New American Funding
Our promise. We provide a buying advantage with verified reviews and unbiased editorial research.
About New American Funding
New American Funding (NMLS #6606) is a California-based mortgage lender founded in 2003. The company serves 49 states and offers multiple types of mortgages, including FHA, VA, USDA, conventional, jumbo, buydowns, reverse mortgages and I CAN loans. You can start the application process online, but you’ll have to chat with a loan officer to finalize your application.
Pros & Cons
- High customer satisfaction ratings
- Several FHA loans
- Quick preapproval decisions
- Application process not 100% online
- No pre-qualification without a credit check
New American Funding provides multiple mortgage products to homeowners with a wide range of credit scores. The company promises low lender fees and competitive interest rates. You can request a rate quote directly from the company's website
Top New American Funding Reviews
...Our house was due for completion during the ups and downs of interest rates of Spring 2022, so threading the needle of how much rate lock to buy vs. spending the same dollars o...Read full review
New American Funding with Loc and Kristen provided us with a smooth and rapid home refinancing at the end of April. I would recommend this duo most highly and without reservation....Read full review
Our Editor’s Take on New American Funding
New American Funding is best for homebuyers who prefer a personalized and straightforward mortgage process. It may also be a good option for borrowers with less-than-perfect credit or self-employed individuals, as there are flexible qualification requirements.
While more digitally-minded homebuyers may not like that the application process is not solely online, others may appreciate the “in-real-life” approach to finding the right mortgage for their financial needs. Additionally, New American Funding may not be the ideal choice for borrowers who prioritize the lowest interest rates, as its rates tend to be higher than the national average.
How we rated New American Funding
To assess New American Funding, we looked at how it compares to its competitors, as well as what ConsumerAffairs reviewers had to say about certain features. We found that New American’s application process and loan type options excelled against its competition.
We scored New American Funding’s rates as good because the starting rates for conventional, FHA and VA loans are available on its website and updated daily. However, for the most accurate rates based on your individual situation, you should contact New American Funding for a customized quote.
While many reviewers shared that the rates were good and on par to other lenders’ rates, our data shows that New American Funding was 0.05% higher than the national average in 2021. A year earlier, it was 0.07% lower than the national average. Interest rates can vary depending on many factors, including a borrower’s credit score and debt-to-income (DTI) ratio. Borrowers with excellent credit (800 and higher) and low DTI ratios (ideally less than 36%) usually get the best interest rates available.
New American Funding offers mortgages with either fixed or adjustable rates. A fixed interest rate won’t change over the loan term; an adjustable rate will. Many borrowers choose a fixed-rate mortgage because they prefer to keep their monthly payments the same.
However, an ARM (adjustable-rate mortgage) could make sense in some cases. For example, if mortgage rates are at 10-year highs, you may consider an ARM to take advantage of a low introductory rate for a few years.
After the introductory period ends, rates could come down and you may consider keeping the ARM or refinancing to a fixed-rate mortgage. Remember that there’s no guarantee rates will decrease, so it’s important to keep up with interest rate changes should you decide to get an ARM.
With New American Funding, one Texas reviewer praised, “[The loan officer’s] knowledge of the financial markets was vital to helping us with the timing for locking our interest rate.”
New American Funding average home purchase rate vs. national average
|Year||Difference from national average|
Application process: Excellent
Many of our reviewers found the application process straightforward, and we gave it an excellent score since buyers can apply online and upload all their documents seamlessly.
You can start the application process by requesting a rate quote directly from the company’s website. You’ll input some preliminary information into the form, like your income, estimated credit score and down payment amount.
Once you’ve completed the form, you’ll create an account using a valid email address. A loan officer will reach out to discuss your loan options and help you complete an application. You may be required to upload certain financial documentation with your application, like a recent pay stub or a bank account statement.
After you’ve completed the application and submitted the required documents, you could receive a preapproval decision in as little as 24 to 48 hours.
One Idaho reviewer was even able to buy their property while traveling full-time in a fifth wheel. They said, “Every time we reached out, the rep was right there to respond to me and was patient with us getting documents back to her, considering we would have to stop and scan and send off that way. So, she made a challenging situation extremely simple.”
