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About New American Funding Reviews
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
...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||818||1,191||5,511|
|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 for government-backed loans; 620 for conventional||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.
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Reviewed March 24, 2023
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
Reviewed March 24, 2023
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
Reviewed Sept. 29, 2023
My mortgage lender with New American Funding was the coolest guy I ever met. His name was Usher. If I were to ever buy a house again, I would 100% follow him. He made things super easy. He was very on top of his game and was always communicating with me back and forth. It was a very good experience. I started using the website once I closed, and I logged in to pay the mortgage. As far as the app, I can't always log in so I gotta use the website every time. The rates are very good, especially with where everything is right now. I feel I got super lucky. I'm very happy and I will highly recommend New American to anybody who asks me.
We appreciate your kind words regarding your recent loan experience and the service you received from Usher. We look forward to sharing your review with Usher and our management team. Thank you for the opportunity to assist with your home financing needs. Should you require any further assistance, please feel free to reach out to us. Respectfully, Customer Service Management
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Reviewed Sept. 22, 2023
We went with an FHA mortgage. I submitted everything to New American Funding, and it went to underwriting. I was able to convert all my important documents to PDF files and made it easy. I was at work at the time when I did most of it. I was on my lunch break or, "Sorry, guys. I gotta go take care of this real quick." But it wasn't as complicated as I thought it was would be. I bought a house with my phone. We got notified a week later that everything was good to go. It was streamlined. Also, I was able to speak with my loan officer directly. I had her personal cellphone, clarification stuff that needed to be resubmitted via email. She answered every time I called her.
Thank you for your time to submit a review. It is our goal to provide exceptional customer service and happy to hear we achieved this goal with your loan experience. We look forward to sharing your review our management team. Please let us know if we can be of further assistance to you. Respectfully, Customer Service Management
Reviewed Aug. 5, 2023
We used New American Funding about a year and a half ago. I got with Jesse and we had used him to buy our first home. He was pretty awesome. We did a new finance on the home that we had bought in Chickasha. Jesse was the lender and it did well in his area of things. I was impressed by his knowledge and attentiveness and how he was able to help serve us in the timely manner that we needed. It was the biggest thing. The only real trouble we had was right after he handed us over to the underwriters for them to finish up. I wasn't really impressed with the underwriters. It took us 45 days all the way until we closed. New American Funding is at least worth a try. They are out of reach for Oklahoma in terms of being able to actually have an office. If you're looking for someone with an office and here, it probably wouldn't be ideal. But if it's something that you're okay with, it wouldn't be an issue.
We are happy you had a great experience with New American Funding. Please keep us in mind for any further home financing needs. Respectfully, Customer Service Management
Reviewed June 26, 2023
People need to think out of the box, and I'm grateful for companies like New American that go above and beyond to make sure the customer doesn't leave feeling disgruntled, like I did with US Bank. I built a home in Southern Idaho and US Bank would not let me out of my construction loan, which was at a much higher percentage than a conventional mortgage.
I just turned 60 and I've used my VA many times in my life and conventional banks. This is my 11th home. Instead of trying to roll me into something that US Bank provided, all they wanted to do was talk about, "You're under contract for the first 24 months. You cannot refinance this. You have to stay as a construction loan." It reminded me again that there's a reason we have other alternative mortgage companies that advertise on television that are okay. I ended up with New American and they were great. I had great credit, and in my situation, I was fully qualified. My agent said, "Well, if we don't lock this in, the rates are gonna roll again." I was watching it all happen live on the New York Stock Exchange with our Federal Reserve, and it was great advice. I didn't feel pressured, but I locked in.
I was waiting to close the deal after I'd locked in, but I had to go to Bakersville, California to see the grandkids. I didn't wanna leave town because I knew there was gonna be a notary coming to do the business. Instead, my agent said, "No. Where are you gonna stay on the way?" I said, "Well, I stay at Nellis Air Force Base in Las Vegas, Nevada." The notary met us at a casino and did the closing in the restaurant. It was magical, and that goes a long way. I couldn't ask for anything from US Bank that still has my money but not my mortgage.
