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A mortgage preapproval letter is typically valid for 60 to 90 days, although some expire after 30 days. Some lenders will lock the rate in for that period.

Having a letter of preapproval from a financial institution can help you snap up the home you want to buy.

What Is Mortgage Preapproval?

Mortgage preapproval has become an essential part of the home-buying process. Real estate agents often want to see a preapproval letter before showing houses.

Note: A SoFi Verified Preapproval Letter is valid for 90 days.

This letter shows sellers that you are serious about buying their home, even if you’re a first-time homebuyer, and that a mortgage lender is likely to soon give you a home loan for a specific amount.

The lender will review your credit history, credit score, income, debts, and assets to determine the amount you tentatively qualify for.

Preapproval will help you focus on homes within your price range. Knowing how much of a mortgage you can afford is important if you don’t want to waste time reviewing homes outside your range.

Mortgage Preapproval Process

The mortgage process starts informally for many would-be homebuyers.

Some buy into the 28% rule — spend no more than 28% of gross monthly income on a mortgage payment — and use a home mortgage calculator with taxes and insurance, for example, to calculate their mortgage, or the one later in this article.

Seeking mortgage preapproval means you’re getting serious. First, you’ll need to understand the different types of mortgage loans — fixed rate, adjustable rate, conventional, government-insured (Federal Housing Administration, Veterans Affairs, U.S. Department of Agriculture), and jumbo — and what you can qualify for.

Then, you’ll need to apply for a loan from one or several lenders and provide a good deal of documentation. Each lender will perform a hard credit inquiry, and you’ll receive a loan estimate within three business days.

If you’re shopping for a home loan, allowing multiple mortgage companies to check your credit within 14 or 45 days, depending on the credit scoring model being used, will minimize the hit to your credit scores.

How Long Does It Take to Get Preapproved?

It usually takes seven to 10 business days to receive a preapproval letter after submitting all the requested information.

Mortgage Preapproval Letter

Other than stating the specific amount you’re preapproved for, a mortgage preapproval letter may outline stipulations to gain the loan, such as maintaining your employment or not taking on any additional debt.

How Long Does Mortgage Preapproval Last?

Some lenders will commit to 60 or 90 days. That time frame tends to work, since homebuyers typically search for 10 weeks. Other lenders will issue preapproval for only 30 or 45 days.

Recommended: How Mortgage APR Works

Mortgage Prequalification vs Mortgage Preapproval

Since they sound similar, it’s worth mapping out the difference between prequalification and preapproval. Prequalification is a key first step for borrowers to tell lenders about their income, assets, and debts. Lenders use that unverified information, and usually a soft credit inquiry, to give a ballpark estimate of how much they might be willing to lend.

The response is quick. You can often get prequalified immediately or within a day or two. Just know that prequalification does not mean that a lender is guaranteeing a loan.

The mortgage preapproval process requires a deeper dive and documentation. To gauge whether you qualify for a mortgage, lenders will scrutinize:

•   Income: Employees will need to provide pay stubs, W-2s, and tax returns from the past two years, as well as documentation of any additional income, such as work bonuses. Self-employed workers often need two years’ worth of records and a year-to-date profit-and-loss statement, although many lenders and loan programs are flexible.

•   Assets and liabilities: You’ll need to provide proof of savings, investment accounts, and any properties. Lenders view assets as proof that you can afford your down payment and closing costs and still have cash reserves.

Lenders also look at monthly debt obligations to calculate your debt-to-income ratio.

•   Credit score: Your credit score is a three-digit representation of your credit history.

Recommended: What Is Considered a Bad Credit Score?

Once your lender has reviewed the information, it may offer a preapproval letter. Note that receiving preapproval from a certain lender does not obligate you to use that lender.

Estimate Your Mortgage Payment

Before you seek prequalification or preapproval, you might want to get an idea of how much your monthly mortgage payment could be. Use this mortgage calculator to quickly see the difference in mortgage payments based on down payment, interest rate, and a 15- or 30-year term.

What Should I Do if My Mortgage Preapproval Expires?

Lenders set expiration dates on preapproval letters because they need your most up-to-date financial information. The credit, income, debt, and asset items they reviewed for your preapproval typically need to be updated after the letter expires, and your credit may be checked again.

You can minimize the effect of hard pulls on your credit score by avoiding seeking a renewal when you’re not actively shopping for a home. If your finances have mostly stayed the same, your lender is likely to renew your preapproval.

Finalizing Your Mortgage

If you find a house while your mortgage preapproval is still valid, you can choose a lender and finalize your mortgage application. At this point, in many cases, the lender will again check whether your financial situation has changed.

The mortgage underwriter will review all the information, order an appraisal of the chosen property and a title report, and consider your down payment. Then comes the verdict: approved, suspended (with more documentation needed), or denied.

Your mortgage is officially approved when you receive a final commitment letter. A closing date can be scheduled. It generally takes 42 days to close on a house, but it could happen in as little as 20 days.

Buyers may want to minimize changes, such as applying for other loans or credit, when a home loan is in underwriting.

The Takeaway

How long is a mortgage preapproval good for? Typically for 60 to 90 days. Getting prequalified is a smart precursor to getting preapproved for a mortgage. Preapproval can give you a competitive edge in a tight home market and help you clearly understand how your home mortgage loan will affect your monthly budget.

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

How does mortgage preapproval affect my credit score?

The preapproval process may involve a hard credit inquiry, which could cause a dip in your credit score, but typically only by five to eight points. Multiple hard inquiries are usually counted as one inquiry as long as they are made within the same 14- to 45-day period.

What’s the difference between mortgage prequalification and the preapproval process?

Prequalification usually takes just minutes and requires only the most basic financial information and a soft inquiry on your credit score. Preapproval will require more in-depth information, such as pay stubs and tax returns, and involves a hard credit inquiry. Getting preapproved may take one to two weeks.

Can a mortgage preapproval be extended or renewed?