Another Kansas reviewer shared the same sentiment about the application process, saying, “I went on the website, registered and uploaded all the documents that I needed to upload. It was easy.”
New American Funding application features
|Mobile document upload|
|Physical branches||32 states|
|Publishes minimum rate on website|
|Pre-qualification (no hard credit pull)||X|
|Certified approval letter|
Loan types: Excellent
We rated New American Funding as excellent when it comes to loan types since it offers many options for different types of buyers. Its mortgages include conventional loans (with fixed or adjustable rates), FHA loans, VA loans, USDA loans and jumbo loans. The company also offers reverse mortgages for borrowers 62 and older.
The lender is knowledgeable in loans for first-time homebuyers and veterans alike. A reviewer in California said, “New American Funding helped guided me through my FHA loan. Made it easy for a first home buyer like myself to purchase a home.”
A veteran reviewer from New Jersey said, “[The loan officer] made using my VA loan a possibility and I went from being a homeless veteran to owning the house I grew up in.”
Most fixed-rate mortgages come in 15-year or 30-year terms. However, New American Funding allows customizable loan terms with its I CAN Mortgage, which means you can choose a term anywhere between eight and 30 years. This may help you find a mortgage payment that fits your budget while also securing the best rates available to you.
The company also offers a buydown loan for borrowers who need to make expensive repairs to a new home, which allows for a reduced interest rate for the first year or two. With this type of loan, you could reduce your stated interest rate by 1% or 2% in the first year of your 30-year fixed-rate mortgage. This may help you lower your mortgage payment initially so you can afford to make those costly repairs.
Like other lenders, New American Funding saw a year-over-year increase in the number of home purchase applications it receives. In 2021, individuals initiated 57,519 home purchase applications. Of those applications, only one preapproval was denied, and about 4% (2,498) of applications were denied (the denial rate for the industry as a whole is about 8%). Ultimately, about 72% (41,636) of these home purchase loans were closed.
Loan applications for home purchases only by year
|Home purchase applications||57,519||54,156||47,730|
|Home purchase loans closed||41,636||39,518||35,062|
|Home purchase applications denied||2,498||2,055||1,905|
|Home purchase preapprovals denied||1||52||31|
New American Funding discloses most of its borrower requirements online and seems to adhere to the industry standards for most loan types. Like other lenders, New American Funding requires a 620 credit score and a 3% down payment in order to qualify for a conventional loan.
For government-backed mortgages, credit score requirements are more lenient. The company allows for scores as low as 500 to qualify for an FHA loan (though you’ll need to offer a 10% down payment if your score is below 580).
New American Funding doesn’t disclose its minimum credit score for VA loans (it states that you’ll want a “good” credit score). However, you’ll only need 580 to qualify for a USDA loan (many lenders require a 640). VA and USDA loans allow for 100% financing, meaning down payments are not required.
However, a common complaint from reviewers for New American Funding is the underwriting process. Many customers were frustrated with having to verify their employment and submit the same documentation more than once.
One reviewer in Texas was happy with their overall buying experience but said, “Whoever was in underwriting was ridiculous with all the verification of employment requirements, especially when it came to the fact that I work from home. All of the hoops to jump through on that one point was beyond common sense. It held up the process for no reasonably good reason.”
Cost and fees: Good
Several reviewers felt their loan officer was transparent about the costs and fees involved, explaining everything clearly. This Arizonia reviewer was even able to save $4,000 in fees and get a lower interest rate with New American Funding over a competitor.
However, we rated New American Funding as good for its cost and fees because even though it promises low lender fees, it does not publish specific numbers on its website. Most lenders charge an origination fee, which is usually 0.5% to 1% of the loan amount. Some may also charge a separate application and underwriting fee, though many lenders lump all of those charges into the origination fee.
Keep in mind that origination fees are only a portion of closing costs, which can cost between 2% and 5% of the loan amount. Other closing costs include real estate taxes, home appraisal fees, mortgage insurance premiums (if applicable) and title fees.
It’s important to ask for an estimate of the closing costs before you agree to the loan. After you’re preapproved, your lender should give you a copy of the Loan Estimate, which itemizes each closing cost and fee.
