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Jul
10
2024

Scholarship Search – College Scholarships Finder | SoFi

By | 1_Web_ISL | Comments Off on Scholarship Search – College Scholarships Finder | SoFi


Scholarship Search Tool

Lightening your college costs is great, but how do you know what’s available to you? There are countless scholarships, fellowships, grants, and more up for grabs. Streamline it all with the Scholarship Search tool and save your college stress for tests (and dorm drama).

How to Use the Scholarship Finder Tool

Using SoFi’s scholarship search can help you find scholarships that fit your profile. You can search by 10 filters, including a specific keyword, school type, area of study, and more which can help you narrow down scholarships that may fit your background or strengths.

For each scholarship, you can see details, including the number of awards available, the deadline to apply, and a link where you can learn more.

How to Use the Scholarship Finder Tool Filters

Using filters on SoFi’s scholarship search tool will help you find scholarships that are a good match for you. The more fields you fill out, the more defined your results will be.

Certain fields are additive, which means you’ll find scholarships that fit either of those criteria. If you choose “nursing” as your field of study, for example, you’ll find more than 275 potential scholarships. And if you add “any military service” as an additional filter, there are over 400 results.

Recommended: Important College Application Deadlines

As you pursue your college scholarship search, use the filters to surface a wide range of opportunities. The more scholarships you end up applying to, the greater your chances of success. Here are some of the filters to explore.


Keyword

Keywords can be valuable for honing in on scholarships that may be specific to an area of interest or talent that doesn’t appear on other filters. Search “community service,” for example, and 191 opportunities come up. There are scholarships for moms, for those who are the first in their family to attend college, and more. Exploring with different keywords and filters can help you get a sense of what types of opportunities are out there.



Field of Study

There are over a hundred field of study filters that you can use to find scholarships that are related to your major or to a major you’re considering. From journalism and law to nursing or civil engineering, there are related scholarships to consider.



Success Rate

Success rate shows the percentage of applicants who are awarded a scholarship. That means that scholarships with a lower success rate percentage may be very competitive. So as with creating your college application list, you’ll want to consider a mix of scholarships when you apply — some that are more of a challenging “reach,” as well as others that are less competitive.

Recommended: 5 Ways to Start Preparing For College



All Filters

There are filters for religion and military service as well. Exploring all of the filters with some of the ways you categorize yourself can help you create a more personalized list of scholarships.



State

There are a range of state scholarships that are earmarked for residents of a certain state, or for students who go to college there. It’s worth searching both the state that you reside in and also, depending on where you are in your college process, exploring scholarships in states where you’re applying to schools. Be sure to understand any residency requirements before you apply.



School Type

You can also search scholarships that can help pay for tuition and educational expenses at the specific type of program you’re hoping to attend — four-year schools, two-year colleges, as well as tech or trade schools. It can be helpful to select the type of school along with another filter, such as area of study or ethnicity.


Ethnicity

There are many scholarships designed for people of certain ethnicities, heritages, and backgrounds. Filtering for ethnicity can help surface a range of potential scholarships that you might not have known about. Keep in mind, ethnicity can refer to the background and heritage of your parents or grandparents, too. You can learn more about the requirements on the scholarship’s website.

Recommended: FAFSA 101: How to Complete the FAFSA

Your Scholarship Search Results: Next Steps

Once you have a list of scholarships, you can determine which ones are the best fit by learning more from the links in the scholarship finder tool. The earlier you start your research, the more time you’ll have to apply ahead of the deadlines. Junior year of high school can be a good time to start looking.

Be sure to check the eligibility requirements and assemble all of the requested materials. Your school’s college counseling office or local community center may be able to offer guidance on applying for scholarships, as well as provide tips on how to strengthen your application.

If you’re awarded a scholarship, you’ll need to report any awards over $300 to your school’s financial aid office. They may adjust the amount of need-based financial aid that you receive. (If you don’t share this information, you may be responsible for paying back what’s called an “overaward.”)

If you’re not awarded a scholarship, keep trying: You can continue to apply for new scholarships throughout your academic career in college.

Overwhelmed by all the college choices?

There are so many colleges! Where do you even begin? The College Search tool is here to help make your choices more digestible.


