Townhouses offer convenience and amenities that appeal to a range of homebuyers. They’re also growing in popularity, with new townhouse construction up more than 28% from 2020 to 2021. Construction costs also increased during the same time period.
Whether you’re building an investment property or your own new home, determining the project cost is essential before breaking ground. The cost to build townhouses depends on the size, location, number of units, onsite amenities, and the style of the building.
What Is a Townhouse?
A townhouse, also called a townhome, is a type of single-family home that has two or more floors and a shared wall with at least one other home. Compared to different home types, like duplexes and triplexes, each townhouse is individually owned and has its own entrance. Given the high-density design, townhouses tend to be more common in urban and suburban communities.
Townhouses often have their own yard or garage, but may share other communal amenities, such as a pool or tennis court, with neighboring townhouses. These shared facilities are typically governed by a homeowner’s association (HOA), which townhouse owners pay fees to for managing amenities and providing services like landscaping and snow removal.
If choosing between a condo or townhouse, another distinction is that townhomes usually have more autonomy in customizing the exterior of their home and outdoor living space, and more responsibility for that space as well.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
The cost to build townhomes depends on a variety of factors. The type of townhouse, size, number of units, location, and additions like garages and basements all contribute to the total construction cost.
Here’s what to consider when estimating how much to build a townhouse.
Type of Townhouse
There are different types of townhouse layouts and configurations, including traditional, stacked, and urban.
• Traditional: Generally organized in a row with two floors of living space, a basement, and garage.
• Stacked: Refers to townhouse units stacked in a multi-floor building, which typically have their own entrances.
• Urban: Similar to traditional townhomes, but often have more modern and spacious floor plans and higher prices.
Another key decision when purchasing a new construction home or townhome is whether to go with a modular or stick-built design. The components of a modular townhome are manufactured off-site, saving time and labor.
Stick-built townhouses are constructed on-site using a wooden frame and finished with a brick or vinyl exterior. This type of construction allows for greater customization, but generally comes at a higher cost than modular townhomes.
The cost to build a townhouse is impacted by the size, which is measured in square feet.
Townhomes cost between $111 to $125 per square foot on average. Because townhouses share walls and occupy smaller lots, they’re often more affordable than detached single-family new construction, which breaks down to an average of $150 per square foot.
Using the square footage to estimate total townhome cost is a fairly straightforward calculation. For instance, builders can expect to pay between $222,000 and $250,000 to erect a 2,000-square-foot townhouse based on the average range. Bear in mind that does not include the cost of the building site.
With these estimates, you can compare mortgage rates and determine what financing you qualify for.
Number of Rooms
The interior layout, including the number and types of rooms, is a key determining cost factor.
Not all rooms are created equal though, with kitchens and bathrooms being the most expensive due to appliances, tiling, plumbing, and more complex electrical work. The living spaces and bedrooms are generally simpler and cheaper to build.
💡 Quick Tip: You deserve a more zen mortgage. Look for a mortgage lender who’s dedicated to closing your loan on time.
Number of Units
By definition, townhouses are built in groups. Leveraging economies of scale to build multiple units or a complex could reduce the cost per unit. Keeping the design and floor plan consistent across units can also lower the price.
So, how much does it cost to build a townhouse complex? That depends on the extent of amenities included, as well as the number of units.
Location
Location, location, location. Where you choose to build a townhouse will impact the cost of construction and its value once completed.
The cost of labor varies significantly between regions. Paying builders and contractors typically accounts for 40% of new home construction expenditures. The location of the townhouse also matters in terms of costs related to accessing the site and sourcing materials.
Additions
Wondering how much to build townhomes with attractive amenities? Here’s what you can expect to pay for common townhome add-ons.
• Basement: Building a basement foundation costs between $24,000 and $44,500 on average.
• Driveway: The materials and installation costs for a new driveway range from $2 to $15 per square foot depending on the material used.
• Fencing: More affordable fence materials like wood, vinyl, and composite range from $10 to $45 per linear foot.
• Garage: Cost varies by size, with one-car garages ranging from $10,500 to $27,000 and double garages costing between $14,500 and $40,300.
• Pool: Expect to pay between $28,000 and $66,500 for an in-ground pool, with vinyl and fiber-glass lining typically costing less than concrete.
• Shed: Adding a storage shed ranges from $300 to $15,000, with pre-fabricated options usually costing less than custom builds.
💡 Quick Tip: Your parents or grandparents probably got mortgages for 30 years. But these days, you can get them for 20, 15, or 10 years — and pay less interest over the life of the loan.
Construction Cost for Building a Townhouse
Construction costs are often the deciding factor when thinking of buying or building a house. Townhouses are generally less expensive to build per unit than a detached single-family home.
In addition to the factors discussed above, townhouse construction involves a range of pre-construction costs, like purchasing land, building permits, and architectural or design fees. The materials and labor usually account for the majority of the expenses to build a townhouse.
Townhouses can be designed as starter homes or luxury properties, and project budgets can be structured according to the target market and expected return on investment. Still wading into the waters of homebuying? Consult a Home Loan Help Center for useful tips and guides to master the basics.
How much does it cost to build a townhouse? In short, it depends on the type of townhouse, size, number of units, location, and added amenities. But you can estimate roughly $111 to $125 per square foot or $225,000+ for a 2,000 square-foot abode, not including land cost.