Compare New American Funding to other lenders
|New American Funding||Rocket Mortgage||AmeriSave Mortgage|
|# of reviews||790||1,181||5,401|
|Purchase options||FHA, USDA, conventional, refinance, HELOC and reverse||Conventional, jumbo, FHA and VA loans||FHA, VA and USDA loans|
|Refinancing options||Cash-out, rate and term, cash-in||Cash-out, rate and term||Cash-out, rate and term|
|Minimum credit score||580 to 640||580 to 620||600 to 620|
|Read Reviews||Read Reviews||Read Reviews|
New American Funding FAQ
How does New American Funding work?
Borrowers can apply for a loan by clicking “Request Quote” on the company’s webpage. After entering some basic information, you’ll receive an email with an invitation to create an application. After your application is received, a loan specialist will let you know what your borrowing options are. New American Funding won’t run a credit check until a loan specialist speaks directly with you.
Is New American Funding legit?
New American Funding is a legitimate company that’s been in business since 2003. It’s a DBA of Broker Solutions, Inc., and originated $31.8 billion in mortgages in 2021.
Where is New American Funding available?
New American Funding is available in 49 states nationwide (not including Hawaii). The company operates branches in 32 different states.
New American Funding Reviews
A link has directed you to this review. Its location on this page may change next time you visit.
- 4,240,869 reviews on ConsumerAffairs are verified.
- We require contact information to ensure our reviewers are real.
- We use intelligent software that helps us maintain the integrity of reviews.
- Our moderators read all reviews to verify quality and helpfulness.
They give the best rates and communication was excellent. If you get all the required paperwork in, they work pretty quickly. If there was any delays, I was always informed. I've gotten divorced and I was trying to get my ex-husband off the mortgage, so they were able to work with me to go through the process of doing that. They made it easy for me. Everything was made upfront. My rep was very thorough and he kept me informed along the way. I was very comfortable working with him. I closed within a reasonable time. Give them a try.
Thank you for your kind words regarding your loan experience. We are pleased to know we were able to assist you with your home financing needs. Please let us know if we can ever be of further assistance to you. Respectfully, Customer Service Management
The lady who was helping me from California was great. She was right on time and helpful. She was always checking and keeping us updated and on top of it. So, the process went smoothly. I went on the website, registered and uploaded all the documents that I needed to upload. It was easy. Also, the rates and terms of the loan was fair compared to other lenders. New American Funding can keep doing it the same way. It’s perfect. They are straightforward and even when it was done, the lady helping me checked back with me on everything going alright so it's just good. I like it.
We appreciate your time to submit a review regarding your loan process. We are also happy to hear you were pleased with the customer service you received from a member of your loan team. Thank you for the opportunity to assist with your home financing needs. Please let us know if we can be of further assistance. Respectfully, Customer Service Management
Everybody has been great to us in purchasing a home. Very helpful folks from top to bottom, throughout the process. Everything was explained in detail. If we had any questions, they reached out. Just phone calls. There was no hesitation to answer our calls or questions. They were always there. We thought it would be overwhelming, but they were patient and clear on what we needed to do. The rates were a lot lower than we thought. I was happy that we went with the team there at New American Funding. I would recommend them to family and friends.
It is our goal to provide exceptional customer service and hope we achieved this goal with your loan experience. Thank you for your time to submit a review. We look forward to sharing your review our management team. Please keep us in mind for any future home financing needs. Respectfully, Customer Service Management
Thank you, you have successfully subscribed to our newsletter! Enjoy reading our tips and recommendations.
I called New American Funding and they were able to give me a decent rate. I've been with the company off and on for a little while. They’ve answered any questions that I've had. If there were some things that I didn't understand, they would explain it. The communication was open and clear. They keep me abreast of the different programs that they have. If I called my rep and he didn't answer, I left a voicemail message. He always returned my call and had the answers. That's what I like about the company. The people that I've been working with have been very knowledgeable.
