SoFi

Having another person take over your car loan is possible. You may want someone to take over your car loan if you’re struggling to keep up with your monthly payment. In 2025, the average car payment for a new car was $745, and the average payment for a used car was $521, according to Experian.

Having someone take over your car loan may give you some much-needed relief, but the process of getting someone to take over can be quite complex. Below we share five steps for how someone can take over your car loan.

Can a Car Loan Be Transferred to Another Person?

Transferring a car loan to another person is possible. An auto loan transfer is exactly what it sounds like — a way to shift an auto loan from one borrower to another. It also involves getting the lender’s permission to transfer the loan and then keeping the lender in the loop. In general, auto lenders may not be thrilled with loan transfers and often might make people who want them jump through hoops to get the job done.

The actual auto loan transfer process depends on the specific contract language and inherent restrictions. An example of the latter: The new borrower may have to meet a strict credit score requirement, take on a new loan contract, and complete a load of paperwork if the lender greenlights the deal.

There’s one common reason that original borrowers may want to transfer their auto loan to another person: They can no longer afford the vehicle loan payments. Whether it’s a job loss, a medical emergency, or some other financial problem, not being able to make your auto payments can eventually mean that having someone else take over the car loan looks like the best solution.

Recommended: How to Trade in Car

How Can Someone Take Over a Car Loan?

The five steps below detail how you may transfer a car loan to another borrower:

1. Contact the Original Lender

Step one is to contact the lender, explain the situation, and make a good case for transferring the loan to another driver.

The auto lender may decide to go forward with the deal if you can prove economic hardship and if the new borrower has the financial means to take over your car loan payments.

That usually means that the lender vets the new borrower just as it would for any auto loan, looking for income, a robust credit score, and a proven history of paying auto loan principal or any other debts.

2. Check Your Auto Loan Contract

Even though you’re cleared to transfer the auto loan and car title to another driver, it’s still crucial to review your auto loan contract. That will tell you who the debt needs to be paid to, whether or not there are any special fees that are triggered when you transfer a vehicle loan, and if there are terms, rules, or restrictions involved in the proper transfer of a vehicle loan.

3. Have Your Borrower Check the Contract

Whoever will be taking over car loan payments needs to check the original loan contract to see what responsibilities, financial and otherwise, may be in play. The original contract won’t necessarily be exactly like the new contract, as the lender may adjust the terms to better fit the new borrower’s credit and income status. But the original contract still serves as a good reference point for the new borrower, and is well worth a look.

4. File the New Loan Paperwork

The new borrower can file the new auto loan application based on the lender’s requirements. If the loan is with the same bank or auto lender, the new loan will probably be similar to the old loan, likely with the same terms and conditions.

Be aware that the auto lender may ask, or even demand, that the new borrower simply cosign the existing auto loan to make things easier for that lender. In that situation, the new borrower cosigns the original loan, takes responsibility for car loan payments, and starts making payments based on the loan’s existing terms and conditions.

Recommended: Auto Loan Refinance Calculator

5. Make a Title Change

When the new auto loan is approved, the next step is to transfer the car title from the old owner to the new owner. An auto’s title signifies the true owner of the vehicle and is required by the lending institution before the transaction can be completed.

Both the old owner and the new one can usually get a title transfer at their local Department of Motor Vehicles. Both parties will need proof of identity, like a driver’s license. A bill of sale or buyer’s order may also be required before the title can be transferred to the ultimate owner.

Proof of active auto insurance may also be needed to complete the transfer.

Recommended: Reinstating a Car Loan After Repossession: What You Need to Know

Alternatives to Transferring an Auto Loan

If you were contemplating trying to transfer your auto loan to someone else but don’t want to deal with the hurdles, here are some alternatives you may consider:

Sell the Vehicle to Someone Else

This scenario may be the cleanest and quickest way to resolve an unwanted auto situation. Selling a car with a lien can be cumbersome, but such a sale may provide fast cash if the value of your car is greater than the outstanding balance on your car loan.

Selling the vehicle may not be right for you if you have an upside down car loan in which your auto loan debt is greater than the value of your car.

Recommended: How Many Car Payments Can You Miss Before Repo?

