HILO at a Glance
- Variable or fixed rate?
- Withdrawing funds by check
- Origination fee: $499
- Loan-to-value ratio: 95%
- Funding time: 21 Days
SoFi Bank offers a variety of financial services and products, such as home loans, auto, student, and personal refinance, investment and bank accounts. SoFi and Spring EQ have partnered to provide borrowers with a line of credit for home equity.
The Pros and Cons of Using Pros
- Maximum loan to value
- Flexibility of repayment
- In most cases, there is no need for an in-home inspection
You can also find out more about Cons
- Minimum loan amount
- Website is hard to navigate
- Limitations on withdrawal
What you need to know about SoFi HELOC
Here are a few key things to consider before applying for a HELOC with SoFi or its partner Spring EQ.
1. Flexibility and limits are mixed together
SoFi and Spring EQ offer HELOCs that have 30-year terms. They include a 10-year drawing period, as well as a 20 year repayment period. You only pay interest during the draw period. This gives you more flexibility in your budget.
The maximum amount you can borrow is 95% of your equity. This is higher than other HELOC providers who typically lend 80%-90 %. Maximum loan is $500,000.
Some HELOC lenders will approve you with as little as $10,000. The next draw must be at least $1,000.
Spring EQ also only offers paper checks for withdrawals, so depending on the deposit policy of your bank, you may have to wait a while before receiving your money. Other lenders might also allow access through bank transfers, debit cards or wire transfers.
2. The eligibility criteria is clear
On the website of its partner, you can get all the info you need on a SoFi HELOC — but you’ll have to search for it. You must have a FICO of at least 680 — or 700 for the maximum ratio of loan to value — as well as a ratio of debt to income of no more than 45% to qualify.
A second-home LTV is limited to 80%. The lender does not offer HELOCS for investment properties. You’ll have to submit some documentation to verify your income, identity, and current mortgage balance, but the lender does not require an appraisal.
3. Annual fees are charged
Spring EQ, a partner of SoFi, charges a variety of closing fees that can amount to more than $1000 in certain cases. The lender also charges an annual fee of $99, charged annually on your anniversary date.
How can you make use of a HELOC?
HELOCs can be used for almost anything. Home renovations, consolidation of debt, education expenses, weddings, and large purchases are all common uses.
Before you decide to apply for an HELOC consider any fees that may be charged and how a variable rate of interest will affect your application. Compare and research your borrowing options such as personal loans, home equity loans, and credit cards to find the one that is best for you.
What is the SoFi HELOC for?
Consider a SoFi loan if you are looking for a high LTV, have sufficient equity to cover the minimum $50,000 amount of the loan, and can meet Spring EQ’s eligibility requirements. You may also find it appealing if you’re not concerned about the restrictions on accessing funds.
Some HELOC providers may not even charge a closing cost or an annual fee. Shop around to compare multiple HELOCs to find one that suits you.
Note that SoFi HELOCs may not be available in every state. State availability may vary based on whether you already have a mortgage and whether your loan is retail or wholesale.
Application for SoFi HELOC
To be approved for the SoFi HELOC, you’ll need to have at least a FICO of 680 and a DTI below 45%. You can use Spring EQ’s pre-qualification tool to get an idea of your chances for approval and the terms you could be offered.
You’ll be required to submit the following documentation during the application process:
- Mortgage Statement
- Photo Identification
- Prove your income
- Evidence of homeowner insurance
Some of these requirements can be waived by qualified borrowers. You may also need to submit additional documents to verify your income if you are self-employed.
Are you unsure if SoFi will work for you? These alternatives are worth considering.
- Bank of America : This lender is a good choice if you are looking for a higher credit limit, flexible withdrawals and no annual fees or closing costs.
- PenFed Credit Union : This lender is a good option if you want to convert some or the entire balance of your HELOC into a fixed rate installment loan.