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 Mortgages: simple, smart, and so affordable.
FAQ
How many townhouses can fit on an acre?
The number of townhomes that can fit on an acre will depend on what’s permitted by local zoning, as well as space allocated for landscaping, parking, and other amenities. However, an acre can accommodate around 20 two- or three-story townhomes.
How much are utilities in a townhouse?
Utility costs vary by location, unit size, personal energy use, and equipment used for heating and cooling. Due to their smaller footprint, townhomes typically have lower utility bills than single-family homes.
Should I buy a townhouse or single-family home?
There are pros and cons with either type of home. Townhomes may require less maintenance and include extra amenities, while single-family homes can offer more space and discretion in how you design and decorate your home’s exterior.
What are the disadvantages of living in a townhouse?
Living in a townhouse can mean less privacy from your neighbors and noise from shared walls.
Photo credit: iStock/vkyryl
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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 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.
A home title policy — also called title insurance — protects homeowners and lenders from claims and litigation stemming from title defects. Title insurance, according to the American Bar Association, allows for a secure transfer of ownership from one party to another.
To address top questions surrounding home title policies, we’ve compiled this guide. You’ll learn:
• What is title insurance for a home?
• How does it work?
• What are common title issues?
• What does the home title policy cover?
• What are the different types of home title policies?
By the end, you still won’t be thrilled to pay this additional cost at closing, but you may understand better what it protects.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
What Is a Home Title Policy?
A title policy on a home is an insurance policy that protects against title defects. Title issues aren’t common, but when they occur, the amount of money involved can be massive. Home title policies are required by lenders to protect their investment in your property. That’s right, just like mortgage insurance, it’s not really for you. In fact, these policies are also called lender’s title insurance policies.
Confusingly, you can also buy a home title policy that provides the exact same protection for you: This is called an owner’s title insurance policy. If you want to be completely protected as a homebuyer, you need to purchase both. (Ugh!)
What could go wrong that necessitates this layer of insurance? If, for example, the seller didn’t have the full right to sell the property because there was another property owner and the title company missed this in their title report, the title company is responsible for the error. The title company could pay for litigation costs or payouts for property owners.
Title issues that could potentially arise include:
• Existing mortgages
• Undisclosed heirs that have claims on the property
• Tax or construction liens
• Property line disputes
• Judgments involving the property, such as in the case of a divorce
• Deeds, wills, or trusts with errors
• Easements or encroachments that may restrict access and/or devalue the property
• Notary mistakes
• Errors in public records
• Fraud and forgeries
💡 Quick Tip: Thinking of using a mortgage broker? That person will try to help you save money by finding the best loan offers you are eligible for. But if you deal directly with an online mortgage lender, you won’t have to pay a mortgage broker’s commission, which is usually based on the mortgage amount.
How Does a Home Title Policy Work?
There are two parts to a home title policy: a title search and a policy issuance. After real estate purchase contracts are written and the property is in escrow, homeowners select a title company to conduct a title search.
In the title search, the title company looks through public records for defects (or problems, like those listed previously). If the search turns up a mortgage lien issue, judgment, or other issue, it will need to be addressed before ownership can be transferred.
If the title search hasn’t revealed any issues, the title company will issue the policy when the transfer of ownership is recorded. The borrower pays a one-time fee for the home title policy in their closing costs.
The title search helps eliminate risk, but it’s still a possibility that title problems can arise. That’s where the title policy for a home comes in. After the policy has been issued, should any additional items come up, the title company will litigate those issues for the benefit of the lender — but only up to the amount of the loan. As the loan balance decreases, so does the amount of home title insurance coverage.
One important thing to note is the home title policy that you get is usually a lender’s title insurance policy. What this means is the lender is protected against legal claims against the home. The borrower’s claim to the home — their equity — is not protected unless the borrower also purchases an owner’s title policy.
💡 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.
Home Title Policy Requirements
Home title policies aren’t required by a governing body like a city or state — they’re required by the lender. When a borrower seeks funds for a home mortgage loan, the lender has certain requirements that the borrower must meet in order for them to issue that mortgage. One of these is a home title insurance policy. Borrowers must pay for a home title policy in order to close the loan. Lenders want to make sure the property the borrower selected is free to be bought and sold and their investment is protected.
As noted above, home title policies come in two types: lender’s title insurance and owner’s title insurance.
Lender’s home title policies protect the lender from losses that come from title issues or defects. If title issues arise, the title company will cover losses or litigate for the lender up to the amount of the mortgage.
Owner’s home title policies protect the amount of equity an owner has in the home. If someone has a claim or brings suit against the title of the home, it is possible homeowners could lose the amount of equity they have in their home.
Fees for these policies vary widely by state. But for a typical home valued at around $400,000, you can expect to pay about $2,000 to purchase both types of title insurance and to pay for the title search. Fortunately, this is a one-time cost — unlike other types of homeowners insurance you might buy, you won’t have to renew your title insurance every year.
The Takeaway
It’s not exciting to pay for a home title policy, but the expense is more palatable once you understand what it protects. If you purchase both lender’s and owner’s home title policies, you’ll be well protected in the event of an unexpected claim or ownership dispute on your new home.
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 Mortgages: simple, smart, and so affordable.
