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.
Borrowers looking for convenient application options and a streamlined closing process
- Rate-and-term and cash-out refinancing
American Federal Mortgage typically doesn’t charge any lender fees.
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.
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.
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.
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Breakdown of American Federal Mortgage Corporation overall review score
- Affordability: 15/15
- Availability: 18/20
- Borrower experience: 14/15
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.