Guide to AmeriHome Mortgage [Review]

Guide to AmeriHome Mortgage [Review]

While AmeriHome Mortgage does not offer loan programs or technology that are particularly unique when compared to other lenders, the lender may still be worth considering.

AmeriHome Mortgage Company is a direct mortgage lender based out of Southern California. While founded in 1988 in Michigan, the lender has sold several times in the intervening decades and now has a much broader geographic focus.

Many of AmeriHome’s mortgages derive from the purchase of residential mortgage loans from correspondent lenders. Via the company’s robust correspondent lender network, Amerihome is able to serve and purchase loans in nearly the entire United States. By our count via the NMLS database, AmeriHome is licensed to either originate or service loans in 47 states.

Loan Products

Refinances

As nearly all mortgage lenders do, AmeriHome offers refinances to help lower your monthly payments and/or reduce your interest rate. AmeriHome offers both fixed and adjustable rate mortgages for refinances.

One interesting program that AmeriHome has that is worth highlighting is that the company offers “AmeriHome Rewards” to borrowers who purchase or refinance a home loan with them. Subsequent to the first purchase or refinance, AmeriHome offers a discount of $1,095 on all future origination costs for any property’s mortgage.

AMeriHome allows for cash-out refinances up to 80% of the home’s value.

Conventional Loans

A conventional home loan is one that is issued by a lender and generally guaranteed by a government sponsored entity such as Fannie Mae or Freddie Mac.  This is the most common type of mortgage.

AmeriHome touts its ability to deliver loans “At the Speed of You” as one of its defining features. In other words, AmeriHome’s loan officers are willing to close as quickly or as slowly as you need to.

Features:

  • As with other conventional loans, these are best for borrowers with mid- or high-tier credit scores
  • These loans tend to offer higher loan limits than FHA or VA loans
  • AmeriHome delivers nearly instant pre-qualification letters, and pre-approvals within 24 hours
  • Match with a local real estate agent via the lender’s partnership with Home Captain
FHA Loans

An “FHA loan” is a mortgage that is backed by the Federal Housing Administration, issued by an approved lender, and targeted towards those with lower incomes and/or credit scores. They are designed to broaden the base of homeownership in the country, and AmeriHome is an FHA lender.

Features:

  • Looser credit and debt-to-income requirements make this loan type easier to qualify for than a conventional loan
  • This loan type allows for down payments as low as 3.5% of the purchase price
  • Fixed rate loans are available and rate and term refinances up to 97.75% LTV are available
VA Loans

VA loans are targeted towards US veterans, servicemembers, and their families. Similarly to FHA loans, VA loans are guaranteed by the Department of Veteran Affairs and are designed to enable more service members access to homeownership.

Features:

  • AmeriHome can originate VA loans for active or retired military personnel, as well as some other specific categories
  • Similarly to FHA loans, lower credit scores and incomes can be easier to qualify with a VA loan
  • If your credit is approved, loans may be secured with no down payment required
Fixed-Rate Mortgages and ARMs

Unlike the more common fixed-rate mortgage, an adjustable-rate mortgage (ARM) has a “floating” interest rate that can move throughout the life of a loan. Generally, the first period of the ARM–5 or 7 years, commonly–features a fixed interest rate. With an adjustable-rate mortgage, the initial interest rate is fixed for a period of time. After this initial period of time, the interest rate resets periodically, at yearly or even monthly intervals.

As the name might indicate, a fixed-rate mortgage features an interest rate that does not change for the life of the loan. As with nearly all lenders, AmeriHome offers fixed and adjustable rate mortgages, and it bears consideration as to which to select because of the pluses and minuses inherent with both.

Applying for a Mortgage with AmeriHome

  • Call or visit https://www.amerihome.com/
  • Pre-qualification letter can be issued in just a few minutes, and a full pre-approval generally takes about a day
  • AmeriHome has loan officers on staff to help with your loan application

NMLS Consumer Access Review

Our review of AmeriHome’s entry in the Nationwide Multistate LIcensing System (NMLS) indicates a clean record of operation. As of January 2021, the company has one regulatory action against it that was filed by the state of Kentucky in 2015.

Per the regulatory action, AmeriHome was operating in Kentucky prior to having an active license in that state.

While operating without a license is never a good thing to do, it remains to be said that we did not find any regulatory actions stemming from the mistreatment of consumers.

Conclusion

AmeriHome’s website and overall experience feels decidedly like a trip into the early-2000s. What do we mean?

The website is vague and decidedly unhelpful for making actual decisions. Instead, its rate/terms clicktree feels to us primarily like a form designed to capture your contact information for one of their loan officers to reach out.

Further, the website is thin on content designed to help you make a decision. In our view, it is very clear that AmeriHome’s business model is reliant upon offline, traditional conversions. Calling their main number resulted in a phone tree that took several minutes of waiting and punching numbers prior to being able to get a human on the phone.

As of January 2021, AmeriHome Mortgage is not being available in all states (at the moment, only in 47). AmeriHome Mortgage ultimately stands out to us not because of anything particularly unique, but rather because of its similarity to so many other lenders. There is not much unique to remark on about AmeriHome Mortgage.

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