FAQ
Is it worth shopping around for title insurance?
Title insurance can be costly so it is worth it to shop around. The insurer your lender typically uses might be an affiliate. So there could be a financial benefit to your lender if you use their partner company, but that doesn’t mean there will be a financial benefit to you. Comparison shopping could save you money.
What is the disadvantage of title insurance?
The chief disadvantage of title insurance is its cost, and the fact that it is usually required by a lender. Beyond that, keep in mind that lender’s title insurance only covers the lender in the event of a title problem — it doesn’t protect the equity that you have in the home. For that, you would need a second owner’s title insurance policy.
What is the difference between title and mortgage insurance?
Lender’s title insurance, which is paid for by the borrower, protects the lender in the event that a title dispute arises on the property. Mortgage insurance protects the lender in the event that the borrower defaults on the loan.
Photo credit: iStock/Wasan Tita
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility 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.
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.
Buying a house for the first time is a major life moment, both emotionally and financially. For many people, it’s the biggest investment they will ever make. With the median price of a house hitting $436,800 in 2023 (ka-ching), it’s not a purchase to be made lightly.
If you’re buying your first home, you may expect it to be the same as those quick, fun-and-done experiences portrayed on reality TV shows. In truth, however, it’s a process with a steep learning curve and many moving parts, from figuring out your home-shopping budget to satisfying your final mortgage contingencies. There can be minor hiccups and major missteps along the way.
There are so many things to know as a first-time homebuyer, it’s better to educate yourself in advance rather than learn as you go. To that end, this guide will cover the 10 most common first-time homebuyer mistakes to avoid, including:
• Not knowing how much house you can afford
• Failing to include other factors, like insurance and repairs, in your budget
• Waiving an inspection because you’ve found your dream house
10 Home-Buying Mistakes to Avoid
Home-buying mistakes are easy to make, especially when buying a house for the first time. Review these 10 common first-time homebuyer mistakes before searching for your dream home — so you can ensure you’ll avoid them.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Why? You may not qualify for a mortgage if your credit score is too low. For most types of mortgage loans, you’ll need a 620, though lenders also consider other factors, like your down payment and your debt-to-income (DTI) ratio. You’ll get better rates if you wait to apply for a mortgage until your score is 740 or above.
The lesson? Don’t let a low credit score rule out buying your first home, but if it’s on the lower side, maybe consider taking some time to build your credit score before shopping for a house.
Before you start looking at listings online or working with a real estate agent — and certainly before you try to get preapproved for a mortgage — calculate how much house you can afford.
Once you know the number, avoid looking at houses above your limit.
So how do you calculate how much house you can afford? There are a few easy methods:
• DTI: Think about your debt-to-income ratio (your debts divided by your gross income). When adding a monthly mortgage payment into your current DTI calculation, the percentage shouldn’t pass 43%. That’s typically the highest ratio mortgage lenders will accept.
• 28/36 rule: With this method, your max mortgage payment should be 28% of your gross income, and your total debts — mortgage and otherwise — should be no more than 36% of your gross income.
• 35/45 rule: Spend no more than 35% of your gross income on debt and no more than 45% of your after-tax income on debt.
• 25% after-tax rule: After adjusting for taxes, your mortgage should not account for more than 25% of your income.
💡 Quick Tip: You deserve a more zen mortgage. SoFi Mortgage Loan Officers are dedicated to closing your loan on time — backed by a $5,000 guarantee offer.‡
3. Putting Too Much or Too Little Down
In their eagerness to become homeowners, many first-time buyers make the mistake of going overboard and directing every bit of money they have to the purchase.
If you have to drain your emergency savings to manage the down payment on a home, you might want to dial down the amount or wait and save up a bit more. Consider what could happen if the home needs a costly repair or, worse, if you or someone in your family suddenly has an expensive medical bill. That’s a good example of when to use an emergency fund.
Conventional wisdom says to put 20% down (and it does help you to avoid paying private mortgage insurance (PMI). But with housing costs so high, that’s all but impossible for most homebuyers. Instead, focus on the minimum down payments required for the type of loan you’re considering:
• Conventional loan: As low as 3%
• FHA loan: As low as 3.5%
• VA loan: As low as 0%
Remember, though, that if you put down very little, you’ll need to borrow more. Your monthly payments will be higher, and you could pay more interest over the life of the loan.
4. Forgetting About Homeowners Insurance and Property Taxes
Your monthly mortgage loan payment is more than just the cost of your home. You’ll also need to cover the cost of homeowners insurance and property taxes, which are often paid into an escrow account. Depending on the type of mortgage and how much you’ve paid, you may also have to pay for PMI. Together, these all increase your monthly payment — sometimes substantially. When you look at a home, the real estate agent should be able to show you property tax history so you can get an idea of what you’d pay each year. You can also work with an insurance agent to simulate insurance quotes for various homes you’re considering.
Property taxes will change from year to year, and you can always change your homeowners insurance to lower the cost, even if you pay for it through the escrow account. It may be a good idea to bundle home and auto policies together to take advantage of a discount.
5. Failing to Budget for Home Repairs and Maintenance
Forgetting to budget for homeowners insurance and property taxes is one of the most common first-time homebuyer mistakes — but those expenses aren’t the only ones people forget to budget for when buying a house for the first time.
