgage points, mortgage interest, property taxes, and other expenses.

How much of a tax benefit you can get from owning a home can depend on a number of variables. If you’re gearing up to buy a home, it’s helpful to know what might change when it’s time to file your tax return.

What Are Home Tax Deductions?

Home tax deductions are amounts that you can write off when filing a tax return. The Internal Revenue Code defines the types of tax breaks for homeowners and what they’re worth.

Tax deductions reduce the amount of your income that’s subject to tax. They’re different from tax credits, which reduce what you owe in taxes on a dollar for dollar basis. Deductions can be standard or itemized.

•   Standard deductions allow you to write off a flat dollar amount, based on your filing status.

•   Itemized deductions allow you to write off individual expenses, based on their actual amount.

If you’re interested in deducting home-related expenses, then you’ll need to itemize them on Schedule A when filing Form 1040.


💡 Quick Tip: SoFi’s Lock and Look ⁺ feature allows you to lock in a low mortgage financing rate for 90 days while you search for the perfect place to call home.

How Tax Deductions Work

Tax deductions work by reducing your taxable income, which can in turn reduce your tax liability. Your tax liability represents the amount you owe in federal taxes and in state taxes if you live in a state that assesses income tax.

When you claim a deduction, that amount is removed from the amount of income that is subject to tax. Deductions are valuable since reducing your taxable income could help you to move into a lower tax bracket. Your tax bracket determines which tax rate you’re subject to. There are seven tax brackets ranging from 10% at the lowest end to 37% at the highest.

Again, you can claim a standard deduction if you don’t have any expenses to itemize. The amount of the deduction depends on your filing status. Here are the standard deduction limits for 2023.

•   $13,850 for single filers and married couples who file separately

•   $20,800 for heads of household

•   $27,700 for married couples filing jointly

Whether it makes sense to itemize vs. claiming the standard deduction can depend on the amount of expenses you’re eligible to write off.

Pros and Cons of Home Tax Deductions

Claiming home tax deductions, or any type of deduction for that matter, can offer advantages and disadvantages. How does buying a house affect taxes in a positive way? The simplest answer is that it can help to reduce your overall tax liability.

Owing less in taxes or even getting a larger refund means that you have more money to put toward other financial goals. The drawback is that itemizing deductions can be a little more time-consuming as you have to list out individual expenses and amounts on your tax return.

It’s also possible that claiming home deductions won’t lead to a bigger tax break than taking the standard deduction. Comparing the numbers can help you to decide which option makes the most sense.

Types of Homeowner Tax Deductions and Credits

There are multiple tax breaks for homeowners that you could claim as a first-time homebuyer or repeat homeowner to put more cash back in your pocket. It may be helpful to talk to a financial advisor or tax professional to better understand which ones you might be able to claim.

It’s also important to note that some tax breaks, such as the first-time homebuyer credit, originally from 2008, have expired.

Property Tax

Property taxes and real estate taxes paid to state and local government entities are deductible for homeowners. The limit for state and local tax deductions is $10,000 as of 2023. If you’re married and file separate returns, the deduction is capped at $5,000.

How much value you get from this deduction can depend on where you live. If you look at the cost of living by state, it’s easy to see that property taxes are higher in some areas than others. When you compare the cost of living in California, for example, to the cost of living in New Jersey, residents of the Garden State pay substantially more in property taxes.

Are property taxes included in mortgage payments? They can be, if your lender requires you to escrow property taxes and homeowner’s insurance into your payments. If you escrow those amounts, part of the money you pay to the lender each month will go to separate accounts to cover those expenses once they come due each year.

Points

Mortgage points allow you to “buy down” your interest rate at the time your home loan originates. Paying points can help you get a lower rate and potentially lower your monthly payments. In exchange, you pay your mortgage lender an upfront fee.

Mortgage points are deductible but there are some rules to know:

•   You must live in the home that secures the loan.

•   Paying points must be an established business practice in your area.

•   Points paid can’t exceed an amount that’s commonly charged in your area.

•   You must use the cash method of accounting for reporting income.

•   Points paid must come out of your funds, not funds borrowed from your lender.

•   Any points paid cannot be applied toward other costs typically included at settlement, such as appraisal fees or attorney’s fees.