Find your college

Scholarship Search FAQ


What kinds of scholarships are available?
There are thousands of scholarships available awarded on a range of achievements in academics, athletics, or the arts. They can also be tied to extracurricular activities, community involvement, or personal background, such as your identity, religion, heritage, or state residency. The amount of a scholarship may be a few hundred dollars to several thousand.


How do I find scholarships?

A scholarship finder, like SoFi’s scholarship search tool, can help you find scholarships that are a good fit for you. It takes time and effort to apply for scholarships — and you’ll want to apply to as many as you can to increase the odds of winning one — but if you win an award, the free money for college will be worth it.



When do I apply for scholarships?

The deadlines for scholarships vary, so it’s helpful to start early. Junior year of high school can be a good time to start your research. You can sort by deadline date in SoFi’s scholarship finder tool to help you stay on top of applications.

How do I apply for scholarships?

Each scholarship will have its own application requirements, but you may be able to use some of the same materials for multiple applications. Seek out guidance for applying from your high school’s college guidance office or your local community center.



How do I get my scholarship money?

If you win a scholarship, how you receive the award may vary. The organization granting the scholarship may send the money directly to you, or it may be sent to your school to cover educational expenses, such as tuition. You should receive information about how you’ll receive your award when you learn that you’ve won a scholarship.



How does a scholarship affect my other student aid?

You’ll need to report any scholarship awards over $300 to your school’s financial aid office, and the amount of need-based financial aid you receive may be adjusted. If you don’t report it, you may be responsible for paying back the “overaward.”

To help with your search









Learn the federal aid ropes with SoFi’s FAFSA® Guide.


Learn more


SoFi Private Student Loans keep the focus on your education with low rates, flexible terms, and zero fees.


View your rate


(without impacting your credit score)✝︎


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Jun
28
2024

Roth IRA

By | Uncategorized | Comments Off on Roth IRA

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Roth IRA

Start saving for retirement with a Roth IRA.

By investing in a Roth IRA, you won’t pay taxes on potential earnings and can enjoy the freedom of withdrawing your money in retirement without worrying about paying taxes on it. 


Open a Roth IRA

For other IRA options, check out SoFi’s Traditional IRA and SEP IRA accounts.

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What is a Roth IRA?

A Roth IRA is an individual retirement account that offers potential tax advantages. Unlike traditional IRAs, you make contributions to a Roth IRA with after-tax dollars, meaning they are not tax deductible. However, qualified withdrawals in retirement are tax free, including both contributions and investment earnings. So, it’s a way to save for the future while enjoying tax-free benefits.

Learn more: Roth vs Traditional IRA Comparison

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How a Roth IRA can help you save for retirement.

Tax-free benefits.

Both your contributions and whatever you earn on them are tax free when you withdraw from your Roth IRA in retirement. 

Convenient access to your money.

You can withdraw contributions at any time,
 tax- and penalty-free. Note that earnings are subject 
to different rules. 

No required withdrawals.

Unlike traditional IRAs, Roth IRAs do not require that you withdraw a certain amount of money each year after reaching age 72. 

Beneficiaries aren’t taxed.

Rest easy knowing your beneficiaries can make tax-free withdrawals if they inherit your Roth IRA. 


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Choose the investment approach for your Roth IRA.

Automated Roth IRA: < br/>A hands-off approach.

Unsure about your investment options or where to start? We’re here to help. Just share your retirement and investment goals with us, and our robo-advisor will create and maintain a personalized portfolio specifically tailored to your Roth IRA.


Open an Automated Roth IRA

Self-Directed Roth IRA: < br/>Do it yourself.

If you prefer to take control and choose your own investments for your Roth IRA, consider our self-directed investing option. Manage your investments directly and enjoy zero commission on your trades.


Open a Self-Directed Roth IRA

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Why choose a SoFi Roth IRA?

There are lots of reasons to love Roth IRAs — and even more when you open one with SoFi. 

  • Self-directed or automated investing.

    Take control with self-directed investments or opt for an automated investing Roth IRA and we’ll suggest a portfolio based on your goals and risk tolerance.

  • Get personalized advice and guidance.

    Book a complimentary 30-min session with one of our financial planners. They can answer your questions and help you build an investment plan that aligns with your retirement goals.

  • Diversify your portfolio.

