New American Funding
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New American Funding

 4.9/5 (719 ratings)
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New American Funding
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Written by Jennifer Schurman
Edited by Sally Jones

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?
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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: 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: Nov. 1, 2021

    We'd planned to simply refinance our existing mortgage, before rates rose, then do a HELOC in a few months, when we were ready to begin renovations. However, when we were told about the ability to do a cash-out refinance now, with the ability to repay any money (above $5,000, at any time in the future) that we didn't use for our renovations, and do a recast of the mortgage at the SAME new rate, we were blown away. This option gives us the cash-in-hand to tackle all our renovations at once, at an interest rate lower than a standard HELOC (whose rates often flux with prime rate rises.) And since our Structural Engineer just told us we don't have to do major structural work, we'll be able to return a large chunk of our cash-out, recast, and reduce our monthly mortgage payments, once we're done with all the renovations in a few months.

    And in the meantime, mortgage interest paid on our cash-out will be tax deductible, whereas HELOC interest isn't deductible. It's a fantastic option for us, and we had absolutely wonderful guidance from Nathan **, our loan officer. Within one month of first talking with Nathan, we had our cash in hand. We highly recommend working with Nathan and with New American.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Oct. 21, 2021

    I came to know about NAF thru the HARP program. I can say that my experience with NAF has truly been an enjoyable one. My 1st mortgage lender sold the mortgage to another lender after a year but NAF have kept mine for the past 7+ years. Making life so much easier as I don't have to worry about transferring documentations or who to contact when tax season rolls around.

    On both occasions that I have to do business w/NAF i.e. refinance, the people are just a joy to work with. They kept me updated all throughout the process. They are very efficient and obviously knows what they are doing. This time I have the privilege to work with David **. I can say that he is one of the best if not the best. He provided me with all the rates and gave me advices as to which would work best for me. He stays late to answer my questions as we are in different time zones. Isaiah ** picked up where David left off, and same experience. Best service anyone can ask for. Working on my loan even on his birthday -- that I think sums up everything anyone needs to know about people who works at NAF. Meeting people like them is truly a blessing.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Oct. 20, 2021

    Daniel was absolutely amazing every step of the way, from our application all the way up to closing. His communication was perfect, frequent and thorough, but not too frequent, and also as succinct as it needed to be. He checked in with us often, answered all of our questions, sometimes over and over again. He always made sure we understood everything and felt very supported. We had some unusual struggles on our end, due to waiting for our sellers' new home to be finished and then dealing with the sellers' having problems with their loans. The whole process took 6.5 months, and Daniel was supportive and amazing the entire way.

    I simply could not imagine having a better experience anywhere else, with anyone else. Daniel is incredible at his job, he's a cool person, and he takes care of his clients. He deserves the highest praise, and whatever he is being paid, he deserves a hefty raise on top of that. I hope my husband and I have the opportunity to work with Daniel specifically again (and NA) should we have financial needs in the future. I will recommend him to everyone, and have already told one friend to get his info from me when they're ready to buy. Recognize this dude! Make him happy. Y'all can't afford to lose such an amazing person.

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

    Phat was amazing through a long and tedious process due to no fault of his own. He was professional, courteous and friendly. HIGHLY RECOMMEND! THANK YOU, PHAT! Processing time from processing to closing- 3 weeks. Response time from Phat- always the same day.

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

    Justin was awesome, he was very communicative and helped me get everything through to closing in a timely manner. He also went above and beyond to explain everything to me and answer all my questions (big and little) in a very helpful way. The title company changed final numbers multiple times and he did his best to keep me apprised of those changes as quickly as he received them.

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

    Michael was so helpful and knowledgeable. He made the entire process so easy. He being such a pleasant person going over and beyond the call of duty to complete my refinance in a timely manner seemed effortless on his part. So it made me very worry-free.

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

    The underwriter was not consistent. This was the only bad part about the process. Each time we were told to provide a paystub/document, it was never enough. We provided everything that was asked, but still had to go back and forth. Very frustrating!

    2 people found this review helpful
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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