•   Points must be computed as a percentage of the mortgage principal.

You can deduct points in full in the year you paid them if those conditions are met. Otherwise, you can deduct points over the life of the loan.

Mortgage Interest

Interest on home mortgage loans is also tax-deductible. You can claim the mortgage interest deduction if you paid interest on a home loan at some point during the year. The IRS determines how much mortgage interest you can deduct.

•   Homeowners can deduct up to $1 million in mortgage interest (or $500,000 if married filing separately) for homes purchased before December 16, 2017.

•   Mortgage interest is deductible up to $750,000 (or $375,000 if married filing separately) for homes purchased after December 16, 2017.

The new, lower limit was imposed under the 2017 Tax Cuts and Jobs Act (TCJA). Beginning in 2026, the higher limit will resume, barring any changes to the federal tax code.

Private Mortgage Insurance

Lenders may require you to pay private mortgage insurance (PMI) when purchasing a home with less than 20% down. Mortgage insurance premiums (MIPs) are required for FHA loans.

As of 2022, the IRS does not allow you to claim a deduction for PMI or MIPs.

Mortgage Credit Certificate

If you’re issued a Mortgage Credit Certificate (MCC) by a state or local government program, you may be able to use it to get a tax break. This is a tax credit, not a deduction, that’s offered to lower-income homebuyers in order to help make home ownership more affordable. If you have an MCC, you can use IRS Form 8396 to figure out how much credit you can claim for the current tax year and what you might be able to carry forward for future tax years.

Renewable Energy

The IRS offers tax credits for homeowners who make energy-efficient improvements to their homes. For 2023, homeowners may qualify for a credit of up to $3,200 for eligible expenditures, including:

•   Energy-efficient doors or windows

•   Insulation and sealing material

•   Natural gas, propane, or oil water heaters, boilers, and furnaces

•   Heat pumps

•   Biomass stoves

•   Home energy audits

Residential clean energy credits are also available for homeowners who install solar panels, solar water heaters, wind turbines, geothermal heat pumps, and fuel cells.

Home Office

If you use part of your home for business purposes, you may be able to claim another homeowner tax deduction in the form of the home office deduction. There are two ways to claim a deduction for home office expenses:

•   Simplified option. This method allows you to deduct $5 per square foot, up to 300 feet, for the part of your home that you use as an office.

•   Regular method. The regular method figures your deduction based on your actual costs.

If you’re claiming this deduction along with other business deductions, you’d include them on Schedule C with your tax return.

Home Equity Debt

Home equity loan interest is tax deductible if the loan is used exclusively to buy, build, or substantially improve the home that secures the loan. If you use a home equity loan for any other purpose, such as debt consolidation or paying college expenses, the interest is not deductible. That rule remains in effect through 2025, whereupon the previous rules will revert.


💡 Quick Tip: One answer to rising house prices is a jumbo loan. Apply for a jumbo loan online with SoFi, and you could finance up to $2.5 million with as little as 10% down. Get preapproved and you’ll be prepared to compete in a hot market.

Tips on Home Tax Deductions

If you’re considering claiming deductions for home expenses or any other expenses, it’s wise to keep good records. While the odds of being audited by the IRS are rare, they’re not zero so it’s smart to have receipts, official tax forms, or other documentation to back up the deductions you’ve claimed.

Also, keep in mind that some expenses are not deductible for homeowners. The kinds of things you can’t deduct include:

•   Mortgage principal payments

•   Depreciation

•   Utilities

•   Down payments

•   Homeowner’s insurance premiums

•   HOA fees and condo fees

•   Maintenance and upkeep

There are exceptions for some of these expenses if you own a home that you rent out as an investment property. For instance, you can deduct depreciation and HOA fees, maintenance, and repair costs. However, if you’re deducting expenses for a home you use as a primary residence, you can’t write those costs off.

Those are all things to budget for after buying a home, since some home ownership costs are rolled into the mortgage while others are not. A high yield savings account is a secure place to keep money for home expenses while earning a competitive interest rate.

What happens if you’re buying a house from family? If you’re going through a lender to get a mortgage and complete the purchase, then the fact that you’re buying from people you know shouldn’t affect your ability to claim tax deductions or credits. However, you may want to talk to a tax professional about claiming tax breaks if you’re working out a private financing arrangement with a relative.