Yes. If your mortgage preapproval expires, you can typically renew or extend it by providing updated financial information. Your lender may need to review your income, assets, debts, and credit again. If your financial situation hasn’t changed significantly, renewal is usually straightforward.

Does mortgage preapproval guarantee final loan approval?

No. A mortgage preapproval is not a guarantee of final loan approval. Final approval depends on additional steps, including underwriting, a home appraisal, a title review, and verification that your financial situation hasn’t changed before closing.

What can cause a mortgage preapproval to change or be revoked?

A preapproval can change or be revoked if your financial circumstances shift before closing. Taking on new debt, missing payments, changing jobs, or experiencing a drop in income could affect your eligibility. Lenders may recheck your credit and financial details during underwriting.

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.

SOHL-Q126-141

In the ever-evolving landscape of real estate, the U.S. foreclosure market often unveils key trends that will shape the future of homeownership. According to property data provider ATTOM, 38,840 properties had foreclosure filings in February 2026, a slight dip from the previous month but still higher than a year ago. Rob Barber, CEO of ATTOM, notes that “foreclosure activity in February marked the twelfth consecutive month of annual increases, extending a gradual upward trend that began early last year.”

Nationwide, one in every 3,701 housing units had a foreclosure filing in February 2026. Foreclosure starts increased nationwide by 14% year over year. States with the worst foreclosures rates in February 2026 included Indiana, South Carolina, and Florida. Borrowers should stay up to date on their home loan payments and work closely with their lenders to explore options for assistance if needed.

Read on for the foreclosure rates in February 2026 – plus the top three counties with the worst foreclosure rates in each state.

50 State Foreclosure Rates

Read on for the February 2026 foreclosure rates for all 50 states — beginning with the state that had the lowest rate of foreclosure filings per housing unit.

50. West Virginia

Ranked 39th in population, the Mountain State claimed the 50th spot in February, 2026. It has a total of 861,325 housing units, of which 20 were in foreclosure. This means that the foreclosure rate was one in every 43,066 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Tyler, Roane, and Lincoln.

49. Vermont

In 49th place for population, the Green Mountain State also ranked 49th for its foreclosure rate in February. Of the state’s 339,042 housing units, nine homes went into foreclosure at a rate of one in every 33,904 households. The three counties in the state with the most foreclosures were: Washington, Windham, and Franklin.

48. South Dakota

The Mount Rushmore State nabbed the 48th spot for its foreclosure rate in February. Having 405,114 total housing units, the fifth-least populous state had a foreclosure rate of one in every 23,830 households with 16 new foreclosures in February. The counties with the most foreclosures per housing unit were (from highest to lowest): Pennington, Minnehaha, and Codington.

47. Montana

Listed as 44th in population, the Treasure State rated 47th for its foreclosure rate in February. With 16 foreclosures out of 528,419 housing units, Montana’s foreclosure rate was one in every 16,513 homes. The counties with the most foreclosures per housing unit were: Toole, Glacier, and Jefferson.

46. Rhode Island

The eighth-least populous state placed 46th for highest foreclosure rate in February. A total of 37 homes were in foreclosure out of 485,932 total housing units, making the foreclosure rate for the Ocean State one in every 13,133 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Bristol, Providence, and Kent.

45. Kansas

The Sunflower State ranked 45th for highest foreclosure rate in February. With 1,293,635 homes and a total of 106 housing units in foreclosure, the 35th most populous state’s foreclosure rate was one in every 12,204 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Anderson, Ness, and Brown.

44. North Dakota

The Peace Garden State’s foreclosure rate was one in every 11,097 homes. This puts the fourth-least populous state — with 377,281 housing units and 34 foreclosures — into 44th place. The counties with the most foreclosures per housing unit were (from highest to lowest): Traill, Bottineau, and Richland.

Recommended: Tips on Buying a Foreclosed Home

43. New Hampshire

The Granite State, and the 41st most populous state in the U.S., ranked 43rd for its foreclosure rate. New Hampshire had 60 of its 648,472 homes in foreclosure, making for a foreclosure rate of one in every 10,808 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Cheshire, Grafton, and Strafford.

42. Nebraska

Ranking 37th in population, the Cornhusker State placed 42nd in February, just as it did in January. This time it had a foreclosure rate of one in every 9,594 homes. With a total of 863,444 housing units, the state had 90 properties in foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Hamilton, Washington, and Red Willow.

41. Mississippi

Ranked 34th in population, the Magnolia State had 141 foreclosures out of 1,341,114 total housing units. This puts the foreclosure rate at one in every 9,511 homes and into the 41st spot in February. The counties with the most foreclosures per housing unit were (from highest to lowest): Lawrence, Sunflower, and Pike.

40. Virginia

With 411 homes in foreclosure, the 12th most populous state ranked 40th for highest foreclosure rate in February. Having 3,684,756 total housing units, the Old Dominion saw a foreclosure rate of one in every 8,965 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Galax City, Charles City, and Wythe.

39. Wisconsin

With 342 foreclosures out of 2,778,572 total housing units, America’s Dairyland and the 20th most populous state secured the 39th spot with a foreclosure rate of one in every 8,124 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Taylor, Langlade, and Juneau.

38. Washington

Sorted as 13th in population, the Evergreen State ranked 38th for its foreclosure rate in February. Of its 3,306,620 housing units, 417 were in foreclosure, making the state’s foreclosure rate one in every 7,930 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lewis, Pierce, and Island.

37. Hawaii

The Paradise of the Pacific, and the 40th most populous state, came in 37th for highest foreclosure rate. Of its 567,896 homes, 73 were in foreclosure, making for a foreclosure rate of one in every 7,779 households. The three counties with the most foreclosures were (from highest to lowest): Honolulu, Hawaii, and Maui. Thinking of buying a home in Hawaii — or any state where you don’t currently live? Study the cost of living by state to understand what to expect.

