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If you’ve been denied a personal loan recently or don’t think a personal loan is right for you, you might feel at a loss as to how to cover a large expense or fund a major project.

The good news is, there’s no shortage of personal loan alternatives that suit a variety of situations. Here’s what you need to know.

Credit Card

A credit card offers you a line of credit that can be used for a variety of purchases and could be a loan alternative. You can borrow up to a set credit limit, and each month that you carry a balance, you’ll owe at least the minimum payment. Credit cards are generally seen as a better option for smaller, everyday purchases, while a personal loan may make more sense for larger, more expensive items, such as a house or car.

Using a credit card responsibly can be a good way to establish your credit history, so long as you make timely payments each month. And some cards may come with perks, such as rewards points or travel rewards.

On the downside, if you don’t pay off the full balance of your credit card each month when it’s due, then your balance will accrue interest. (And credit cards typically have higher interest rates than personal loans.) If you continue to make charges on the credit card while only making minimum monthly payments, then it will take you even longer to pay off the balance. To find out how much interest you’ll pay on any balance, you can use a credit card interest calculator.

Applying for one credit card can ding your credit score by just a few points. But applying for multiple cards at once could raise red flags for lenders and can drag down your credit score.

Here’s a summary of the pros and cons of this alternative:

Pros

•   Can tap into funds as needed and repay as you go

•   Can build credit as long as you make on-time payments

•   Some cards come with perks such as rewards points and travel-related benefits

Cons

•   Can have higher interest rates than personal loans

•   May take you longer to pay off the balance if you only make the minimum payments

•   Applying for too many cards at once may hurt your credit

Recommended: Personal Loan vs. Credit Card

Personal Line of Credit

A personal line of credit is a type of revolving credit line that can be used for many different things. Like credit cards, a personal line of credit has a maximum credit limit, and borrowers are required to make a minimum monthly payment. Once the debt is repaid, money can be withdrawn once again. Personal lines of credit may be secured, which require collateral, or unsecured, which do not require collateral.

When comparing a personal line of credit vs. a personal loan, you may discover that a personal line of credit allows you to access money over time instead of all at once. This level of flexibility may reduce interest charges, because you’re only taking out the money you plan on using right away. And generally speaking, the interest rates on a personal line of credit tend to be lower than those on a credit card.

However, it can be difficult to qualify for an unsecured line of credit with a good interest rate, as they’re more risky for the lender. Plus, the flexibility of a line of credit could make it easy for borrowers to take on more debt or take longer to pay off what they owe.

Pros

•   Typically has a lower interest rate than credit cards

•   Funds can be used for a variety of purposes

•   You can access funds as you need them

Cons

•   May be difficult to qualify for an unsecured line of credit with a good interest rate

•   Can be easy to take on more debt or take longer to pay off the balance

Recommended: Should You Pay Off Debt or Save First?

Home Equity Loan

If you’re a homeowner and meet certain requirements, you may have the option to take out a home equity loan, which is a different kind of debt than a personal loan. This means you’re essentially borrowing against the equity you’ve built in your home.

Like a personal loan, funds from a home equity loan are disbursed in one lump sum, and you owe monthly payments for the life of the loan. Your home secures the loan, and because of that, lenders tend to offer a lower interest rate than they would on most unsecured loans. Interest rates are usually fixed.

It’s worth noting that repayment begins right away, and if you fall behind on your payments, you risk losing your home. In addition, the loan amount is set, so if you need more money, you’ll need to apply for another loan.

Pros

•   Low interest rate

•   Can borrow large amounts of money

•   Funds can be used for a wide variety of purposes

Cons

•   Risk losing your home if you fall behind on payments

•   Repayment begins immediately

•   Loan amount is set

Like a home equity loan, a home equity line of credit (HELOC) is secured by the equity you’ve built in your home, and your home is used as collateral.

One of the main differences is that a HELOC offers a revolving line of credit, which means you can tap into funds as needed and only pay interest on what you borrow. There are usually low or no closing costs involved with a HELOC, and the interest rate is likely to be variable.

There are some potential drawbacks to keep in mind when comparing HELOCs vs. personal lines of credit. For starters, you may have to pay closing costs on the loan amount, though some HELOCs come with low or zero fees. Your interest rate will likely change with the federal funds rate, which means that over time, your monthly payment amount may fluctuate. Also, if you fail to make payments and the loan goes into default, you risk losing your home.

Pros

•   Only borrow what you need

•   Lower initial interest rates than unsecured loans

•   Repayment terms can be flexible

Cons

•   Can lose your home if the loan goes into default

•   Variable interest rates

•   Can be upside-down on your mortgage (i.e., you owe more on your home than what it’s worth)

Retirement Loan

Also known as a 401(k) loan, a retirement loan is a type of loan where you borrow from your retirement account and pay yourself back over time with interest. You can typically borrow against a 401(k), 403(b), or 457(b) retirement plan.

Per IRS guidelines, you can borrow up to $50,000 or 50% of your account balance, whichever is less. Unless you’re putting the money toward buying your primary residence vs. using it to, say, pay off debt, you have five years to repay your loan and need to make quarterly payments.

It’s worth noting that you cannot borrow against an IRA.

Pros

•   Don’t have to go through a lengthy application process

•   Doesn’t impact your credit

•   Loan repayments are automatically taken out of your paycheck

Cons

•   Can’t borrow more than $50,000

•   Missing out on compound interest and growing your retirement funds

•   If you file for bankruptcy, you’re still on the hook for paying off the loans

Peer-to-Peer Loan

Also known as social lending or crowd lending, a peer-to-peer loan (P2P loan) is a financing model where individuals borrow from others through an online platform. In turn, the financial institution is cut out of the picture, and individuals can borrow from individual investors or lenders.

