Armed Forces Bank Mortgage Review 2026
Armed Forces Bank, rated 4/5 stars by LendingTree experts, is a good choice for borrowers who are looking for a mix of standard and specialty home loan programs.
Armed Forces Bank is a solid choice for military and civilian borrowers seeking an online-friendly lender with both standard mortgage products and specialty loan programs. The bank offers competitive interest rates, flexible lending criteria and waived fees for eligible customers.
See how we reached our verdict below.
- Competitive interest rates
- Specialty loan programs for military members, first responders, educators, physicians and other select professionals
- Waived origination fees on select products
- Must provide personal information to see mortgage rates
- Borrower requirements for loan products are not publicly disclosed
- Digital mortgage requires an in-person closing
Armed Forces Bank mortgage overview
Armed Forces Bank is a national lender that serves veterans, active-duty servicemembers and their families as well as non-military customers. It was founded in 1907 and is a subsidiary of Dickinson Financial Corporation. In addition to standard mortgage products, the bank offers specialty programs for military members, first responders, doctors, educators and other select professionals that feature reduced fees and up to 100% financing.
- Areas of service: Nationwide
- Digital service: Partially digital mortgage process
- Headquarters: 320 Kansas Avenue, Fort Leavenworth, KS 66027
- Website: AFBank.com
Armed Forces Bank rates and fees
Rates
Armed Forces Bank does not publicly publish its mortgage rates. However, customers can get a general idea of rates by requesting personalized quotes online. After submitting a few details, borrowers gain access to a personalized “rate dashboard” that provides updated interest rates and allows them to adjust their information and explore different loan scenarios. The bank does publish rates for its home equity line of credit (HELOC).
According to 2024 Home Mortgage Disclosure Act (HMDA) data, the average interest rate on an Armed Forces Bank mortgage was 6.28% — 0.19 percentage points lower than the average prime offer rate (APOR) and the most competitive rate among the 47 lenders we reviewed. (The APOR is a benchmark indicating the lowest rate a bank is likely to offer a borrower in the current market.)
Fees
Armed Forces Bank does not disclose all its lender fees online, though customers who request personalized rates can see some fee estimates in their rate quotes. The bank does charge a $995 “lender commitment” fee on some products, which is waived on VA loans and its Hero Mortgage Program, aimed at borrowers in community-facing professions.
According to 2024 HMDA data, Armed Forces Bank borrowers paid an average of $1,647 in origination fees and $7,573 in total loan costs. For context, among the 47 lenders reviewed, origination fees ranged from $795 to $8,318, while total loan costs ranged from $3,165 to $13,763.
Armed Forces Bank does not advertise typical rate discounts, such as autopay or relationship discounts, that many mortgage lenders offer. However, the lender waives its $995 lender commitment fee on select products, including VA loans and its Hero Mortgage Program. It also waives the annual HELOC fee for customers with autopay.
Additionally, Armed Forces Bank offers a “Mortgage Service Guarantee” on its home loans, which promises a $1,000 payment if the lender fails to close on time.
What types of mortgage loans does Armed Forces Bank offer?
Armed Forces Bank offers a variety of home loans, including:
Armed Forces Bank offers conventional loans for purchase, refinance and cash-out refinance, with both fixed- and adjustable-rate options. Fixed-rate loans are available with 15-, 20- or 30-year repayment terms.
Conventional loan qualification requirements
- 620 minimum credit score
- 5% minimum down payment (3% for first-time homebuyers)
- 50% maximum debt-to-income ratio
- 80% maximum loan-to-value ratio for refinances
Loans backed by the Federal Housing Administration (FHA) are available for purchase, refinance and cash-out refinance. Armed Forces Bank’s FHA loan options include fixed and adjustable rates, with fixed-rate terms of 15, 20 or 30 years.
FHA loan qualification requirements
- 580 minimum credit score
- 3.5% minimum down payment
- Up to 45% or 60% maximum debt-to-income ratio, based on borrower and loan details
As a military-focused lender, Armed Forces Bank specializes in VA loans, which are backed by the U.S. Department of Veterans Affairs and available to veterans, active-duty servicemembers and eligible spouses.