36. Oregon

The 27th most populous state ranked 36th for highest foreclosure rate in February. Of the Pacific Wonderland’s 1,857,992 homes, 245 were in foreclosure, making for a foreclosure rate of one in every 7,584 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Malheur, Lake, and Jefferson.

35. Minnesota

Ranked 22nd for most populous state, the Land of 10,000 Lakes obtained the 35th spot for its foreclosure rate in February. It has 2,545,030 housing units, of which 343 were in foreclosure, making the state’s foreclosure rate one in every 7,420 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Waseca, Stearns, and McLeod.

34. Alaska

The Last Frontier saw 47 foreclosures in progress in February, making the foreclosure rate one in every 6,804 homes. This caused the third-least populous state, with a total of 319,781 housing units, to claim the 34th spot. The boroughs with the most foreclosures per housing unit were (from highest to lowest): Juneau, Dillingham, and Sitka.

33. Kentucky

With a total of 2,023,116 housing units, the Bluegrass State saw 313 homes in foreclosure, landing it in 33rd place in February. This puts the foreclosure rate for the 29th most populous state at one in every 6,464 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Menifee, Jackson, and Barren.

32. Tennessee

Ranked 16th in population, the Volunteer State endured 506 foreclosures out of its 3,143,670 housing units. This puts the foreclosure rate at one in every 6,213 households and in 32nd place for the month of February. The counties with the most foreclosures per housing unit were (from highest to lowest): Meigs, Pickett, and Humphreys.

31. Massachusetts

The 15th most populous state ranked 31st for highest foreclosure rate in February. Of the Bay State’s 3,030,406 housing units, 539 were in foreclosure, making for a foreclosure rate of one in every 5,622 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Hampden, Berkshire, and Franklin.

30. Missouri

Coming in at 19th in population, the Show-Me State took the 30th spot for highest foreclosure rate in February. Of its 2,825,287 homes, 505 were in foreclosure, making for a foreclosure rate of one in every 5,595 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Webster, Oregon, and Mississippi.

29. Maine

Ranked 42nd in population, the Pine Tree State placed 29th for highest foreclosure rate in February. With a total of 751,876 housing units, Maine saw 136 foreclosures happening, for a foreclosure rate of one in every 5,529 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Aroostook, Kennebeck, and Penobscot.

28. Louisiana

Sorted as 25th in population, the Pelican State placed 28th for highest foreclosure rate. Louisiana had a February foreclosure rate of one in every 5,463households, with 386 out of 2,108,902 homes going into foreclosure. The parishes with the most foreclosures per housing unit were (from highest to lowest): Plaquemines, Calcasieu, and Iberville.

27. Arkansas

Listed as the 33rd most populous state, the Land of Opportunity ranked 27th for highest foreclosure rate in February. The state contains 1,394,673 housing units, of which 257 were in foreclosure, making its latest foreclosure rate one in every 5,427 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Dallas, Bradley, and Clay.

26. New York

With 1,790 out of a total 8,585,241 housing units in foreclosure, the Empire State claimed the 26th spot in February. The fourth-most populous state’s foreclosure rate was one in every 4,796 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Rockland, Orange, and Chemung. Utility costs can be high in New York, and understanding what percentage of income should go to utilities can help homeowners budget for mortgage payments.

25. Colorado

The 21st most populous state ranked 25th for highest foreclosure rate in February. Of the Centennial State’s 2,589,053 housing units, 616 were in foreclosure, making for a foreclosure rate of one in every 4,203 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Morgan, Washington, and Pueblo.

24. Pennsylvania

The Keystone State had the 24th highest foreclosure rate. The fifth-most populous state saw 1,389 homes out of 5,806,452 total housing units in foreclosure, making the state’s foreclosure rate one in every 4,180 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Montour, Washington, and Jefferson.

23. Oklahoma

The Sooners State landed the 23 spot in February. With housing units totaling 1,775,127, the 28th most populous state saw 425 homes in foreclosure,a rate of one in every 4,177 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Seminole, Coal, and Murray.

22. Connecticut

With 370 of its 1,541,822 homes in foreclosure, the Constitution State had the 22nd-highest foreclosure rate at one in every 4,167 households. In this 29th most populous state, the counties that had the most foreclosures per housing unit were (from highest to lowest): Greater Bridgeport, Northeastern Connecticut, and South Central Connecticut, . The cost of living can have an impact on homeowners’ ability to afford their mortgage payments, and Connecticut has a relatively high cost of living compared to other U.S. states.

21. Idaho

Ranked 38th in population, the Gem State received the 21st spot due to its 192 housing units in foreclosure in February. With 795,014 total housing units, the state’s foreclosure rate was one in every 4,141 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Clark, Gem, and Bingham.

20. Arizona

Sorted as 14th in population, the Grand Canyon State withstood 779 foreclosures out of its total 3,192,839 housing units. This puts the foreclosure rate at one in every 4,099 homes and into the 20th spot in February. The counties with the most foreclosures per housing unit were (from highest to lowest): Pinal, Cochise, and Graham.

19. New Mexico

The 36th most populous state claimed the 19th spot for highest foreclosure rate in February. Of the Land of Enchantment’s 956,964 homes, 235 were in foreclosure, making for a foreclosure rate of one in every 4,072 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Eddy, Dona Ana, and Quay.

18. Wyoming

The country’s least populous state claimed the 18th spot for highest foreclosure rate in February, as it did in January. With 277,141 housing units, of which 69 were in foreclosure, the Equality State’s foreclosure rate was one in every 4,017 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Carbon, Niobrara, Converse.

Recommended: What Is a Short Sale?

17. Alabama

Listed as 24th in population, the Yellowhammer State came in 17th for highest foreclosure rate in February. Of its 2,337,265 homes, 615 were in foreclosure, making for a foreclosure rate of one in every 3,800 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Clarke, Calhoun, and Jefferson.