The main draw for lenders is that they might earn more on the interest than if they put their money in a savings account. Borrowers might be eligible for lower interest rates or less-strict lending criteria. What’s more, the funding process is often quicker than going through a bank — an application may be approved within minutes and funds disbursed within a few business days.

Pros

•   Flexibility in how funds can be used

•   Speedy funding process

•   May qualify with fair credit

Cons

•   Often have origination fees (up to 10% of the loan)

•   Might have a higher interest rate

•   Might have late fees

Salary Advance

If you have an urgent financial need or emergency, you might be able to get part of your future paycheck now as a personal loan alternative. In essence, it’s a loan from your employer, with the expectation that you’ll pay it back.

Your company might charge a fee or interest rate to cover the extra paperwork and accounting. However, it could be a solid way to pay for an emergency, provided you know the terms, restrictions, and what a salary advance entails.

Pros

•   Easy repayment methods (i.e., funds are automatically deducted from your paycheck)

•   Can provide easy, quick access to funds

•   Interest rates may be lower than other types of loans

Cons

•   Not offered by all employers

•   May need to meet eligibility requirements, such as a minimum number of years of employment and no previous paycheck advance requests

•   Might get complicated if you leave your job and haven’t repaid the advance

•   Smaller-than-usual paychecks could make it more difficult to make ends meet

Mortgage Refinance

A mortgage refinance is when you’re swapping your current mortgage for a new one and can be a personal loan alternative. There are different reasons why this route might be attractive for you, such as locking in a lower interest rate or a lower monthly payment. With a cash-out refinance, for example, you replace your existing mortgage with a new mortgage for more than the previous balance. You receive the difference in cash.

Pros

•   You can receive a tax break if funds are used for home improvements

•   Can have relatively lower interest rates than other types of financing

•   Can stretch out your repayment period

Cons

•   Can risk foreclosure if you aren’t able to keep up with payments

•   Will need to pay closing costs

Buy Now, Pay Later Services

If you are thinking about making a major purchase, like a new washer/dryer, a buy now, pay later (BNPL) service could be an alternative to a personal loan. These services (like Klarna and Affirm) typically allow you to make a purchase and finance it via a few interest-free payments over a short period of time.

Pros

•   Allows you to make a purchase, get the item, and pay it off over time

•   Often offers interest-free payments

•   Only requires a soft credit check or no credit check

•   Application and approval is typically quick and easy

Cons

•   Can lead to overspending

•   Missing a payment can lead to late fees

•   Late or missed payments can negatively impact your credit

Family or Friend Loan

If you are fortunate, you might have a relative or friend who’s potentially able to help lend you money when you need it. This kind of family or friend loan typically doesn’t require a credit check and can offer low-interest terms. Note that the IRS has guidelines for the interest rate to be charged for this kind of loan.

Pros

•   Family or friend loans can offer borrowers with no or low credit a way to access funds.

•   Typically, the repayment terms of family or friend loans can be flexible.

•   Interest rates can be low.

Pros

•   Family or friend loans can lack clear legal guidelines

•   Late or missed payments can negatively impact your relationship with the lender

•   No- or extremely low interest rates can conflict with IRS guidelines

•   Making timely payments to a friend or relative who’s loaned you money will not positively impact your credit score

Debt Consolidation Loan as Alternative

You may also find that a debt consolidation loan is an option. This is actually a specific type of personal loan, one that is tailored to help combine high-interest credit card debt into one loan that is easier to pay and may offer a lower interest rate.

Pros

•   Combines multiple debts into one loan, for a single monthly payment

•   May offer a lower interest rate vs. current debts

•   May help you pay off debt more effectively

Cons

•   May involve a longer repayment period and higher interest over the life of the loan

•   Fees may be assessed that can be challenging to pay

•   Must meet the lender’s qualifications to be approved for the loan

The Takeaway

There are pros and cons to personal loans, so if you decide to explore other funding options, rest assured there’s no shortage of personal loan alternatives. Examples run the gamut from home equity loans and HELOCs to personal lines of credit and credit cards.

By knowing what’s out there and weighing the advantages and disadvantages of each, you’ll stand a stronger chance of figuring out what is best suited for your needs.

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 a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

What alternatives to personal loans are the most popular?

Among the most popular options for personal loans are credit cards, retirement loans, home equity loans, home equity lines of credit (HELOCs), peer-to-peer loans (P2P), and a cash-out refinance. Each option has its pros and cons and different lending requirements, and each may be better suited for specific borrowers.

Why would you need to use an alternative to a personal loan?

You might need a personal loan alternative if you don’t qualify for a traditional personal loan, or, if, after doing your research, you’ve found that it isn’t the best option for your needs.

Can you use personal loan alternatives even if you have a personal loan?

Yes, you can use personal loan alternatives if you currently have a personal loan, provided the lender approves your application. However, if you have multiple loans, it’s important to ensure you can keep up with the payments.

What is a good alternative to a personal loan for bad credit?

If you have poor credit, you might look into a friend or family loan, or consider making a purchase with a buy now, pay later service.

Are personal loan alternatives safer or riskier than personal loans?

Whether an option is safer or riskier than a personal loan depends on the particular alternative you are exploring and your situation. For instance, a HELOC puts your house at risk of foreclosure if you default. If you have a loan from a relative and don’t repay it on time, you could do serious damage to that relationship.

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Photo credit: iStock/zamrznutitonovi

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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The Federal Reserve Bank of New York announced that U.S. citizens hit a new milestone: $1.23 trillion in credit card debt as of Q3 2025. And when you look at overall debt, the number soars to an eye-watering $18.59 trillion, with the typical American household having $105,056 in debt.

