AMCAP Mortgage Reviews

For anyone who wants to get their hands on affordable loans and mortgages, searching for the right lender can be frustrating. Today, we will look at the pros and cons of AMCAP, a mortgage company from Houston, TX. Here are some AMCAP mortgage reviews.

AMCAP Purchase Mortgage is a direct lender from Houston, TX. It was founded in 2007 and has had mixed success since the beginning. Generally, people have criticized them for their customer service and the lengthy paperwork process. The pros include three different mortgage programs and refinancing.

About AMCAP Mortgage

AMCAP Mortgage was founded in Houston, TX, and since its inception in 2007, this company has had mixed reviews.

Many of their happy customers reported friendly agents willing to help and answer any questions, while some criticized them for the opposite – an unfriendly and unavailable staff.

While it seems that most experiences with AMCAP are individual, let’s check out the actual offers and options available when taking a mortgage loan with this company.

What Are the Different Types of Mortgages Available With AMCAP?

Firstly, we must look at the available mortgage programs offered by AMCAP. Next to conventional mortgages, they offer FHA, USDA, VA, and conforming. This is a benefit that not many lenders offer and could be a game-changer for the clients.

FHA is an excellent loan program for first-time homebuyers who don’t have a lot of money for a large down payment. The USDA program is available to rural property owners, and with AMCAP, no down payments are required. The VA program is backed by the US Department of Veterans Affairs and helps active duty service members, veterans, and widowed military spouses to acquire homes.

AMCAP allows borrowers to apply for loans of up to $3,000,000, but this heavily depends on the type of mortgage. Their website also states that they have a Foreign National, a Bank Statement, and an ITIN Mortgage program.

What Are the Different Loan Terms Available With AMCAP?

Loan terms refer to the specifics agreed upon by the borrower and lender, including the amount of money borrowed, interest rate, repayment schedule, and other conditions of the loan. There are several types of loan terms available for different types of loans such as conventional, FHA, VA, and USDA loans.

1. 15-Year Loan Term: This is a type of mortgage that requires the borrower to repay the loan over a period of 15 years. The advantage of this term is that it allows borrowers to pay off their mortgage faster and typically offers lower interest rates compared to longer-term loans. However, it also means higher monthly payments.
2. 30-Year Loan Term: This is one of the most common loan terms for mortgages. As suggested by its name, borrowers have 30 years to repay their loan in full. While this term results in lower monthly payments compared to a 15-year term, it also generally comes with higher interest rates.
3. Adjustable-Rate Loan Term: Unlike fixed-rate mortgages where the interest rate remains constant throughout the life of the loan, adjustable-rate mortgages (ARMs) have interest rates that change periodically based on market conditions. ARMs usually start with a lower rate than fixed-rate mortgages but can increase significantly over time.

Other costs associated with these loans include closing costs such as origination fees, appraisal fees, title insurance; prepayment penalties which are fees charged if you pay off your mortgage early; and mortgage insurance which is a premium paid to protect lenders against default from borrowers.

AMCAP has competitive mortgage rates that mainly depend on the type of loan and length of the term. They have a mortgage calculator on their website where you can enter numbers that suit you and show you monthly payments based on various interest rates (and other factors.)

They generally offer non-standard interest rates, for example, hybrid mortgages and fixed-rate ones.

What Are the Down Payment Requirements for Each Type of Mortgage?

The down payment requirements for each type of mortgage can vary significantly depending on the specific loan program and the borrower’s financial situation. Here are some common types of mortgages and their typical down payment requirements:

1. Conventional Mortgages: These loans are not insured by the federal government and typically require a down payment of at least 5% to 20%. However, some lenders may offer conventional mortgages with down payments as low as 3% for qualified borrowers.
2. FHA Loans: Insured by the Federal Housing Administration, these loans are designed for low-to-moderate income borrowers. They require a minimum down payment of 3.5% if the borrower’s credit score is 580 or higher. For those with credit scores between 500-579, a 10% down payment is required.
3. VA Loans: Backed by the Department of Veterans Affairs, these loans are available to veterans, active-duty military personnel, and certain surviving spouses. VA loans often do not require any down payment.
4. USDA Loans: These loans are backed by the United States Department of Agriculture and are designed to promote homeownership in rural areas. Like VA loans, USDA loans also often do not require a down payment.
5. Jumbo Loans: These are non-conforming mortgages that exceed the conforming loan limits set by Fannie Mae and Freddie Mac (in most parts of the country this limit is $548,250 in 2023). Because of their size, jumbo loans usually require a larger down payment – typically around 20%.
6. Down Payment Assistance Programs: Some organizations offer grants or loans to help with the down payment on a home purchase. The requirements for these programs can vary widely but may include income limits, credit score thresholds, and mandatory homebuyer education courses.

Remember that while these figures provide a general guideline, exact requirements can vary based on factors such as your credit score, debt-to-income ratio, and other financial considerations.

What Are the Closing Costs Associated With a Mortgage?

Here are some common closing costs that are typically associated with getting a mortgage:

• Origination fees – This covers the lender’s administrative costs for processing the loan application and can range from 0.5% to 1.5% of the loan amount.
• Appraisal fee – Paid to the professional appraiser who determines the market value of the home. Typically $300-$500.
• Credit report fee – Covers the cost of the credit check report performed by the lender, usually $50-$100.
• Title insurance fee – Insures the lender against any title defects. Usually around 0.5-1% of the loan amount.
• Recording fees – Covers county charges for recording the mortgage and transfer documents. Varies by location but often $50-$200.
• Survey fee – If required, paid for the property survey to clearly define property boundaries. $150-$500.
• Home inspection fees – If desired, covers the professional inspection of the home’s condition. $200-$500.
• Origination points – Optional upfront interest charges paid to lower the mortgage interest rate. Each point is 1% of the loan amount.
• Property taxes and insurance – Prorated amounts to establish escrow accounts for taxes and insurance.
• Prepaid interest – Interest charges for the first partial month after closing.

