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New American Funding mortgage review
Last updated:
finder.com’s rating: 3.7 / 5.0
★★★★★
A family-owned lender with flexible options and a variety of mortgage types.
New American Funding offers a simple application process and breadth of mortgage options, though you’ll need to feel comfortable getting a quote over the phone instead of immediately online.
Details
| Loan types | Conventional , Refinance, Jumbo, HELOC, FHA, VA, USDA, Reverse |
|---|---|
| Minimum credit | 620 |
| Other minimum credits | 620 |
| Minimum down payment | 0% |
| Origination fee | N/A |
| Other fees |
Expect fees to include appraisal fees, title charges, closing fees (Courier fees, processing fees, administrative fees, rate-lock fees, and broker fees), and state taxes.
New American Funding doesn't disclose actual costs on its website. Ask your loan consultant for the specific fees associated with your pending loan, and keep an eye out for additional fees in your loan documentation. |
| Available States | Not available in: HI, NY |
Pros
- Manual underwriting
- Online flexibility
- Free calculators and tools
Cons
- Not available to New York or Hawaii residents
- Undisclosed fees
- No online preapproval or automatic quote
As of October 2019, New American Funding has an A+ rating with the BBB and just under 4 out of 5 stars. The company also has 3 out of 5 stars on Yelp
Both positive and negative reviews tend to focus on individual loan officers. While some customers worked with loan officers who helped them through the process and explained everything clearly, other customers were frustrated with loan officers who were difficult to get in touch with, didn’t listen and took significantly longer than expected
Both positive and negative reviews tend to focus on individual loan officers. While some customers worked with loan officers who helped them through the process and explained everything clearly, other customers were frustrated with loan officers who were difficult to get in touch with, didn’t listen and took significantly longer than expected
What types of loans does New American Funding offer?
This lender offers a variety of mortgage types, including:
Conventional
New American Funding offers both fixed- and adjustable-rate conventional mortgages. And their I CAN conventional mortgages let you pick a term length of eight to 30 years.
Jumbo
New American Funding offers jumbo loans up to $15 million.
FHA
Designed for low- or moderate-income borrowers and backed by the Federal Housing Administration, FHA loans are available to qualifying homebuyers with as little as 3.5% down.
VA
VA loans are available with $0 down to qualifying military service members, veterans and select spouses.
USDA
USDA loans are available for $0 down to qualifying homebuyers in rural areas. You can use the USDA website to check if your home qualifies.
Refinance
If you already have a mortgage, you can refinance with New American Funding to get a new interest rate or different term length.
Other loan types
- Cash-out refinance. A cash-out refinance allows you to take out a bigger mortgage and get the difference as a lump-sum payout.
- Reverse. Qualifying homeowners over age 62 may be able to tap into their home’s equity with a reverse mortgage.
- Nonqualifying. A nonqualifying mortgage, or non-QM, can help self-employed borrowers purchase a home.
- FHA 203k. If you need to renovate a home you own or plan to buy, an FHA 203K loan can help you finance the cost.
- HELOC. A home equity line of credit (HELOC) lets you draw from the equity in your home.
- Interest-only loan. If your income is going to increase in the next few years, and interest-only home can help you buy a house sooner.
New American Funding’s fees
This lender doesn’t disclose their fees online. If you’re considering a mortgage with New American Funding, talk with your loan officer about what fees you’ll need to pay before signing anything to avoid any unpleasant surprises.
Common fees associated with a new mortgage include:
- Application fee
- Origination fee
- Underwriting fee
- Rate lock fee
- Ongoing fees
- Third party fees
Requirements
To learn whether you qualify for a specific loan, you’ll need to request a quote online or talk directly with a lender. A representative can help narrow down an option that best meets your needs.
Basic eligibility for a traditional mortgage includes:
- Two years of continuous employment.
- A FICO credit score of 620 or higher.
- No history of bankruptcy for at least two years.
- Listed assets in your bank account for at least 60 days.
Documentation
To request a quote online, you’ll provide basic personal information and your potential loan requirements.
After a licensed loan professional contacts you, you’ll likely provide such documentation as:
- Bank statements
- Proof of stated assets
- Tax documents
- Pay stubs or W-2s to prove your income
- Government-issued ID
- Your housing or renting history
- Proof of any gifted funds
Pros and cons of New American Funding
Pros
Top benefits of financing a mortgage through New American Funding include:
- Manual underwriting. A person determines your eligibility, not a computer, which could help freelancers and self-employed individuals.
- Online flexibility Submit required documents, track the status of your loan and make payments online.
- Free calculators and tools. The company’s website features an educational blog, instructional videos, mortgage calculators and a glossary of mortgage terms.
Cons
Potential drawbacks of New American Funding include:
- Undisclosed fees. The full range of fees you’ll face aren’t disclosed beforehand, making it hard to know what you’ll pay out of pocket.
- No online preapproval or automatic quote. You’ll need to feel comfortable talking details with a lender over the phone after completing the brief online application.
Does New American Funding offer a 14-day closing guarantee?
It’s unclear. In the past, the company offered a 14-day closing guarantee. But while fine print about the guarantee’s exclusions are still on the company’s website as of October 2019, it’s no longer advertised on the site.
Finder called to find out if the guarantee is still active. But after talking to three representatives at the company who didn’t know and getting put on hold several times, we were told we’d get a call back with an answer — and that hasn’t happened.
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How to get a home loan with New American Funding
Start by requesting a quote from the lender’s website.
- Go to the New American Funding website and click Request Quote.
- Enter your name, contact info, and type of loan you’re looking for. Then input your requested loan amount, credit rating and property type. Finish up with your ZIP code and state, and click Submit.
- A New American Funding will contact you soon after with a quote and next steps to review your assets, debt-to-income ratio, and credit history to determine your eligibility.
What is New American Funding?
New American Funding was founded in 1999 by a husband and wife team in Tustin, California. Today, that couple services a portfolio of more than 113,000 loans across 200 branches in 48 states. And in 2018, it ranked among Inc. magazine’s list of the 5,000 fastest-growing companies in the US.
New American Funding underwrites borrowers’ credentials in-house, which means an actual person reviews your eligibility to match you with a loan. That personal touch could improve your chances of approval for a loan if you’re a freelancer or have a spotty credit history.
Frequently asked questions.
Home loans ratings
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★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
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Expert review
Review by
Amy Stoltenberg
amy.stoltenberg@findercrew.comAmy Stoltenberg writes about lifestyle and money for Finder, researching the best options for shopping, banking, insurance and authentic travel experiences. After studying writing and fashion at Savannah College of Art and Design, she worked designing apparel at a corporate behemoth before opting for a career with unlimited travel time. When her laptop’s closed, she can be found wandering the streets looking for happy hour and hole-in-the-wall eateries.
Expert review
New American Funding offers a suite of loans for mortgages and refinancing. If you’re looking for a government-backed loan for low down payments and need flexible lending requirements, it offers USDA, FHA and VA loans. But there’s no online preapproval, so you need to be comfortable handling the application over the phone.
And if you have poor credit or live in New York or Hawaii, you’ll need to compare other mortgage options to find the best fit for your needs.