    Choose from a wide range of investment options with no commissions. Other fees apply.

    • Stocks

    • ETFs

    • Mutual funds

    • Bonds

    • Alternative assets

    • IPOs

  • Low fees and no minimums.

    We don’t charge account open or maintenance fees**. And you can invest at your own pace without worrying about account minimums. 

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How to open a Roth IRA with SoFi:


  • Choose an IRA account type.

    Select Roth IRA. Other options include traditional and SEP.

  • Select how you’d like to invest.

    You choose how hands on you want to be with your investments—do it yourself (Active Roth IRA) or have us do it for you (Automated Roth IRA).

  • Open an account.

    After you’ve opened your account, add money to your IRA by making a single or recurring deposit from your bank account using SoFi’s secure interface.


Open a Roth IRA

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Income too high? Consider using the “back door.”

If your income exceeds the limit for Roth IRA contributions, you can utilize the ‘back door’ strategy. This involves initially placing funds in a traditional IRA (which has no income cap) and then moving those funds to a Roth IRA using a Roth conversion. When you go this route, you have to pay taxes on deducted contributions and any earnings, but you can enjoy tax-free withdrawals later.

Contact us for the paperwork, and once you’ve submitted it we’ll take care of the Roth IRA conversion. Remember, this is a taxable event, so you may want to consult a financial advisor and/or a tax professional before moving forward with a backdoor Roth as it cannot be reversed.

Learn more about backdoor Roth IRAs.

Get more Roth IRA resources and education.








See more investing articles

FAQs


Am I eligible to open a Roth IRA?

Whether you’re eligible to open and contribute to a Roth IRA depends on your income. If your income exceeds the limits set by the IRS, you cannot contribute to a Roth IRA.< br/>< br/>In 2024, single filers earning less than $146,000 and married couples filing jointly with incomes under $230,000 are eligible to make full contributions to a Roth IRA. If your Modified Adjusted Gross Income (MAGI) falls between $146,000 and $161,000 as a single filer, or between $230,000 and $240,000 for joint filers, your contribution amount will be reduced.


How much can I contribute each year to a Roth IRA?

In 2024, the contribution limits for Roth IRAs are $7,000 per year if you’re under 50, or $8,000 per year if you’re 50 or older. Remember that income caps may also apply (see above).


How much money do you need to start a Roth IRA?

SoFi Roth IRAs do not charge anything to open the account, but you need $5 to choose investments in your Active Invest Roth IRA ($50 to invest in an Automated Invest Roth IRA). 


How is a Roth IRA different from a traditional IRA? 

The key distinction between a Roth IRA and a traditional IRA lies in the tax treatment. With a Roth IRA, you make contributions with after-tax money, allowing for tax-free withdrawals of your contributions and earnings in retirement. Your contributions to a traditional IRA are made with pre-tax money. So, a traditional IRA offers tax deductions on contributions, but withdrawals are taxed as income. Essentially, Roth IRAs offer tax-free withdrawals and traditional IRAs offer tax-deferred withdrawals. 


Can I have both a Roth and Traditional IRA?

Yes, you can have both a Roth and Traditional IRA. However, it’s important to understand that the contribution limits apply across all your IRAs combined. For the tax year 2024, the total contribution limit is $7,000 for all your IRAs ($8,000 if you are over 50). Keep this in mind when planning contributions and considering the tax implications for each account.


Is it worth opening a Roth IRA?

Roth IRAs offer unique benefits for retirement savings, such as tax-free withdrawals in retirement. Here are some considerations to help you decide if opening a Roth IRA is right for you:

• Unlike traditional IRAs, contributions to a Roth IRA are made with after-tax dollars. This means you won’t receive a tax deduction for your contributions. The benefit, however, is that withdrawals during retirement are tax-free, provided certain conditions are met.
• Roth IRAs have income restrictions which may limit or prohibit contributions if your income is too high. For instance, individuals with a modified adjusted gross income (MAGI) over $161,000, or joint filers with a MAGI over $240,000, are not eligible to contribute.
• While you can withdraw your contributions to a Roth IRA at any time without penalty, withdrawing earnings before age 59 ½ and before the account has been open for five years may result in penalties and taxes. This is important to consider if you think you may need access to these funds before retirement.