The Takeaway

Buying a home may be at the top of your financial goals list and the more prepared you are going in, the better. Understanding how buying a house can affect taxes is important when shaping your budget, both before and after the purchase.

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

Is your tax return bigger when you buy a house?

Whether you get a bigger tax return after buying a home can depend on your overall tax situation, including how much you earned, how much you deduct, and what credits you might be eligible to claim. Buying a home could help to increase your refund if you’re able to deduct expenses from your taxable income, though that’s not guaranteed.

How much money do you get back on taxes for mortgage interest?

The amount of money you get back on taxes when deducting mortgage interest can depend on your total income, deductions, and credits. You can use an online tax calculator to estimate your refund based on how much interest you’re able to deduct, any other deductions you might be eligible for, and what tax credits you claim.

Does having a mortgage help with taxes?

Having a mortgage can help with taxes. Some of the tax benefits you might be able to unlock as a homeowner include deductions for mortgage interest and property taxes, as well as credits for making energy-efficient improvements. You may also be able to deduct home-related expenses or claim tax credits for homeowners.

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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.

⁺Lock and Look program: Terms and conditions apply. Applies to conventional purchase loans only. Rate will lock for 91 calendar days at the time of preapproval. An executed purchase contract is required within 60 days of your initial rate lock. If current market pricing improves by 0.25 percentage points or more from the original locked rate, you may request your loan officer to review your loan application to determine if you qualify for a one-time float down. SoFi reserves the right to change or terminate this offer at any time with or without notice to you.

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.

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When comparing different types of mortgages, there are some great reasons to consider a loan from the U.S. Department of Veterans Affairs (VA) if you’re eligible for one. Some of the best VA loan benefits include no down payment requirement, no private mortgage insurance, and the potential to get a lower interest rate.

There are, however, some advantages to getting a conventional loan instead even if you qualify for VA financing. Comparing the benefits of a VA loan vs. a conventional mortgage can help you decide which one might be right for you.

Comparing VA Loans vs. Conventional Loans

If you’re a first-time homebuyer, it’s good to know a little about different types of mortgages and how they work. VA loans and conventional loans can both help you to buy a home, but one might be a better fit than another, depending on your financial situation.

Conventional Loan

A conventional loan is a home mortgage loan that’s not backed by the federal government. Examples of government-backed loans include VA loans and Federal Housing Administration (FHA) loans, which are designed to make buying a home more affordable for first-time buyers. Conventional loans can be conforming, meaning they meet standards set by government entities Fannie Mae or Freddie Mac, or non-conforming.

Conventional loans might be what you automatically think of when discussing mortgage loans. You can get a conventional mortgage from a traditional bank or credit union, but you can also find them offered through online lenders. Conventional mortgages typically require a down payment, which is money you pay upfront to reduce the amount you need to borrow.

VA Loan

What is a VA loan? A VA loan is a loan that’s backed by the federal government. The Department of Veterans Affairs operates the VA loan program to help eligible military members and their surviving spouses purchase affordable housing. Borrowers can get a loan through an approved VA lender to buy a home, build a home, or pursue a mortgage refinance.

If a borrower defaults on a VA loan, the government steps in to help the lender recover some of its losses. This is one of several VA loan benefits. With a conventional loan, the lender can’t call on the government to get any of its money back if the borrower fails to pay what’s owed.

Mortgage Requirements for VA Loans vs Conventional Loans

What are the benefits of a VA loan vs. conventional loan? A lot of the main advantages center around what’s needed to qualify and what you’ll pay as a borrower. Here are some of the main mortgage requirements to know when looking at the benefits of VA loan financing side by side with conventional loans.

Credit Score

Lenders can use your credit score to qualify you for a mortgage and your credit history can also influence the rates you pay for a home loan. One of the main benefits of using a VA loan to buy is that the VA program does not have a minimum credit score requirement. That could make a VA loan attractive for borrowers with less-than-perfect credit.

However, VA-approved lenders may set their own minimum credit score requirements for loans. Of course, lenders can do the same for conventional mortgages. Generally speaking, a good credit score for a mortgage is usually 620 or higher, though the better your score the easier it may be to get approved.