If you’ve been accustomed to calling a landlord whenever something breaks in a rental, reset your expectations. Now, you’ll have to take care of basic home maintenance — like replacing air filters, cleaning the gutter, resealing wood decks, and cleaning the chimney — and repairs. When the air conditioner is blowing hot air, the oven stops working, or your roof starts leaking, you’re on the hook for the repairs.
Some issues may be covered by homeowners insurance (but there’s still a deductible!), but other issues caused by general wear and tear are solely your responsibility. And then there are other possible costs, like higher utility bills and homeowners association fees, that can eat into your budget.
6. Not Hiring a Qualified Home Inspector
It may be tempting to waive the home inspection when you’re trying to buy the home of your dreams — especially if you have some stiff competition to be the winning bidder for an in-demand property.
Sorry to say, this is a risky strategy. A home inspection might reveal critical information about the condition of a home and its systems, from electrical problems to hidden mold; from a failing septic system to a leaky roof. What you learn in an inspection could reveal that your dream home is actually a money pit.
What’s more, your inspection report might serve as a useful negotiating tool: You could use it to ask for repairs or to work out a better price from the seller. And if you really aren’t happy with the inspection results, you may be able to use it to cancel the offer to buy.
And in the grand scheme of things, an inspection isn’t too expensive. The average home inspection costs $300 to $500.
7. Overlooking the Neighborhood and Surrounding Area
You may have fallen in love with a specific home, but when you buy a house, you’re also buying the neighborhood that comes with it, so to speak.
How are the surrounding properties maintained? Do the people seem friendly? If you have kids or are planning on having them, do you see other families with young children? How are the schools in the area? What’s the traffic like? How’s the noise level? What restaurants and stores are nearby?
Think about your ideal community — and then try to find a dream home in that type of community.
8. Letting Your Emotions Get the Best of You
Buying your first home or any home thereafter can be a roller coaster, so it’s important to prepare yourself psychologically as well as financially. If you’ve ever talked to someone buying a house, you know there are potential pitfalls all through the purchasing process.
You might fall in love with the perfect house and find it’s way over your budget. You might get annoyed with the sellers or their real estate agent, especially during the negotiation process. You might disagree with your partner about priorities.
All of these scenarios can cause a person to behave emotionally. It might make you want to walk away from a great deal. It might lead you to barrel ahead with a purchase, even when warning lights are flashing.
Our advice to a first-time homebuyer? Recognizing that this will be a challenging and, at times, stressful process (especially because you are new to it), take a deep breath, and proceed calmly. Find tools that help you move ahead with patience and a sense of calm, best as you can. With your eye on the prize — namely, your first home — you’ll get there.
Houses are more than a place to live — they’re an investment. While you certainly want to prioritize buying a home you’ll be happy in, it’s also a good idea to think about how much the property might be worth in five, 10, 15 years and beyond.
It’s impossible to predict the market, but you can feel more confident about strong future resale value by choosing a house with multiple bedrooms and bathrooms, a well-appointed kitchen, and a yard. Other features, like a finished basement or a garage, may also make it easier to sell the home in the future.
10. Not Having an Emergency Fund
One of the basic tenets of personal finance is building an emergency fund. And here’s some blunt advice for first-time homebuyers: You’re going to need an emergency fund.
House emergencies can happen at any time: A tree falls on your roof, a toilet starts to leak, your dog destroys the carpet, you name it. Having money socked away to cover these expenses is crucial when buying a home.
6 Smart Moves for First-Time Homebuyers
We’ve covered some of the most common first-time homebuyer mistakes, so let’s shift gear to smart moves you can make when buying your first home.
1. Get Paperwork Moving ASAP
What do first-time homebuyers need when getting a mortgage? Here are some of the most common docs to start putting together:
• Proof of income: Lenders will often want to see two months’ worth of pay stubs or bank statements that confirm your income. They’ll also want your tax returns from the previous two years.
• Proof of funds: To take you seriously, lenders want to know you have enough money to cover a down payment andclosing costs.
• Proof of identification: This could include a government ID, a passport, or your driver’s license.
Early in the process, you can furnish this basic information to get prequalified at various lenders. They’ll also run a credit check during the prequalification process.
Being prequalified simply allows lenders to give you an idea of what types of mortgages (fixed rate vs. variable rate, 15-year vs. 30-year, etc.) you might get approved for. It’s not a promise of approval, but it does help set expectations as you start to browse listings.
💡 Quick Tip: Your parents or grandparents probably got mortgages for 30 years. But these days, you can get them for 20, 15, or 10 years — and pay less interest over the life of the loan.
2. Check Out First-Time Homebuyer Programs
It’s wise to shop around for a few different mortgage quotes, but it would be a rookie mistake to overlook some great, government-sponsored programs that make buying a house more affordable. These include:
• FHA loans: These mortgages are designed for those with low to moderate incomes. They typically offer low down-payment requirements, low interest rates, and the ability to get approval even if you have a fair credit score.
• USDA loans: These provide affordable mortgages to those with a lower income who are planning on buying a home in a qualifying rural area.
• VA loans: These mortgages help those on active military duty, veterans, and eligible surviving spouses become homeowners. If you can check one of those boxes, you may be eligible for a home loan with no down payment requirement and no PMI.
