Angel Oak Mortgage Review 2026: What Its DSCR Borrowers Paid, From 6,232 Federal Loan Records
Quick Answer
Angel Oak Mortgage Solutions LLC (Atlanta, NMLS 1160240) is a large non-QM lender reached mainly through mortgage brokers, and its DSCR program is a mainstream one: 680 minimum credit score, up to 85% LTV at 720, loans of $100,000 to $3 million, with options for a DSCR below 1.0 and for no DSCR at all. Its filing under the federal Home Mortgage Disclosure Act (HMDA) shows 6,232 loans for $2.76 billion in 2025, up from 4,702 in 2024. Half were business-purpose rental loans (3,151, $1.06 billion), and 2,659 had no debt-to-income ratio, the footprint of a DSCR loan, at a median note rate of 7.374% (middle half 6.99% to 7.749%), down from 7.625% in 2024. Florida took 30.5% of its rental loans. 6,211 of the 6,232 loans were sold within the year to a private securitizer. Its listed affiliate, Angel Oak Mortgage REIT (NYSE: AOMR), bought $164.9 million from affiliates in 2025, about 6% of the dollars (our arithmetic). In 2022 the SEC fined Angel Oak Capital Advisors $1.75 million for using fix-and-flip borrowers' rehab escrow money to cure their late payments in a 2018 securitization. As of October 5, 2026.
Key Takeaways
- HMDA, loan by loan: Angel Oak Mortgage Solutions originated 7,239 loans in 2022, 3,050 in 2023, 4,702 in 2024 and 6,232 ($2.76 billion) in 2025. The retail sister company, Angel Oak Home Loans, went from 5,089 loans in 2022 to 110 in 2023 and none since.
- DSCR-type loans (business purpose, investment property, no DTI): 2,659 in 2025 for $837.4 million, median note rate 7.374%, middle half 6.99% to 7.749%, median loan $235,000, median combined LTV 73.2%. In 2024: 2,107 loans at a 7.625% median.
- By state, 2025 rental loans: Florida 960 (median 7.249%), California 356 (7.312%), Texas 279 (7.249%), South Carolina 176, Virginia 134, North Carolina 132, Georgia 118. Lending reached 48 states including DC.
- 5,741 of 6,232 loans came through a broker or correspondent. A broker's fee is charged on top and HMDA does not record it on business-purpose loans, so a broker-delivered Angel Oak loan costs more than these note rates suggest.
- 17.4% of decided rental-property applications were denied in 2025 (678 of 3,899). Collateral was the first reason in 302 of them, insufficient cash in 118.
- The loans are sold, not kept: 6,211 went to a private securitizer within 2025. Angel Oak Mortgage REIT reports 90+ day delinquency of 2.1% on its securitized loans at June 30, 2026, up from 1.7% six months earlier.
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Angel Oak Mortgage Solutions: HMDA 2022-2025, DSCR loan rates by state, program terms, AOMR filings, SEC order and complaints
162 rows: HMDA origination totals for Angel Oak Mortgage Solutions and Angel Oak Home Loans (2022-2025); AOMS's 2024 and 2025 business-purpose rental loans by rate, size, LTV, purpose and denial, and twelve states for 2025; its DSCR program terms; Angel Oak Mortgage REIT purchases, affiliate purchases, delinquencies, securitizations and financing from SEC filings; the 2022 SEC order; and the CFPB complaints against AOMS.
Which Angel Oak is which
Searches for “Angel Oak Mortgage” land on four different companies, and a borrower deals with only one.
| Company | What it is | What it means for a borrower |
|---|---|---|
| Angel Oak Mortgage Solutions LLC (NMLS 1160240) | The lender. Atlanta. Licensed in 46 states plus DC at Dec 31, 2025, per AOMR's 10-K | The company that underwrites and funds your DSCR loan, usually through your broker |
| Angel Oak Home Loans LLC | The former retail lender | 5,089 loans in 2022, 110 in 2023, none since (HMDA) |
| Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) | A listed REIT that buys non-QM loans and securitizes them | May end up owning your loan; publishes quarterly loan-performance data |
| Angel Oak Capital Advisors / Angel Oak Companies | The asset manager; Brookfield bought about 51% of Angel Oak Companies on Oct 1, 2025 | Runs the funds and AOMT securitizations your loan is likely sold into |
AOMR's own filings describe the lender as “the proprietary mortgage lending platform of its affiliate, Angel Oak Mortgage Solutions LLC,” and also warn that the lender “has no obligation to sell non-QM loans” to the REIT. Both are true in the numbers below.
