American Financial Mortgage

By: EconomyWatch   Date: 27 October 2010

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American Financial Mortgage
 
American Financial Mortgage is one of the oldest Merchant Banking companies in Pennsylvania, USA. It was established in the year 1988. American Financial Mortgage Corporation provides one of the most competitive financing options to the residential and commercial mortgage seekers. Products offered by American Financial Mortgage Corporation are: -

  • Pennsylvania Housing Finance Agency (PHFA)
  • New Construction Loans
  • Interest Rate Reduction Loan
  • FHA and VA Loan

Services offered by American Financial Mortgage Corporation include: -

  • Pre approvals of mortgages done free of cost within 24 hours of filling up the form online.
  • Online credit analysis is provided free of cost.
  • Rates offered by American Financial Mortgage Corporation are very competitive.

Pennsylvania Housing Finance Agency (PHFA)PHFA provides home mortgage loans at a rate below the market rate. These loans are fixed rate home mortgage type. It is applicable only for the residents of Pennsylvania State. The Statewide Homeownership Program under PHFA supplies funds for this program year-round.

Eligibility criteria for this program are: -

  • The person concerned should not have owned a home in the past 3 years.
  • The combined total income of all the persons who are intending to buy the home should not cross the country's total income limit in which it is situated.
  • The person should have a good credit history. The total mortgage payment should not cross his gross monthly income.
  • The person's total monthly payment towards mortgages, other loans, debt, etc. should not exceed 38% of his gross total income.

FHA and VA Loans

These loans require either no or small down payment, if someone is eligible for it. In USA, there are two government-backed programs, which have fewer restrictions than their conventional counterparts. 1. Federal Housing Administration (FHA) – These have both the facilities of fixed and adjustable rate loans.
2. Veteran's Administration (VA) - These are only fixed rate ones.American Financial Mortgage Corporation offers a VA loan program exclusively for the veterans of the country. It gives loan for home building purposes to them at a rate lower than the other types of mortgages.
Advantages of VA loans are: -

1. No down payment
2. Terms of repayment are long in nature
3. Loan can be prepaid without penalty
4. Rate of interests are lower
5. A warranty of 1 year will be given to the house where VA would appraise and inspect the same before and during the construction.

Interest Rate Reduction Loan (IIRL)American Financial Mortgage Corporation offers interest rate reduction loan (IIRL) to its customers for streamlining the refinance program.Refinance loan completely replaces the mortgage that one has. In majority of cases, the mortgage company pays off the existing mortgage of a debtor for a reduced rate and a new mortgage is then drawn up. In this way the interest rate scales down and consequently the payment gets slashed.

Rate of several products offered by American Financial Mortgage Corporation are: -
1. For Fixed Rate Loans (FRM): -
(a) 5.500% for 15 years
(b) 5.625% for 20 years
(c) 5.875% for 30 years

2. For Adjustable Rate Loans (ARM): -
5.625 % for 5/1 ARM
3. For FHA and VA Loans: -
5.75% for 30 years
4. For New Construction: -
6.125% fixed for 30 years

5. PHFA and First Time Home Buyers: -
5.85% for mortgage loan.


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