New American Funding

New American Funding

 4.8/5 (361 ratings)
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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.

Overall Satisfaction Rating

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Pros

  • High customer satisfaction ratings
  • Several FHA loans
  • Quick preapproval decisions

Cons

  • Application process not 100% online
  • No pre-qualification without a credit check

Bottom Line

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

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Rated with 5 stars
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...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...

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Rated with 5 stars
Verified

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....

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Rates

New American Funding publishes its starting rates for conventional, FHA and VA loans on its website. This rate information is generally updated daily, but for the most accurate rates based on your individual situation, you should contact New American Funding for a customized quote.

In 2021, New American Funding’s average home purchase rate was 0.05% higher than the national average. A year earlier, in 2020, 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 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.

New American Funding average home purchase rate vs. national average

YearDifference from national average
2021+0.05%
2020-0.07%
2019+0.01%
Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

Application process

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.

Amanda, a ConsumerAffairs reviewer from Michigan, had this to say about their experience with New American Funding: "Any questions we had along the way were always answered within a timely manner. We could sign everything through email, and when it came time to sign all documents at the end they came to our home. Loved that an email was sent out letting us know which step we were on and what was coming next."

New American Funding application features

FeaturesAvailability
Online application
Mobile document upload
Physical branches32 states
Publishes minimum rate on website
Rate lockUndisclosed
Pre-qualification (no hard credit pull)X
Certified approval letter

Loan types

New American Funding’s 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.

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

202120202019
Home purchase applications57,51954,15647,730
Home purchase loans closed41,63639,51835,062
Home purchase applications denied2,4982,0551,905
Home purchase preapprovals denied15231
Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

Refinancing

A majority of the loans New American Funding has originated in the past two years have been for refinancing purposes. In 2021, about 56% of loans it closed were for refinancing and cash-out refinances combined. Less than half were for home purchases (about 40%).

Many lenders saw an increase in refinancing applications in 2020 and 2021. Mortgage rates fell to historic lows, so borrowers rushed to refinance and lock in these lower rates before they began rising again.

However, rates have been rising since 2021, so fewer borrowers are expected to refinance in 2022. The average rate on a 30-year fixed-rate mortgage is about 5.66% (as of publishing), compared with 2.86% around this time last year.

Even with higher rates today, you may still consider refinancing if it helps you achieve your financial goals. For example, if retirement is in the near future and you want to have your house paid off by then, you may look into shortening your loan term with a refinance.

A reduced loan term may also qualify you for a lower interest rate. Keep in mind that you’ll pay closing costs, so refinancing might not be a good idea if the interest savings don’t outweigh those expenses.

Home purchase vs. refinance loans by year

202120202019
Home purchase loans40.29%38.41%62.23%
Refinance loans35.78%47.47%22.01%
Cash-out refinance20.44%12.71%14.13%
Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

HELOC and home equity loans

New American Funding offers HELOCs that allow borrowers to draw on the available equity in their homes. The company does not offer home equity loans as of the time of publication.

You can contact New American Funding to learn more about its HELOC options. Most HELOCs have a variable interest rate, which means your monthly payment could change. However, some lenders may let you convert part of your HELOC balance into a fixed-rate loan later if you prefer a more predictable monthly payment.

A HELOC can be a suitable option if you need to consolidate high-interest credit card debt or plan to make home improvement updates over time. A HELOC is a flexible funding source because you can draw from it as needed.

A home equity loan may make more sense if you need funding upfront as a lump-sum payment. With a home equity loan, you’ll begin repayment immediately (as opposed to years later with a HELOC). Also, home equity loans usually have fixed interest rates, so your payment won’t change over time.

Requirements

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.

New American Funding mortgage requirements by type

Min. credit scoreMin. down paymentCompare with other lenders
ConventionalTypically 620Typically 3%Mortgage lenders
FHA5003.5% with 580 credit scoreFHA lenders
VANot disclosed0%VA lenders
USDA5800%USDA lenders

Costs and fees

New American Funding promises low lender fees but doesn’t list those charges 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.

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.

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How do I know I can trust these reviews about New American Funding?
  • 4,190,654 reviews on ConsumerAffairs are verified.
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Page 1 Reviews 0 - 5
Rated with 5 stars
Verified Reviewer
Original review: Aug. 20, 2022

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!!!