Down Payment

Putting money down on a home reduces the amount you need to borrow and if you’re getting a conventional loan, it may help you to avoid private mortgage insurance (PMI). PMI is insurance that covers the lender in the event that you default on your loan and it’s typically required for conventional loans when you put less than 20% down.

The VA, however, doesn’t require a down payment for loans. That’s one of the nicer VA loan benefits for homebuyers, since you don’t have to part with a large chunk of cash all at once. Instead, you could save your money to buy new furniture, make improvements to your new home, or pad your emergency fund so that you’re prepared in case the roof springs a leak or you need to replace your water heater.

Debt-to-Income Ratio

Your debt-to-income ratio or DTI reflects the amount of your income that goes to debt repayment each month. For conventional home mortgage loans, a good DTI is 36% or less, though it’s possible to find lenders that will work with you if your DTI is above that amount.

With VA loans, it’s possible to get approved with a DTI of up to 41%. However, having a higher DTI could make it more difficult to keep up with your mortgage payments. For that reason, it’s a good idea to work out a detailed home buying budget to determine how much you can afford without straining yourself financially.

Private Mortgage Insurance

As mentioned, private mortgage insurance is a feature that can be included in a conventional mortgage if you put less than 20% down. Premiums are added into your monthly mortgage payment and once your equity reaches 20%, you can request to have PMI removed from your loan. Lenders are supposed to drop PMI automatically once your mortgage balance reaches 78% of the home’s original value, assuming you are up to date on your payments.

One of the benefits of a VA home loan is that you don’t have to worry about any of that. There is no PMI for these loans, so you don’t have to factor in any added costs when estimating how much your monthly mortgage payments will be.

Property Eligibility

VA home loans can be used to purchase a variety of home types, including:

•   Single family homes with up to four units

•   Condos in a VA-approved project

•   Manufactured homes

The VA loan program requires a home inspection and an appraisal to make sure that the home is structurally sound and that its value is compatible with the amount that you want to borrow. If a home has any obvious defects, such as a cracked foundation, you may need to get an additional inspection from a certified engineer in order to move ahead with the loan.

VA loans are designed for purchasing primary homes. In other words, you can only get one for a home you plan to live in. Conventional loans, on the other hand, can be used to purchase a primary home, second home, or investment property. While an appraisal is required for a conventional loan, an inspection may be optional if the lender allows.

Borrower Fees

When you get a conventional loan, you’ll typically pay 2% to 5% of the purchase price in closing costs. Closing costs cover things like attorney’s fees, mailing fees, and recording fees. You’ll need to bring a check to closing or wire the amount to your closing attorney to pay those fees, along with your down payment.

A VA lender can also charge closing costs and borrowers must usually pay a VA funding fee as well. This fee is used to cover the costs of the VA loan program and it’s paid just once. The amount you pay for a VA loan funding fee depends on whether you’re a first time homebuyer or repeat buyer and how much money you put down, if any.

Additional Requirements to Consider

Aside from having a good credit score and steady income, there’s one more thing you’ll need to qualify for a VA loan. Borrowers are expected to produce a Certificate of Eligibility (COE) demonstrating that they’re eligible for the VA loan program.

Veterans, service members and surviving spouses can apply for a COE online through the VA website. To get your COE, you must be able to meet minimum duty and service standards. If you’re currently on active duty, you’ll need to get a statement of service from your commander, adjutant, or personnel officer.

If you don’t meet the service requirements for a COE, you may still be able to qualify if you were discharged. Exceptions are also made for the spouses of veterans and for people who served in certain organizations. However, if you’re not able to meet those requirements then you’ll need to consider another home loan option.

Recommended: Cost of Living by State

Pros and Cons of a VA Loan vs a Conventional Loan

The benefits of a VA mortgage loan are undeniable, particularly for first-time buyers who may not have a lot of cash to put toward a down payment. To recap, here are the main VA home loan benefits to know, as well as some of the cons, when comparing them to conventional financing options.

	VA Loans	Conventional Loans
Pros	No down payment requirements. No private mortgage insurance. Potentially lower interest rates.	No VA funding fee. Skip PMI if you can put down 20% or more. Purchase a primary home or investment property.
Cons	VA funding fee is usually required. Appraisal and inspection are required. Properties must be eligible for a loan.	PMI can add to total home-buying costs. Interest rates may be higher. Higher credit score may be required to qualify.