Taking a closer look at how debt is tracked by age can help as you examine your own situation and think carefully about how you will manage your own debt load. Keep reading to learn more.

Breakdown Of Average Debt By Age

Here, you’ll learn more about the latest data and what it reveals about how Americans are using credit. Overall, people in their high earning years (early middle age) carry the most debt, typically in the form of mortgages, while younger families carry more student loan debt. Let’s take a closer look.

Age 18-29

Total debt: $1.05 trillion

Average per person: $19,972

During this stage of life, debt typically comes from a mix of student loans, credit cards, and auto loans, not mortgages, because many in this age group haven’t yet bought homes. The relatively high levels of education-related and personal debt for these younger adults highlight the financial burden they face early in their careers.

Age 30-39

Total debt: $3.89 trillion

Average per person: $84,565

Adults aged 30-39 carry a significantly higher debt load than younger cohorts, with a per-capita average of around $84,565, according to Federal Reserve–based data. By this age, many people have transitioned into more long-term financial obligations: mortgages make up a large share of their debt, as they often purchase homes and take on large loans to finance them.

Credit card debt in this age bracket is climbing, too, with 80% having a credit card (ages 30-44) and 53% carrying a balance. These increases show that people in this age range are taking on more debt — likely because they’re earning more and doing more: they’re settling into their careers, buying houses, and starting families.

Age 40-49

Total debt: $4.76 trillion

Average per person: $111,148

People aged 40-49 carry the most debt burden of all age groups, with an average per-capita debt of $111,148. At this stage, much of their debt stems from long-term obligations like mortgages, as many in this age group have purchased homes and are building significant home equity, as well as from auto loans and credit card balances.

Despite this high level of indebtedness, the New York Fed’s reports show that serious delinquency (90+ days past due) rates for major debt categories like mortgages remain relatively stable among this cohort. However, the concentration of debt also reflects that 40- to 49-year-olds are in a peak earning and borrowing phase — balancing large housing loans, potential family expenses, and other financial priorities.

Age 50-59

Total debt: $4.02 trillion

Average per person: $97,336

This age bracket continues to see drops in overall debt. They owe less on their mortgages and even less on education loans. With fewer large expenses related to education, housing, and family rearing, households in this age bracket can focus on paying down debt and building savings as they prepare for retirement.

Age 60-69

Total debt: $2.73 trillion

Average per person: $67,574

Households in this age range are likely beginning to or have begun their retirement. At this point, they are probably tightening their budgets to live on retirement savings, pensions, and social security. As a result, they’re spending — and borrowing — less.

While average balances may still be substantial, most of these older borrowers continue to manage repayments. For many in their 60s, carrying this level of debt can be part of a long-term wealth management strategy — balancing ongoing liabilities while preserving or building on accumulated assets.

Age 70 and up

Total debt: $1.73 trillion

Average per person: $43,142

Seniors in this bracket are most likely retired and living on a fixed income. While there are fewer and lower levels of borrowing in this bracket compared to the others, one report says that more than 97% of those ages 66-71 do still carry some form of debt. While much of this is accounted for by small mortgages, some of it may be related to high cost of medical care, senior living facilities, and credit card debt.

💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. SoFi personal loans come with no-fee options, and no surprises.

How Much Debt Is Too Much?

Americans have clearly become accustomed to borrowing in order to move through their everyday lives. In fact, financing is often a necessary step in order to get the graduate level training needed for a professional career or to buy a home that will become a financial asset. But are we culturally becoming too comfortable with borrowing larger and larger sums of money? And how do you know when you’ve over-extended yourself?

One way to find out if you’re carrying too much debt is to calculate your debt-to-income ratio by dividing your monthly debt payments by your monthly income. For instance, if your total debt payments (student loan, credit card, mortgage, car loan, etc.) come to $2,500 per month and your after-tax monthly income is $8,000, your debt-to-income ratio would be 31.25%. That means that a little over 31% of your income goes straight to your debts.

As a rule of thumb, the lower your debt-to-income ratio, the better: a ratio of around 30% is considered very good, while a ratio of 40% or higher could threaten your financial security.

Recommended: Which Credit Bureau Is Used Most?

How to Take Control Of Your Debt

Carrying debt can be extremely stressful, especially if it keeps you from being able to save enough to feel financially secure. Here are some solutions if you’re looking for a strategy for paying down your debt.

Make a Debt Inventory

Start by listing out all of your outstanding debts and sorting them based on whether they are “good” debts (debts taken out to help build wealth or income potential like mortgages and student loans) or “bad” debts (high-interest loans, credit cards, and auto loans). The bad, or high-risk debts, will be the ones you’ll want to take on first.

Create a Debt Pay-Down Goal

Creating a debt pay-down goal gives you a clear roadmap for reducing what you owe. Two popular strategies that can help you get there are the debt avalanche and the debt snowball methods.

With the debt avalanche method, you focus on paying off the debts with the highest interest rates first, which minimizes the total interest you’ll pay over time. The debt snowball approach, on the other hand, prioritizes paying off your smallest balances first, giving you quick wins and motivation to keep going. Whichever method you choose, setting a specific, achievable goal helps you stay focused and build momentum toward becoming debt-free.

Consider Consolidating Your Debt

If you are carrying a high credit card balance or other high-interest debt, but have a steady income and good credit, you may be able to make your repayment simpler and cheaper by taking out a lower-interest personal loan to pay off those debts. You can’t use an unsecured personal loan to consolidate student loan debt, but it can be immensely helpful if you’re trying to get out from under credit card debt.

Recommended: Can You Refinance a Personal Loan?