Sincerely,

Amanda and Jeffrey **

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: May 1, 2022

    My loan officer, Spencer, was very polite, cheerful, and made sure that we were completing what was needed in order to efficiently go through the loan process. He was great at following up throughout the whole process. I would definitely recommend New American funding to anyone looking to refinance or buy a house. The whole team was very friendly. The only issue I had was with having to pay a second inspection fee due to my renovation on my bathroom which I had thought I had qualified with the inspection company before they came out. Miles told me that there should be no issue since I told him up front I was in the middle of the renovation but then I was asked for reinspection since the plumbing was not actively working. If I had been told from the start, I would have delayed the inspection so I could hook everything up. I feel the inspection company uses this to make extra money. New American funding outstanding.

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    Rated with 4 stars
    Verified Reviewer Verified Buyer
    Original review: April 28, 2022

    My overall experience with New American Funding was good! Each representative I worked with throughout the house buying process was excellent to work with.

    The only suggestion I would make is to please initiate either the mandatory Framework or Fannie Mae house buying course when someone is in the pre-approval stage. I received information to take my course just before closing instead of the beginning of the process, so I missed out on great information, was frustrated to take the course when I just needed to close, and it prolonged the closing process, which is not the time to be thinking about this course. These courses also take time to complete, so rushing to get it done before closing forced me to take a day off of work. Also, please use Fannie Mae for the course, and save your customers $75 which is the cost of the Framework course. They are already paying lots of money to buy a home. This experience is why I'm giving only 4 stars.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: April 5, 2022

    I’m my experience with NAF I was skeptical at 1st but they were so nice. I got paired up with Louis who did a amazing job of helping buy my 2nd home! I’ve done this before so I have to be honest, and we’ll this was the best experience I had funding my home mortgage. I was pleased by the service and also the communication. Whenever I had a question Louis was there to help me every step of the way. No wait time, no holding, he was like my friend that I can call or text whenever. I work night shift so Louis did an amazing job not only following my schedule but also knowing when I went to work and got off work. Early mornings he would message me and check up on things and get the things he needed and at night a simple text message letting me know the next step in the process.

    I made a new friend that I hope I can meet one day and just thank him for helping me close on my house. Even when it was getting close and down to the wire with all the madness of the housing market he remain calm and was patient. I’m glad he paired me up with my realtor because they worked so well together. I never knew it could be this easy. I got to thank the team for being so hard at work and really I’m thankful! I’m really thankful for all the long hours that they took to get me my house. I feel so important and literally I will recommend you guys to everyone I know who is looking to buy a new house! Thanks again!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: April 3, 2022

    The entire process was smooth, fast and easy. Everything that happened was as explained to us and the voice and online communication was easy, timesaving and thorough. Sean was thorough and knowledgeable about the entire process, what information I needed to provide, the status of loan request and answering any questions we had. His team was great when communicating with me about information that they needed or they had to relay to me. We especially loved the home visit from the Notary Public, Carrie **, she was great and made the signing process so much more convenient and easier.

    The one issue we would have from the entire process was receiving the "payoff checks" for our creditors, we assumed that the title company would make those payments directly (as it did the mortgage and HELOC payments). We were not prepared to make "mail" payments, as we do ours mainly electronically. The title company should do that to avoid last minute problems and possible late fees.

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    Rated with 1 star
    Verified Reviewer
    Original review: Jan. 21, 2023

    Bad experience. Loan officer ran my credit. Said I qualified. Said she would call back and never did. I applied with them before and the two loan officers either were let go or quit. I would not recommend this company to anyone when applying for a mortgage.

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    Rated with 1 star
    Verified Reviewer
    Original review: Nov. 22, 2022

    Overall, a TERRIBLE experience. We started off with one Loan Officer who told us how the process was going to work and what was needed from us. He was very upfront about things and was communicating with us quite regularly. Shortly after, he quit. A different loan officer took over the file and immediately went on vacation, handing the file over to a third loan officer. The loan processor asked for the same documents SEVERAL TIMES, again and again. Then she was let go and a different loan processor took over.

