Mortgage lender · Chester, NJ · LEI 549300KWKWPEKL40WD44

American Federal Mortgage review: approval odds, rates and grade (2025)

American Federal Mortgage earns a B, better than most small mortgage lenders. It turned down 5.5% of the applications it decided on in 2025, which ranks in the 70th percentile for approval odds. Its median loan was priced 0.19 points below the average prime offer rate, ranking in the 91st percentile on pricing. Compared against 1,883 small mortgage lenders using 2025 HMDA filings.

1.6kApplications2025
56.2%Originatedof applications
5.5%Decision denial ratenational 22.6%
6.13%Median ratenational 6.63%
$399MLoan volume14 states

American Federal Mortgage at a glance, 2025

Every figure is from the lender's own HMDA filing. "vs national" compares with all lenders combined.

3.3%Denial rate (all applications)-14.69 pts vs national
5.5%Denial rate (decided applications)-17.06 pts vs national
56.2%Origination rate-1.83 pts vs national
40.5%Withdrawn by applicant
0.0%Closed for incompleteness
6.13%Median interest rate-0.50 pts vs national
-0.19Median rate spread (pts over APOR)-0.45 pts vs national
$405,000Median loan amount
$4,857Median total loan costs
$179kMedian applicant income
75%Median loan-to-value
0High-cost (HOEPA) loans

How the B grade breaks down

Each component is a percentile rank among 1,883 small mortgage lenders. Higher is better. Components the lender does not report are left out and the weights redistributed.

Approval oddsdecision denial rate, weight 45%

70th5.5% denied

Pricingmedian rate spread over APOR, weight 30%

91st-0.19 pts

Processwithdrawn + incomplete share, weight 15%

2nd40.5%

Closing coststotal loan costs ÷ loan amount, weight 10%

78th1.20% of loan

Trend, 2023–2025

YearApplicationsOriginatedDenial rateDecision denialMedian rateVolume
20231,3687553.8%6.4%6.38%$296M
20241,7009383.2%5.4%6.38%$406M
20251,6129063.3%5.5%6.13%$399M

What American Federal Mortgage lends

Applications by purpose and loan type in 2025, with the denial rate for each. A lender's mix explains a lot of its headline rate: HELOCs and FHA loans are denied far more often than conventional purchase loans.

By loan purpose

Home purchase 929 58% · 2.8% denied
Refinance 658 41% · 3.8% denied
Home improvement 25 2% · 8.0% denied

By loan type

Conventional 1,555 96% · 3.3% denied
FHA 50 3% · 2.0% denied
VA 7 0% · 0.0% denied

Also: 0 home-equity lines, 0 reverse mortgages, 0 manufactured homes, 191 investment properties.

Why American Federal Mortgage denies applications

Primary reason reported for each of the 53 denials in 2025. Lenders can cite up to four reasons; this is the first one listed.

Debt-to-income ratio 23 43%
Collateral 16 30%
Other 7 13%
Employment history 4 8%
Insufficient cash 1 2%
Unverifiable information 1 2%
Credit history 1 2%

How these reasons compare nationally →

Who gets approved at American Federal Mortgage

Decision denial rate by applicant profile. Groups with fewer than 20 applications are omitted.

Applicant incomeApplicationsOriginatedDecision denial rate
Under $50k23758.8%
$50k – $100k1831096.0%
$100k – $150k3492013.8%
$150k – $250k6213524.9%
Over $250k4282343.7%
Applicant ageApplicationsOriginatedDecision denial rate
Under 2527175.6%
25–344412453.5%
35–446703904.4%
45–542711407.9%
55–641457612.6%
65–7444293.3%

Where American Federal Mortgage lends

14 states and 235 counties in 2025. Click a state for the lender's full record there.

StateApplicationsOriginatedDenial rateMedian rateRank in state
New Jersey7414423.9%6.25%#87
Pennsylvania2041442.5%6.25%#270
Florida149824.0%6.31%#421
Texas136422.9%5.93%#495
North Carolina101401.0%6.13%#322
Georgia93404.3%6.06%#349
New York39270.0%6.13%#356
Tennessee35132.9%6.13%#461
Illinois27123.7%6.13%#553
South Carolina27210.0%6.25%#410
Connecticut24150.0%6.00%#279
Delaware18150.0%6.38%#192
Massachusetts1189.1%6.06%#451
Maryland7514.3%6.13%#503

Frequently asked questions

American Federal Mortgage denied 5.5% of the applications it decided on in 2025. The national figure across all lenders was 22.6%. On approval odds it ranks in the 70th percentile of small mortgage lenders.

The most common reason American Federal Mortgage gave in 2025 was "debt-to-income ratio", cited on 43.4% of its denials. Lenders report up to four reasons per denial to the CFPB; the full breakdown is on this page.

The median interest rate on loans American Federal Mortgage originated in 2025 was 6.13%, and its median rate spread over the average prime offer rate was -0.19 points. Rates on this page are what borrowers actually got, not advertised rates.

In 2025, 58% of its applications were for home purchases, 41% for refinancing (including cash-out), and 2% for home improvement or other purposes. By loan type: 96% conventional, 3% FHA, 0% VA.

Every figure on this page comes from the Home Mortgage Disclosure Act (HMDA) Loan/Application Register published by the CFPB, which lenders are required by federal law to file. We add the grade and the comparisons; we do not add facts.

About this data. HMDA data is published once a year by the CFPB. The current release covers applications acted on in calendar year 2025. Figures describe applications the lender acted on, including loans it later sold. Interest rates and costs are medians on originated loans only; some depository institutions are exempt from reporting pricing fields, which is why a few cells read "—". MortgageGrades is not affiliated with American Federal Mortgage. Data sources · Methodology