What are the fees and costs associated with a SoFi Roth IRA?

SoFi Roth IRAs have no maintenance fees and low minimums, so you can save for retirement without unnecessary costs weighing you down. Please view our fee disclosure for a complete listing of fees.


Can I transfer my retirement account to a SoFi Roth IRA?

Yes! To transfer funds from a Roth IRA at another brokerage, you’ll just need to submit an Automated Customer Account Transfer (ACAT) request form via the SoFi app or website. To roll over funds from a Roth 401(k), you’ll need to initiate the transfer with the institution currently managing your Roth 401(k). Note that you cannot roll over funds from a traditional IRA or 401(k) into a SoFi Roth IRA. 


How do I access my SoFi Roth IRA account online or through the app?

Start by logging into your account. Then, under “Invest” select your Roth IRA. From there, you can manage your account and see its performance. 


Can you withdraw from a Roth IRA?

You can withdraw contributions from your Roth IRA at any time without paying penalties or taxes. However, if you withdraw any earnings before they’ve been in your Roth IRA for five years, you could owe taxes and a 10% penalty on the amount you withdraw.


Is a Roth IRA better than a 401(k)?

Deciding if a Roth IRA is better than a 401I(k) depends on your personal circumstances and goals. Because you make contributions with after-tax money, a Roth IRA could be a good option for those in lower tax brackets now. If your employer offers a 401(k) with contribution matching, you could increase your contributions, essentially for free. Keep in mind, some employers offer Roth 401(k)s, which allow you to reap the benefits of both types of retirement accounts. 


What are the tax benefits of having a Roth IRA?

One of the main tax benefits of a Roth IRA is that qualified withdrawals in retirement are tax free, including both contributions and investment earnings. Additionally, the earnings from your Roth IRA are not subject to income tax. That means the amount you put in today is yours in retirement — plus whatever those investments earn.


What is a Roth IRA conversion and how does it work?

A Roth IRA conversion occurs when you move retirement funds from a traditional IRA or 401(k) account into a Roth account. Only post-tax contributions can go into a Roth IRA, so you’ll need to deduct taxes from traditional IRA funds before converting to a Roth account. You can convert by withdrawing from your traditional IRA and contributing to a Roth IRA yourself, or your financial institution can do it for you. 


What is a backdoor Roth and how does it work?

A backdoor Roth IRA is a way for high earners who aren’t eligible to contribute to a Roth IRA to still enjoy the benefits of a Roth account. Instead of contributing directly, individuals can contribute to a traditional IRA and then convert it to a Roth IRA. This process includes withdrawing traditional IRA funds, paying the taxes on earnings, and then moving the rest of the money into a Roth IRA. 

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 Save for retirement the smart way.

There’s lots to love about a Roth IRA. Put your money to work today for tax-free withdrawals in the future.


Open a Roth IRA



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Jun
27
2024

VA Mortgage Loan Calculator

By | mortgage | Comments Off on VA Mortgage Loan Calculator


VA Mortgage Calculator

VA Loan Calculator

If you’re considering financing your home purchase with a VA mortgage loan, you can estimate your costs with a VA mortgage loan calculator. Simply input your home purchase price, VA loan down payment amount, if any, VA loan period, interest rate, and payment frequency to calculate your monthly mortgage payment, total interest paid, and the total mortgage cost.


Preparing to buy a house? Call us for a complimentary mortgage consultation or get pre-qualified online.


What Is a VA Mortgage Loan Calculator?

A VA mortgage loan calculator is an online tool that can help you estimate the cost of borrowing with a VA loan. If you’re eligible for this type of mortgage, you might use a VA home loan calculator to determine how much home you can afford, based on your interest rate, down payment amount, and loan term.

Using a VA loan payment calculator doesn’t tell you how much you’re eligible to borrow, nor does it qualify you for a loan. It’s simply meant to be an informational tool that you can use to guide your decision-making when setting a home buying budget.

How to Use the VA Mortgage Loan Calculator

To use a VA loan calculator you’ll first need to gather some basic information. Specifically, you’ll need to know:

•   How much you want to borrow

•   Your down payment amount (VA loans don’t require a down payment, and many borrowers don’t make one.)