The bank offers VA loans for purchase, refinance and cash-out refinance, with both fixed- and adjustable-rate options and repayment terms of 15, 20 or 30 years. Armed Forces Bank typically waives its $995 lender commitment fee on VA loans.
VA loan qualification requirements
- 580 minimum credit score
- 0% minimum down payment
- Up to 55% or 70% maximum debt-to-income ratio (DTI), depending on circumstances
- Must meet residual income guidelines in addition to DTI limits
Armed Forces Bank offers loans backed by the U.S. Department of Agriculture (USDA) for rural, low- to moderate-income borrowers, though it doesn’t provide specific USDA loan details on its website.
USDA loan qualification requirements
- 620 minimum credit score
- 0% minimum down payment
- Up to 43% or 55% maximum debt-to-income ratio, based on borrower and loan details
- Meeting the USDA income and property location guidelines
For borrowers purchasing higher-priced homes, Armed Forces Bank offers jumbo mortgages for amounts above the conforming loan limit, currently $832,750. Jumbo loans are available up to $3 million and can be fixed- or adjustable-rate, with fixed-rate terms of 15, 20 or 30 years.
Jumbo loan qualification requirements
- 660 minimum credit score
- 5% minimum down payment (0% for eligible borrowers)
- Up to 43% or 45% maximum debt-to-income ratio, depending on the loan-to-value ratio
Armed Forces Bank offers a home equity line of credit (HELOC) to existing customers, veterans and active-duty servicemembers. The HELOC features a 10-year draw period, a six-month fixed introductory interest rate and little to no closing costs.
Home equity loan qualification requirements
- 700 minimum credit score
- 43% maximum debt-to-income ratio
- Up to 85% loan-to-value ratio
- $50 annual fee after the first 12 months (waived with auto-draft payments)
Armed Forces Bank mortgage qualifications
| Credit score minimum | Conventional: 620 FHA: 580 VA: 580 USDA: 620 |
| DTI ratio
Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments.
| Conventional: 50% FHA: 60% VA: 70% USDA: 55% |
| Down payment minimum | Conventional: 5% (3% for first-time buyers) FHA: 3.5% VA: 0% USDA: 0% |
Don’t know your credit score? Get your free score on LendingTree Spring today.
According to 2024 HMDA data, Armed Forces Bank approves 83.1% of all loan applications and 92.4% of purchase loan applications. These figures suggest the lender is not overly selective and that most qualified applicants can reasonably expect approval. For comparison, approval rates for similar lenders are as low as 49%.
Among approved purchase loan applicants, 59.5% have a debt-to-income (DTI) ratio above 40%, and the average loan-to-value (LTV) ratio is 90.6%. This suggests that Armed Forces Bank may be more flexible than some lenders regarding higher DTI ratios and smaller down payments.
How does Armed Forces Bank compare to other lenders?
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| LendingTree’s rating |
Expert review from LendingTree.
Back to our Armed Forces Bank summary |
Expert review from LendingTree.
Read our Armed Forces Bank vs. Veterans United comparison |
Expert review from LendingTree.
Read our Armed Forces Bank vs. PenFed Credit Union comparison |
| Minimum credit score | 580 | 580 | 620 |
| Minimum down payment | 0% to 5% | 0% to 3.5% | 0% to 3.5% |
| Rate spread
Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2024. The higher the number, the more expensive the loan.
| -0.19% | -0.12% | 0.72% |
| Loan products and programs |
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| Better for: | Military and civilian borrowers interested in multiple loan options, including specialty programs. | Military borrowers specifically seeking VA loans. | Borrowers who want a quick online preapproval. |
Armed Forces Bank vs. Veterans United
Both Armed Forces Bank and Veterans United serve veterans and military members, but their focus differs. Armed Forces Bank also works with civilian borrowers and offers a broader range of mortgage options, while Veterans United primarily serves military borrowers and specializes in VA loans.
