Lofi and House have traditionally been regarded as separate genres, and to many, they still are. However, since the late 2010's, the combination of both genres has emerged as a niche sub-genre of its own.
"Lofi" stands for "low fidelity," which essentially means relatively imperfect. In the genre of Lofi and all of its sub-genres, you'll notice elements like distortion, background noise, heavy reverb, and other noticeable imperfections. As Lofi Hip-Hop and Lofi House have gained a ton of traction in recent years, it's hard to ignore the fact that the "Lofi" qualities of these niche genres were essential to the foundation of both Hip-Hop and House. Check out some of the earliest Hip-Hop, like A Tribe Called Quest, and you'll notice these features in the production.