The Yahoo view: American Pacific Mortgage is a good option for low-down-payment or specialty mortgages, as its offerings in these categories are robust. It’s not the best for low rates or fees, though.

American Pacific Mortgage is a nationwide mortgage lender that offers a wide variety of mortgage options for all sorts of buyers. There are traditional loans — like conventional mortgages and government-backed FHA, USDA, and VA options — as well as more specialty products, like ITIN mortgages, self-employed loans, non-QM loans, and bridge loans. The lender also offers home equity lines of credit (HELOCs).

While American Pacific’s rates and loan fees tend to be higher than the industry average, the lender has several options to reduce borrower costs, including a 1% down option, several rate buydown programs, and down payment assistance.

Key benefits

• 1% down mortgage option

• Several rate buydown and down payment assistance programs are available

• Offers a wide variety of traditional and specialty loan programs

• Operates in 49 states

• Has more than 350 branches

Need to know

• Rates and fees tend to be higher than industry averages

• You’ll need to work with a loan officer to get a rate quote

• No home equity loans (though it does have HELOCs)

• Does not offer loans in New York

Learn more: What is a mortgage interest rate buydown program?

American Pacific home loan product offerings

American Pacific Mortgage offers the following types of home loans:

• Purchase loans

• Conventional loans

• FHA loans

• VA loans

• USDA loans

• Jumbo loans

• Fixed-rate mortgages

• Adjustable-rate mortgages

• 1% down mortgages

• Renovation loans

• Construction loans

• Reverse mortgages

• Non-QM loans

• ITIN mortgages

• Bridge loans

• Self-employed mortgages

• Manufactured home loans

• Buydowns

• Accessible dwelling unit (ADU) loans

• Piggyback loans

• Refinancing

• Cash-out refinancing

• Investment property loans

• Second home loans

• HELOCs

American Pacific Mortgage does not offer the following types of home loans:

• Interest-only loans

• Lot loans

• Energy-efficient loans

• Home equity loans

• Medical professionals loans

Read more: Want to build an accessible dwelling unit (ADU)? Here’s how to finance it.

American Pacific Mortgage for FHA borrowers

While conventional loans make up the majority of American Pacific’s origination business, nearly a third of its mortgages are FHA loans — a program designed for first-time homebuyers and those with low-to-moderate incomes.

American Pacific allows for down payments as low as 3.5% and credit scores down to 600 on its FHA loans, and you can choose between fixed or adjustable interest rates. The lender also participates in the FHA Within Reach program, which offers down payment assistance via a forgivable loan.

If your score is under 600, you can shop for other FHA mortgage lenders. Many accept scores as low as 580 with a 3.5% down payment.

American Pacific Mortgage for home equity lending

American Pacific Mortgage offers two options if you’re looking to tap your home equity: cash-out refinancing and HELOCs. It does not offer home equity loans.

American Pacific Mortgage home equity line of credit

American Pacific’s HELOC comes with a 10-year, interest-only draw period and a 30-year term. Owner-occupied and second homes are eligible, and you can borrow up to $350,000.

Borrowers can apply with self-employment income, and credit scores as low as 680 are allowed. You can use these HELOCs as a standalone second mortgage or as a piggyback loan when purchasing your home.

American Pacific Mortgage HELOC fees

AP Mortgage does not post HELOC fee information on its website. To learn more about HELOC charges, you’ll need to contact a loan officer.

American Pacific home mortgage loan rates 2024

American Pacific is great at breaking down what drives interest rates, offering videos, infographics, and articles on the topic. However, it isn’t very up-front about what rates it currently offers customers.

You'll need to fill out a short form to find out what rate you might get with American Pacific. This requires information about your loan purchase, timeline, location of the property, price range, down payment, and credit score. Then, wait for a loan specialist to reach out to you.

Learn more: How to get the lowest mortgage rate possible

How American Pacific Mortgage scores on mortgage rates and loan costs

Yahoo Finance uses 2023 Home Mortgage Disclosure Act data comprising 10 million home loan applications to score mortgage lenders on issued mortgage rates and total loan costs. We score each lender on a scale of 1 (lowest) to 5 (highest).