How to Choose the Right Mortgage For You

Weighing the benefits of VA loan financing against conventional loans is important when it comes to choosing the best loan option. If you meet the criteria for a VA loan, then you might consider prequalifying for this type of mortgage first to see what kind of rates and terms you’re eligible for.

On the other hand, if you’re ineligible for a VA loan because you don’t have a COE or you can’t meet a lender’s credit requirements, then a conventional loan might be best. Visit a home loan help center to explore more options.

With any mortgage, it’s helpful to consider:

•   Interest rates and what you might pay

•   Repayment terms

•   Closing costs and other fees

•   Appraisal and inspection requirements

•   Down payment requirements

•   Funding speed

It’s also to your advantage to make yourself as creditworthy as possible before applying for a home loan. Some of the best tips to qualify for a mortgage include paying down existing debts to reduce your debt-to-income ratio, making sure you’re paying all your bills on time, and holding off on applying for other loans or lines of credit.

Recommended: Cost of Living in California

The Takeaway

There are several VA home loan benefits. Getting a VA loan could save money if you’re able to get a lower interest rate and avoid making a large down payment. Conventional loans, on the other hand, are still worth a look, especially if you want to buy a second home or an investment property.

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 the advantage of a VA loan vs a conventional loan?

VA loans do not require a down payment or private mortgage insurance. Conventional loans may require a 20% down payment to avoid PMI. VA loans may also have lower interest rates for qualified borrowers.

Are VA rates better than conventional?

VA loans can have lower interest rates than conventional loans, which could save you some money as a homebuyer. The interest rates you’re able to qualify for with a VA loan vs. conventional loan can depend largely on your credit scores and credit history.

Why do sellers prefer conventional over VA?

Home sellers may prefer to sell to buyers who have conventional loan funding simply because VA loans tend to have stricter requirements when it comes to the property itself. Buyers must be able to get the home appraised and inspected in order to move ahead with a VA purchase loan.

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Photo credit: iStock/designer491

^†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.
*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.

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.

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.

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The Department of Veterans Affairs sponsors the VA loan program to help military members and surviving spouses become homeowners. If you’re interested in how to get a VA loan, you’ll need to first make sure you meet the government’s requirements and then find a VA-approved lender and seek preapproval for a loan.

Getting preapproved for a home loan can give you an idea of how much you’ll be able to afford. Having a VA loan preapproval letter in hand can also give you some leverage when it’s time to make an offer. Here’s a closer look at how to get preapproved for a VA home loan.

What Is a VA Loan?

A VA loan is a mortgage loan that’s backed by the federal government. The Department of Veterans Affairs works with a network of approved lenders that grant VA loans to military members and surviving spouses. Should a borrower default on a VA loan, the federal government steps in to help the lender recoup some of its losses.

What is a VA loan good for? There are four ways that borrowers can use them.

•   VA purchase loans allow you to buy a home through an approved lender.

•   Native American Direct Loans (NADL) help Native American veterans or veterans married to Native Americans buy, build, or improve a home on federal trust land.

•   Interest Rate Reduction Refinance Loans (IRRRL) can help make existing VA-backed loans more affordable through interest rate reductions.

•   Cash-out mortgage refinance loans can help eligible borrowers tap into their home equity to withdraw cash, while refinancing into a new loan.

In terms of how to get a VA loan, each of these options has different requirements that borrowers need to meet.

💡 Quick Tip: Apply for a VA loan and borrow up to $1.5 million with a fixed- or adjustable-rate mortgage. The flexibility extends to the down payment, too — qualified VA homebuyers don’t even need one!^{†^}

How Does VA Home Loan Preapproval Work?

Mortgage loan preapproval simply means that a lender has reviewed your financial situation and made a tentative offer for a loan. It doesn’t constitute final approval for a mortgage, but getting preapproved is often beneficial, as a mortgage preapproval letter can give you an edge if you’re vying with another buyer for a particular property.