16. California

The country’s most populous state ranked 16th for highest foreclosure rate in February. Of its impressive 14,644,735 housing units, 4,055 were in foreclosure, making the Golden State’s foreclosure rate one in every 3,612 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lake, Shasta, and Kings.

15. North Carolina

The ninth-most populous state claimed 15th place for highest foreclosure rate. Out of 4,895,668 homes, 1,416 were in foreclosure. This puts the Tar Heel State’s foreclosure rate at one in every 3,457 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Nash, Pasquotank, and Hoke.

14. Iowa

The Hawkeye State had the 14th highest foreclosure rate in February. With 416 out of 1,437,699 homes in foreclosure, the 31st most populous state’s foreclosure rate was one in every 3,456 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Van Buren, Palo Alto, and Fayette.

13. Michigan

Ranked 10th in population, the Wolverine State secured the 13th spot with a foreclosure rate of one in every 3,419 homes. With a total of 4,622,236 housing units, the state had 1,352 active foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Wayne, Gratiot, and Hillsdale.

12. Georgia

Ranked eighth in population, the Peach State took the 12th spot for highest foreclosure rate in February. Of its 4,541,835 homes, 1,403 were in foreclosure. This puts the state’s foreclosure rate at one in every 3,237 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Troup, Baldwin, and Henry.

11. Maryland

The state known as America in Miniature took 11th place for highest foreclosure rate in February. Ranked 18th for population size and with a total of 2,560,784 housing units, the state has a foreclosure rate of one in every 3,201 households due to its 800 properties in foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Baltimore City, Somerset, and Calvert.

10. Texas

The Lone Star State withstood 3,843 foreclosures in February. With a foreclosure rate of one in every 3,156 households, this puts the second-most populous state in the U.S., with a whopping 12,128,515 housing units, into tenth place. The counties with the most foreclosures per housing unit were (from highest to lowest): Liberty, Johnson, and Culberson.

Recommended: Are You Ready to Buy a House? — Take The Quiz

9. Utah

The Beehive State placed ninth for highest foreclosure rate in February, unchanged from its January position. Of its 1,193,082 housing units, 410 homes were in foreclosure, making the 17th most populous state’s foreclosure rate one in every 2,984 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Millard, Wayne, and Box Elder.

8. Nevada

Ranked 32nd in population, the Silver State took eighth place for highest foreclosure rate in February. With one in every 2,915 homes in foreclosure, and a total of 1,326,471 housing units, the state had 445 homes in foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Mineral, Lander, Lyon.

7. New Jersey

With a foreclosure rate of one in every 2,798 homes, the Garden State ranked seventh for highest foreclosure rate in February. The 11th most populous state contains 3,791,354 housing units, of which 1,355 were in foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Cumberland, Salem, and Camden.

6. Ohio

The Buckeye State placed sixth in February with a foreclosure rate of one in every 2,797 homes. With a sum of 5,292,391 housing units, the seventh-most populous state had a total of 1,899 homes in foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Cuyahoga, Highland, and Jefferson.

5. Illinois

The Land of Lincoln had the fifth-highest foreclosure rate in all 50 states in February. Of its 5,457,452 homes, 2,590 were in foreclosure, making the sixth-most populous state’s foreclosure rate one in every 2,107 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Clay, Stephenson, and St. Clair.

4. Delaware

The sixth-least populous state in the country, the Small Wonder nabbed fourth place on this list in February. With one in every 2,443 homes going into foreclosure and a total of 464,203 housing units, the state had 190 homes in foreclosure. Having only three counties in the state, the most foreclosures per housing unit were (from highest to lowest): Kent, New Castle, and Sussex.

3. Florida

The third-most populous state in the country has a total of 10,256,470 housing units, of which 4,504 were in foreclosure. This puts the Sunshine State’s foreclosure rate at one in every 2,277 homes and into third place in February. The counties with the most foreclosures per housing unit were (from highest to lowest): Taylor, Highlands, and Polk.

2. South Carolina

The 23rd most populous state had the second-highest foreclosure rate in February with one in every 2,217 homes going into foreclosure. Of the Palmetto State’s 2,443,039 housing units, 1,102 were in foreclosure in February. The counties with the most foreclosures per housing unit were (from highest to lowest): Dorchester, Kershaw, and Chester.

1. Indiana

The 17th largest state by population, the Crossroads of America landed in the first place spot in February with a foreclosure rate of one in every 1,597 homes. Of its 2,976,568 housing units, 1,864 were in foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Morgan, Grant, and Madison.

The Takeaway

Of all 50 states, Indiana had the most properties in foreclosure (1,864), and West Virginia had the least (20). As for the states with the highest foreclosure rates, Florida, South Carolina, and Indiana took the top three spots.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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SOHL-Q126-200

A reverse mortgage is a popular way for retirees to supplement their retirement income. A home equity conversion mortgage (HECM) is the Federal Housing Administration’s (FHA’s) reverse mortgage program, and it allows borrowers to withdraw some of the equity in their home. It has stricter eligibility requirements than other reverse mortgages, but it’s also the only reverse mortgage insured by the U.S. government.

Here’s a look at the unique aspects of an HECM compared to a traditional reverse mortgage, the pros and cons, and the all-important fees that come with reverse mortgage financing arrangements.

Note: SoFi does not offer HECMs at this time. However, SoFi does offer home equity loan options.

What Is a Reverse Mortgage?

A reverse mortgage loan is a way to obtain financing using your home as security. In most cases, the home must be your primary residence. You, as the borrower, receive either a lump sum or an amount each month. You accrue interest and pay fees based on the amount you receive, and the amount you owe the lender increases over time. As your loan balance increases, your home equity decreases. You pay back the loan when you sell the house, permanently move away, or pass away.

When someone with a reverse mortgage dies, the heir who has inherited the house settles the loan balance, either by repaying the outstanding loan amount, selling the home and keeping any remaining proceeds after settling the loan, or signing over the deed to the lender.

What Is an HECM?