Ask Family for Temporary Help

Another alternative to transferring an auto loan is having a family member or friend take over your auto loan payments temporarily. If you’re an auto loan holder and you’re having short-term financial problems (if you’re between jobs, for instance), you can ask a trusted friend or family member to take over the loan for a few months until you’re financially solvent again.

The friend or family member could even make extra payments to help you pay off the car loan early. In that event, it’s highly recommended that both parties sign a contract stipulating the length of the contract and how the auto loan will be paid.

If the temporary auto loan payer will also be driving the vehicle on a regular basis, you need to be aware that any parking tickets or toll booth violations will be filed in your name. Traffic accidents are a risk, too, so the temporary driver would also need to be covered by insurance.

Recommended: 9 Tips for Buying a Used Car

Refinance the Auto Loan

To relieve some financial pressure, you can refinance the auto loan. Auto refinancing may potentially let you lower your interest rate or extend the loan term to reduce the size of your monthly payments. To do this, you’ll likely need to have good credit. Some lenders may require a FICO® Score of 680 or higher as part of their auto refinancing eligibility requirements.

Recommended: Refinancing a Car Loan: What to Consider

The Takeaway

It’s possible to transfer an auto loan to someone else, but given the complexity of handling an auto loan transfer, you may want to view the process as a last resort. There may be easier options, like selling the car or refinancing the auto loan.

If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.

FAQ

Is taking over a car loan an easy process?

No, the process of how someone can take over a car loan typically isn’t easy. Transferring an auto loan can be complicated for the original borrower, the new borrower, and the auto loan lender.

How do you define the term “car loan takeover?”

A car loan takeover means transitioning an original auto loan from one borrower to another, being sure to get the lender’s permission to transfer the loan. That’s the car loan takeover definition, but the process of how someone can take over a car loan can be complicated.

Is there a good alternative to transferring an auto loan to another person?

Alternatives to transferring an auto loan to another person include refinancing the vehicle, selling the vehicle, or having a trusted family member take over the loan payments temporarily. Your personal circumstances may dictate whether any of those alternatives is right for you.

Photo credit: iStock/FG Trade Latin

SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

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.

SOALR-Q325-058

For those whose primary source of income is Social Security disability, obtaining a car loan can prove more difficult. It becomes even more challenging for those with bad credit, due to the fact that Social Security benefits cannot be garnished. Bad credit lenders look for proof of garnishable income in case a borrower defaults on their loan and the lender needs an avenue through which to recoup their money.

That said, if you rely on Social Security disability for income, there are still options for where a person on Social Security disability can get a car loan. It’s also possible to refinance a car loan for people on disability.

Keep reading to learn more on Social Security disability, how to get a car loan on disability income, and how to refinance your car on Social Security disability.

What Is Social Security Disability?

If you’ve been injured on the job or are unable to work due to illness or another impairment, you may be entitled to receive monthly Social Security Disability Insurance (DI) payments. DI is part of the same government program that issues Social Security retirement benefits.

Disability benefits are available to workers and certain family members as long as they’re “insured.” This means that they must have worked long enough and paid Social Security taxes on their earnings.

Benefits are generally paid out as long as your condition has not improved and you remain unable to work. The Social Security Administration reviews cases periodically to determine whether or not an individual still qualifies to receive payments.

Car Loan Interest Rates and Social Security Disability

When lenders consider what rate for a car loan to offer when you apply, they’re thinking largely about risk. That’s why they’ll take a look at your credit score, which can give them an idea of your history of paying off your loans on time.

A higher score suggests you’re likely to make on-time payments, which in turn means that lenders are more likely to offer you a lower interest rate. Borrowers that are seen as more risky — for example, those with lower credit scores — are less likely to qualify for loans with lower interest rates.

Lenders will make similar risk calculations when looking at your income. They will want proof of a steady source of income that you can use to pay your bills (unless, of course, it’s a no income verification car loan).

On the face of it, Social Security disability should fit that bill. However, as mentioned above, because Social Security wages are not garnishable, your lender has no recourse to access them if you default on your loan. That bumps up the risk quotient for the lender, and as a result, they may charge a higher interest rate. Unfortunately, this will increase the overall cost of your loan.

Recommended: How to Get Out of a Car Loan

Refinancing a Car Loan on Social Security Disability

When you refinance a car loan, you take out a new loan — ideally, at a lower interest rate or with better terms — and use it to pay off your old loan. Refinancing can make sense if interest rates have dropped or your finances have improved, helping you qualify for a loan with better interest rates that will save you money over the life of the loan.

