American Federal Mortgage Corporation Review 2021

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At a glance

American Federal Mortgage Corporation

4.7

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Bankrate Score

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Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing
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Nationwide availability

Available in Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee and Texas
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Min. credit score required

620 for conventional loans; 660 for jumbo loans; 580 for FHA loans

Pros and cons

Pros

  • Online application and closing process
  • Instant rate quote tool
  • Approves loan in as little as 24 hours

Cons

  • Doesn't offer USDA loans
  • No brick-and-mortar locations

American Federal Mortgage Corporation overview

American Federal Mortgage Corporation is a direct lender with an online-based application and closing process. The lender claims to offer some of the lowest interest rates and fees, and like other lenders, can provide a loan prequalification in order to help you budget when shopping for a home, and can issue an approval in as little as 24 hours. Prospective borrowers can submit a mortgage application to this lender online or by phone. As a direct lender, American Federal Mortgage provides the approvals for loans and also the funds for closing. Headquartered in Chester, New Jersey, the lender was founded in 1987, and is now one of the country’s largest privately-held mortgage bankers.

Good for

Borrowers looking for convenient application options and a streamlined closing process

Loan types 

  • Conventional
  • Jumbo
  • FHA
  • VA
  • Fixed-rate
  • Adjustable-rate
  • Rate-and-term and cash-out refinancing

Lender fees

American Federal Mortgage typically doesn’t charge any lender fees.

Rates

American Federal Mortgage doesn’t publicly advertise mortgage rates on its website, but you can obtain a rate quote quickly by completing a short form on the lender’s website. This requires providing your name, address, requested loan amount and the purpose of the mortgage: refinance or purchase.

The lender claims to have been offering some of the lowest rates in the industry for more than 30 years thanks to its emphasis on technology, which has allowed it to keep costs down and pass along the savings to borrowers.

Reputation

American Federal Mortgage has a Trustpilot score of 4.5 out of five stars, with 94 percent of customers giving the lender an “excellent” rating. The lender, however, is not accredited by the Better Business Bureau.

Online services 

American Federal Mortgage is all about speed and convenience, and has incorporated technology throughout the preapproval, application and closing process. Its application process reduces the effort involved in gathering documentation by allowing you to link your bank statements to help verify income in a secure online portal, and you can track your loan’s progress from anywhere using your computer or phone.

When it’s time to close your loan, you can opt for the lender’s Close with EASE (Early Access, Sign Electronically) process, which features an online document platform that allows you to easily review and e-sign closing paperwork. According to the lender, this platform cuts down in-person signing to just five to 10 minutes.

Lastly, there are many resources available on the lender’s website, including a text chat feature to answer any questions you might have before applying and several calculators, such as a mortgage payment calculator and a rent versus buy calculator.

Minimum borrower requirements

American Federal Mortgage follows Fannie Mae’s underwriting guidelines for conventional mortgages. That means you’ll need a credit score of at least 620, a down payment of at least 3 percent and a debt-to-income (DTI) ratio of 43 percent or lower for a conventional loan.

For FHA loans, borrowers can generally qualify with a credit score as low as 500 and a DTI ratio as high as 50 percent. VA loans don’t have a credit score or down payment requirement.

In order to qualify for a jumbo mortgage, you’ll typically need a credit score of at least 660 or higher and a DTI ratio of 43 percent or lower.

Refinancing with American Federal Mortgage Corporation

American Federal Mortgage offers refinancing. Though the lender doesn’t publish its refinance rates, it does offer a free refinance analysis that provides a comparison of your existing loan and current rates and options. The analysis is designed to help you decide whether refinancing makes sense for your situation. You can obtain a refinance quote from American Federal Mortgage by completing a short form on the lender’s website.

Not sure if American Federal Mortgage Corporation is right for you? Consider these alternatives

Breakdown of American Federal Mortgage Corporation overall review score

  • Affordability: 15/15
  • Availability: 18/20
  • Borrower experience: 14/15

Review methodology 

To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.

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American Federal Mortgage Corporation consumer reviews

5.0

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123 reviews

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Customer service rating

Knowledge
4.9
Level of service
5.0
Professionalism
5.0
Responsiveness
5.0

99% of reviews would recommend this lender

10 of 10 rates honored

Review this lender

Write a review of your experience with American Federal Mortgage Corporation.

10 of 34 reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.

To help serve you with relevant information the consumer reviews shown below are limited to only those that this advertiser has received during the past 12 months.

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Great Experience from Start to Finish!

Mike G. | New Jersey | 10/29/2020

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Great experience.

Rafael | NY | 10/30/2020

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Great Rates, Responsive and Trustworthy

Jeff | New Jersey | 11/6/2020

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No pressure at all - Great experience

Rich Bialek | Ringwood,N.J. | 12/8/2020

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Easy & Painless

Lisa P | NJ | 12/11/2020

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Trustworthy & Honest

Dan L | Solebury, PA | 12/13/2020

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Professional and efficient

Vimal R | South Windsor, CT | 12/25/2020

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Ryan Harris did a great job

Bob Waters | 32118 | 1/7/2021

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Great Rates, Very Professional, Awesome People

Pete S | FL | 1/12/2021

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Great experience, timely closing

Courtney R | Bucks County, PA | 1/30/2021

Written by
Mia Taylor
Contributing writer
Mia Taylor is an award-winning journalist who has two decades of experience and a graduate degree in journalism and media studies.
Edited by
Mortgage editor