An HECM is a type of reverse mortgage. It’s the most popular type of reverse mortgage, but it’s only available to people aged 62 and older. It’s also the only reverse mortgage insured by the U.S. government and is only available through a lender approved by the FHA. It’s not to be confused with an HECM for purchase, which allows homebuyers aged 62 and older to purchase a home with the loan proceeds from a reverse mortgage.

💡 Quick Tip: You deserve a more zen mortgage. Look for a mortgage lender who’s dedicated to closing your loan on time.

Key Similarities

HECMs and other types of reverse mortgages share similarities. One is that they are a popular way for seniors to supplement their income if they have significant equity in their home. Another is that borrowers remain responsible for paying the property taxes and homeowners insurance for the life of the loan.

Key Differences

There are always pros and cons to reverse mortgages. But there are also key differences when you examine an HECM vs. a reverse mortgage:

•   Age of borrowers: While some reverse mortgages are only available to those aged 62 or older, you may be able to get one as young as 55, depending on the loan and the lender. An HECM is only available to those aged 62 or older.

•   Payout options: Reverse mortgages can pay out as a lump sum, monthly payments, or a combination.

•   Eligibility requirements: The HECM property must be a primary residence, the homeowner must have a certain amount of equity, and the homeowner must have the ability to pay property taxes and homeowners insurance.

•   FHA-insured: The HECM is the only reverse mortgage insured by the U.S. federal government and is only available through an FHA-approved lender.

•   Mortgage insurance: HECMs require a mortgage insurance premium (MIP) paid to the FHA. Proprietary reverse mortgages aren’t insured by the federal government.

•   Lending limits: For an HECM, the lending limit is $1,249,125 for 2026. Lending limits may be higher for other reverse mortgages.

Pros of an HECM

The main advantage of an HECM is that monthly payments aren’t required because the loan is paid back when the home is sold. Also, lenders don’t set a minimum credit score for you to qualify. The table below lists the pros of an HECM.

•   No required monthly payment: Borrowers can pay down the principal each month, pay just interest, or pay nothing at all until the home is sold.

•   No minimum credit score: Lenders don’t look for a minimum credit score, but they may do a credit check to look for federal tax liens or loan delinquencies.

•   FHA-insured: The FHA protects you if your mortgage is more than your home’s value.

•   No spending restrictions: You can spend the money from an HECM on whatever you like.

•   No income taxes: The money from an HECM is not subject to income tax.

•   Guaranteed income: As long as you stay in your home, you are guaranteed the income from an HECM.

•   Home ownership: When it’s time to sell your home, any remaining equity after paying off the mortgage belongs to you or your heirs.

Cons of an HECM

In the HECM vs. reverse mortgage equation, the cons of an HECM are mostly related to the strict eligibility requirements listed in the table below.

•   Age requirements: You must be at least 62 years of age. This applies to your spouse also if you are applying together.

•   Home maintenance: You must live in the home as your primary residence and maintain it appropriately.

•   Free of debt payments: While there’s no minimum credit score requirement, a lender will often evaluate your ability to pay your insurance and property taxes.

•   Scams are rife: Some HECMs are scams. It’s wise to consult a financial advisor before signing anything.

•   Potential loss of aid: It may affect your eligibility for Supplemental Security Income or Medicaid.

Comparing Costs and Scenarios

A reverse mortgage does not require a monthly payment, but you will pay origination, servicing, and third-party fees, property taxes, and insurance. These fees are paid back when you sell your home, move, or pass away.

The amount that you can borrow through a reverse mortgage will be less than the full value of your home to cover the cost of insurance and origination fees. Also, the younger you are, the less you can borrow because you are expected to live longer, giving the loan more time to grow before the debt is paid. If you’re thinking about a reverse mortgage, it might be wise to also look at a HELOC, which is another way to borrow based on the equity you have in your home. An HECM vs. an HELOC is worth considering, as there are costs and benefits in each case.

Insurance Premiums

For an HECM, you will likely pay an MIP at closing and an annual MIP for the life of the loan. The MIP charge at closing is based on the home’s appraised value or the HECM loan limit, whichever is less. Insurance fees are typically 2% of your home’s appraised value upfront. You’ll then be charged an additional 0.5% of the total loan value annually. There will also be an origination fee of $6,000 or less.

The HECM loan limit is $1,249,125 for 2026.

Origination Fee

Your lender will charge an origination fee for processing your HECM loan. According to the U.S. Department of Housing and Urban Development (HUD), the lender can charge 2% of the first $200,000 of the maximum claim amount plus 1% of the amount over $200,000 or $2,500, whichever is the greater amount. However, the lender cannot charge more than $6,000.

Here are a few scenarios for an HECM loan with different home values and the associated costs. Note that not all lenders charge the maximum fee, so it pays to shop around.

1.    Maximum claim value: $100,000. The maximum claim value is less than $125,000, so the lender will charge $2,500.

2.    Maximum claim value: $175,000. Since the maximum claim value is more than $125,000 but less than $200,000, the lender will charge a maximum of 2% of the maximum claim value, or $3,500.

3.    Maximum claim value: $350,000. Since the maximum claim value is greater than $200,000, the lender may charge up to 2% ($4,000) plus 1% for the remaining $150,000 ($1,500), for a total of $5,500.

Servicing Fee

The servicing fee covers the cost of calculating and sending statements and making sure taxes and insurance premiums are up to date. If the interest rate is fixed or annually adjusted, the monthly fee may be around $30. If the interest rate is adjusted monthly, the fee might be slightly higher and around $35. At closing, the lender may set aside the servicing fee and add the cost to your loan balance each month.

Third-Party Fees

Third-party fees are closing costs and include survey and appraisal fees, title search fees, and credit checks.

Interest Rates for HECMs

Reverse mortgage interest rates are another factor to consider. It’s not easy to find the interest rates for HECMs. However, you can find recent average rates on the HUD website. The interest rate will vary between private and HECM loans, but the latter tend to have lower interest rates because they’re federally insured.