•   An estimated interest rate you might qualify for

•   Your loan term in years

•   Loan payment frequency

You can then plug each of the numbers into a VA mortgage loan calculator in the corresponding space and the calculator does the rest. You’ll be able to see your:

•   Mortgage payment amount

•   Mortgage amount (the principal you are borrowing)

•   Interest paid

•   Total cost of mortgage (the principal plus the interest)

It’s quick and simple, and you can easily make adjustments to any of your inputs to see how your payment amount and interest might change. Mortgage calculators are helpful tools for any first-time homebuyer trying to estimate costs for different types of mortgage loans.

Benefits of Using VA Mortgage Loan Calculator

Using a VA loan payment calculator or home affordability calculator can allow you to see at a glance how much you might pay for a home loan. Estimating your mortgage costs before applying for a loan can help you to:

•   Weigh the benefits of a larger vs. smaller down payment

•   Calculate the total interest paid using a shorter or longer loan term

•   Understand your monthly payment costs to ensure they’re affordable for your budget

Buying a home, with a VA loan or any other type of mortgage loan, can be a complex process and it’s to your advantage to be as prepared as possible before diving in. A VA home loan calculator can give you some hard numbers to work with so you can make the most informed decision possible when it’s time to choose a mortgage.

Remember, though, that in addition to your monthly payment on the mortgage (paying down a portion of what you borrowed, plus interest), you’ll also need to pay for property taxes and home insurance. So build these costs into your budget as well. If you want to see these extra costs factored into your monthly payments, use a mortgage calculator with taxes and insurance.

What Is a VA Loan?

A VA loan is a home loan that’s provided by a private lender but guaranteed by the federal government. VA loans are designed to help qualifying veterans, service members, and eligible surviving spouses purchase a home with minimal down payment and credit score requirements.

VA loans can be used to:

•   Buy a home

•   Build a home

•   Improve a home

•   Complete a mortgage refinance

With the exception of the Native American Direct Loan (NADL) program, which is designed for Native American veterans and veterans married to Native Americans, the government doesn’t extend VA loans directly. Instead, the Department of Veterans Affairs (VA) guarantees the loan.

Should you get a VA loan to buy a home and default on the payments for any reason, the VA would step in to minimize losses for the lender. VA loans are just one type of government-backed mortgage, alongside home loans backed by the U.S. Department of Agriculture (USDA) and Federal Housing Administration (FHA) loans.

Pros and Cons of a VA Loan

VA loans can offer some advantages to homebuyers. Some of the most attractive features of VA mortgage loans include:

•   No down payment requirement

•   No private mortgage insurance (PMI) requirement

•   Low, fixed interest rates

•   Potentially easier approval than conventional mortgage loans

•   No prepayment penalties for paying your loan off early

There are, however, some drawbacks. Perhaps most significantly, VA loans are not available to every homebuyer. You must meet specific requirements to qualify.

Additionally, the VA home loan program has restrictions concerning the types of properties you can buy. If you’re interested in buying a multi-unit rental property for investment income, for instance, you can’t use a VA loan unless you plan to live in one of the units. You’ll need to get any home you plan to buy appraised, and some properties may require inspection from a structural engineer.

VA loans have funding fees, which are due at closing. You could roll the fee into the loan so you pay nothing out of pocket, but that will increase your cost of borrowing in the long term. If you’re putting nothing down, you’ll be starting with zero equity in the property.

VA Loan Requirements

Before you can apply for a VA loan you’ll first need to request a Certificate of Eligibility (COE) to show a lender that you qualify based on your service history and duty status. You can request a COE online through the VA website.

Minimum service requirements are tied to your duty status. Service members meet the guidelines if they’ve served at least 90 continuous days on active duty with no breaks. Requirements for veterans are based on when you served.

For example, if you served any time between August 2, 1990, and the present you meet the minimum active-duty service requirement so long as you completed:

•   24 or more continuous months, OR

•   At least 90 days for which you were called or ordered to active duty, OR

•   At least 90 days if you were discharged for a hardship or reduction in force, OR

•   Less than 90 days if you were discharged due to a service-connected disability

Different requirements apply to National Guard and Reserve members. If you were discharged, you could still obtain a COE if your discharge is related to:

•   Hardship

•   The convenience of the government (you must have served 20 months of a two-year enlistment required)

•   Early out (you must have served 21 months of a two-year enlistment)

•   Reduction in force

•   Certain medical conditions

•   Service-connected disability

If you were dishonorably discharged or discharged for bad conduct, you may not be eligible for VA benefits, including eligibility for VA loans.