The Takeaway

Many Americans have debt, with younger people having more student debt and those in midlife having more in the form of mortgages.

If you’re concerned about managing your debt (especially from credit cards), you might consolidate your high-interest debt into one monthly payment, which might offer a lower interest rate that could help you get out of debt sooner.

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 a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

How much does the average American have in debt?

As of 2024, average household debt sits at $105,056. This may include mortgage debt, credit card debt, auto loans, student loans, personal debt, and more.

How many people have $10,000 in credit card debt?

Roughly one in four Americans (25%) who carry credit card debt owe more than $10,000. Keep in mind that about 46% of Americans have credit card debt, in general.

What percent of Americans are debt-free?

According to data from the Federal Reserve, about 23% of Americans are debt-free. Keep in mind, though, that not all debt is considered bad. Having mortgage debt, for example, is much better than carrying credit card debt.

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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.

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Becoming a surgeon requires committing to many years of school and putting in countless clinical hours. The good news is that all the time and hard work can lead to a fulfilling career that pays well. The mean annual pay for general surgeons (excluding specialties such as orthopedic, pediatric, oral, and maxillofacial surgeons) in the U.S. as of May 2024 is $371,280, according to the U.S. Bureau of Labor Statistics (BLS).

It’s important to remember that this is just the average salary. Where a surgeon lives, the type of surgery specialty they take on, and a host of other factors can influence how much they can earn. Keep reading for more insight into how much surgeons make.

What Are Surgeons?

A surgeon is a medical professional who operates on patients to treat injuries (such as broken bones), diseases (like cancerous tumors), and deformities (such as cleft palates). A surgeon can have an M.D. (Medical Doctor) or D.O. (Doctor of Osteopathic Medicine) degree.

A surgeon doesn’t only perform operations, however. These specialists are also responsible for the preoperative diagnosis of the patient and for providing the patient with postoperative surgical care and treatment. The surgeon is also looked upon as the leader of the surgical team.

Surgeons can typically expect to work long days, primarily in person, so this type of job is probably not a good fit for anyone looking for a work-from-home job. However, surgeons can work in a variety of different settings. These include:

•   Private practice

•   Academic medicine

•   Institutional practice

•   Hospitals

•   Ambulatory surgery settings

•   Government service programs

How Much Does a Surgeon Make Starting Out?

General surgeons can earn an impressive entry-level salary, averaging $339,174, according to ZipRecruiter. Most earn between $303,000 and $400,000.

💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

What is the Average Salary for a Surgeon?

You can measure how much a surgeon makes by looking at both their average hourly rate and annual salary. The national average hourly salary for a surgeon is $178.50, while the average annual pay for a surgeon in the U.S. is $371,280.

The type of specialty a surgeon chooses to practice can impact how much they earn. What surgical specialty makes the most? Let’s take a quick glance at the average annual wages for surgeons with varying specialties:

•   Orthopedic surgeon: $365,060

•   Oral and maxillofacial surgeon: $360,240

•   Pediatric surgeon: $450,810

•   Cardiothoracic surgeon:$367,474

•   Plastic surgeon: $356,489

•   Mohs surgeon: $345,926

What Is the Average Surgeon Salary by State?

How much money a surgeon makes can vary by location. What follows is a breakdown of how much general surgeons make per year, on average, by state, according to the Bureau for Labor Statistics, as of 2024 (the most recent data available). These statistics exclude specialties such as orthopedic, pediatric, oral, and maxillofacial surgeons. Please note that data is not available for all states.

State	Annual Salary
Arizona	$432,580
California	$308,430
Colorado	$311,400
Georgia	$449,500
Illinois	$352,040
Indiana	$443,860
Iowa	$394,050
Louisiana	$544,450
Maine	$424,260
Maryland	$349,250
Massachusetts	$362,300
Michigan	$498,340
Minnesota	$373,920
New Hampshire	$381,510
New Mexico	$400,000
New York	$262,640
North Carolina	$398,550
North Dakota	$556,400
Ohio	$505,370
South Carolina	$358,310
Tennessee	$366,430
Texas	$298,900
Vermont	$403,630
Virginia	$321,470
Washington	$354,640
West Virginia	$371,230
Wisconsin	$478,880
Wyoming	$371,800

Source: U.S. Bureau of Labor Statistics

Surgeon Job Considerations for Pay and Benefits

Surgeons typically work in clinical settings, such as physicians’ offices and hospitals, including academic hospitals associated with residency programs and medical schools.

The average annual salary for a surgeon is $371,280, but surgeons can actually earn a lot more when you look at their total compensation package including benefits.

Because surgeons often work full-time for a specific hospital, company, or organization, prospective surgeons can expect to find a job that offers them the standard suite of employee benefits, including healthcare, paid vacation, vision and dental insurance, and a retirement plan.

In addition to these benefits, some surgeons also receive life insurance policies, continuing medical education (CME), flexible scheduling, research and academic support, and development programs.

Pros and Cons of a Surgeon’s Salary

Becoming a surgeon takes a lot of hard work and discipline, but surgeons can also change the lives of their patients every single day and earn a substantial income at the same time. Here’s a closer look at the pros and cons of choosing a career as a surgeon.

Pros of Being a Surgeon

Being a surgeon offers potential benefits like:

•   Ability to help people A surgeon can help people experience less discomfort, pain, and stress, and even save their lives. Surgeons also train and mentor junior colleagues.

•   Opportunity to work as part of a team Surgeons typically collaborate with doctors, nurses, and other medical specialists to provide comprehensive care to patients. (Consequently, it may not be the ideal medical specialty for someone who is naturally more of an introvert.)

•   High compensation The national average salary of surgeons is $371,280 per year but can go as high as $450,000 or more, depending on location, years of experience, certifications, and other factors. Surgeons also typically get benefits like health insurance and 401(k) plans.