Fixed vs Adjustable Interest Rate

Most lenders offer variable interest rates. The lender calculates an adjustable HECM by including an index and setting a margin. The margin does not change after the loan is originated, but the index fluctuates according to the market. Reverse mortgage borrowers can’t typically predict how much interest they will ultimately pay because the term of the loan is uncertain and interest continues to mount over the life of the loan. How much interest will ultimately accrue is somewhat uncertain for both variable and fixed-rate reverse mortgages, so it’s wise to discuss the pros and cons with a lender and with a financial advisor as well.

💡 Quick Tip: A home equity line of credit brokered by SoFi gives you the flexibility to spend what you need when you need it — you only pay interest on the amount that you spend. And the interest rate is lower than most credit cards.

The Takeaway

An HECM is a type of reverse mortgage. It has stricter eligibility requirements compared to other reverse mortgages. To qualify for an HECM, you must be aged 62 or older and should be relatively free of debt.

There are benefits to an HECM. For example, it’s FHA-insured, and you don’t have to pay tax on the payouts. However, an HECM may affect your eligibility for Supplemental Security Income or Medicaid. Also, the lending limits are lower for an HECM. Seekers of a reverse mortgage or an HECM should be careful not to fall victim to a scam and a fraudulent loan — do your research carefully and only work with a lender that has a good reputation. Consider asking a trusted financial advisor for a recommendation.

FAQ

Is an HECM the same as a reverse mortgage?

An HECM is a type of reverse mortgage. However, it’s only available to people aged 62 and older. An HECM is insured by the U.S. federal government and is only available through an FHA-approved lender.

What are the main differences between an HECM and a reverse mortgage?

The main differences between an HECM and a reverse mortgage are that an HECM is only available to those aged 62 or older. An HECM is also FHA-insured. The payout options are often more flexible for an HECM, whereas a private reverse mortgage might only offer a lump sum payout.

Are the qualifications the same for an HECM and a reverse mortgage?

No — for an HECM, you must be 62 years old or older, whereas other reverse mortgages may be available to those 55 and over. For an HECM, the property must be your primary residence, and the equity requirements might be higher for an HECM than for a private reverse mortgage. Also, the lender will want to see that you can pay property taxes and homeowners insurance.

Photo credit: iStock/LordHenriVoton

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.

SOHL-Q126-129

A no-closing-cost refinance may sound wonderful, but it’s important to understand that it means rolling the closing costs into the new mortgage or exchanging them for a slightly higher interest rate. Because you’ll either fatten your loan principal or pay a higher rate, your monthly payments and total interest paid will likely be more than if you had paid the closing costs with cash. However, a no-closing-cost refinance can help some homeowners make their finances more manageable.

Note: SoFi does not offer no-closing-cost refinance at this time. However, SoFi does offer traditional mortgage refinancing and cash-out refinancing.

Read on to decide if a no-closing-cost refinance is right for you.

No-Closing-Cost Refinance: How Does It Work?

You know how they say that if something sounds too good to be true, it usually is? Well, that also applies in this case.

When you undertake a mortgage refinance, you’re taking out a whole new loan, hopefully with a lower rate or shorter term.

The costs to do so are usually 2% to 5% of the total loan amount. For a refinance loan of $300,000, for example, the range is $6,000 to $15,000, which is a lot to take in if you need to pay the costs upfront.

A no-closing-cost refinance means you get to take out a new mortgage without paying closing costs out of pocket, or you accept a higher rate for the new loan.

Let’s break it down.

Closing Costs? What Closing Costs?

When a borrower signs mortgage documents, a variety of fees and expenses come along for the ride, which you probably recall from signing your mortgage the first time.

Right away or after a set number of months, depending on the kind of mortgage they have, homeowners can attempt to lower their mortgage rate and shorten their loan term with a refinance or, if they’re sitting on enough home equity, apply for cash-out refinancing.

They may want to transition from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage — or from a fixed-rate mortgage to an ARM.

Some may want to refinance their FHA or USDA loan into a conventional loan to get rid of mortgage insurance; others may be looking to refinance their jumbo loan.

If rates have fallen or if your creditworthiness has significantly improved since you took out your mortgage, those are signs it might be time for a mortgage refinance.

But there’s no free lunch when it comes to closing costs; even with a no-closing-cost refinance, the mortgage refinancing costs add up.

Here are costs that might be rolled into the refinanced loan:

Lender fees: Borrowing money costs money. Your lender might assess an application fee, a processing fee, a credit report fee, and an underwriting fee. Most lenders charge an origination fee. Any points on the mortgage, aka discount points, may be rolled in.

Title insurance fees: A title search ensures that no one else can claim ownership of your home.

Appraisal fee: The home appraiser’s fee is usually charged early in the closing process, so you probably won’t be able to add it to the new loan.

Other closing costs can’t always be rolled into the new loan. These include:

•   Prepaid property taxes

•   Homeowners insurance

•   Any homeowners association dues

If you compare no-closing-cost refinance offers, ensure that each lender is willing to cover the same items. And be aware that a lender that will cover lender fees, third-party charges, and prepaid items will also probably charge a higher rate.

The Cost of a No-Cost Refinance

Given the heft of closing costs, a no-cost refinance might be sounding better and better. But whether you opt to accept a higher rate or roll in the closing costs, you’ll likely still end up paying those costs over time.

And depending on their total amount, as well as the interest rate and mortgage term, closing costs can eclipse the savings you stand to gain by refinancing in the first place.

That’s why it’s important, given your anticipated new loan rate and term, to use a mortgage calculator and scour the loan estimates you’ll receive after applying for a mortgage refinance to find out the full amount you’ll pay over the life of the loan.

With any mortgage refinance that includes closing costs, it’s a good idea to look at the refinance break-even point: closing costs divided by the expected monthly savings. That will give you the number of months it will take to recoup the costs to refinance.

