Consumer complaint received 2025-05-24 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: American Heritage Lending, LLC
State: GA

Complaint narrative:
I was under contract for an investment property. I had a DSCR loan for 75 % of ARV ( After Repair Value ). The appraisal should have easily come back at XXXX but it came back at XXXX, because the appraiser did a current value appraisal instead of an ARV. We could not get appraiser to change it so I was forced to find another lender. I searched the web and found American Heritage Lending. I completed a form online under the " Investor '' tab for a " fix and flip. '' I spoke with a lender, and she said she could process my loan in the time I needed and she said they could do a desk appraisal and assured me it would be an ARV appraisal.

She told me she could give me 90 % loan to cost. That means she could give me 93 % of the total amount of the loan. She gave me a long list of items she needed and I had them returned to her within the hour. As an investor I have done this several times before. I also had two other lenders who could do the same thing, one with the same 93 %, but 4 went with them because of the desk appraisal, which meant they did not need to send anyone out to the house. She told me she would have my disclosures the next morning. 

She pulled my hard credit immediately, which was unusual. This was a DCSR loan. I knew she needed to verify me as a guarantor on my business loan, but generally they don't do a hard credit pull right away. Then one of the documents she asked for was a list of previous deals. Most lenders need 5, she asked for 6. I gave her 6, but the sixth one was not yet complete, so she said she could only give me 90 % of the full loan instead of 93 %. I wasn't happy because I could have gone with a different lender. I asked if I could appeal the decision. She said if I had more collateral, such as a 402K. So I sent her a 401K statement that could cover the full amount of the loan. I again asked for the disclosureI was supposed to get yesterday morning. She said she was waiting to hear back about the 93 %. She came back with the decision that they could only give me 90 %. I wasn't happy -- you, but I had just had my due diligence period extended and I was on a serious time crunch. So I let it go. 

After XXXX days of asking for the disclosures, she sent an estimate and I called right away because it had a down payment of 25 %. She said to disregard that. She said she hadn't even submitted my loan and didn't even know where I saw that. 

Two days later, she sends the disclosures. She has all of my current bills listed as if I was getting a personal loan. And even with that, the down payment was 26 % and closing costs were XXXX. I couldn't believe it! She explained that we discussed a rehab loan. There is mot even an option for a rehab loan under the investor tab. She tried to explain the numbers, but it was a futile effort. I believe I was set up. That the advertisement for 93 % ltc was just to get your application. They had no intention of giving me that loan. I have excellent credit and proof that I could cover the loan. I think they purposely slowly processed my loan, hoping I would have no choice but to go with them. This was a bait and switch deceptive practice. I could lose my deal because of this deception. I am concerned about all of the personal documents and information. I don't trust this company.

Company response to consumer: Closed with explanation