Sofi's Land Loan Options: What You Need To Know

SoFi offers a range of financial services, including home loans, mortgage loans, and personal loans. While SoFi does not explicitly mention land loans, they do provide information on the process of obtaining a land loan and the various options available, such as owner financing, home equity loans, and cash-out refinancing. SoFi also offers fixed-rate personal loans that can potentially be used for land purchases, depending on the borrower's specific needs and objectives. In addition, SoFi provides resources for understanding land contracts, which are alternative financing tools for buying property when traditional mortgage options are not feasible.

SoFi's land loans

SoFi does not offer land loans, but it does provide a few alternative options for financing a land purchase. These include:

• Personal loans: SoFi offers fixed-rate personal loans ranging from $5,000 to $100,000. These loans can be used for various purposes, including land purchases.
• Cash-out refinance: This option allows you to refinance your existing mortgage and borrow more than you currently owe, receiving the difference in cash, which you can then use for your land purchase.
• Home Equity Line of Credit (HELOC): SoFi has partnered with Spring EQ to offer flexible HELOCs. A HELOC allows you to borrow against the equity in your home, giving you access to a line of credit with a higher credit limit and lower interest rates than other loans.
• Land contract: This is an alternative financing tool where the buyer and seller agree to an installment loan without involving a bank. The seller retains the title until the purchase amount is paid in full. SoFi provides educational content on its website about land contracts, but it is not clear if they offer this service.

It is important to note that land loans are generally considered riskier for lenders, so they typically come with higher interest rates and down payment requirements than traditional mortgages. So, while SoFi does not offer specific land loans, their personal loans, cash-out refinance, and HELOC options may still be viable ways to finance your land purchase.

Land contract

A land contract is a real estate transaction where the buyer and seller agree to an instalment loan without the services of a bank, but with some recorded interest of the buyer in the property. The seller retains the title until the purchase amount is paid in full. Land contracts are an alternative financing tool for buying property, especially if you don't qualify for a traditional mortgage loan.

Land loans can be challenging to find, but they do exist. Most come with shorter terms, higher rates, and higher down payments than typical mortgage loans. SoFi offers fixed-rate personal loans from $5,000 to $100,000 and a cash-out refinance.

Home loans

SoFi offers home loans for owner-occupied primary residences, second homes, and investment properties. This includes single-family homes, condos, townhomes, 2-unit, and 3-4 unit planned units. SoFi also offers low down payments (as little as 3% - 5%) with its competitive and flexible home mortgage loans. SoFi's conventional loans have a wide range of term options, including 10-, 15-, 20-, and 30-year loans.

SoFi also offers fixed-rate personal loans from $5,000 to $100,000 and a cash-out refinance. Additionally, SoFi partners with Spring EQ to offer flexible HELOCs, allowing borrowers to access up to 90% of their home's value or $500,000 at competitive rates.

SoFi does not offer land loans, which are typically more challenging to find than traditional mortgages due to the higher risk involved for the lender. However, SoFi does provide educational content on land loans, including alternative financing options such as land contracts, owner financing, and personal loans.

Personal loans

SoFi does not offer land loans. However, they do offer personal loans that can be used for any lawful personal, family, or household purposes, except for post-secondary education expenses. The minimum loan amount is $5,000, with an average of around $30,000, and fixed rates as low as 8.99% APR for qualifying borrowers.

SoFi also offers a personal loan calculator to help you estimate your savings by comparing your existing debt information, such as your current interest rate and loan term, to a potential SoFi personal loan. This calculator can show you how much interest you could save by lowering your interest rate and monthly payments.

Additionally, SoFi provides a 0.25% AutoPay interest rate reduction if you agree to make monthly principal and interest payments through automatic deductions from your savings or checking account. They also offer a 0.25% direct deposit discount if you set up direct deposits of at least $1,000 per month to a SoFi Checking and Savings account or eligible cash management account.

Tiny house financing

SoFi does not offer land loans. However, they do offer fixed-rate personal loans from $5,000 to $100,000, which can be used for land purchases. They also offer cash-out refinancing.

Now, if you're looking to finance a tiny house, there are a few options to consider. Firstly, it's important to note that tiny houses, typically defined as homes under 400 square feet, often cost between $30,000 and $70,000. Due to their lower cost, traditional mortgage loans may not be available for tiny houses as they fall below the minimum loan amount offered by lenders, which can start at $50,000.

• Personal loans: Online lenders, banks, or credit unions may offer personal loans for tiny house financing. These loans are usually unsecured, meaning they don't require collateral, and have shorter repayment terms than mortgages, typically up to seven years. However, monthly payments can be high, and interest rates will depend on your credit score.
• RV loans: If your tiny house is mobile, you may be able to get an RV loan, which is similar to financing a recreational vehicle.
• Home equity loan: If you own a primary residence, you may be able to get a home equity loan or a home equity line of credit (HELOC) to finance your tiny house.
• Builder financing: Some tiny home builders offer financing options, which may include RV loans or other types of loans.
• Land contract: This is an alternative financing tool where the buyer and seller agree to an installment loan without involving a bank. The seller retains the title until the purchase amount is paid in full.

It's important to carefully consider your financial situation and the specific requirements of your tiny house project before choosing a financing option.

Frequently asked questions