3. Consider Additional Costs Beyond the Mortgage
As we’ve discussed above, the actual monthly house payment is not your only cost. Your full mortgage payment includes property taxes, homeowners insurance, and, potentially, PMI.
But before you even get to the point of making monthly payments, consider these upfront costs of buying a house:
• Closing costs, which are traditionally paid for by the buyer.
• Home inspections, which we highly recommend.
• Moving costs, whether just renting a truck or hiring movers.
4. Get Preapproved
Mortgage prequalification isn’t a commitment for the lender or buyer — it’s just a first step. If you appear to meet a lender’s standards, you could move on to the preapproval stage.
Getting preapproved for a home loan involves submitting additional income and asset documentation for a more in-depth review of your finances.
Once the lender approves these aspects of your loan application, you’ll receive a conditional commitment for a designated loan amount — called a preapproval letter — and have a better idea of what your loan terms will be.
Mortgage preapproval can help demonstrate to sellers that you’ve completed the first step in getting a mortgage because your credit, income, and assets have already been reviewed by an underwriter. This can smooth the bidding process and could give you an edge over others in a competitive situation with multiple offers.
You may qualify for various types of mortgage loans. Spend some time researching the different types so you have a better understanding of how they’ll impact your payments for the next several decades.
For instance, you’ll want to know the difference between a fixed-rate mortgage and an adjustable-rate mortgage (ARM). You’ll also want to understand how a 15-year term affects your monthly payments when compared to a 30-year term — but also how a longer term increases the amount you’ll pay in interest.
Finally, remember that you don’t have to go with the first mortgage offer you get. It’s worth your while to get multiple offers so you can compare interest rates, down payment requirements, terms, and more.
The Takeaway
Buying a house for the first time can be a stressful experience, but remember: At the end of it all, you’ll have a place you can call yours. You’ll build equity over time, and the house may increase in value. Just make sure you research the most common first-time homebuyer mistakes so you know how to avoid them.
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 Mortgages: simple, smart, and so affordable.
FAQ
What are some common mistakes first-time homebuyers make?
Some common home-buying mistakes for first-time homebuyers include forgetting to check (and improve) their credit, not calculating how much home they can actually afford, and forgetting to consider additional expenses, like inspections, homeowners insurance, property taxes, closing costs, and increased utilities. First-timers may also forget to consider the neighborhood as a whole or the future resale of the home.
What are the two largest obstacles for first-time homebuyers?
Two large obstacles for first-time homebuyers include rising housing prices and credit score requirements. Those who don’t already have equity in a current home may have more trouble coming up with a down payment on a new home. First-time homebuyers may also lack the credit score needed to get the best possible rate on a new mortgage.
What are three common mortgage mistakes?
Three common mortgage mistakes are 1) buying up to the limit you’re approved for rather than calculating how much you’re comfortable paying; 2) skipping the home inspection to expedite the process or make your offer more appealing to buyers; and 3) not considering related expenses you’ll have to budget for, including homeowners insurance, property taxes, and repairs and maintenance.
What are the most common mistakes that homebuyers make?
Homebuyers make a number of common mistakes, such as making an unnecessarily large down payment, forgetting to budget for related costs, buying more house than they can afford, and not shopping around for the best mortgage loans.
Photo credit: iStock/Drazen Zigic
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
‡SoFi On-Time Close Guarantee: If all conditions of the Guarantee are met, and your loan does not close on or before the closing date on your purchase contract accepted by SoFi, and the delay is due to SoFi, SoFi will give you a credit toward closing costs or additional expenses caused by the delay in closing of up to $10,000.^ The following terms and conditions apply. This Guarantee is available only for loan applications submitted after 04/01/2024. Please discuss terms of this Guarantee with your loan officer. The mortgage must be a purchase transaction that is approved and funded by SoFi. This Guarantee does not apply to loans to purchase bank-owned properties or short-sale transactions. To qualify for the Guarantee, you must: (1) Sign up for access to SoFi’s online portal and upload all requested documents, (2) Submit documents requested by SoFi within 5 business days of the initial request and all additional doc requests within 2 business days (3) Submit an executed purchase contract on an eligible property with the closing date at least 25 calendar days from the receipt of executed Intent to Proceed and receipt of credit card deposit for an appraisal (30 days for VA loans; 40 days for Jumbo loans), (4) Lock your loan rate and satisfy all loan requirements and conditions at least 5 business days prior to your closing date as confirmed with your loan officer, and (5) Pay for and schedule an appraisal within 48 hours of the appraiser first contacting you by phone or email. This Guarantee will not be paid if any delays to closing are attributable to: a) the borrower(s), a third party, the seller or any other factors outside of SoFi control; b) if the information provided by the borrower(s) on the loan application could not be verified or was inaccurate or insufficient; c) attempting to fulfill federal/state regulatory requirements and/or agency guidelines; d) or the closing date is missed due to acts of God outside the control of SoFi. SoFi may change or terminate this offer at any time without notice to you. *To redeem the Guarantee if conditions met, see documentation provided by loan officer. 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 .
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.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
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The cost of owning a car is significant, and maintaining it can be pricey too. But it’s what keeps your wheels running, whether that means commuting to work, doing school drop-off, shopping, road tripping, and beyond.
