Find The Perfect Home Loan

Welcome to American Mortgage Company, where the concept of home is always at the forefront of our minds. We understand that every individual’s idea of home is unique, and that’s why we take pride in offering a diverse range of home mortgage loans tailored to meet your specific needs.

Our commitment to you is unwavering. Whether you’re a first-time buyer, a seasoned homeowner, or looking to refinance, we’ve got the perfect home loan waiting for you. Our experienced mortgage team is here to guide you through the process, ensuring you find the best-suited loan for your dream home.

Explore some of our popular home mortgage loans below to see the various options available. However, we know that finding the ideal loan can be overwhelming. Don’t worry; our knowledgeable team is just a call away! Reach out to us, and together, we’ll navigate the mortgage landscape to determine the best home loan for you.

Types of Mortgages

FIXED-RATE VS. ADJUSTABLE RATE
A fixed rate mortgage locks in the same interest rate for the entire payment term, even if you’re paying across several decades. An adjustable rate mortgage (ARM) features an interest rate that changes over time, usually every year after an initial fixed period.

CONVENTIONAL VS.
GOVERNMENT-INSURED
Conventional loans are not insured by the government and harder to secure. If you have sufficient credit, steady income, and a down payment, you’ll generally find interest rates attractive. It’s easier to qualify for a government-insured loan, but they are generally less generous when it comes to interest rates. You’ll also probably have to buy mortgage insurance with a government-insured loan.

CONFORMING VS. JUMBO
A conforming loan amount falls within maximum size limits set by two government-controlled corporations. A jumbo loan amount exceeds the maximum size limits set for a home loan. You’ll need excellent credit, a large down payment, and, in most cases, a willingness to pay higher interest rates for a jumbo loan.

Loan Products

Conventional Loan

A conventional loan is a type of mortgage loan that is not insured or guaranteed by any government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Instead, conventional loans are backed by private lenders, including banks, credit unions, and mortgage companies.

Key characteristics of conventional loans include:

Down Payment: Conventional loans typically require a higher down payment compared to government-backed loans. The minimum down payment can vary but is generally around 5% to 20% of the property’s purchase price.
Private Mortgage Insurance (PMI): If the down payment is less than 20%, borrowers may need to pay for private mortgage insurance to protect the lender in case of default. Once the loan-to-value ratio (LTV) reaches 80%, PMI can often be removed.
Credit Requirements: Conventional lenders usually have stricter credit score requirements compared to some government-backed loans. A higher credit score can help borrowers secure more favorable interest rates and terms.
Use: Conventional loans can be used for various purposes, including purchasing a primary residence, a second home, or an investment property. They can also be used for refinancing existing mortgages.

FHA Loan

An FHA loan, also known as a Federal Housing Administration loan, is a mortgage loan insured by the Federal Housing Administration, which is a part of the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to help first-time homebuyers, low-to-moderate-income borrowers, and those with limited down payment funds or lower credit scores to achieve homeownership.

Key features of FHA loans include:

Lower Down Payment: FHA loans typically require a lower down payment compared to conventional loans. Borrowers may qualify for an FHA loan with a down payment as low as 3.5% of the home’s purchase price.

Easier Credit Requirements: FHA loans are more lenient regarding credit scores than conventional loans. Borrowers with credit scores as low as 580 may qualify for an FHA loan with a 3.5% down payment. Those with credit scores between 500 and 579 may still be eligible but may need a higher down payment of 10%.

Mortgage Insurance: FHA loans require borrowers to pay mortgage insurance premiums (MIP). There is an upfront premium at the time of closing, and an annual premium that is added to the monthly mortgage payment.

Flexible Debt-to-Income Ratio: FHA loans generally allow for a higher debt-to-income ratio compared to conventional loans, making it easier for borrowers to qualify.

VA Loan

A VA loan, or Veterans Affairs loan, is a mortgage loan program offered to eligible military service members, veterans, and their surviving spouses. Created by the U.S. Department of Veterans Affairs, VA loans are designed to help current and former military personnel achieve homeownership with favorable terms and benefits. To be eligible for a VA loan, veterans must meet specific service requirements, and surviving spouses must meet certain criteria as well. VA loans can be used for various purposes, including purchasing a primary residence, refinancing an existing mortgage, or making home improvements.