Refinancing can also be a way to make monthly payments more manageable. By refinancing to a new loan with a longer term, your monthly payments should drop. However, you’ll be paying interest on your loan for longer, which can ultimately increase the cost of borrowing.

If you’re refinancing an auto loan while collecting Social Security disability, you may run into some of the same challenges as you would when applying for an initial loan. Lenders may be hesitant to extend credit.

Recommended: What Questions to Ask When Refinancing

How to Secure a Car Loan on Disability Income

Fortunately, there are many ways you can secure a car loan (or refinance your current auto loan) on disability income, including having the ability to work or using a cosigner.

Social Security Disability With a Job

It is possible to work and still receive Social Security disability. In 2025, for example, workers with disabilities other than blindness could make up to $1,620 a month before their benefits would stop. For those with blindness, the amount is $2,700 per month.

That said, work expenses — such as specialized equipment needed to work, a wheelchair, or an attendant — are deducted when your earnings are counted. This may mean that you technically can earn much more than the $1,620 limit, depending on your circumstances.

With a higher income — and with a portion that’s garnishable — lenders may be more willing to extend credit for an auto loan or an auto loan refinance.

Recommended: 0% Percent APR Car Loan: Can You Get One?

Social Security Disability With a Cosigner

Applying for a loan with a cosigner can increase the chances you’ll get approved if your income comes from Social Security disability. A consigner is usually a family member or a close friend who agrees to share responsibility for a loan and who better meets the requirements for a car loan. By cosigning, they promise that if you default on your loan for any reason, they will step in and pay the bill.

Be aware that your loan will show up on your cosigner’s credit report, as well. That means that if something goes awry with the loan and a payment is missed, it will hurt both of your credit scores.

Recommended: Can a Cosigner Become the Primary Borrower?

Social Security Disability With Bad Credit

If you have bad credit, you may be able to purchase a car at a “buy here, pay here” dealership. They handle financing in-house instead of through a third-party lender. That means they can offer buyers any terms they want, and they may not even run a credit check. This can help you get around ​​car loan credit score requirements.

The catch: These dealerships may offer you older used cars with higher mileage. Further, they may not report on-time payments to the credit reporting bureaus, which won’t help you to build your credit score.

Approval Process for People on Social Security Disability

When applying for an auto loan while on Social Security disability, you may want to save as much as you can for a down payment. This can help to increase the chances you’ll qualify for a loan. Also, make sure to prepare proof of any secondary sources of income that produce garnishable wages.

Additionally, you’ll want to become familiar with your credit score and do what you can to build it. This may mean paying bills on time and paying down other debts before you apply for a new loan.

Recommended: Private Party Auto Loan

The Takeaway

While it may be trickier for people on Social Security disability benefits to secure an auto loan or a refinance, there are some steps that can make it easier. This includes using a cosigner and bringing in extra income if you can.

If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.

FAQ

Can a person on Social Security disability get a car loan?

Yes, a person on Social Security disability can get a car loan. Lenders consider Social Security disability payments as a reliable source of income. Approval depends on factors like credit score, debt-to-income ratio, and loan affordability.

Do people on Social Security disability get better rates on car loans?

People on Social Security disability likely won’t qualify for the lowest interest rates. This is due to the fact that Social Security wages are not garnishable, so a lender has no recourse to access them should the borrower default on their loan. This increases the lender’s risk. Still, it’s important to shop around among a number of different lenders to find the lowest rate available.

How long is the car loan approval process for people on Social Security disability?

The length of time it takes to get a car loan while on Social Security disability will vary, but it shouldn’t take more than a few days for most loans.

Photo credit: iStock/Peter Carruthers

SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

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.

SOALR-Q325-057

It’s possible your car loan has a grace period if you cannot make a car loan payment on or before its due date. A grace period for a car loan is usually 10 days past the payment due date. During this time, the car payment typically will be accepted without penalties or other consequences.

Keep reading to learn how car payment grace periods work, if there is a late car payment fee, if you can make a partial car payment, and more.

When Is a Car Payment Considered Late?

As with other banking agreements, a car payment is typically considered late if the amount due has not been posted to the lender on the date it is due. However, it’s always a good idea to check with the specific lender as to when a car payment is considered late. Some lenders may require the payment to be posted by 5 p.m. on the due date, while others may allow payments to be posted until midnight.