We appreciate your time to submit a review for New American Funding. It is our goal to provide exceptional customer service and hope we achieved this with your loan experience. We look forward to sharing your review our management team. Please let us know if we can be of further assistance to you. Respectfully, Customer Service Management
Reviewed June 8, 2023
I wanted a company that had experience in Michigan. I live in North Carolina, but I was buying property in Michigan. I went with New American Funding and had a great agent. They walked me through the steps and getting an appraisal and an inspection. Other than the little glitch which was mine (not having the technically correct address), everything went great. I liked the fact that they would lock in the mortgage rate. The rates were higher by the time my mortgage closed but I was able to lock it in for eight weeks. I also liked that I had an agent to work with and he was helpful and kept me apprised of the process and stepped in when things got off track a little bit with the address. I'm very happy. Since then, I get copies of the bill and it's on auto pay.
Our goal is 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. Should you require any further assistance, please let us know. Respectfully, Customer Service Management
Reviewed Sept. 14, 2023
Marcel, the young lady who helped me, was receptive and helpful. The entire process with New American Funding took about a couple of months. I had some things I had to do on my part and it took a while. But they did their best. I'm glad I did the refinancing about a year ago because the rates were good. It’s going up now.
Thank you for sharing your experience you had with New American Funding. Customer satisfaction is our main priority, and your feedback is greatly appreciated. Respectfully, Customer Service Management
Reviewed Sept. 2, 2023
I have my house loan with New America Funding, and I call to know more about HELOC and the loan officer Gabriel **, he was rude and and first we talk in perfect Spanish, then when I call him again to summit my documents, he says he speaks a little Spanish, he didn't want to help me. He just says, "Your income is low. I can't help you," I wish he gave me more options, the first time I refinanced with them, the girl who helped me gave me more options. I try again with a different loan officer.
Thank you for bringing this matter to our attention and sincerely regret the recent service received. We would like to speak with you directly to identify your customer file and have the opportunity to research into this matter further. Please contact Corporate Customer Service at 800-450-2010, ext. 7100 for immediate assistance. We look forward to speaking with you soon. Respectfully, Customer Service Management
Reviewed Aug. 14, 2023
I liked the reps' knowledge about what was offered and how they would fund my refi. They should offer lower rates. But they were appropriate for what we were looking for. They met the market. And the process was seamless.
Thank you for your time to submit a review. We appreciated the opportunity to have assisted you with your home financing needs. Should you wish to review how your interest rate was determined, please call us directly at 800-450-2010. We will be happy to connect you to your assigned loan consultant for further assistance. Respectfully, Customer Service Management
Reviewed Aug. 14, 2023
The guy who helped me explained for me very well. The experience was phenomenal. Whenever they needed something for the underwriting, I just sent them in through their portal. It was very easy.
Thank you for sharing the experience you had with New American Funding. Customer satisfaction is our main priority, and your feedback is greatly appreciated. We look forward to sharing your experience with our management team. Please let us know if we can be of further assistance to you. Respectfully, Customer Service Management
Reviewed Aug. 14, 2023
The program I went through was difficult a times because of time zone issues. I had people on the west coast time zone and I had been calling people on the east coast time zone when I'm in central. So, that part was a little hectic. Also, I wish they had more information for first time buyers and stuff people would qualify for. I went through a whole deal of using the people I thought would be most helpful. And then they said they don't deal with those people a lot. Once I got denied, they were like, "Well, we had people that we use." But they didn't even bring that up during the process.
I was comfortable during the process but they could also be more transparent on the amount of money people are gonna need. I was told multiple amounts that I was gonna need for the downpayment. But I enjoyed the process overall and it was a good experience.
Thank you for sharing your recent loan experience and bringing this to our attention. We would like to speak with you directly, so that we may have the opportunity to research into this matter further. We respectfully ask that you contact Corporate Customer Service by calling 800-450-2010, ext. 7100 for immediate assistance. We look forward to hearing from you soon. Respectfully, Customer Service Management
New American Funding Company Information
- Company Name:
- New American Funding