•   Consistent schedule Depending on their specialty and seniority, some surgeons are able to have a regular work schedule and perform surgeries during certain hours. This can help promote a healthy work-life balance.

•   Chance to work in different environments Surgeons can work in a variety of places, including hospitals, private practices, and other medical centers. Many surgeons also have offices where they consult with patients in addition to the centers where they do surgery.

Recommended: 27 Fulfilling Jobs for Extroverts That Pay Well

Cons of Being a Surgeon

However, surgeons also face the following challenges:

•   Long and rigorous educational requirements To become a surgeon, you typically need to complete a four-year bachelor’s degree program, a four-year degree program at a medical school, and a three- to seven-year internship or residency program. All told, it can take 11 to 15 years of studying in school to enter the field of surgery.

•   Long hours Depending on your specialty and where you work, you may need to work long hours. Indeed, general surgeons may work 50 to 60 hours per week. In addition, some surgeons need to be on call on evenings and weekends.

•   High-pressure job Surgery generally involves a certain level of risk and surgeons are under pressure to perform procedures with no errors in order to ensure a positive outcome for their patients. Surgeons need to be able to stay calm and focused under pressure.

•   Burnout potential Depending on their specialty, some surgeons may be required to perform the same procedures each day, sometimes more than once per day. This could potentially lead to job burnout over time.

•   High education costs Going to school for all the years required to become a surgeon can be expensive. As a result, surgeons may take on a lot of student loan debt, which they’ll need to repay once they start practicing. This can lessen the average surgeon’s salary.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

Becoming a surgeon requires years of study and practice, including medical school and residencies. Those who are up for the challenge can earn a high salary, especially if they go into one of the more lucrative specialties. Since surgeons earn such a high income, they need to find a way to manage their money and use it to reach their goals.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

What is the highest paying surgeon job?

Neurosurgeons, also called neurological surgeons, are the highest-paid surgeons. These doctors specialize in the diagnosis and treatment of conditions of the brain, spine, and nervous system, and can make upward of $780,000.

Do surgeons make $300k a year?

Many surgeons make $300,000 or more per year. The following specialties all earn an average salary well over $300,000: orthopedic surgery, oral and maxillofacial surgery, pediatric surgery, plastic surgery, and Mohs surgery.

How much do surgeons make starting out?

General surgeons just starting out average $339,174 annually, according to ZipRecruiter.

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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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SORL-Q425-031

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A home equity agreement allows homeowners to access a lump sum of cash without applying for a traditional loan. In exchange for receiving cash now, the homeowner agrees to repay a percentage of their home’s value at some future date. Home equity agreements are an alternative to home equity loans or lines of credit. While they may appeal to some homeowners, there are important pros and cons to weigh.

What Is a Home Equity Agreement?

A home equity agreement is a contract between a homeowner and a third-party investor, typically a corporation. This contract allows homeowners to tap into cash using their equity, while giving the investor a stake in the home’s future appreciation. Home equity is the difference between what’s owed on the mortgage and your home’s fair market value. These agreements may also be referred to as home equity contracts, shared equity agreements, or home equity investments (HEIs).

What is a home equity agreement designed to do? For homeowners, it’s a way to get cash that they can use to fund home improvements, consolidate debts, or meet other financial needs. Home equity agreements are not traditional home equity loans; that means homeowners do not have to make monthly payments or pay any interest charges on the cash they receive.

For the investor, a home equity agreement is an opportunity to benefit from a property’s appreciation over time. Once the contract period ends, the investor walks away with a predetermined amount of equity. Essentially, it’s similar to any other type of buy-and-hold strategy, in that the investor is banking on their investment gaining value in the long term.

Home equity agreements have become increasingly common in recent years, and it’s important to understand that they can be risky arrangements. While they are often marketed as an alternative to a loan, they do in fact require repayment. The amount of the repayment can be difficult to predict, and when it comes due, it can be in the hundreds of thousands of dollars.

How Home Equity Agreements Work

Home equity agreements work by allowing homeowners to leverage their equity for a set period, with the agreement to give an investor some of the home’s future value. For example, in exchange for $50,000 in cash today, you may agree to repay the investment company that amount, plus 10% of your home’s value in the future. The terms of the contract dictate how the arrangement works, including the length of the contract period, the amount of appreciation the investor gets to collect, and any obligations the homeowner is expected to uphold regarding the property’s maintenance and upkeep.

Requirements and Eligibility

Eligibility requirements for a home equity agreement primarily center on your home’s value and the current amount owed on your mortgage. Home equity agreement companies may take other factors into account as well, including your credit scores, income, and the area in which your home is located. If approved, you’re expected to:

•   Continue making regular mortgage payments (if you have a home loan)

•   Pay required property taxes promptly

•   Maintain adequate homeowners insurance coverage

•   Take care of necessary maintenance, repairs, and upkeep

As you think about how a home equity agreement works, it’s important to understand that a typical home equity agreement lasts 10 to 30 years; you won’t pay any equity value to the investor until the contract ends. Should you decide to sell the home before the contract period expires, you would need to pay the required amount to the investor at that time. If you have a home loan, you’ll also be paying off the mortgage at that time.

How much equity do you need for a home equity agreement? Home equity investment companies expect you to have anywhere from 10% to 40% equity. In exchange, you may be able to borrow 25% to 30% of your equity. You can estimate your current equity by subtracting whatever you still owe on your mortgage from your home’s estimated value (find that on a real estate site).

Once you have the dollar amount, you can divide by the home’s estimated value to see your percentage of equity. If you proceed with a home equity agreement, you should expect to undergo a professional appraisal to determine your home’s value, which you’ll likely have to pay for yourself.