Some lenders may also extend a so-called “grace period” to auto borrowers, which allows a payment toward car loan principal and interest to be counted as on time so long as it arrives within a certain window after the due date.

Because many auto loans are considered “secured loans” — with the car itself used as collateral — timely car payments are especially important in order to avoid car repossession. The easiest way to avoid the consequences of a late car payment is by ensuring that all payments are made on time, based on the schedule outlined in the terms of the car loan agreement.

How Many Days Is the Grace Period for Car Payments?

In general, a grace period for a car payment is 10 days past the payment due date. During this time, the car payment typically will be accepted without penalties or other consequences.

That being said, there is no legally defined grace period attached to a car loan. Although some lenders may offer a late car payment grace period or be willing to waive late fees and penalties on a slightly overdue payment — especially if it’s a rare occurrence — they’re not obliged to do so.

Is There a Late Car Payment Fee?

Making a late car payment may result in late car payment fees and other penalties. Depending on the car loan agreement, these fees may be applied as soon as the payment becomes past due (for example, after 5 p.m. if the payment deadline is at the close of business), or if a grace period is offered and the payment is not made by the end of that window.

However, just like a grace period, late fees on car payments will depend on the specific terms in the car loan contract as well as state laws. The best way to find out whether late car payments are subject to fees is to check the loan agreement or talk to the lender.

Is Partial Payment Considered a Late Car Payment?

Unfortunately, making a partial payment likely won’t help you out, as a partial car payment is generally still reported as a late payment. A partial payment may not cover your car loan finance charges for the month.

That being said, this could vary depending on whether this is your first time making a late payment or it’s become a habit. Depending on the lender, they may accept a partial payment for the time being if you’ve never made a late car payment before.

Recommended: Auto Loan Refinance Calculator

What Happens If You Exceed the Grace Period on Your Car Payment?

If you still haven’t made a payment even after the late car payment grace period comes and goes, you could face consequences, such as late car payment fees, credit score declines, and even repossession of your vehicle. Here’s the rundown on the possible repercussions:

1. Late Car Payment Fees

The first way that late car payments can cost you is in the form of extra fees and penalties. There is no set formula that dictates the cost of late car payment fees — these will vary from lender to lender and depend on the specific car loan as well as your state’s laws.

As such, the only way to determine precisely how much a late car payment may cost is to consult the car loan agreement or check directly with the lender. (If an individual is at risk of a late payment due to a lack of cash flow, it’s a good idea to get this information in advance to weigh the full cost implications of missing the payment due date.)

2. Potential Impact on Your Credit Score

An individual’s credit score is a number used to inform future prospective lenders how likely that person is to pay their bills — and that score is determined by their existing credit payment behaviors. One’s credit score takes into account all types of existing debt, including car loans, and the repayment history. Late payments are considered a sign of risk and may reduce one’s score, which in turn can make it even harder to get lower car payments anytime down the road.

While paying any bill late can indeed ding a person’s score, overdue payments are not noted on one’s credit report until they are a full billing cycle (usually about 30 days) past due. After that, lenders may report late payments to all three major credit bureaus.

3. Car Repossession

Car loans are secured loans that use the vehicle itself as collateral — meaning that if the purchaser defaults, the lender may recoup their loss by repossessing the car. But precisely how repossession works will depend on the car loan agreement and state laws. The car loan should spell out what constitutes a late payment, as well as if there is an acceptable grace period.

Once a payment is officially considered late, the lender may be entitled to reclaim the vehicle or to remotely deactivate it.

When a car is at risk of repossession, an individual may have a right to “cure” or reinstate the car loan, whether before or after repossession, if state law permits or this is written into the loan contract. If such a right exists, the individual would be able to make up the payment and keep their car.

It’s important to note that repossession does not necessarily mean an individual can walk away from their lease altogether. They may still be required to repay some or all of their loan, and there may also be additional repossession costs. Additionally, a car repossession will also remain on an individual’s credit report for seven years from the original late payment.

Options to Avoid Repossession

In order to avoid your car being repossessed, there are a few things you can do.