While both lenders offer competitive interest rates, Armed Forces Bank’s average rates tend to be lower. Veterans United, on the other hand, typically charges lower total loan fees.
Armed Forces Bank may be a better fit for military or civilian borrowers seeking multiple loan options, while Veterans United may be better suited for military borrowers focused specifically on VA loans.
Read more in our full Veterans United mortgage review.
Armed Forces Bank vs. PenFed Credit Union
Like Armed Forces Bank, PenFed Credit Union serves both military and non-military homebuyers. The two lenders offer similar mortgage products, though PenFed does not offer USDA loans.
PenFed publishes its mortgage rates and offers an online preapproval, areas where Armed Forces Bank does not. However, Armed Forces Bank tends to outperform PenFed in fees and interest rates, offering more competitive rates and lower total loan costs.
Armed Forces Bank may be a better choice for borrowers who want to explore a wider range of loan options and are willing to go through a longer preapproval process. PenFed Credit Union, on the other hand, may be a better fit for borrowers seeking a faster, more streamlined preapproval.
Read more in our full PenFed Credit Union mortgage review.
How to apply for an Armed Forces Bank mortgage
1. Choose your loan type
To explore Armed Forces Bank’s mortgage options, visit afbank.com and hover over “Loans” in the top menu. From there, select a mortgage type under the “Home Loans” dropdown or home equity line of credit under “Personal Loans.” To compare all available options, click “Compare Mortgages: What is the right home loan for me?”
2. Get prequalified
You can get prequalified for an Armed Forces Bank mortgage before starting your home search by beginning an application on the lender’s website or by connecting with an Armed Forces Bank loan advisor.
3. Submit a loan application
When you submit a full application — either online or with a loan advisor — you’ll receive a preapproval letter, suggested mortgage options and estimated loan amounts and monthly payments. You may also be able to lock in your interest rate to protect against increases before closing. Once you have a property address, you can complete the final loan application.
Learn more about how to apply for a home loan.
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Is it safe to get prequalified with Armed Forces Bank?
Yes, it’s safe to get prequalified or preapproved with Armed Forces Bank. Prequalification provides a quick loan estimate based on the information you submit, helping you get a general sense of potential loan costs. Preapproval is a more in-depth process that includes a hard credit inquiry and a review of your financial documents.
Home sellers and real estate agents typically place more weight on a preapproval, since it’s based on lender-verified information rather than self-reported details.
Armed Forces Bank’s customer service experience
New and existing customers can contact Armed Forces Bank’s customer service through online chat, the mobile app or by phone Monday through Friday from 8 a.m. to 7 p.m. Central Time.
- Client care: 888-929-2265
- Bank by mail: P.O. Box 410498, Kansas City, MO 64141
Although Armed Forces Bank offers a digital mortgage application, borrowers also have access to loan advisors throughout the process. Support is available by phone, email, text and online chat. The bank provides an additional layer of guidance through its Financial Education Specialists, who can be reached at [email protected] for more information about home loans or the application process.
How LendingTree experts rated Armed Forces Bank
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Armed Forces Bank’s scorecard:
⭕ Publishes rates online
✅ Offers standard mortgage products
⭕ Includes detailed product info online
✅ Shares resources about mortgage lending
✅ Provides an online application
Frequently asked questions
Armed Forces Bank provides several digital tools, including an online mortgage application, live chat support, mobile banking, online rate quotes and a personalized rate dashboard.
Yes. Armed Forces Bank is a legitimate lender founded in 1907. It serves both military and non-military customers and offers mortgages nationwide.
You can view more info about Armed Forces Bank’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
Taking out a new mortgage with any lender can temporarily lower your credit score, typically by about 20 points. Most borrowers regain those points within about a year, according to LendingTree research.
Armed Forces Bank holds an A+ rating with the Better Business Bureau. However, its consumer review score on the BBB platform is 1.36 out of five stars based on 11 reviews. Most negative feedback cites communication issues and bank errors, with one complaint related to a denied home loan.