We appreciate your time to submit a review for New American Funding. We are happy to know that you are pleased with the service received. Please let us know if we can be of further assistance to you. Respectfully, Customer Service Management
We got a 15-year fixed-rate loan from New American Funding. It was a first-time home loan. We have a home that's paid for. The process of getting it was difficult. The paperwork required to be filed was extensive. I was sitting with an 840 credit score. I didn't think all that paperwork would be necessary with that kind of credit score, credit history, and income level. I borrow money commercially all the time. New American is more stringent than my commercial lenders, but that's okay. My loan person was very detail-oriented. He followed up. He answered any questions that we might have. He was really efficient. The only problem I have with New American Funding is their insurance department. It was a nightmare.
Thank you for taking the time to submit a review for New American Funding, and the opportunity to assist with your home financing needs. Should you require any assistance regarding concerns with our insurance department, please feel free to contact our Customer Care Team at 800-893-5304 or by email at email@example.com. Respectfully, Customer Service Management
New American Funding was much more responsive. When we bought our property, we traveled full-time in our fifth wheel. So, every time we reached out, the rep was right there to respond to me and was patient with us getting documents back to her, considering we would have to stop and scan and send off that way. So, she made a challenging situation extremely simple. We were already with one loan officer when another guy kept calling us because they weren't talking to each other. I finally told him, “Stop. We're working with this person.” And once we had the documents ready to upload, that was the challenging part. But they were easy to upload.
We appreciate your time to submit a review regarding your recent loan experience. We are happy to know you were pleased with the service that you received and look forward to sharing your review with our management team. Thank you for choosing New American Funding for your home financing needs. Please let us know if we can be of any further assistance to you. Respectfully, Customer Service Management
I wanted to take a moment to express my sincere gratitude to our loan officer, Tania ** for our recent refinance home loan approval. Tania’s dedication, hard work, patience and expertise made our entire loan process run so smoothly. Tania not only took the time to make our entire loan process easy to understand, she broke it all down line by line to make perfect sense, financially. She was so kind and compassionate and displayed such patience while explaining every detail to my husband and I throughout the entire process, literally from day one to the very end of closing day and then some.
We were so impressed with Tania’s honest communication and her willingness to answer any type of question or concern I had, even if It really wasn’t her area of focus. She took the time to make us feel completely secure with our decisions to continue moving forward and always helped us to “trust the process” whenever in doubt. Our family truly needed this refinance for much needed home renovations and will forever be indebted to Tania and her staff for their continuous efforts to make this financial blessing happen. Thank you again Tania, for a superb experience and can’t wait to work with you again in the future. You are most definitely a “one-of-a-kind” loan officer, keep shining bright!!!
Amanda and Jeffrey **
The process was not excessive, painful or time-consuming. I uploaded whatever they needed, but a lot of times, the information was not getting through. So, I called and they gave me another number and everything went fine. But I'm still waiting for a some document that they told me they were gonna send me. Other than that, the guy I spoke to was very clear and he specified everything. He kept me on top of everything that needed to happen. New American Funding is a good company.
We appreciate the positive feedback and look forward to servicing your future lending needs. Please feel free to contact us, should you need any further assistance.
New American Funding was the first one I looked at and I liked the way it looked. I was impressed with the reps’ willingness to help, giving a couple of different alternatives. I was hoping maybe a little bit less on the rates but it was still good and when I started researching it, it was competitive with everybody else. We had a good experience with New American Funding and there’s no reason why people couldn't go with them or at least talk with them.
Thank you for your time to submit a review for New American Funding. Please feel free to contact us, should you require any further information or assistance. Respectfully, Customer Service Management
I liked their interest rate. Also, I went from a variable rate to a fixed. I went with a 30-year mortgage for a second home. The process was very easy, user-friendly and quick. Everything was very good and remote. It was very well-planned out.
We appreciate the opportunity to assist with your home financing needs. Thank you for choosing us as your lender. Please let us know if we can be of any further assistance to you. Respectfully, Customer Service Management
I had to speak with a representative at least six times. They were eager to get my business. They called and gave me their direct line. We closed everything in about two weeks.
We are pleased to hear you were happy with the service received and appreciate your time to submit a review. Should you require any further information or assistance, please let us know. Respectfully, Customer Service Management
The reps I worked with were good. They were easy to work with. Any questions I had were easily answered. Everything was also straightforward.
We appreciate the positive feedback and look forward to servicing your future lending needs. Please feel free to contact us, should you need any further assistance.
New American Funding Company Information
- Company Name:
- New American Funding