Is a Home Equity Agreement a Good Idea?

A home equity agreement may be a good option for homeowners who need cash and have sufficient equity, but don’t want a traditional loan arrangement. However, it’s important to consider what a home equity investment contract may cost. Here are the main home equity agreement pros and cons to know.

Pros

Home equity agreements can offer some significant benefits for homeowners who qualify.

•   No monthly payment: Home equity contracts do not require a monthly payment, and you’re not creating any debt.

•   Easier to qualify: You don’t necessarily need a great credit score to get a home equity agreement; you simply need sufficient equity.

•   Flexibility: Funds from a home equity agreement are delivered in a lump sum; there are no restrictions on how you can use the money.

•   Built-in safety: Home equity agreements are structured so that risk is shared between you and the investor; if your home’s value declines instead of increasing, you pay less.

Cons

While home equity agreements can hold appeal for some homeowners, the drawbacks can’t be ignored.

•   Unpredictable repayment: The dollar amount you repay to the investor is tied to your home’s appreciation, which can make it difficult to know exactly what the cost will be. A review of complaints to the U.S. Consumer Financial Protection Bureau shows that homeowners felt frustrated or misled by their contracts and surprised by their repayment amounts. Disputes might arise about the appraised value of the home, as well.

•   Fees may apply: Even though an HEA is not a loan in the traditional sense, you may be expected to pay closing costs and other fees when signing a contract.

•   Higher costs: A home equity agreement could prove more expensive than a home equity loan or home equity line of credit (HELOC) in the long run, depending on the amount you have to repay and the extent of your home’s appreciation.

•   Refinancing restrictions Many people with an HEA will also have a mortgage on their home, and the HEA can make it difficult to refinance that loan, should a homeowner wish to do so.

•   Forced sale: If you cannot repay the amount due to the investor at the end of the contract period, you may be forced to sell the home to satisfy your side of the agreement.

Who Should Consider a Home Equity Agreement

Home equity agreements aren’t right for everyone, and a home equity loan or HELOC might be a less costly way to tap into your home equity. Those who may consider a home equity investment contract include homeowners who need to access a large sum of cash for home improvements, debt consolidation, or other needs, and who also meet one of these criteria:

•   Do not want to take on a home loan because they don’t want to add another payment to their budget

•   Cannot qualify for a HELOC or home equity loan, based on their credit scores or debt levels

In either scenario, the homeowner should also feel confident that they understand the terms of the HEA and can repay the amount due when the contract period ends, or when they sell the home, whichever comes first.

If you don’t have any plans to sell, either now or later, then you may want to look for another option. While you may assume you’ll be able to pay the investor their due when the time comes, much can happen between now and then. You don’t want to find yourself in a situation where you’re forced to sell because the clock has run out on your home equity contract.

How to Choose a Home Equity Agreement Company

Finding a reputable home equity agreement company requires some research and planning. Some of the most important considerations to weigh as you compare the options include the amount of equity you may be able to access, eligibility requirements, ongoing homeowner responsibilities if approved, funding speeds, and how contracts are structured.

More specifically, you should understand:

•   How long the contract term is

•   What percentage of your equity you’re expected to repay

•   How risk is shared between yourself and the HEA company in case your home’s value doesn’t rise like you expect it to

•   What fees you’ll pay, either upfront or at the end of the contract

It’s especially important to understand how the company calculates its equity share. Some companies use a fixed rate of return, while others use a shared appreciation model. With shared appreciation, you agree to repay the amount of cash you initially access, plus a percentage of your home’s appreciation. A fixed return model, meanwhile, means you pay one flat amount, regardless of how much your home appreciates.

How the HEA company calculates its share of your equity could make a big difference in the amount of profit the company walks away with. Additionally, you should also be aware of whether the company caps the amount you’re expected to repay or offers any downside protection. Both can make a home equity agreement more fair and balanced for you, but not all companies offer these benefits.

Checking reviews on sites like Trustpilot or looking at a company’s Better Business Bureau (BBB) profile can give you an idea of its reputation. You can also search the Consumer Financial Protection Bureau’s complaint database to see if any complaints have been filed against a company you’re thinking of working with.

Alternatives to Home Equity Agreements

Home equity agreements are just one way to access your equity. Depending on your situation, you may also consider a home equity loan or home equity line of credit, cash-out refinancing, or a reverse mortgage to get the money that you need. Each option has pros and cons.

Home Equity Loan

A home equity loan is a second mortgage that’s secured by your home. You can withdraw a portion of your equity in a lump sum and repay the loan over a set term, typically 10 to 30 years. Home equity loans usually have fixed interest rates, so you can easily calculate your cost of borrowing and monthly payment.

You can use a home equity loan for any purpose. The amount you can borrow is tied to your equity, credit scores, income, and debt. You might get a home equity loan with the lender you have your primary mortgage through, or shop around for a loan online.

HELOC

A HELOC is a revolving credit line that’s secured by your home. Instead of providing you with a lump sum, a HELOC works more like a credit card. You can withdraw funds from your credit line as needed during a draw period, which may last up to 10 years. During this time, you may be expected to make interest-only payments.

Once the draw period ends, you enter the repayment period, which may last 5 to 20 years. This is when you’ll make both principal and interest payments. You only pay interest on the amount of your credit line that you use. HELOC rates are typically variable, meaning the rate can go up or down over time, but some lenders offer a fixed-rate option.

Cash-Out Refinancing

Cash-out refinancing replaces your existing mortgage with a new, larger home loan. You get the difference between your old and new loans as cash at closing. A cash-out refinance increases your total mortgage debt, but you still have just one mortgage payment to make each month. You might choose a cash-out refi if you’re interested in withdrawing equity and changing the terms of your home loan at the same time.