For instance, if a refinance adds $100 a month to your mortgage payment and your lender is covering $4,000 in closing costs, you’ll break even after 40 payments, or three years and four months.

Recommended: Mortgage Recast or Mortgage Refinance?

Pros and Cons of a No-Closing-Cost Refinance

No-closing-cost refinances have upsides and downsides to consider.

Benefits of a No-Closing-Cost Refinance

•  This kind of refinance can help keep homeowners from owing a hefty bill all at once, allowing them to refinance if they don’t have a lot of cash on hand.

•  By rolling costs into a home loan, you can keep cash on hand to use for things that are more important to you.

•  If you opt for a higher rate, you won’t use up home equity on a no-closing-cost refinance.

Drawbacks of a No-Closing-Cost Refinance

•  A higher interest rate may compensate for closing costs, but that can be costly over time.

•  If the closing costs are added to the principal loan balance, borrowers very likely will pay more interest over the life of the loan than they would have if they’d paid closing costs upfront.

•  If you are already close to a lender’s loan-to-value threshold, then adding in closing costs could push you to the very edge. You may even find that the new mortgage will require private mortgage insurance.

Recommended: Cash-Out Refinance vs. HELOC

Is a No-Closing-Cost Refinance Right for You?

If you stand to save money by refinancing your home — and if you’ll be in your home long enough that you’ll break even on the refinance — it might be worth footing the elevated interest rate or higher loan principal of a no-closing-cost mortgage refinance.

For those who don’t have the cash on hand to pay for closing costs upfront, this approach is the only feasible way to achieve a refinance at all.

If, however, you’re able to pay the closing costs upfront, the loan may be less expensive over its lifetime.

The Takeaway

With a no-closing-cost refinance, closing costs are either added to the new mortgage or exchanged for a higher interest rate. A no-cost refinance can make refinancing possible for those who can’t pay the closing costs upfront, but it’s important to look at costs over the life of the loan and your plans as a homeowner to ensure that it makes financial sense. (Note: SoFi does not offer a no-closing-cost refinance at this time. However, we do offer traditional mortgage refinancing and cash-out refinancing.)

SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.

FAQ

What is a free refinance?

Free refinance is just another name for a no-closing-cost refinance. Though borrowers who choose this option do not pay closing costs, they may find the costs are rolled into their loan, which can mean higher payments over the long term.

How much are refinance closing costs?

Refinance closing costs are typically from 2% to 5% of your loan amount, with costs depending on how much money you’re borrowing. Lenders may have differing fee schedules, but 2% to 5% is a good rule of thumb.

Does it make sense to refinance my home?

There are multiple factors to take into account when deciding whether to refinance your loan. Consider your closing costs, your credit score, and how long you plan to stay in your home.

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.

SOHL-Q126-128

Saving enough money to purchase a home has always been tough for younger buyers, but rising prices and higher interest rates have made it especially difficult for Gen Z (those born from the mid-to-late 1990s and the early 2010s) to get their foot in the door of the housing market.

As they wait on the sidelines for the chance to buy their first property, many are feeling real estate FOMO, which is the fear that they’re missing out on a major life milestone and the opportunity to build the wealth that others have managed to build. Let’s take a look at some of the obstacles Gen Z is facing and the steps that could help as you save and search for a home.

What Does FOMO Mean?

FOMO, or fear of missing out, is a term used to describe the feeling that you aren’t being included in something others are experiencing. Maybe they’re achieving goals that you haven’t yet reached or doing things that you currently don’t have the resources (financial or otherwise) to do. FOMO is often used to describe missing out on a social event, such as a concert or a party, that you weren’t invited to. But it can also mean wanting things that others in your social circle have, including a better car, clothes, trips, or jewelry.

FOMO spending is when the fear of missing out pushes you to spend money — maybe more than you should — to keep up with your peers. Older generations often refer to this as “keeping up with the Joneses.” Real estate FOMO can have that effect. It might lead someone to buy a house before they’re ready to or to take out a mortgage loan on a house they can’t comfortably afford. But it can also make homebuyers reluctant to commit to a purchase if they think they’ll find a better home at a better price if they just wait a while. And for some Gen Zers, social media can exacerbate those feelings.

How to Deal With FOMO in Real Estate

There are a few different things you may want to consider if you think FOMO is getting in the way of making smart home-buying decisions.

If You Feel You Need a Reality Check…

It never hurts to revisit your budget to see how much house you can truly afford. Using a home affordability calculator can help you set some limits. It also may be useful to talk to a financial advisor about how buying a home, or a home at a particular price, could affect your other goals. If you see a property you’re interested in purchasing, run the numbers in a mortgage calculator to get a sense of what your monthly payments would be.

If You Find Yourself Trying to “Time the Market”…

It can be tough to predict when home prices or interest rates will go down. Instead, you might want to talk to a real estate agent about the best time of year to look for housing bargains in your area, or you could shift your search from a pricey “hot” area to one with a more affordable cost of living. Also, if you find a home you think you’ll stay in long-term, you may want to keep mortgage refinancing in mind as an option for lowering costs in the future.

If You’re Feeling Triggered by What Others Have…

Looking at too many listings, home improvement shows, or friends’ house-proud social media posts may not help you understand the market you’re looking at and could lead you away from your personal must-haves. When that happens, it helps to take a break (perhaps from social media) to reprioritize and get back on track.

What Are the Barriers for Gen Z Home Buyers?

Some of the obstacles Gen Z homebuyers face are the same ones that would-be homeowners have encountered off and on for generations. Home prices are high and continuing to rise. Housing inventory is growing slowly but needs to outpace demand to limit price increases. And though mortgage interest rates are cooling and inflation is remaining steadily lower after the post-pandemic spike, gas, groceries, and other costs are still taking a toll on household budgets.,

However, Gen Z has bigger issues to contend with than previous generations, including:

Down Payment Costs

Down payments are calculated as a percentage of the home price, so higher-priced houses usually require larger down payments, making it increasingly difficult to get into the housing market. First-time homebuyers typically put down less than repeat buyers — about 10% compared to 23%, according to the National Association of Realtors. That could still be a hefty amount to come up with, considering that in February 2026, the median home price in the U.S. was nearly $430,000.