    The second loan officer came back from vacation and started creating different contingencies and was not honest about the actual requirements or just did not know what he was saying or asking for, postponing the closing date - that of course, happened when he decided to reply to the dozen emails we had sent... I had to get TWO extensions of close of escrow. Loan officer completely disregarded this and we almost needed a third extension until we included escrow and both realtors who began to realize how incompetent this lender was.

    The underwriter took about 4 weeks to review the file (either that or the loan officer/loan processor did not hand the docs over to the UW in time, either way we had to deal with a very upset seller). When we had a candid conversation with the loan officer, he replied by saying "we can stay here all night saying this person promised you this or this one promised you that". VERY CONDESCENDING. Every day their requirements would change and they would blame either on the underwriter or on the fact that it was an FHA loan ---- however it was an FHA loan since the beginning and the different requirements did not come in until the very end? How does that make sense?

    We BEGGED them to let us know what docs were need and what was still pending so we could provide them with those docs in a timely manner. They did not care to reply with a list at all. The loan officer was condescending and unprofessional and I urge you to avoid this lender. It is really not worth it and they are amateurs.

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    Rated with 1 star
    Verified Reviewer
    Original review: Oct. 25, 2022

    This company will lie and lie. They will bounce you around to Tom and Christian and all just lies. I called three people. Two managers and then corporate and every one of them gave me a completely different answer. I told Leander what was going on and he screwed up loan. Then they said, "Oops he should know Fha guidelines but he is out. Here’s Tom." Tom says, "Oh with interest going up we can only loan around half the home value but I’ll see what we can do. I’ll call you Monday." Still waiting on call two weeks ago and then Christian calls and says, "If you need anything please let me know. We will make this right." Well he won’t accept calls either so looking like I have to go to court just to get what they said they sent to me which I haven’t received and corporate says even though they didn’t lie there’s a process. Well they sent it or they didn’t. Lol. Just one lie after the other….

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    Rated with 5 stars
    Verified Reviewer
    Original review: Oct. 5, 2022

    I highly recommend the team at New American Funding, in particular. They were very patient, extremely helpful and always there to answer any questions. I will definitely be using them again in the future. Thank you so much for all of your hard work!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: May 3, 2022

    I refinanced my home with New American Funding & Tom, my loan officer, was very helpful throughout the entire process. In less than 30 days I was able to get approved and funded! If you want a personalized experience with your lending needs, Tom is your guy!

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    ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page.
    1. New American Funding, “Careers.” Accessed September 7, 2022.
    2. New American Funding, “Home.” Accessed September 7, 2022.
    3. New American Funding, “FHA LOAN REQUIREMENTS.” Accessed September 7, 2022.
    4. New American Funding, “Home Buying FAQs.” Accessed September 7, 2022.
    5. New American Funding, “TODAY'S MORTGAGE RATES.” Accessed September 7, 2022.
    6. St. Louis Federal Reserve, “30-Year Fixed Rate Mortgage Average in the United States.” Accessed September 7, 2022.
    7. NMLS Consumer Access, “Broker Solutions Inc.” Accessed September 7, 2022.
    8. New American Funding, “How to Get Pre-Approved for a Home Loan.” Accessed September 7, 2022.
    9. New American Funding, “Loan Types.” Accessed September 7, 2022.
    10. New American Funding, “Reverse Mortgage.” Accessed September 7, 2022.
    11. New American Funding, “I CAN Mortgage.” Accessed September 7, 2022.
    12. New American Funding, “Buydown Loan.” Accessed September 7, 2022.
    13. Freddie Mac, “Refinance Trends in the First Half of 2021.” Accessed July 6, 2022.
    14. New American Funding, “What is a Home Equity Line of Credit and How Can It Help Me?.” Accessed September 7, 2022.
    15. New American Funding, “What Is a Conventional Loan?.” Accessed September 7, 2022.
    16. New American Funding, “VA Home Loan.” Accessed September 7, 2022.
    17. New American Funding, “USDA Loans.” Accessed September 7, 2022.
    18. New American Funding, “30 YEAR FIXED RATE LOAN.” Accessed September 7, 2022.
    19. New American Funding, “New American Funding Named One of the Fastest-Growing Companies in the Pacific Region.” Accessed September 7, 2022.
    20. New American Funding, “Our Story.” Accessed September 7, 2022.

    New American Funding Company Information

    Company Name:
    New American Funding
    Website:
    www.newamericanfunding.com