Aside from service requirements, you’ll also need to meet credit score and income requirements for a VA loan. The VA does not set a minimum credit score but lenders can. Credit score and income thresholds can vary by lender, but the higher your score is, the easier it may be to get approved.

VA Mortgage Loan Process

The VA loan process starts with obtaining your COE. You’ll need to have this to show to a lender as proof of your eligibility for a VA loan.

Once you’ve checked off that step, you’re ready to use a VA loan calculator to crunch some numbers. If you have a target purchase price in mind, using a VA mortgage calculator can tell you if that amount is realistic, based on your estimated payments.

The next step is choosing a lender. You may want to go through the mortgage preapproval process, sharing some basic information with multiple lenders to get home loan quotes. As you compare VA loan lenders, consider:

•   Interest rates

•   Fees

•   Minimum credit score and income requirements

•   Length of loan terms

If you’ve found a home you want to buy and have made an offer, you can apply for a VA loan. You’ll fill out the lender’s application and agree to allow a hard credit check. You’ll need to have the home inspected and appraised by VA-approved professionals.

The lender may ask for supporting documentation, such as bank statements, investment statements, or an explanation of negative marks on your credit. If you get the green light for a VA loan, the lender will finalize the paperwork so you can prepare for closing.

At closing, you’ll hand over any down payment funds you plan to offer and pay the loan fee unless you’re rolling it into the mortgage. Once you’ve signed off on all the paperwork you can start moving in. Your first payment to a VA loan is usually due on the first day of the first full month after closing.

Reviewing tips to qualify for a mortgage can give you a better idea of what you need to do to improve your approval odds. For more advice on getting the mortgage that’s right for your personal situation, visit a home loan help center.

How Does a Down Payment Work?

A down payment is money you pay in advance against a home’s purchase price. For example, say you want to buy a $300,000 home and plan to put 20% down. You’d give the lender $60,000 at closing and finance the remaining $240,000.

VA loans don’t require a down payment but you can offer one if you’d like to finance a lower amount. A down payment gives you an automatic equity stake in the property, and offering one for a VA loan may help you qualify for better terms.

A larger down payment can also lower your monthly payment. If you’re using a VA loan payment calculator or any other mortgage calculator to estimate costs, you can see how your payment might change based on how much you put down.

Recommended: Cost of Living By State

How to Lower a Mortgage Down Payment

The easiest way to lower the down payment requirement on a mortgage is to choose a home loan option that doesn’t require you to bring a lot of money to the table. VA loans, USDA loans, and FHA loans all have low or no down payment requirements.

Aside from that, you could opt to use gifted money to make a down payment. Down payment gifts must come from an approved person or entity, and you must document them properly. Specifically, you must be able to show in writing:

•   Who made the gift

•   How much was gifted

•   When it was gifted

There must also be wording that specifies that any money you receive is a gift and doesn’t need to be repaid to the donor.


Ready to start your home buying journey?

Get in touch with a Mortgage Loan Officer for a complimentary mortgage consultation. If you’re ready to jump in, get pre-qualified online in minutes.

Average Mortgage Down Payment in 2024

Through the first quarter of 2024, the average home down payment was 13.6% of the purchase price, according to Realtor.com®. In median dollars, the typical down payment over the same period was $26,000. Down payments for second homes and investment properties were 27.9% and 27.3%, respectively.

An often-repeated rule of thumb for down payments is 20%, assuming that you’re getting a conventional mortgage loan. So if you’re buying a $250,000 home, you’d need $50,000 for the down payment.

If you’re considering a government-backed mortgage, however, you don’t have to aim for 20%. Again, VA loans allow you to buy a home with $0 down. That’s an advantage if you don’t have a lot of money saved toward a down payment, or don’t want to part with all your cash.

Recommended: Best Affordable Places to Live in the U.S.

Tips on Mortgage Down Payments

How much should you put down on a home? It depends on your financial situation and overall goals.