Student Loan Debt

A college education may help Gen Z graduates earn higher salaries, but many report that student debt is slowing their progress toward certain milestones, including buying a home. Those college loans can make it even more difficult for younger buyers to save for a down payment or make higher monthly mortgage payments. You can afford a mortgage if you have student loans, but student debt can factor into your debt-to-income ratio (DTI), which may affect whether or not you qualify for a mortgage and the interest rate you’re offered.

Higher Rent Payments

Rising rental costs are another factor that may be affecting Gen Z’s ability to save for a home. According to Zillow’s monthly Observed Rent Index, the typical U.S. rent in January 2026 was $1,895, a 1.9% year-on-year increase.

Adulting = Insecurity

Navigating life after college with a new (or new-ish) career, bills to pay, and uncertainty about where life might take you next (a new job, a new town, a new partner, a new baby?) can be daunting enough without the home-buying headaches. While some Gen Zers have found a way into the housing market despite the barriers, others are waiting until their careers and finances feel more stable.

How Does Gen Z Approach Home Buying?

Although buying a home may not be as significantly linked to achieving success as it was for older generations. According to a 2025 Realtor.com survey, 67% of Gen Z respondents said that they see homeownership as an important lifetime goal, and 69% agree that real estate is an opportunity to generate wealth. And they are finding ways to make it happen. By cobuying with friends, moving to a state with a lower cost of living, using cash gifts from family, or living with their parents after college to save money, Gen Zers are entering the housing market.

Where Is Gen Z Buying Homes?

As you might expect, Gen Zers who live in, or are willing to move to, more affordable locations, such as the South and Midwest, are more likely to buy homes than those looking to live in upmarket coastal cities that carry higher price tags.

In March 2025, Realtor.com listed Des Moines, IA, Omaha, NE, Youngstown, OH, Dayton, OH, Grand Rapids, MI, Little Rock, AR, Birmingham, AL, Cincinnati, MS, Jackson, MS, and Wichita, KS, as the 10 metropolitan areas with the largest percentage of Gen Z buyers. As per Redfin, in February 2026, median house prices in these cities ranged from $134,500 to $285,000, well below the U.S. median of $429,708.

Recommended: Best Affordable Places to Live in the US

Is It Harder for Gen Z to Buy a House?

Gen Zers aren’t facing the double-digit mortgage rates their parents and grandparents faced in the early 1980s. Nor are they trying to buy homes during a depression or a recession. Still, thanks to inflation, low inventory (partly caused by affordable homes being snapped up by investment companies), and other factors, this is a challenging time to become a homeowner.

According to Redfin, 38.3% of 28-year-olds owned their home in 2025. That homeownership rate is lower than that of Gen Xers (42.5%) and baby boomers (32%) when they were 28. But it’s a bit higher than the rate of 36.8% for millennials when they were the same age.

Steps for Gen Z Home Buyers to Consider

For Gen Z, patience, flexibility, and creativity may be the keys to success in today’s tough housing market. Here are some steps to consider as you pursue homeownership:

Know Before You Go

The more you know about the home-buying process, the more confident you can feel about the decisions you make. Get to know the first steps you should take (such as improving your credit score, lowering your DTI ratio, and researching first-time homebuyer programs and loans). And as you start your home search, consider listing your wants vs. your needs, learning about the different types of mortgage loans, and completing the mortgage preapproval process.

Keep Expectations in Check

Here’s where FOMO can really get in your way: The house you can afford may not be anything close to the designer houses you see on social media and TV. But an affordable starter home can be a stepping stone to the home of your dreams. If you aren’t sure what you can manage, talk to a professional, such as your financial advisor, a real estate agent, or a mortgage professional.

Cast a Wide Net

If you can’t afford the trendiest neighborhood or a house directly on the beach, you may want to try searching in similar or nearby areas. If you can relocate, you could broaden your search, looking at states that have what you want but at a lower price.

Recommended:Home Loan Help Center

The Takeaway

If high housing costs and other factors are getting in the way of your plans to buy a home, and you feel a strong sense of FOMO creeping up on you, try not to get sucked into overspending or abandoning homeownership altogether. Staying true to your budget and goals and getting some assistance in finding the right home and home loan can help you avoid feeling pressured into making bad decisions.

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 does FOMO mean in real estate?

The fear of missing out (FOMO) in real estate is the worry that you aren’t where you should be when it comes to homeownership. It may be because you haven’t yet purchased a home, or you notice differences between your home and the places you see others in your peer group moving into.

Which housing markets are dropping the fastest?

According to Cotality’s U.S. Home Price Insights report from February 2026, Florida’s Cape Coral, Lakeland, North Port, Palm Bay, and West Palm Beach are likely to experience price drops this year. The most affordable areas are Johnstown, PA, Albany, GA, Decatur, IL, Joplin, MO, and Weirton, WV.

What is the slowest month for the housing market?

Winter is typically the slowest time of year for the housing market, while spring and summer are the busiest seasons. Cold weather, the holiday season, and the start of the school year often see fewer home listings and fewer people attending showings, contributing to the seasonal slowdown.

How can Gen Z save for a down payment faster?

Strategies for faster saving include setting up automated savings deposits, keeping your savings in a high-yield account, taking on a side hustle, and reducing expenses by living with parents or roommates. As down payments are calculated as a percentage of the sale price, moving to an area with lower house prices can mean that you reach the amount you need faster.

Should I wait to buy a home if prices are high?

Timing the market is difficult. Focusing on your personal finances, affordability, and long-term goals is usually a safer approach than waiting for prices to drop.

Photo credit: iStock/gradyreese

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.

SOHL-Q126-127