Make Your Payments on Time

The best way to avoid a repossession is to avoid making a late car payment. But given the high cost of buying a car, that may be challenging — especially for individuals whose car loans have less than favorable rates. However, it’s always a good idea to make your monthly car payments a priority and do your best to pay them on time.

Refinance Your Car

Another way to possibly avoid your car being repossessed is to refinance your current auto loan. One of the benefits of car loan refinancing is that it can give individuals an opportunity to take advantage of more favorable loan terms — such as lower interest rates, a longer loan term or a lower initial payment — to make car payments more affordable.

In some cases, such as if an individual chooses to spread their payments out over a longer period, this can increase the total cost of buying a car, but reduce their monthly payments. It is, however, important to note that there may be costs associated with refinancing, such as an early termination fee on the existing car loan and registration and/or title transfer fees.

Recommended: Guide to Finance Charges on Car Loans

Talk to Your Lender

And for individuals who may be staring down a late payment? Talk to the lender before the payment is due to see what arrangements can be made. Some lenders may allow a payment deferral (the option to “skip a payment” may also be written into the lease agreement) or be willing to make accommodations on a case-by-case basis.

Recommended: Guide to Writing Off a Car for Business Use

The Takeaway

Buying a car can be expensive — and if you’re at risk of a late car payment, it can be even more so. One of the best ways to reduce the risk of late payments (whether or not your lender offers a grace period) is to find the most favorable loan for your individual circumstances.

If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.

FAQ

How many days late can you be on a car payment?

Typically, you can be 10 days late on your car payment without penalty. However, this varies by lender, so make sure to alert your lender if you will not be able to make your car payment on time.

Does a grace period include weekends and holidays?

Yes, grace periods do include weekends and holidays. If your payment is due on a weekend or holiday, though, the payment will be extended to the following business day.

Do payments go through on weekends?

Payments are not typically processed on weekends. Instead, the payment will go through on the next business day.

Photo credit: iStock/Olga Yastremska

SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

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

SOALR-Q325-056

Spring has been a traditional house-hunting season. That’s when parents of school-age kids often look for a place to call home — one they can settle into before classes begin in September.

And summer certainly has its merits for looking at houses, from the comfort of walk-throughs in warm weather to seeing gardens in full bloom.

But buying a house in winter can be a wise move. The so-called “off season” bestows some very real benefits for those who are looking for a new place. These may include everything from less competition (and fewer bidding wars) to faster closing schedules.

With mortgage rates remaining persistently elevated and home prices in many areas still at record highs, homebuyers are looking for every opportunity to capture savings, especially in hot markets in the Northeast in California. The winter ahead might be a good time to bundle up and rev up a home search. Read on to learn seven smart benefits of shopping for a house in winter. You just might snag a great deal on your dream house.

Why You Should Buy a Home in Winter

Wondering why you should consider buying a house in winter, when the days may be short, the trees bare, and the weather nasty? Here are some very good reasons.

1. Having Less Competition for Homes

Not everyone wants to or is able to shop for houses during the winter months. Freezing temperatures and inclement weather can keep would-be homebuyers away.

During the winter season, parents are busy managing school schedules and events, and many people are also busy traveling and hosting guests over the holidays.

But there’s an upside: Fewer people shopping for homes could mean less competition for those in the market for a house. And diminished competition might mean winter homebuyers can be more discerning in their choices. There’s less pressure to snap up a house for fear another buyer will get to it first. In addition, you may be less likely to end up in a bidding war with a slew of other interested buyers, which can drive up costs. You might contend with counter offers. But while there are often fewer houses for sale during the winter, buyers may be more likely to land their desired home closer to the asking price (or even below).

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

2. Profiting from a Buyer’s Market in Winter

With some buyers distracted by the jam-packed holidays, it can be trickier to sell a home in the wintertime. Some sellers only put their homes on the market in the winter because they really have to.

The seller’s snag, though, can be a boon for buyers, as winter homesellers may be more motivated to get the sale completed faster than their summertime counterparts.

Motivated winter sellers might be willing to negotiate on things like price, closing costs, and the closing date. Perhaps they need to relocate for work or another time-sensitive reason and are eager to get the deal done.

In some cases, houses that are on the market in the winter have been there since the summer selling season. Homes like these are sometimes referred to as “stale listings.” The seller may be ready to take what would previously be deemed a too-low offer, just to move ahead with a deal.

