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AAFMAA Mortgage Services LLC is a subsidiary of AAFMAA that provides affordable home financing options to Military Service Members, Veterans, and their families. We provide customized products with exceptional customer service for the military.

We are committed to a service that meets our customers’ needs with a personal touch.

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Loan Inquiries

844-4-AAFMAA (844)-422-3622 Contact Us


639 Executive Pl Ste 203 Fayetteville, NC 28305

AAFMAA Mortgage Frequently asked questions

What is a home appraisal and why is it necessary?

A home appraisal is an official estimate of a property’s value. It assures that the loan amount along with the down payment is a proper estimate of the value of a home at a point in time. It also assures that the lender has adequate collateral should the property go into foreclosure.

What is PMI and do I need it?

PMI is Private Mortgage Insurance, designed to protect the lender against borrowers that default on their mortgages. PMI is only required if a homebuyer is unable make a down payment of 20 percent or more. It can be avoided with a piggyback loan. At certain points in time, piggyback loans were more competitive than PMI in terms of overall cost and payment.

What is the minimum credit score I need to qualify for a loan?

Minimum credit scores vary depending on the type of loan program. However, remember that other factors are used to determine your approval. Generally speaking, credit scores below 620 are considered subprime.

What is LTV (Loan to Value)?

LTV is the loan amount divided by the appraisal value of the home (or purchase price, typically which ever value is lower). A 100 percent LTV means that your loan equals the home value you wish to purchase at a given date and time of appraisal. Lenders will calculate your LTV in order to determine your mortgage rate. Mortgage rate is the interest rate on your mortgage payment (known as the coupon, which includes servicing costs). If your LTV is higher than 80 percent, then you are required to have mortgage insurance or a piggyback (or the loan is held in portfolio, which is typically done for subprime high cost loans).

How will I know what loan amount I qualify for?

The first step is to complete the loan application. After completion, your state licensed loan officer will use your credit and financial information to determine which loan program is right for you.

What are cash reserves?

Cash reserves are liquid assets, designed to prove the homebuyer has adequate funds to make payments. The amount of cash reserves required varies by loan program. Examples of these assets are money in checking and/or savings account, stocks, bonds, 401(K), IRAs and other retirement accounts.

I am self-employed, how will you determine my income?

The income of a self-employed individual will be verified by obtaining copies of personal and business The income of a self-employed individual will be verified by obtaining copies of personal and business federal tax returns from the most recent two year periods. The average net self-employment income reported on your tax returns will be used for your loan application, with some variations. AAFMAA Mortgage Services has access to programs that rely on as little as one year of tax returns for well-qualified mortgage consumers.

Will the inquiry about my credit negatively affect my credit score?

Hard inquiries for your credit score, like when a lender pulls your credit score for a potential mortgage, may affect your credit score slightly (typically one to three points). Also, all mortgage inquiries in any 14-day period are considered as one inquiry, unless applying for non-mortgage related credit.

I will not be able to attend the closing. What can I do?

If you cannot attend the closing in person, let your loan officer know as soon as possible to discuss your options. If someone can attend on your behalf, you can execute a power of attorney, allowing this person to sign documents on your behalf. The person that you designate as power of attorney will need to be reviewed and approved by the lender and Title Company, and this takes time. AAFMAA Mortgage Services can also do “mail aways.” In a mail away, AAFMAA Mortgage Services arranges for the closing to occur where you are at a specific point in time (for example, on July 21st in Columbus, Ohio).

Do I need a fixed rate or an adjustable rate?

Fixed-rate loans have interest rates that do not change during the life of the loan. Adjustable-rate loans have rates that are linked to an index and/or Prime rate, and therefore can change over time. Consider all factors that could affect your decision, such as how a higher monthly payment would impact your budget if

a.) the rate were to increase and/or

b.) you had to extend the length of time you stay in your home.

What are the benefits of buying a home?

  • Over time, the mortgage balance decreases and the equity builds, even if the value of the home does not increase (except for interest only loans);
  • You have the ability to remodel the home to match your needs;
  • There can be tax advantages attached to home ownership. Consult a CPA;
  • You have the peace of mind of getting to know your neighbors, as they won’t be as transient in rental situations.

What documents are required when applying for a mortgage?

  • Social Security Numbers for all borrowers;
  • Copies of your checking and savings accounts for the past three months;
  • Evidence of any other assets like stocks or bonds;
  • Recent pay-stubs detailing your earnings and two most recent years W-2’s;
  • For self-employed applicants: your two most recent annual tax returns (ask your AAFMAA Mortgage Services loan officer if you qualify for only having to provide one tax return)
  • Evidence of Pension or Social Security income;
  • List of all credit card accounts and the approximate balance and monthly payment amounts*
  • List of loan account numbers and the approximate balance and monthly payment amount*

*AAFMAA Mortgage Services will pull your credit and auto-populate the application with your liabilities. So, if there are any missing liabilities it is your responsibility to review the application and inform your loan officer right away.

Why should I refinance?

  • To lower the monthly payment;
  • To lower the interest rate;
  • To switch from an adjustable rate to a fixed rate, or vice-versa;
  • To refinance for a higher amount in order to pay off other debts or get cash;
  • To change the remaining term of the loan.

Can I get pre-approved for a mortgage?

Yes, you can. Your information is reviewed and a decision is then made as to whether you qualify. Contact AAFMAA Mortgage Services to see what information you need to provide. Once pre-approved, you can look for a new home with confidence and sellers will feel more comfortable dealing with you.

How fast will I get the money from my loan?

On a purchase, your funds are available on the day you close your loan. On a refinance, funds are normally disbursed on the fourth business day after you sign your loan documents.

What is the difference between interest rate and APR?

The interest rate is the cost to borrow the money disbursed in the loan, also known as the coupon. The APR, or Annual Percentage Rate, is the total cost of the loan over its life, including all costs, points and fees.

What is title insurance and why do I need it?

Title insurance insures that your rights and interests to the property are clear of any defects or clouds. It is in place to protect your interests as a homebuyer. Title insurance companies normally issue two types of policies; a lender’s policy that covers the lending institution’s mortgage amount (which typically declines over time) and the owner’s policy which covers the homebuyer (which typically increases over time). Both policies are issued at the time of closing. Title insurance assures the homebuyer that any valid claim against the property will be covered by the title insurance company, including attorney fees.

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844-4-AAFMAA (844) 422-3622.

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