The DSCR program on paper
From Angel Oak's DSCR loan page, read October 5, 2026:
| Term | Angel Oak Mortgage Solutions |
|---|---|
| Minimum credit score | 680 (up to 75% LTV) |
| Maximum LTV | 85% (minimum 720 FICO) |
| Loan size | $100,000 to $3 million |
| DSCR floor | DSCR below 1.0 and no-DSCR options available |
| Products | 30-year fixed, 5/6 and 7/6 ARMs; interest-only available |
| Rent verification | Appraisal rent schedule, or automated rental AVM (75% max LTV, 1 unit); AirDNA for short-term rentals |
| Loans per borrower with AOMS | Max of five (exceptions considered) |
| First-time homebuyers | Not allowed |
| Title | LLC, S corp, C corp or revocable trust |
Two lines matter more than they look. The five-loan cap is per borrower at Angel Oak, not a cap on the properties you own, so a growing landlord will need a second lender. And the page says Angel Oak accepts business-purpose loans “through approved clients, even if they're not licensed in the subject property's state,” listing 23 such states including Florida, Texas, Georgia and North Carolina. The broker who brings your file to Angel Oak in those states may hold no license there.
What its borrowers actually paid
We downloaded Angel Oak Mortgage Solutions' HMDA records for 2024 and 2025 from the FFIEC HMDA Data Browser, 7,440 and 10,233 application records, and counted. HMDA has no DSCR field. A DSCR loan shows up as an investment-property loan flagged business purpose with no debt-to-income ratio, because the borrower's income was not used; 2,659 of Angel Oak's 3,151 business-purpose rental loans in 2025 fit that description (84.4%, our arithmetic). The other 492 were rental loans underwritten on income.
| Angel Oak Mortgage Solutions, HMDA | 2024 | 2025 |
|---|---|---|
| All loans originated | 4,702 ($2.09B) | 6,232 ($2.76B) |
| Business-purpose rental loans | 2,528 ($822.8M) | 3,151 ($1,063.4M) |
| DSCR-type (no DTI) | 2,107 ($630.4M) | 2,659 ($837.4M) |
| Median note rate, DSCR-type | 7.625% | 7.374% |
| Middle half of rates, DSCR-type | 7.125% to 8.25% | 6.99% to 7.749% |
| Median loan, DSCR-type | $235,000 | $235,000 |
| Median combined LTV, DSCR-type | 70.0% | 73.2% |
| Rental loans: purchase / cash-out / rate-and-term | 1,460 / 997 / 54 | 1,664 / 1,331 / 107 |
| Rental loans interest-only / adjustable | 166 / 28 | 352 / 114 |
| Rental-property denial rate | 17.1% (531 of 3,099) | 17.4% (678 of 3,899) |
Across all 3,151 business-purpose rental loans in 2025 the rates ran from 5.971% to 13.75%, and the largest loan was about $3.5 million. Cash-out refinances were 42.2% of rental loans, rate-and-term refinances only 3.4%: investors used Angel Oak to buy (52.8%) and to pull equity, rarely to reprice. Interest-only loans doubled to 352, 11.2% of the total.
For comparison, the 83 DSCR-type loans that Griffin Funding, a consumer-direct lender, reported for 2025 had a median of 7.875%. Most of Angel Oak's borrowers also paid a broker on top of the note rate, so the real gap is narrower than the half point it looks like.
By state
These are all 2025 business-purpose rental loans, the twelve states with the most loans.
| State | Rental loans, 2025 | Share | Median note rate | Median loan |
|---|---|---|---|---|
| Florida | 960 | 30.5% | 7.249% | $265,000 |
| California | 356 | 11.3% | 7.312% | $400,000 |
| Texas | 279 | 8.9% | 7.249% | $205,000 |
| South Carolina | 176 | 5.6% | 7.374% | $195,000 |
| Virginia | 134 | 4.3% | 7.374% | $230,000 |
| North Carolina | 132 | 4.2% | 7.499% | $230,000 |
| Georgia | 118 | 3.7% | 7.249% | $225,000 |
| Pennsylvania | 104 | 3.3% | 7.499% | $190,000 |
| Maryland | 80 | 2.5% | 7.499% | $215,000 |
| New Jersey | 62 | 2.0% | 7.624% | $280,000 |
| Arizona | 57 | 1.8% | 7.374% | $275,000 |
| Illinois | 53 | 1.7% | 7.5% | $175,000 |
Florida is the business. Its 960 rental loans are more than California and Texas combined, and the 2024 figure was 864 (34.2%). The state medians sit within about three-eighths of a point of each other (7.249% to 7.624%); credit score, leverage and loan size move a quote more than the state does.
Where your loan goes after closing
HMDA asks for the type of buyer of each loan sold in the same year. Angel Oak Mortgage Solutions reported 6,211 of its 6,232 loans of 2025 as sold to a private securitizer. The listed REIT is one buyer, and a small one: AOMR's 10-K shows $164.9 million (364 loans) bought from affiliates in 2025, about 6.0% of the lender's dollar volume (our arithmetic), out of $861.8 million of loans the REIT bought in total. In the first half of 2026 it bought $119.3 million (179 loans) from affiliates. The rest goes to other Angel Oak vehicles and AOMT securitizations, such as AOMT 2026-2 ($272.3 million, March 2026) and AOMT 2026-3 ($279.6 million, July 2026).