You might choose a larger down payment if you:

•   Want a smaller mortgage loan

•   Prefer a lower monthly payment

•   Have plenty of extra cash to cover emergencies or required maintenance and upkeep

On the other hand, you may put less money down if you:

•   Don’t want to drain your cash savings

•   Qualify for a low or $0 down payment mortgage, such as a VA loan

•   Can handle the mortgage payment that would be needed to finance 100% of the home

While you’re shopping for a home, you can park your down payment funds in a high-yield savings account. You can earn some interest on the money and enjoy convenient access when you’re ready to use it.

The Takeaway

A VA home loan calculator can shed light on what you might pay for a VA mortgage. If you’re ready to buy a home but aren’t sure how the process works, start by familiarizing yourself with some of the most important home-buying terms and use mortgage calculators to explore the costs of different types of loans with different down payment amounts and interest rates.

SoFi offers VA loans with competitive interest rates, no private mortgage insurance, and down payments as low as 0%. Eligible service members, veterans, and survivors may use the benefit multiple times.

Our Mortgage Loan Officers are ready to guide you through the process step by step.

FAQ

How do I find out how much VA loan I qualify for?

Getting preapproved can give you an idea of how much you might be able to borrow with a VA loan. The mortgage preapproval process involves sharing some basic information with a lender to get a home loan quote. VA loan preapproval doesn’t guarantee that you’ll be able to get a loan but it can help you estimate your borrowing power.

How much can you borrow on a VA loan?

The amount you can borrow on a VA loan can depend on your credit score, income, and details of the property. For 2025, the maximum VA loan limit for most counties is $806,500. The limit increases to $1,209,750 for high-cost counties. These limits apply to single-family homes.

What is the 1% rule on a VA loan?

The 1% rule on a VA loan refers to the maximum amount a lender can charge for an origination fee. Origination fees are paid to cover the cost of processing the loan. These fees are typically paid at closing, along with other closing costs and your down payment.

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.

*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.


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


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.



Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


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Is 710 a Good Credit Score?

By | Uncategorized | Comments Off on Is 710 a Good Credit Score?


Is 710 a Good Credit Score?

710 credit score

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      By Marcy Lovitch

      (Last Updated – 06/2024)

      Have a credit score of 710 and wonder where you stand in the big picture? Well, there’s good news. With a 710 credit score you are considered to have “good” credit by most lenders. Falling within this category puts you in a positive position when it comes to borrowing options and should give you access to a broad array of loans and credit cards.

      That said, your 710 score falls below the top two FICO® credit tiers, which are “very good” and “exceptional.” This means you likely won’t qualify for a lender’s best interest rates or loan terms or the best rewards credit cards. Read on to find out more about what a 710 credit score means, and what it can get you.

      What Does a 710 Credit Score Mean?

      Credit scores are three digit numbers, generally ranging from 300 to 850, that provide you with a snapshot of your overall credit health. They are calculated solely based on information in your credit reports (you have three credit reports — one from each of the consumer credit bureaus).

      In the FICO scoring model, which is the most commonly used, a 710 credit score falls solidly into the “good” range (670 to 739), but below the “very good” (740 to 799) and “exceptional” (800+) tiers. With VantageScore®, another popular credit scoring model, a 710 credit score also lands in the “good” range (661 to 780), just below the “excellent” tier (781 to 850).

      You may have a good, and not better, credit score because you’re relatively new to credit or because you’ve made some mistakes in the past, such as the occasional late or missed payment or a tendency toward relatively high credit usage rates.

      Still, your 710 credit score is close to the average credit score in the U.S., which is 717. It signals to lenders that you are an “acceptable” borrower and relatively low risk. According to Experian, only around 9% of consumers with good FICO scores are likely to become seriously delinquent on their debts in the future.

      Recommended: FICO Score vs Credit Score

      What Can You Get with a 710 Credit Score?

      With a 710 credit score, most borrowing options will be available to you, and the terms are likely to be attractive. You might also experience benefits in other areas of your life. If you’re looking to rent an apartment, for example, a landlord may be more likely to rent to you over applicants with lower credit scores.

      With a 710 credit score, you might also be able to sign up for a new utility account without a deposit requirement, or qualify for better car or homeowners insurance rates. A good credit score can also be helpful in the job market, since a potential employer might check your credit to assess your overall reliability. A 710 credit score means you likely don’t have any major red flags in your credit reports.