For example, with mortgage rates a lender with a lower score charged a higher-than-median mortgage interest rate for loans issued in 2023. A higher score would indicate a lender granted lower-than-median home loan interest rates to borrowers in 2023.

With total home loan costs, a lower score would indicate that a lender charged higher than median total home loan costs in 2023. A high rating would mean that a mortgage lender offered lower than median all-in home loan costs in 2023.

American Pacific home loan rates score: 2 out of 5 stars

American Pacific total loan costs score: 1 out of 5 stars

What this means: American Pacific Mortgage offered a higher-than-median mortgage rate of 6.75% and a high loan cost of $9,903.08 to borrowers in 2023.

American Pacific mortgage application

American Pacific only has one application form on its website. It’s labeled either “rate quote” or “apply now,” depending on which page you’re coming from. Either way, the form requires a little info about your credit, budget, and contact info, and simply ends with “someone will reach out.” Prequalification is done via the phone, and there is no dedicated preapproval or loan application form online.

American Pacific mortgage calculators and home-buying tools

American Pacific’s online resources are a standout. The lender offers a variety of guidebooks and roadmaps, and its blog is robust. There are five calculators to choose from, ranging from a home affordability calculator to a rent versus buy calculator. You’ll even find a glossary and video explainers scattered throughout the website, and there’s a live chatbot that can answer questions on the fly.

Learn more: Use Yahoo Finance’s free mortgage payment calculator

American Pacific Mortgage pros and cons

Pros

• Lots of affordable loan options. American Pacific offers government-backed loans, 1% down loans, buydowns, down payment assistance, non-QM loans, and HELOCs, giving it 5 stars in the Affordability category.

• Robust online resources. The lender offers five calculators, videos, a glossary, articles, guidebooks, and more, giving it 5 stars in this area.

Cons

• Not very transparent about rates. You can’t see sample mortgage rates anywhere and need to work with a loan officer to get a rate quote, giving it 1 star in this category.

• Rates and fees could be better. According to government data, American Pacific’s interest rates and fees are higher than industry averages.

Dig deeper: How do non-QM loans work?

How American Pacific Mortgages compares to other lenders

American Pacific Mortgage vs. Pennymac

As far as loan options go, Pennymac can’t touch American Pacific, which offers nearly every loan option on the block. Both lenders offer a home equity option (American Pacific a HELOC; Pennymac a home equity loan), and both have a variety of online resources. Pennymac is more transparent about its interest rates, though, and you can apply for your loan online.

Pennymac mortgage review

American Pacific Mortgage vs. Rocket Mortgage

American Pacific also has more mortgage options than Rocket Mortgage, with offerings like USDA loans, construction loans, non-QM mortgages, renovation loans, and more. Both have 1% down and rate buydown options, but Rocket is more up-front about its rates (and those rates tend to be lower too).

Rocket Mortgage review

American Pacific Mortgage FAQs

Is American Pacific Mortgage a bank?

American Pacific is a mortgage lender that offers a variety of mortgage loan options nationwide. It has more than 350 branch locations and is based in Roseville, Calif.

How long has American Pacific Mortgage been in business?

American Pacific was founded in 1996. It offers mortgages in 49 states and has over 350 branches around the U.S.

What mortgage loans does American Pacific offer?

American Pacific offers a wide variety of mortgage loans, including conventional, FHA, VA, USDA, jumbo, non-QM, construction, ITIN, and investment property loans. The lender also offers home equity lines of credit (HELOCs).

Methodology:

Yahoo Finance reviews and scores mortgage lenders with quintile scoring in five primary categories: 1) Interest rates. Using 2023 Home Mortgage Disclosure Act data comprised of 10 million home loan applications, we score mortgage lenders on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and lenders are rated based on total loan costs compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We score lenders based on whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.

Review of Nationwide Multistate Licensing System (NMLS) data on regulatory actions can trigger a penalty to the score of any lender with a consumer mortgage-related administrative or enforcement action within the past five years.

Advertisers or sponsorships do not influence ratings.

Editorial disclosure for mortgages:

The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers.

This article was edited by Laura Grace Tarpley.