For a borrower that means two things. Your servicer and the trust that owns your loan can change after closing, so keep every payment confirmation. And the REIT's filings give a rare public view of how loans like yours perform: at June 30, 2026, 2.1% of AOMR's securitized loans were 90 or more days delinquent by balance, up from 1.7% at December 31, 2025, and 0.7% of the newer whole loans it still held, up from 0.4%. The REIT bought its second-quarter 2026 loans at a weighted average coupon of 7.34% and a weighted average credit score of 759.
The 2022 SEC order, and why flippers should read it
On August 10, 2022 the SEC settled a case against Angel Oak Capital Advisors, LLC and a senior portfolio manager (Release No. 33-11090). In March 2018 Angel Oak had sold a $90 million securitization of fix-and-flip loans, AOMT 2018-PB1, made by an affiliate, Angel Oak Prime Bridge. When late payments rose, the SEC found, Angel Oak avoided an early-amortization trigger by “diverting mortgage loan funds held in escrow accounts,” the rehab-draw money, to pay borrowers' overdue installments without telling noteholders. According to the order, Prime Bridge contacted delinquent borrowers and “instructed them to make requests for mortgage loan funds to cover property improvements, with the understanding that the funds would instead be used to pay off delinquent balances.” Without the practice the trigger would have been breached in November 2018. Angel Oak paid a $1.75 million penalty and the portfolio manager $75,000, without admitting or denying the findings.
The case was about disclosure to bond investors, not a finding against borrowers, and Angel Oak's current program list shows no fix-and-flip or bridge product. The lesson carries to any rehab lender: holdback money that pays your interest instead of your contractor still sits in your loan balance, and the project is no further along.
Complaints and regulators
The CFPB Consumer Complaint Database lists 20 complaints naming Angel Oak Mortgage Solutions LLC from 2015 to June 2026, and 20 more naming the closed Angel Oak Home Loans. Only two of the AOMS complaints are from 2025 or 2026. Set against 6,232 loans in 2025 alone, that is a low count, though business-purpose borrowers rarely file with the CFPB. Our September 2026 check of 20 DSCR lenders found no enforcement order against AOMS itself and a 2022 HUD penalty against Angel Oak Home Loans.
What a borrower can do with this
- Price your quote against the 2025 band, then against today. Angel Oak's DSCR-type borrowers paid 6.99% to 7.749% in the middle half of 2025, with Florida, Texas and Georgia at a 7.249% median. Rates have moved, so compare the spread over a same-day quote from two other lenders, not the number.
- Ask your broker for the lender price and the broker fee separately. Nine in ten Angel Oak loans come through a third party, and the broker's compensation is not in the note rate. Ask for both in writing, along with the prepayment-penalty term, which HMDA does not record on business-purpose loans.
- Check the broker's license in your state. Angel Oak's own page says it takes business-purpose files from originators who are not licensed in the property's state in 23 states.
- Plan around the five-loan cap and the appraisal. Five loans at AOMS is the limit, first-time buyers are excluded, and collateral is the first denial reason in 302 of 678 rental denials.
- Know your ratio before you apply. Use our DSCR calculator and the DSCR requirements guide. For current pricing across lenders, see DSCR loan rates 2026, and for the wider field, best DSCR lenders 2026.
FAQ
Sources, read October 5, 2026: Angel Oak Mortgage Solutions' HMDA loan-level records for 2024 and 2025 and HMDA aggregation counts for 2022 to 2025 for Angel Oak Mortgage Solutions (LEI 549300KSOOZZVXCMA627) and Angel Oak Home Loans (LEI 549300GDBIZCOI6TMO49), FFIEC HMDA Data Browser; Griffin Funding's 2025 HMDA records for the comparison; Angel Oak Mortgage REIT's Form 10-K for 2025 (accession 0001766478-26-000002), Form 10-Q for June 30, 2026 (0001766478-26-000044), the August 4, 2026 earnings release (8-K Ex. 99.1, 0001628280-26-052154) and the 8-Ks of May 20, June 29 and September 29, 2026; SEC Release No. 33-11090 (August 10, 2022); Angel Oak Mortgage Solutions' DSCR program, programs and licensing pages; Regulation C official interpretations (eCFR); and the CFPB Consumer Complaint Database. Medians, percentiles, shares and the REIT's share of the lender's volume are our arithmetic. Business-purpose rental loans with no debt-to-income ratio are our proxy for DSCR loans. This is analysis of public documents, not investment, legal or tax advice.
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