You’ll likely deal with lots of expenses, such as oil changes, new tires, shock and spark plug replacement, and more as you navigate car ownership.
Here, learn how you can save big on the typical services most cars need so you can hold onto more of your hard-earned cash.
How to Lower the Cost of Owning a Car
What follows are 31 ways to make vehicle maintenance less expensive. Some of these strategies help you save money right away, while others can lead to serious savings down the road.
1. Buying the Right Car
One of the best opportunities you have to lower your maintenance costs comes before you actually buy the car.
If you’re looking to buy a new car–or for a good deal on a used car–it can be wise to not only consider the purchase price, but also the long-term costs. With a little bit of research, you can likely find out the model’s repair record, and the average annual cost of upkeep.
It’s inconvenient and, with synthetic oil and filter changes running around $65 to $125 a pop, the money you may not feel like spending. But this regular expense will almost certainly save you money in the long run. Oil lubricates your engine and keeps it from overheating. And, replacing the whole engine will definitely cost a whole lot more.
3. Reading Your Owner’s Manual
Unless you’re a serious car geek, you probably haven’t spent a lot of time perusing your owner’s manual. But this guide contains key information about what maintenance services need to be done and when making it essential reading. (If you’ve misplaced yours, you can probably find it online — just search for your car’s make, model, year, and the words “owner’s manual.”)
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4. Timing Your Maintenance Properly
The maintenance schedule set out in the owner’s manual was created by your car’s designers to help you keep ahead of major repairs that would pop up if you didn’t intervene. Skipping preventative maintenance can be penny-wise, but pound-foolish.
5. Knowing Fair Maintenance Prices
Charges for car maintenance services, like tune-ups and tire rotations, can vary widely depending on the shop. One way to find out if you’re being charged fairly is to research rates before you bring the car in. Websites like RepairPal can tell you what you should expect to pay for a particular maintenance task — and can even connect you with certified shops.
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6. Patronizing a Mom-and-Pop Mechanic
Want a way to save money daily? Think small. Independent mechanics can sometimes offer lower pricing (and potentially better customer service) than auto repair chains, which have to cover the cost of being part of a franchise. So it can be worth shopping around. Exception: If your car is still under warranty at the dealership, you might void the agreement by taking it anywhere else, so it may be best to stick with them.
7. Sticking With the Same Shop
Although it might not matter for minor maintenance issues like oil changes, bigger services can be costly — and if you continually take your car to new mechanics, they won’t know your vehicle’s service history, which could lead you to pay for the same service twice.
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8. Getting Your Transmission Fluid Changed
Transmission fluid is as vital to your transmission as oil is to your engine. This fluid is a lubricant that helps keep all of the moving parts inside of your transmission functioning properly. Transmission work can be some of the priciest projects you can face, running anywhere from $800 for a repair to a couple thousand or more for a rebuild to $4,000 to $7,000 for a replacement.
9. Getting Your Coolant Fluid Flushed
Yet another important fluid to keep an eye on, your coolant protects your engine from overheating, as well as offering more lubrication for certain engine parts. It usually needs to be changed out every 10,000 to 50,000 miles (you can find out in your manual), and failing to do so can lead to rust and dirt clogging up the system.
10. Cleaning Your Battery
You may not think about your battery very much…until the morning your car doesn’t start. To keep your battery in good working order, and avoid surprises, it can be good to occasionally clean the corrosion off the terminals using a small brush, some water, and baking soda.
11. Keeping Up With Your Transfer Case Fluid
This one only applies to those with four-wheel drive vehicles — but if you have one of those, you’ll likely need to familiarize yourself with the transfer case. That’s the part that shifts power from the transmission to the axles so the wheels can turn. And, like other parts, it has its own special lubricating fluid which needs to be regularly checked and changed.
12. Getting your Tires Rotated Regularly
You’ve probably already noticed how expensive tires are to replace — so chances are, you want to replace them as seldom as possible. Getting your tires regularly rotated and balanced can help ensure they wear evenly, which extends their overall longevity. This can be an especially good thing to do before you take an affordable road trip.
13. Carrying an Air Pressure Gauge
DIY moves can not only enhance your self-confidence, they can also be ways to save dollars and improve your money mindset.
One example: Maintaining optimum air pressure in your tires can improve your mileage (and save you money in gas) and also extend the life of those expensive tires. It also keeps your vehicle safe to drive. You can check your tires free of charge by keeping a tire gauge (typically less than $10) in your glove box.
14. Refilling Your Tires as Needed
As you roll around on them, your tires will gradually seep air over time — but you usually don’t need to schedule a special maintenance trip to refill them. Most gas stations offer coin-operated air pumps, and many even allow you to pre-set the proper PSI, or pounds per square inch. (Otherwise, you can grab your pressure gauge.)
15. Regularly Checking Your Alignment
Alignment controls the angle at which your tires meet the road, and is important for making sure your tires wear evenly. Proper alignment also helps increase your vehicle’s gas efficiency, so it’s worth getting it checked at least once yearly, or sooner if you notice a pull as you’re driving.
16. Inspecting Your Shocks and Struts
Your shocks and struts, which keep your car from bouncing, also impact how quickly your tires wear, as well as your vehicle’s fuel efficiency. Depending on your driving habits, these generally need to be replaced roughly every 50,000 to 75,000, depending on how heavy your use is.