Reverse Mortgage

A reverse mortgage or home equity conversion mortgage (HECM) is a special type of equity financing available to homeowners aged 62 and older. With a reverse mortgage, you can withdraw your equity in a lump sum or in a series of payments. You repay nothing monthly; full repayment is only required when you sell the home or no longer use it as a primary residence.

Reverse mortgages have strict eligibility requirements, and they charge interest like traditional home loans. Should you pass away with a reverse mortgage in place, your estate would be responsible for settling the debt. That could put your heirs in the position of having to sell the home if they don’t have other resources to pay.

The Takeaway

Home equity agreements can help owners unlock equity without the traditional home loan process, but it’s helpful to consider all paths available. It’s important to understand home equity agreement pros and cons, including the fact that the payment you would ultimately need to make at the conclusion of your HEA term can be wildly unpredictable. You may find that a home equity loan is a better fit if you prefer predictability with how much you’ll repay. A HELOC or cash-out refinance loan could be other good options. Comparing rates from lenders can give you an idea of what you might pay to borrow.

Unlock your home’s value with a home equity loan or HELOC from SoFi.

FAQ

How much does a home equity agreement cost?

The cost of a home equity agreement depends on how your contract is structured. Factors that affect cost include the amount of equity you agree to share, the amount of money you receive, and any fees you’re required to pay at the beginning or end of the contract. Upfront fees are similar to closing costs for a mortgage, and may range from 3% to 5% of the amount you receive.

How is the repayment amount determined in a HEA?

Home equity agreement companies typically use one of two approaches to set repayment terms. They may collect a fixed rate of return, or require homeowners to repay the initial amount they received plus a percentage of their home’s appreciation. HEAs may have repayment caps that set an upper limit on what you’ll repay, or include downside protection that helps you if your home doesn’t appreciate as expected.

How do you pay back a home equity agreement?

Home equity agreements are usually repaid in a lump sum when the contract period ends, or when you sell your home, whichever comes first. If you don’t plan to sell, you’ll need to have cash set aside to cover the amount you’re expected to repay. If you do decide to sell, then you could repay the HEA company from the proceeds of the sale.

How do you get a home equity agreement?

To get a home equity agreement, you’ll need to find an HEA company to work with. You’ll also need to meet eligibility requirements, which usually hinge on how much equity you have in the home. Your credit scores and income may also factor into the approval process.

What states allow home equity agreements?

Every state handles home equity loans and home equity agreements differently. Your options for getting an HEA can depend on where you live and which company you decide to work with. It’s not unusual for HEA companies to only offer equity agreements in certain states.

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Photo credit: iStock/Miljan Živković

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.

^²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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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If you’re thinking about purchasing a home, you’ve probably heard that an FHA loan (backed by the Federal Housing Administration) is worth exploring. These government-backed loans are especially popular with first-time homebuyers, because they have lower down payment requirements than many conventional loans and less stringent borrowing criteria.

But did you know there are several different types of FHA loans and programs designed to make homeownership accessible to more Americans? The FHA offers a wide variety of options, from traditional home mortgages to loans meant to help homeowners refinance; repair and renovate; improve their home’s energy efficiency; or tap their home equity for retirement income.

Read on for a look at some of the many available options.

What Is an FHA Loan?

FHA loans are mortgages that are provided by private lenders but are insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). This means that if a borrower defaults on an FHA loan, the FHA will reimburse the lender for the loan’s unpaid principal balance.

Because lenders are taking on less risk when they fund an FHA loan, they can offer different types of FHA loans to borrowers who might otherwise struggle to qualify due to low credit scores or because they can’t save enough for a big down payment. Borrowers also may be eligible for lower closing costs or other benefits.

If you’re considering an FHA loan, here are some helpful basics to know:

FHA Loan Eligibility

FHA loan requirements can vary by lender and by the type of FHA loan, but generally you can expect underwriters to look for a 580 credit score with a minimum down payment of 3.5%. Some lenders prefer a minimum score of 600. If you can make a larger down payment — at least 10% — you may be able to qualify with a lower credit score (in the 500 to 579 range), but your interest rate and other terms you’re offered may be less favorable. The FHA allows your down payment to be a gift from a family member, friend, charity or other source, but the money will need to be documented with a gift letter.

There isn’t a set income requirement to qualify for an FHA mortgage, but lenders will ask for documentation of your income sources. They also will consider your debt-to-income (DTI) ratio, which compares your monthly debt payments with your monthly gross income. FHA guidelines generally allow a DTI ratio up to 43%, but if you have a strong credit score and meet other requirements, some lenders may accept a DTI ratio of up to 50% on an FHA loan.

FHA loans have occupancy rules regarding the size of the residence and how it is used. And FHA borrowers must pay mortgage insurance — both an upfront premium and an ongoing annual premium.

FHA Loan Limits

The FHA sets new guidelines each year for the maximum amount you can borrow based on housing costs and the cost of living in your region. The value of the property you plan to purchase (as determined by your appraisal) must fall within these specific limits.

HUD maintains a searchable database on its website where you can look up loan limits for specific areas. The following are the 2025 limits in most areas of the U.S.:

•   Single-unit property: $524,225

•   Two-unit property: $671,200

•   Three-unit property: $811,275

•   Four-unit property: $1,008,300

Limits in higher-cost areas can range from $1,209,750 (for a single-unit property) to $2,326,875 (for a four-unit property). In Alaska, Hawaii, Guam, and the U.S. Virgin Islands, limits range from $1,814,625 to $3,490,300.