3. Closing on Your Purchase Faster in Winter

Closing is when the title of a property legally changes hands from the seller to the buyer. When buyers and sellers are negotiating the sale of a home, they work together to set a closing date when the house title will officially transfer between the parties.

Real estate agents often work with mortgage brokers to find a suitable day that will allow enough time for the deal to be executed properly.

In warmer months, banks, inspectors, and appraisers are usually handling a lot of new buyers. In practice, this glut of interested buyers could mean mortgage brokers are backed up for weeks or even months.

In the winter, when fewer interested buyers are typically calling, things can slow down for lenders. As a result, cold-weather buyers might be able to close on their homes faster and get settled in more quickly.

Recommended: What Are the Different Types of Mortgage Loans?

4. Understanding a Home’s Condition More Clearly

Visiting a property in person can tell a buyer a lot about a home. But, in the summertime, some of a house’s less attractive qualities can be masked by warm weather, blossoming gardens, and the brilliant summer sun.

Seeing a house in the winter can give buyers a chance to understand how it holds up under tougher conditions. Is the house too gloomy in low light? Does cold air creep in from the windows? Does ice jam up the gutters causing the roof to leak? Does a long driveway that needs to be shoveled seem less appealing in the winter than in June? You could be destined for some home maintenance costs. Getting a chance to suss out potential problems like these can provide a fuller picture of what actually living in a property might be like year-round.

Keep in mind, though, that some aspects of a home can be harder to grasp in the winter months. For example, it’s tough to test out an air conditioning unit in the wintertime. And snow could cover up foundation issues.

💡 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.

5. Hiring Movers Can Be Easier in Winter

Let’s say you do find a new home and move forward with buying a house in winter. Moving costs in the winter can be cheaper than in the summer. Fewer people buying homes means less demand for movers, which in turn could mean more competitive pricing.

With lighter schedules, moving companies may also be more flexible and able to accommodate your desired moving dates. (It can be helpful to stay flexible with move dates in the winter, since a big snowstorm might mean sudden delays.)

Still, if you move when snow is falling, that will obviously slow down your move and make it pricier. Try to reschedule if inclement weather is in the forecast.

6. Getting More Time and Attention from Real Estate Agents

Movers aren’t the only people who are less busy in the winter months. Fewer people shopping for houses could mean there’s less work for real estate agents.

Agents may have more time in the winter to spend helping individual buyers find the house that meets their exact needs. Also, when it comes time to negotiate, agents may have more hours to go to bat for their clients to secure a better deal.

7. Taking Advantage of Last-Minute Tax Savings

Buying a house by late December (rather than waiting until the following spring) may allow buyers to take advantage of last-minute savings on that year’s taxes.

The mortgage interest deduction allows homeowners to subtract mortgage interest from their taxable income, lowering the amount of taxes they owe. Married couples filing jointly and single filers can deduct the interest on mortgages up to $750,000. Married taxpayers filing separately can deduct up to $375,000 each. While you may not accumulate a lot of interest paid if you purchase toward the end of the year, you might be able to deduct anything you pay for mortgage points.

However, you cannot deduct mortgage interest in addition to taking the standard deduction. To take the mortgage interest deduction, you’ll need to itemize. Itemizing only makes sense if your itemized deductions total more than the standard deduction. For the 2025 tax year, the standard deduction is $15,000 for single filers and $30,000 for those married, filing jointly.

Recommended: How to Qualify for a Mortgage: 9 Requirements for a Mortgage Loan

The Takeaway

No matter what season you may be house-hunting, it’s important to figure out how to finance a potential purchase before you find the home that’s “The One.”

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.

FAQ

What is the best time to purchase a home?

Late fall and early winter, roughly November through February, is considered the best time of year to buy a home. Although inventory may be lower than in the spring, sellers may be more willing to bargain because there are fewer shoppers in the winter months.

How do you negotiate a house price?

One of the best negotiation tools is research. You can look up comparable properties’ sale prices or enlist your real estate agent to help with this. It may also help to get an inspection of the property you wish to buy, so you can negotiate based on its results. Seeking preapproval for a home mortgage loan from a lender could give you a leg up in the negotiation process, as being preapproved shows you are serious about making a purchase.

What are red flags when buying a house?