17. Shopping Around for Tires
No matter how assiduous you are maintaining your tires, you’re eventually going to have to replace them. But unlike other car parts that may be proprietary to your car’s make and model, tires are pretty easy to shop for yourself — and doing so can lead to major savings. Warehouse discount or wholesale clubs like Costco and Sam’s Club sell tires, as do online retailers like Discount Tire Direct.
18. Using Winter Tires Only in the Winter
Using winter tires can make driving in snowy conditions much safer. But these tires wear considerably faster than all-season tires, especially in non-winter conditions. So it can be a good idea to change your tires back to all-weathers as soon as the last frost has thawed.
19. Skipping the Winterization Package
Many mechanics will offer you a “winterization” service that involves flushing and replacing your coolant (also called antifreeze). However, you only need to have that done every 30,000 miles or so, as noted above. If it hasn’t been that long since your coolant has been replaced, you don’t need this service.
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20. Having Your Spark Plugs Inspected
Spark plugs literally spark the fuel that runs your engine. When the spark plugs start to fail, your engine won’t run as efficiently, and eventually, their misfiring could put stress on your catalytic converter, which is costly to repair. Check your owner’s manual for advice on how often spark plugs should be replaced. The number can vary widely, from 18,000 to 100,000 miles. When the time comes, however, it can be wise not to hesitate.
21. Changing Your Own Engine Air Filter
In most cases, paying a professional to do your maintenance and repair work is worthwhile in the long run (and less costly than making a mistake and hiring someone to repair it). But changing your engine air filter is actually easy. Since that filter keeps dirt and debris out of your engine, keeping it clean is key to your car’s longevity. There are plenty of YouTube tutorials you can check out to learn how.
22. Keeping Jumper Cables in the Trunk
This might not seem entirely necessary, but if your battery dies and you’re not near home, you’ll likely be glad you didn’t have to rely on a tow truck for such a simple problem.
23. Making Sure You Have Roadside Assistance
…That said, every once in a while, you might need a tow. If you do, having access to a roadside assistance program can be major cost savings. And, it can pay to shop around for this service. AAA might offer perks, like hotel discounts, but the roadside assistance package offered by your car insurance company might cost less.
24. Heading to the Car Wash
It may seem like a minor detail, but keeping your car’s exterior clean can help the paint job last longer by removing road grime and residues that can eat through the finish. A $10 drive-through wash is way better than paying up to 10 times that for a new paint job.
25. Detailing the Interior
Your car’s interior is also vulnerable to staining and residue build-up that can lower your car’s overall value. At many car washes, you can access a powerful vacuum that can get rid of loose debris, but giving your car’s interior more thorough attention every few months may help you resell it for a higher price later.
26. Waxing Your Vehicle Every Six Months
Waxing your vehicle twice a year is another important way to help keep the paint job looking fresh and new. It can also help to avoid rust build-up that can cause structural damage to the body of your car.
27. Changing Your Own Light Bulbs
For most bulbs on your car, changing them isn’t difficult. They typically have a twist-and-pull bayonet base or simply pull out and push in. You can usually find replacement bulbs in any auto parts store, and sometimes even hardware stores. In some cases, accessing a bulb can be tricky, so you may want to check the manual or look online if getting the bulb out isn’t obvious.
28. Paying Attention to Recalls
If your car’s manufacturer sends out a notice about a recall, it’s likely worth making an appointment at your local dealership — no matter how insignificant the problem may seem. The recall repair will be free at the dealership, and it could save you from more extensive damage that would not be covered.
29. Buying Some Touch-Up Paint
Just like washing and waxing, using touch-up paint can be a smart maintenance measure. With a little bit of touch-up paint, you can seal chips and cracks early on before they have a chance to become a real (and real expensive) problem like rust or paint decay.
30. Heeding the Check Engine Light
It may be annoying, but your check engine light is trying to tell you that something needs your attention. And, typically, it’s better to pay attention sooner rather than later. A small repair cost now is better than a large one later on if you let that light go for a few months.
31. Driving Less
The less you drive, the less wear-and-tear you put on your vehicle, and the lower your maintenance and repair costs are likely to be. While it’s hard to save money these days, when it’s possible, you may want to consider walking, biking, or carpooling. These moves can not only be wallet-friendly but also good for the environment.
Generally speaking, the best way to keep your car maintenance costs low is to keep up with maintenance in the first place. That means referring to your manual and following the recommended service schedule.
You can also save money on car ownership by doing some basic vehicle care yourself, such as keeping your car clean and inflating your tires properly, as well as shopping around for a mechanic who charges fair prices.
To make sure you have enough money to cover all the expenses of car ownership, it can be a good idea to set up a car fund, which is easy to do with a dedicated bank account.
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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
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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Students want to see one word when they get letters from their prospective colleges: accepted. Unfortunately, that likely isn’t going to be the result every time. Some students will end up on the college waitlist, but that doesn’t mean they won’t be accepted eventually.
Being waitlisted is not the same as being rejected. There’s still a possibility of getting accepted and attending that dream school.
So what does it mean to be on a college waitlist? It means you’re still up for consideration based on how many spaces are left after decision day. Getting accepted from the waitlist depends on how many accepted students choose to attend the school.