Types of FHA Mortgage Loans

The FHA insures several different types of loans, including the popular Section 203(b) Basic Home Mortgage Loan that many homebuyers use to purchase their primary residence. Here’s a list of loan options you may want to consider:

FHA 203(b) Loan: Standard Home Purchase

This is the FHA’s main home loan program, and it’s similar to a conventional mortgage. Borrowers can choose among different loan terms, up to a 30-year term, and must also decide whether they prefer a fixed or adjustable interest rate. To qualify, the home must pass strict HUD appraisal standards.

FHA 203(k) Loan: Rehab and Renovation

By now, you’ve probably seen enough renovation TV shows to know that you can often find a more affordable home if you’re willing to make some improvements. The FHA’s standard and limited 203(k) rehabilitation mortgages can be used to help homebuyers and current homeowners finance those repairs and improvements. The renovation expense with an FHA 203(k) loan must be a minimum of $5,000, and the home must be at least a year old.

Recommended: FHA 203(b) Loans vs. FHA 203(k) Loans

FHA Streamline Refinance

An FHA streamline refinance is a refinancing option that’s available only to borrowers with an existing FHA loan. It’s referred to as “streamlined” because the underwriting process is limited compared to a standard mortgage refinance. (A home appraisal usually isn’t required, for example.) Eligibility requirements may be stricter, however, if the refinance will lower the borrower’s mortgage payment by more than 20%.

FHA Cash-Out Refinance

With an FHA cash-out refinance, eligible homeowners can get a new, larger mortgage that’s insured by the FHA, use it to pay off their existing mortgage, and receive the balance that’s left over as a lump sum of cash.

You can use money from a cash-out refinance for just about any purpose, including to pay down debt or to fund a remodel. With an FHA cash-out refinance, you may be able to borrow up to 80% of the property’s appraised value. And unlike the streamline refinance, you can do an FHA cash-out refinance no matter what type of mortgage you currently have.

FHA Energy Efficient Mortgage (EEM)

With the EEM program, a borrower can use an FHA-insured mortgage to purchase or refinance a principal residence plus get help covering energy efficient improvements that could help lower the home’s utility bills. In the past, there were tax credits that helped homeowners fund the energy-efficiency improvements, but these credits end on December 31, 2025, However, the EEM program continues.

The FHA loan can be used to cover materials, labor, inspections, and a home energy assessment by a qualified energy assessor. But there are restrictions on how much you can borrow for the updates, and the improvements to be made must be approved by a qualified assessor or home energy rater.

FHA Reverse Mortgage (HECM)

An FHA home equity conversion mortgage (HECM) is an FHA-insured reverse mortgage that allows borrowers 62 and older to tap into a portion of their home equity to get tax-free income. The monthly payments borrowers receive through a reverse mortgage can then be used to help cover medical bills, home maintenance, or other general living expenses.

The amount available for withdrawal is based on:

•   The age of the youngest borrower or eligible nonborrowing spouse;

•   The current interest rate; and

•   The appraised value, the HECM FHA mortgage limit, or the sales price — whichever amount is lowest.

When the borrower moves out, sells the home, or passes away, the loan must be repaid.

How to Choose the Right FHA Loan

If you aren’t sure which type of FHA mortgage loan loan would be best for your needs, it may be helpful to speak with a HUD-approved housing counselor. You can use the search tool on the HUD website to find a participating housing counseling agency near you.

A qualified mortgage professional with an FHA-approved lender (like SoFi) can also provide you with information about the various types of FHA mortgage loans, as well as the pros and cons. And you can go online to further research the type of loan you want and the lenders who offer those programs or products.

The Takeaway

An FHA mortgage has long been a popular option for first-time homebuyers who are looking for a basic home loan. But homeowners who want to refinance their current mortgage, improve their property, or turn their equity into income may also benefit from different types of FHA mortgage loans. Working with a trusted lender, you can find an FHA loan that makes the most sense for your budget and financial goals.

SoFi offers a wide range of FHA loan options that are easier to qualify for and may have a lower interest rate than a conventional mortgage. You can put down as little as 3.5%, making an FHA loan a great option for first-time homebuyers.

Another perk: FHA loans are assumable mortgages!

FAQ

What is the most common FHA loan?

The most commonly used FHA loan is the FHA 203(b) loan, which could make it possible to purchase a primary residence even if your credit is so-so or you don’t have a large down payment saved up.

Can I use an FHA loan for home improvements?

Yes. An FHA 203(k) loan can be used by homeowners and homebuyers who want to make major renovations to a property. But depending on your specific circumstances, you might also consider other FHA loans (a 203(b) mortgage, a reverse mortgage, or a refinancing option) to help pay for improvements.

What’s the difference between FHA 203(b) and FHA 203(k) loans?

The FHA 203(k) rehabilitation mortgage insurance program was created to assist homebuyers and homeowners who have a property that’s in need of substantial renovation or remodeling, while the 203(b) loan is typically used to purchase a move-in ready home or one that may not require such significant repairs.

Who qualifies for an FHA streamline refinance?

To qualify for an FHA streamline refinance, the existing mortgage must be FHA insured and it can’t be delinquent. The term “streamline” refers to the amount of documentation required and level of underwriting the lender must perform, which is usually minimal compared to some other loans.

Are there income limits for FHA loans?

FHA loans do not have maximum or minimum income limits. Still, you can expect lenders to request documentation of your income sources.

How do FHA reverse mortgages work?

An FHA-insured reverse mortgage allows borrowers 62 and older to tap into a portion of their home equity to get tax-free income. The loan must be repaid when the borrower sells the home, moves out, or passes away.

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Photo credit: iStock/ferrantraite

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.

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.
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.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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-Q425-059

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