The list of potential red flags when buying a home can be frighteningly long and includes structural problems, electrical or plumbing problems, poor drainage, or pest infestation. But dealbreaking problems can arise outside the home as well. Neighborhood woes or homeowners association (HOA) conflicts can also squelch a transaction. Have a home inspected before buying and consult a knowledgeable real estate agent for perspective on the severity of the problem.

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.

SOHL-Q425-054

Going to college or graduate school is a serious investment in your future — both professionally and financially. Naturally, you’ll want to know how much financial aid you’re eligible for, including student loans, grants, and work-study programs.

The amount of federal aid that prospective and current students receive is based on a variety of factors, and everyone’s financial situation is unique. But familiarizing yourself with the following requirements and questions can help paint a clearer picture of how much FAFSA money you will get.

What Are the Eligibility Requirements?

Many incoming and current college and graduate students are eligible for federal aid. Among the basic requirements, you must:

•   Demonstrate financial need (for need-based federal student aid programs)

•   Be a U.S. citizen, national, or eligible noncitizen

•   Have a valid Social Security number, unless you’re from the Federated States of Micronesia, Republic of the Marshall Islands, or the Republic of Palau

•   Be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program

•   Maintain satisfactory academic progress in college or career school

How Do I Begin the FAFSA?

The first step to completing the FAFSA is creating your FSA user ID and password. From there, you’ll answer a series of questions covering demographic information, schools you are interested in attending, financial details, and information from parents or guardians based on dependency status.

Filling out the FAFSA may feel intimidating, but a little preparation can save you from common FAFSA mistakes, like leaving important fields blank.

What Factors Affect FAFSA Money?

The application includes questions about demographics and finances for students and sometimes their families to answer. Collectively, this information will determine how much need-based and non-need-based aid students qualify for.

Applying for the FAFSA Every Year of School and on Time

Filling out the FAFSA is not a one-time deal. Students must file the FAFSA each year they are enrolled in college or graduate school.

There are several important FAFSA deadlines to be aware of. The federal deadline for the 2025-2026 academic year is June 30, 2026; for the 2026–2027 academic year, the federal deadline is June 30, 2027. This is the latest date you can submit the form. However, many states and colleges have their own priority deadlines for financial aid, which are typically earlier than the federal deadline.

Generally, the earlier you submit the FAFSA the better. This is because some federal, state, and institutional aid programs, including certain grants and federal work-study funds, are limited and distributed on a first-come, first-served basis.

Dependency Status

For FAFSA, a dependent is a student who does not meet any of the criteria for being an independent student. Generally, you are considered an independent student if:

•   At least 24 years old

•   Married

•   A graduate or professional student (law, medicine, etc.)

•   A veteran or active member of the armed forces

•   An orphan, ward of the court, or emancipated minor

•   Claiming legal dependents other than a spouse

•   Homeless or at risk of becoming homeless

Your dependency status affects how much financial aid you’re eligible to receive. In many cases, independent students can be eligible for more financial aid, as they are assumed to be paying their own tuition and living expenses.

Still, dependent students may be eligible for a variety of financial aid opportunities from federal or state governments and colleges through the FAFSA. Most incoming and current undergraduate students are considered dependent. This means that information from parents or guardians, such as tax returns, must be submitted and will affect whether financial aid is awarded and how much.

In special circumstances, students may file for a dependency override. These are awarded case by case, and are typically reserved for students facing exceptional family-related issues or whose parents are unwilling to provide information for the FAFSA.

Student Aid Index

The Student Aid Index (SAI) is a number used by colleges to determine your eligibility for federal student financial aid. It’s calculated using information that you (and your parents) provide on the FAFSA, including student and parent income, student and parent assets, and the family size. It’s designed to determine the total financial resources you and your parents have and the minimum amount needed for your family’s normal annual living expenses.

The financial aid office at your college will subtract your SAI from your school’s cost of attendance to determine your level of your financial need and how much need-based aid you are eligible to get.

You can find your estimated SAI on the confirmation page of your FAFSA form. Once your FAFSA is processed, you’ll see your official SAI within your FAFSA Submission Summary. The SAI range is -1500 to 999999. The lower your SAI, the more financial aid you are likely to qualify for.

Cost of Attendance

Education costs can vary considerably based on merit-based scholarships, in-state vs. out-of-state residency, and other factors. The amount of FAFSA money you receive will also depend on the cost of attendance for your chosen college or university.