Decision day is May 1, when incoming freshmen are required to notify schools whether they will be attending or not. If not enough students accept their invites for schools to meet enrollment numbers, then students on the waitlist will be reevaluated and potentially accepted.
There’s no guarantee that accepting a spot on the waitlist will lead to being admitted, but that doesn’t mean you should give up. There are still things you can do to boost your chances.
Waitlisted or Deferred?
In some cases, a student may receive a letter saying they’ve been deferred rather than being put on the waitlist. So what’s the difference? A deferral usually involves students who applied for early action or early decision. These applications are generally turned in during November of senior year.
If a student applies via early action or decision and they receive a deferral, that means they have not yet been accepted but their application has been changed to regular decision. The application will be reviewed again during the regular decision time frame.
A deferral is different from a waitlist, but students who have been deferred generally want to take the same actions as those who have been waitlisted to better their chances of admission.
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What to Do When You Get Waitlisted
Students who have been waitlisted but still want to attend the school must first do one thing: Accept their position on the waitlist.
If you neglect to contact the school and accept your position, you’ll be removed from the list and won’t be considered for admission if there are spots left after decision day.
Once you’ve accepted your spot on the waitlist, there are a few steps you can take that may better your chances of being accepted. Here’s a close look.
Contact Admissions
When you receive a letter informing you that you’ve been waitlisted, there might be some instructions included. First and foremost, it’s a good idea to follow them.
Next, it’s often recommended that students contact admissions with a letter to further stress their commitment to attending the school. The letter should detail why you want to attend that school and why you believe that school is the best fit for you. You might also want to ask that the letter be kept in your file along with your other application materials.
Request an Interview
Asking for an interview can be helpful in getting off the waitlist. Meeting with someone in person may make you more memorable when it comes time to accept applicants from the waitlist.
If you already did an interview, it’s okay to request another one after receiving a waitlist decision. A second interview provides the chance to reinforce your commitment to the school and add any recent accomplishments to the conversation. This can be a great time to bring up anything special you have achieved during the spring semester.
Reserve a Spot at Your Second Choice
Even though it can be discouraging, it’s highly recommended that students who’ve been waitlisted for their first-choice school put a deposit down for their next-best option. Putting a deposit down on another school isn’t giving up on your dream school; it’s just an important safety net to ensure you have somewhere to attend.
Some students may opt to take a “gap year” if they don’t make it into their school of choice. This choice is highly personal, though, and there isn’t a clear recommendation on how beneficial or harmful it is. Some students may find a gap year useful and productive, while others may find that it deters them from going back to school on time.
Anyone committed to attending college in the fall will likely find it a smart move to put a deposit down on their second- or even third-place school, and then continue working on getting accepted off the waitlist for their first choice.
Retake Tests
Students who did not score well on the SAT or ACT may want to consider retaking those tests if they’ve been waitlisted. Before you do that, however, it’s a good idea to contact the college to make sure it’s willing to accept additional application information. If the school will accept it, and you think you can get better scores, it could be helpful to go ahead and retake the tests.
Most colleges will accept scores from either test, but it’s best to check with each school to be sure. Both tests have a similar goal, testing for college readiness, but they vary slightly in timing and types of questions asked.
If you need to improve your test scores but have limited time or money, it may help to research the difference between the two tests and take the one you feel you can perform better on. Taking practice tests can also help you determine which test suits you better. Many students do take both tests, so that is an option as well.
Make the end of senior year impressive. Don’t let that waitlist cause discouragement. If you truly want to make it off the waitlist, you’ll want to work even harder at the end of your senior year. Senior grades can still affect admissions, so keeping them high may help those who are on the waitlist.
If you still don’t get accepted to your dream school, it doesn’t mean you have to give up. Even if you’re not accepted from the waitlist, there are still a couple of options. You can accept admission from a different school and aim to transfer to your dream school after one to two years. This allows time to earn good grades, get the necessary credits, then transfer.
If your plan is to transfer schools, however, you’ll want to work closely with your counselor to make sure you’re taking the correct courses and carefully consider your choice of major, since not all credits will transfer to all schools.
💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.
Ready to Start. What’s Next?
Whether you make it off the waitlist and get into your dream school or choose to accept admission at your second choice, you’ll be faced with tuition. So how to cover the cost? Tuition, fees, books, food, plus all the other costs of living… it adds up quickly.
Luckily, there are resources available to help students finance their college education. The first step for most should be filling out the Free Application for Federal Student Aid (FAFSA). The application will determine eligibility to receive federal aid. The eligibility for undergraduates to receive aid is most often based on their parents’ income. This process will inform students of how much federal aid they can receive, and what kind.
Federal aid can come in the form of grants, loans, and work-study. Grants don’t need to be repaid (unless you withdraw from school and owe a refund), but loans do. Federal loans come with some benefits that students won’t get with private student loans, including income-driven repayment plans and potentially lower interest rates.
Another option for funding the college experience is a private scholarship. There are a wide variety of scholarships available, with different eligibility requirements for each one. Some scholarships are need-based; some are merit-based.
If you can’t finance college completely with federal aid and scholarships, private student loans are also available. The eligibility for private student loans is usually based on the student’s (or cosigner’s) income and credit history. Rates and terms vary by lender, so it’s important for students to research their options before making a choice.
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.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
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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.
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Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
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.