VA home loan preapproval works much the same as any other type of mortgage preapproval, with one extra step: Before you apply for the loan, you’ll need to get a Certificate of Eligibility (COE) from the VA. This document shows your lender that you’re eligible for a VA loan, based on your service history and duty status. The minimum service requirements for a COE depend on when you served. You can request a COE online through the VA website.

After you have the COE, you’ll need to give the lender some basic information about your household income, assets, and how much you’re hoping to borrow in a process called prequalification. This will allow you to see — often in just a few minutes — what kind of mortgage terms you might qualify for. From there, you can choose a lender and go through the next step, preapproval.

How to Get a VA Home Loan Preapproval Letter

Getting a VA home loan preapproval letter is a relatively straightforward process. Here’s what you’ll need to do.

•   Obtain your COE from the Veterans Administration.

•   Choose a VA-approved lender.

•   Complete the lender’s preapproval application.

Let’s get into the details of securing a VA home loan preapproval. First, you’ll need certain documents on hand to apply for the COE, and those documents are specific to your military status. If you are a veteran, you’ll need a copy of your discharge or separation papers. Active-duty service members will need to furnish a statement of service signed by their commander, adjutant, or personnel officer. This statement needs to include your full name, Social Security number, date of birth, date you entered duty, duration of any lost time, and the name of the command providing the statement. You can find full details and an online COE application on the VA website.

Once you have your COE and have found a prospective lender, the lender will likely ask to see certain documents to verify your income and financial situation, including:

•   Tax returns

•   Pay stubs

•   Bank account statements

•   Investment account statements

You’ll also need to provide a valid photo ID, your date of birth, and Social Security number. This information is needed to process a hard credit check, which can impact your credit score.

After your lender has everything it needs to process your preapproval, it will review your finances and complete a hard check of your credit history. Assuming your credit score and income check out, and there are no issues with your COE, you should be able to get a preapproval decision within a few days.

How to Buy a Home With a VA-Backed Loan

Home mortgage loans offered through the VA are attractive for a few reasons. For one thing, you can buy a home with no down payment required. For another, VA loans can offer more attractive interest rates than other types of mortgage loans.

Now that you know how to get a VA home loan, if you’d like to buy a home with a VA-backed loan, getting preapproved is the first step. Again, VA loan preapproval can give you an idea how much you’ll be able to borrow, which can help you narrow down your search for a property. Once you find a home that you’re interested in, making an offer is the next step.

You can use a VA-backed loan to buy:

•   Single family homes with up to four units

•   Condos in a VA-approved project

•   Manufactured homes

VA loans can also be used to build a home. You’ll need to have the home inspected and appraised to make sure that the property is structurally sound and that its value aligns with the amount you want to borrow. If there are no issues, you can move on to the closing to sign final paperwork and pay the VA loan funding fee.

This fee is a one-time payment VA borrowers are required to make to help cover the costs of the VA loan program. The amount you’ll pay for the funding fee depends on whether you’re a first-time homebuyer and how much money you put down on the home, if any. Some buyers may pay no fee at all, or have it refunded.

Recommended: Cost of Living by State

Who Is Eligible for a VA Loan?

Eligibility for a VA loan is a two-pronged test. You’ll need to be able to obtain a COE from the government on one hand, and on the other, you’ll need to be able to meet the lender’s credit score and income requirements.

COE requirements depend on your duty status and time served. Generally, you’re eligible if you are:

•   An active-duty service member who has served at least 90 days continuously.

•   A veteran who served at least 24 months continuously or 90 days of active duty.

•   A National Guard member who has served at least 90 days of active duty.

•   A Reserve member who has served at least 90 days of active duty.

These requirements assume that you served between August 2, 1990 and the present day. If you’re a veteran, National Guard member, or Reserve member who served before August 2, 1990, the service requirements are different.

You may also be able to get a COE under other conditions. Here are a few examples (find a complete list on the VA website):

•   Are a surviving spouse of an eligible service member

•   Are a Public Health Service officer

•   Served as an officer of the National Oceanic & Atmospheric Administration (NOAA)

•   Served as a midshipman at the United States Naval Academy

If you don’t meet any of the requirements to get a COE for a VA loan, then you’ll need to consider other home loan options.

How to Get Preapproved for a VA Home Loan

VA loans can be attractive to buyers since the VA doesn’t require a down payment or private mortgage insurance. If you’re wondering how to get approved for a VA loan, here are a few tips to qualify for a mortgage.

