American Federal Mortgage Corporation Review 2024

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 others, can provide loan prequalification and issue an approval in as little as 24 hours. 

Pros and cons of American Federal Mortgage Corporation

How Bankrate scored American Federal Mortgage Corporation

• Affordability: American Federal Mortgage Corporation usually doesn’t charge fees, which can save you from having to pay more at closing.
• Availability: This lender is available in less than 20 states, and doesn’t offer USDA loans.
• Borrower experience: American Federal Mortgage has high ratings from past customers and boasts a convenient digital application, underwriting and closing process.

Affordability: 9.6/10

American Federal Mortgage typically doesn’t charge any lender fees. The lender doesn’t display mortgage rates on its website, but you can obtain a rate quote quickly by completing a short online form. This requires providing your name, address, requested loan amount and the purpose of the mortgage: home purchase or refinance.

Availability: 6.8/10

American Federal Mortgage offers conventional, FHA and VA loans to borrowers in some states, including New York, Pennsylvania and Texas. Notably, you might qualify for a jumbo loan with a credit score as low as 660 from this lender.

Borrower experience: 7.2/10

American Federal Mortgage Corporation has been in business for more than 30 years. The lender has a Trustpilot rating of 4.6 out of five stars, with 94 percent of customers naming the lender “Excellent.” It isn’t accredited by the Better Business Bureau, however.

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 that allows you to easily review and e-sign closing paperwork. According to the lender, this platform cuts down in-person signing to under 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.

Images courtesy of American Federal Mortgage Corporation as of 3/21/2024. Note: Depending on method of contact, your individual credit profile and other circumstances, your experience might differ.

How to apply for a mortgage with American Federal Mortgage

You can apply for a mortgage with American Federal Mortgage online or by phone at 888-321-4687. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with American Federal Mortgage

American Federal Mortgage offers both rate-and-term and cash-out refinancing options. Though the lender doesn’t display its refinance rates online, 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 form by completing a short form on the lender’s website.

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%
  • Availability: Loan products - 50%; licensing - 40%; credit score - 10%
  • Borrower experience: Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.