So in total, closing costs could range from 2-5% of the mortgage loan amount on top of your down payment. It’s important to factor these in when budgeting for a home purchase.

Some of the Perks Include Family Home Loans and Refinancing

Besides the three types of mortgages, the perks of choosing AMCAP include refinancing options and programs that help borrowers get mortgages a bit easier.

You can refinance large loans of up to $3,000,000. The Bank Statement program allows borrowers to provide monthly bank statements instead of their tax returns to verify their monthly income.

They offer a Foreign National program for noncitizens looking to invest in property in the US and an ITIN Mortgage Loan program or the Individual Tax Identification Number loans for people who aren’t eligible for social security numbers.

They’re Available in 35 States, Including Washington DC

While they’re not exactly nationwide, they are available in 35 states. You can find a loan officer in your area when you head to AMCAP’s website and contact them to get assigned to the right agent. This significantly increases the possibilities you have with AMCAP and their mortgages.

You Can Get Loans for Home Flipping Projects and Secondary Properties

Generally, investment homes and rentals don’t qualify for financing, but not with AMCAP. They provide funding for both primary and secondary residences, so your vacation property can be refinanced, too.

Additionally, if you’re looking to get into the house flipping business, you can take out a loan for this type of property with AMCAP, too. That way, you’ll grow your business without worries and return the loan after selling it for a higher price (if you want to prepay, of course.)

The Cons Are Mostly Related to Additional Purchase Fees

AMCAP also has a lot of negative reviews, which were primarily related to their customer service. However, they have fees that may deter you from going for their services – an origination fee and a prepayment fee.

A person would think prepaying a loan is good, but with AMCAP, you’ll get fined. Considering how the Federal Law prohibits prepayment penalties on many types of home loans (USDA and FHA included,) they can be allowed under certain temporal and financial restrictions.

Lenders generally charge origination fees, and they are paid to process a loan application. These are typically around 1% of the loan amount but sometimes up to 10%. It’s uncertain how much AMCAP takes.

People Generally Dislike Their Customer Service and Availability

Most reviews mentioned AMCAP’s customer service and availability. Some have dubbed their experience with this company as one of the worst because of how long it took the agents to process the paperwork, their responsiveness, and their capabilities.

People often mentioned the loan officers being kind and nice, but their lack of organization and management skills seemed to have given many people the idea that AMCAP hires less than able agents.

This is based on experiences written by users on Yelp.

You Can Only Get Loans on Multi-Family Properties, and Not Single-Family or Manufactured Homes

One thing that could make AMCAP slightly tougher to work with or consider is that they don’t offer mortgages for single-family and manufactured homes. You can only apply for mortgages for multi-family properties, which are duplexes, condos, and townhouses, among many others.

This is great news for those looking to finance properties with two or more units, but this isn’t often the case. All the perks and programs of AMCAP may bring little benefit because of the multi-family property limitation.

An Overview of AMCAP Pros and Cons

Now that we’ve laid out all the good and bad services provided by AMCAP, let’s put it in a quick chart overview. You can use it as a checklist to guide you through the lender selection process.

The pros may seem to outnumber the cons, but the weight of the negative sides is enough to disrupt the balance when choosing the right path.

Other Mortgage Companies to Consider

While AMCAP may seem like a great lender with excellent benefits, most people take out loans for single-family homes, and that’s where the problem arises.

If you want to find a company that can offer you similar perks and let you invest in a single-family house, Supermoney recommends the following companies:

• AmeriSave – they offer the same mortgage types as AMCAP, plus jumbo mortgages; they finance single-family and multi-family homes, but not manufactured ones; they also have adjustable interest rates; there are no prepayment and origination fees, and AmeriSave is available in 49 states,
• New American Funding – they offer loans of up to $2,000,000, seven different mortgage types, and finance all types of properties, including vacation and investment properties; they accept clients with a credit score 620 and above, and charge an origination fee,
• Guaranteed Rate – they have six different types of mortgages, offer home loans for all kinds of primary and secondary properties, don’t have prepayment and origination fees, and are available in all 50 states. People with a credit score of at least 620 can apply for loans,
• Veterans United Home Loans – they offer the same types of loans as AMCAP but consider both single-family and multi-family properties; they don’t offer mortgages for manufactured homes and charge an origination fee but not the prepayment fee; the smallest duration you can get a loan is 15 years, but people with a credit score of 620 can apply.

Will AMCAP Be Good for You Longterm? It Depends On the Mortgages

If you find AMCAP to have everything you need and have a good experience with their customer service, they will be the right lender for you. However, considering the alternatives and their benefits, it can be challenging to trust just one lender to do everything for you.

Before deciding to go with one company, you should do some research and ask for mortgage calculations from multiple lenders. The consensus is that AMCAP needs to work on its agility and resourcefulness, but they have perks that are hard to ignore.

If you get an excellent offer on a mortgage, ensure you ask them everything you want to know and set your own reminders for submitting paperwork.

Frequently Asked Questions(FAQ)