Key features of VA loans include:

No Down Payment: One of the most significant advantages of VA loans is that eligible borrowers can purchase a home with no down payment. This can make homeownership more accessible for veterans who might not have substantial savings for a down payment.

No Private Mortgage Insurance (PMI): VA loans do not require borrowers to pay for private mortgage insurance, which is typically required for conventional loans with a down payment of less than 20%. This can save borrowers significant money over time.

Flexible Credit Requirements: VA loans often have more relaxed credit score requirements compared to conventional loans, making it easier for qualified veterans to secure financing.

Lower Interest Rates: VA loans typically offer competitive interest rates, which can result in lower monthly mortgage payments.

Limited Closing Costs: VA loans place restrictions on the closing costs that can be charged to the borrower, potentially reducing the upfront expenses associated with purchasing a home.

Jumbo Loans

A jumbo loan is a type of mortgage loan that exceeds the loan limits set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. These loan limits are established to standardize mortgage loans and are typically lower in less expensive housing markets. In 2023, for most counties in the Dallas-Fort Worth Metro, the conforming loan limit is $726,200 for a single-family home.

USDA Loans

A USDA loan is a type of mortgage loan offered by the United States Department of Agriculture (USDA) through its Rural Development Guaranteed Housing Loan Program. USDA loans are designed to encourage rural and suburban homeownership by providing eligible borrowers with affordable financing options.

Key features of USDA loans include:

No Down Payment: One of the most significant advantages of USDA loans is that eligible borrowers can purchase a home with no down payment. This makes homeownership more accessible for individuals and families in rural and suburban areas.

Low-Interest Rates: USDA loans typically offer competitive interest rates, making monthly mortgage payments more affordable.

Income Limits: To qualify for a USDA loan, borrowers must meet certain income limits based on the area’s median income. These income limits vary depending on the location of the property and the number of people in the household.

Geographic Eligibility: USDA loans are specifically designed for properties in designated rural and suburban areas. Borrowers must ensure that the property they want to purchase is within an eligible location according to USDA guidelines.

Debt Service Coverage Ratio (DSCR)

A Debt Service Coverage Ratio (DSCR) loan is a type of mortgage loan that is commonly used for investment properties. DSCR is a financial metric that lenders use to assess the borrower’s ability to cover the debt payments on the property. In a DSCR loan, the lender evaluates the property’s cash flow by comparing the property’s net operating income (NOI) to the debt service, which includes the principal and interest payments on the loan. The DSCR is calculated by dividing the property’s NOI by the total debt service.

A DSCR of 1 or higher indicates that the property’s cash flow is sufficient to cover its debt obligations. Generally, lenders prefer a DSCR of 1.25 or higher to provide a safety margin and ensure the property generates enough income to cover expenses and debt payments comfortably.

Bank Statement or 1099-Statement Loans

A bank statement loan, also known as a self-employed mortgage or a stated income mortgage, is a type of mortgage loan designed for self-employed individuals or business owners who may have difficulty providing traditional income documentation, such as W-2s or tax returns, to qualify for a mortgage.

Key features of Bank Statement loans include:

Alternative Income Documentation: Instead of relying on traditional income verification, bank statement loans use the borrower’s bank statements to assess their income. Lenders will typically review the borrower’s personal or business bank statements for a specified period, usually 12 to 24 months, to calculate an average monthly income.

Flexibility for Self-Employed Borrowers: Bank statement loans are especially beneficial for self-employed individuals who may have fluctuating income or significant deductions on their tax returns, making it challenging to meet conventional underwriting requirements.

Higher Interest Rates: Since bank statement loans present higher risk for lenders due to the limited income documentation, they often come with slightly higher interest rates compared to traditional mortgage loans.

Down Payment Requirements: The down payment requirements for bank statement loans can vary depending on the lender and the borrower’s credit profile. Some lenders may require a higher down payment to offset the increased risk.

Credit Requirements: Credit scores and credit history are still essential factors for bank statement loan approval, and lenders may have specific minimum credit score requirements.

“Figure: 7TAC §80.200(b)”
“Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas, 78705. Complaint forms and instructions may be obtained from the Department’s website at WWW. SML.TEXAS.GOV. A toll-free consumer hotline is available at 1-877-276-5550. The Department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the Department prior to the payment of the claim. For more information about the Recovery Fund, please consult the Department’s website at WWW. SML.TEXAS.GOV.”

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Loan Types