•   Consider your credit. The VA loan program has no minimum credit score requirement but the higher your score, the better your odds of being approved. A higher credit score can also help you get a lower interest rate on your loan.

•   Know your budget. Estimating how much you can afford when buying a home is important for ensuring that you don’t go over budget. If you know that you’re going to be looking at homes in the $300,000 range, for instance, then you wouldn’t want to ask for $500,000 when you’re trying to get preapproved.

•   Check the lender’s requirements. Researching VA lenders can help you find the one that’s the best fit for your needs and situation. Comparing minimum credit score requirements and income requirements can help you weed out lenders that are less likely to approve you.

Ideally, you should request preapproval from just one lender but that doesn’t mean you can’t shop around first by prequalifying with several lenders to compare rates.

💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.

How to Find a VA Lender

The simplest way to find a VA lender is to use the resources available on the Department of Veterans Affairs website. You can also search for VA-approved lenders online. For instance, you might try searching for “VA lender near me” or “VA lender online application” to see what results turn up. If you aren’t sure a VA loan is right for you, check out a home loan help center to get more ideas for how to finance a home purchase.

Recommended: Cost of Living in California

How to Choose the Best VA Lender for You

One of the most important considerations when weighing how to get a VA loan is choosing a lender to work with. Comparing VA lenders is similar to comparing lenders for different types of mortgage loans, including conventional or FHA options. Here are some key things to consider as you shop around:

•   VA loan interest rates

•   Closing costs the lender charges, including origination fees

•   Minimum credit score and income requirements

•   Whether you have the option to buy points if that interests you

•   How long it typically takes for the lender to close a VA loan once you’re approved

It’s also a good idea to check out reviews from previous buyers to see what they have to say about a particular lender. The better the lender’s reputation is overall, the easier they might be to work with.

Tips on the VA Home Loan Preapproval Process

VA home loan preapproval may seem a little tedious with all the information that you need to provide. But it’s important that you don’t skip this step, as preapproval can work in your favor when it’s time to buy a home.

Here are a few tips for ensuring that your VA home loan preapproval goes as smoothly as possible.

•   Carefully read through the instructions for completing the application before you begin.

•   Organize your documents beforehand so that you’re not scrambling to find information later.

•   Review your application before submitting it to make sure you haven’t overlooked anything and there are no errors.

•   Opt for an online application process if possible, which could save you some time.

How long does it take to get a VA loan? While you might be able to get preapproved the same day or the next business day, closing can take anywhere from 30 to 60 days. That’s important to know as you plan out your home purchase.

The Takeaway

VA loans can offer some attractive benefits to homebuyers and getting preapproved is usually to your advantage. It’s important to take your time to find the right lender to work with so you can get the best loan terms possible.

SoFi offers VA loans with competitive interest rates, no private mortgage insurance, and down payments as low as 0%. Eligible service members, veterans, and survivors may use the benefit multiple times.

Our Mortgage Loan Officers are ready to guide you through the process step by step.

FAQ

Can you get preapproval for a VA loan?

Yes, it’s possible to get preapproved for a VA home loan. You’ll need to find a VA-approved lender to work with and verify that you’re eligible to get a loan through the VA program. Having VA loan preapproval doesn’t guarantee that you’ll qualify for a mortgage, however.

What do I need to get preapproved for VA loan?

To get preapproved for a VA loan, you’ll need to find a VA-approved lender. Next, you’ll need to provide the lender with some information about your finances, along with a Certificate of Eligibility. You can obtain this document from the Veterans Administration.

How long does it take to get a VA loan preapproval?

Assuming that you have all of the necessary documents and information to process your preapproval application, it may be possible to get a decision the same day. VA loan preapproval shouldn’t take more than a few days to obtain if you’ve checked off all the lender’s requirements.

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Photo credit: iStock/Prostock-Studio

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.

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.

^†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.
^{^}SoFi VA ARM: At the end of 60 months (5y/1y ARM), the interest rate and monthly payment adjust. At adjustment, the new mortgage rate will be based on the one-year Constant Maturity Treasury (CMT) rate, plus a margin of 2.00% subject to annual and lifetime adjustment caps.

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