The cost of attendance encompasses tuition, fees, room and board, books and school supplies, and expenses associated with child care or disabilities, if applicable. A lower cost of attendance usually translates to less aid, because the funding can be used only for education purposes.

Not sure where you want to apply? Our College Search tool can help.

How Much Money Will I Get From FAFSA?

The amount of FAFSA money you receive cannot exceed the cost of attendance for your chosen college or university.

Before applying, the Federal Student Aid Estimator is a useful tool to estimate the amount of federal student aid you may qualify for.

Assuming that you meet the eligibility criteria and are applying on time, you may receive some form of federal financial aid, especially if your SAI is less than your cost of attendance. Potential sources of federal student aid include the following programs:

Grants

Unlike loans, grants are free money to put toward your education that does not have to be paid back. After completing the FAFSA, students with proven financial need may receive aid in the form of a Federal Supplemental Educational Opportunity Grant or Pell Grant. Opportunity grants are allocated based on need, other aid awarded, and college budgets. Pell Grants change annually but the maximum award for the 2025–26 academic year is $7,395.

Work-Study

Federal work-study programs typically involve a part-time job on or off campus. Wages are typically set by the college but must meet minimum-wage requirements. Work-study schedules are intended to be structured around students’ classes.

Federal Loans

Eligibility for federal student loans is generally broader than for grants and work-study programs. Federal loans are either subsidized or unsubsidized, with subsidized loans being need-based and including interest deferment and grace periods. On the other hand, unsubsidized loans begin accruing interest as soon as they are paid out to borrowers.

Different types of federal student loans exist, and each has a maximum award amount according to dependency status and year of study. Dependent undergraduate students have an aggregate loan limit of $31,000 for all undergraduate study, while independent undergraduates can take out $57,500. Graduate students can borrow up to $138,500 for undergraduate and graduate study combined.

How Else Can I Pay for College?

If financial aid isn’t enough to cover your tuition and other education expenses, there are ways to make college more affordable.

Scholarships and Grants

Besides scholarships granted by your chosen college, there are opportunities offered by private foundations, community groups, and nonprofit organizations. Awards can be given based on academic merit, need, field of study, or participation in a specific sport or activity. An online scholarship search tool can help you unearth available awards filtered by school type, field of study, state, and more.

Try to stay on top of scholarship and grant applications and deadlines as they can come and go quickly. Winning a scholarship or a grant is basically finding free money, and you don’t want that money to go unclaimed.

The Takeaway

When determining how much federal financial aid you’re eligible for, remember that several key factors come into play: your dependency status, your Student Aid Index (SAI), and your school’s cost of attendance.

Filing your FAFSA application early and every year is crucial, as some aid is awarded on a first-come, first-served basis. If federal aid, grants, and scholarships aren’t enough, there are still other avenues to explore to make college more affordable.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

How much does FAFSA usually give you?

FAFSA determines your eligibility for federal student aid, not a fixed amount. While the average federal award is $16,360, amounts can vary widely depending on your financial need and the school’s cost of attendance. Also the average award doesn’t include state or institutional student aid, which can also help you pay for school.

How can I check how much money FAFSA will give me?

You can get an estimate of how much federal student aid you may get by using the Federal Student Aid Estimator on the Federal Student Aid website (StudentAid.gov). To see the actual amount of federal (and other) financial aid you are able to get, you’ll need to wait for a financial aid offer from the colleges you apply to.

What does a 12,000 SAI mean?

A 12,000 Student Aid Index (SAI) is an eligibility index number, not a dollar amount that you are expected to pay. A college financial aid office will subtract your SAI (and any other grants or scholarships you’re receiving) from your school’s cost of attendance to determine your financial need. For example, if the school’s annual cost of attendance is $40,000 and your SAI is 12,000, your financial need is $28,000. This number helps the college decide how much need-based aid you may qualify for, including grants, scholarships, work-study jobs, and loans. However, colleges aren’t always required to meet 100% of your financial need.

What is the highest FAFSA grant?

The highest federal grant available through the FAFSA is the federal Pell Grant. The maximum Pell Grant award changes annually; for the 2025–26 academic year, it is $7,395. This grant is awarded to undergraduate students with exceptional financial need and does not need to be repaid.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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.

SOISL-Q425-001