      Can I Get a Credit Card with a 710 Credit Score?

      Yes, you can likely get a credit card with a 710 credit score, including unsecured credit cards (which don’t require any type of deposit or collateral), cards that don’t charge annual fees, and even some rewards cards. You might also be able to qualify for a card with a 0% introductory annual percentage rate (APR).

      However, you probably won’t be able to qualify for some of the best credit card offers on the market. To get approved for the top rewards credit cards, balance transfer offers, and 0% APR offers, lenders generally want to see excellent credit. In addition, you might not get as high of a credit limit as consumers with higher scores.

      Keep in mind that what type of credit card offer you can get will depend not only on your credit score but other factors as well. Credit card issuers will typically look at an applicant’s other debts, employment history, and income.

      Can I Get an Auto Loan with a 710 Credit Score?

      Yes. People with credit scores lower than 710 are often able to get auto loans, so there’s no need to worry you won’t be able to secure decent financing for a car. According to Experian’s State of the Automotive Finance Market report for the first quarter of 2024, almost 69% of cars financed were for borrowers with credit scores of 661 or higher.

      With a 710 credit score, however, you likely won’t be offered a lender’s most competitive APR. The Experian report found that, on average, prime borrowers (which they define as those with credit scores from 661 to 780) pay 6.89% for a new car loan and 9.04% on a used car loan. Borrowers with super prime credit (781 to 850), on the other hand, pay (on average) 5.38%. for a new car loan and 6.80% for a used car loan.

      A quick side note: Some car lenders also use an industry-specific version of the FICO score called FICO Auto Score, which ranges from 250 to 900. This type of scoring is focused specifically on your ability to pay back debts.

      Can I Get a Mortgage with a 710 Credit Score?

      Yes, with a credit score of 710, you shouldn’t have a problem getting a mortgage for a home, provided your income, employment situation, and assets are sufficient to justify the loan. According to Experian, 31% of individuals with a 710 FICO score have a mortgage loan in their credit portfolios.

      With a ”good” credit score of 710, you should be able to qualify for mortgage rates in line with national averages. However, you’re unlikely to get the lowest interest rates available. Lenders generally reserve these for borrowers with “very good” or “exceptional” credit scores.

      When you apply for a mortgage, lenders will likely factor in other criteria, including your income and how much of a downpayment you are able to make. They may also look closely at your debt-to-income ratio (DTI), which is the percentage of your monthly gross income that is being used to pay your monthly debts. While a DTI of 43% is typically the cut-off for getting approved for a mortgage, lenders generally prefer ratios of no more than 36%.

      Can I Get a Personal Loan with a 710 Credit Score?

      Yes, you should be able to get a personal loan with 710 as your credit score, though perhaps not at a lender’s best rates.

      Personal loans, which can range anywhere from $500 to $100,000, are available through banks, credit unions, and online lenders. Because these loans aren’t secured, you qualify primarily based on your creditworthiness as a borrower. Your credit score also helps to determine the rate you’ll pay for the loan. Generally, the better your credit, the lower your rate will be.

      For example, the average APR range for a personal loan for borrowers with credit scores between 690 and 719 is 13.50% to 15.50%. For borrowers with higher scores (720 to 850), on the other hand, the average APR range is 10.73% to 12.50%

      Once you qualify for a personal loan, you can use the funds for virtually any purpose, unlike specifically tailored loans such as for a car loan, student loan, or mortgage. Personal loans can be used for home improvements, credit card consolidation, medical debt, a large purchase, funeral costs, and more.

      Takeaway

      With a “good” credit score of 710, you’ll likely have access to a range of loan and credit card options with attractive rates and terms. Lenders will generally see you as an average risk, since your score isn’t far off from the average consumer credit score of 717.

      That said, there’s still room for improvement, since a 710 score is right in the middle of FICO’s credit tiers, above “poor” and “fair” but below “very good” and “exceptional.” Building your credit — by making on-time credit payments, catching up on past-due accounts, and paying down revolving account balances — can help improve your credit profile and allow you to access lending products with lower rates in the future.

      Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.


      SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

      View your rate

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      Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
      Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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


      Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.



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