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New American Funding mortgage review

A family-owned lender with a variety of mortgage types, but no online preapproval.

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 online.

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Conventional: 620

Minimum credit score

3%

Minimum down payment (Conventional)

Not available in: HI, NY

State availability

Details

Loan products offeredConventional, Jumbo, FHA, VA, Refinance
Minimum credit scoreConventional: 620
Minimum down payment (Conventional)3%
State availabilityNot available in: HI, NY
NMLS #6606

Our take on New American Funding

New American Funding is a great choice for freelance and gig workers, offering quite a few mortgage options and customizations for those who may not qualify for traditional loans. The variety of home loans and manual underwriting process can help you find a good fit, regardless of your financial circumstances.

But the lender’s manual underwriting means it doesn’t offer online preapproval, so you must be comfortable handling the application over the phone or in person at one of New American Funding’s branch locations.

New American Funding requirements

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.

To learn whether you qualify for a specific loan, request a quote online or directly speak with a lender. A representative can help narrow down an option that best meets your needs.

Documentation

To request an online quote, provide your basic personal information and your potential loan requirements. After a licensed loan professional contacts you, you’ll likely need to provide documentation as:

  • Bank statements.
  • Proof of stated assets.
  • Tax documents.
  • Pay stubs or W-2s to prove your income.
  • Government-issued ID.
  • Housing history and records.
  • Proof of any gifted funds.

Costs and fees

This lender doesn’t disclose its 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 these:

  • Application fee
  • Origination fee
  • Underwriting fee
  • Rate-lock fee
  • Ongoing fees
  • Third-party fees

How to apply for a mortgage with New American Funding

To start, request a quote from the lender’s website.

  1. Go to the New American Funding website and select Buy a House.
  2. Step through the prompts and enter information about the loan you’re interested in and the kind of property you want.
  3. Answer questions about the loan amounts and where you want to buy.
  4. Enter your personal history and contact information, then select Submit.
  5. Wait for New American Funding to contact you with a quote and next steps to review your assets, debt-to-income ratio and credit history to determine your eligibility.

What types of mortgages can I get through New American Funding?

  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
This company accepts mortgage refinance applications.

Refinance options available through New American Funding

This lender offers the following mortgage refinance options:

  • Cash-out refinance. Replace your current mortgage with a loan for an increased amount to tap into your home’s equity for cash that you can use however you’d like.
  • Rate and term refinance. Lock in a lower interest rate or change the term of your loan to pay it off more quickly or lower your payment.
  • Cash-in refinance. Use an inheritance, bonus or other large lump sum of money as a kind of “down payment” on your refinance to pay down the loan’s principal.

Other specialty mortgage products

New American also offers the following additional home loan products:

  • Reverse. Qualifying homeowners over age 62 may be able to tap into their home’s equity with a reverse mortgage to supplement their retirement.
  • Buydown loan. This option allows you to pay “points” up front to reduce your interest rate and lower your monthly payments for the first one to three years.
  • 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 over a set period, paying only interest until the repayment period.
  • Nonqualifying. A nonqualifying mortgage — or non-QM — allows alternate documentation for proof of income and credit history, to make a home purchase easier for self-employed borrowers.
  • I Can mortgage. This option allows you to customize your loan’s terms, choosing a payment that works for you and the term that fits that payment, between eight and 30 years.
  • Interest-only loan. If your income will increase in the next few years, an interest-only home loan can help you buy a house sooner.

Alternatives to New American Funding mortgages

With so many options to choose from, New American Funding may seem like it offers something for everyone. But if you’re interested in a particular type of mortgage, you may consider a lender that specializes in that loan. For example, Veterans United mostly works with borrowers seeking a VA loan or refinance and knows all the nuances of the system.

And if you’re concerned about New American’s lack of transparency when it comes to closing costs or you’re more comfortable with a fully online process, you may want to look into Better, a lender that doesn’t charge origination fees and has a streamlined digital application.

Shopping your options is the best way to make sure you’re finding the lender that’s right for you. Select See rates below to visit the lender’s website for a personalized quote.

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Name Product Loan products offered State availability Min. credit score
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
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LendingTree
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HELOC, Home Equity loans
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620
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Veterans United
(NMLS #1907)
Veterans United
Conventional, FHA, VA, USDA, Jumbo, Refinance
Available in all states
620
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New American Funding reviews and complaints

As of July 2022, New American Funding’s online reviews are pretty positive. The lender is accredited with the Better Business Bureau (BBB) and has an A+ rating for closing 161 customer complaints over the last three years. It also has 321 customer reviews, averaging 3.15 out of 5 stars.

Customer ratings aren’t as high on Trustpilot, where the lender has only 53 reviews and has earned a TrustScore of 2.9 out of 5 stars.

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.

New American Funding pros and cons

Consider the good and the bad for this lender.

Pros

  • Manual underwriting. A person determines your eligibility rather than a computer, which could help freelancers and self-employed individuals.
  • Online flexibility. Submit required documents, track your loan’s status and make payments online.
  • Customizable loan options. Among American Funding’s options, some options allow you to customize your loan term, pay points to adjust your mortgage payment or pay only interest for a set number of years.

Cons

  • Undisclosed fees. The full range of fees you’ll face isn’t disclosed beforehand, making it hard to know how much 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.

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 197,000 loans across 186 branches in 32 states. And in 2021, it ranked among the top mortgage lenders for the ninth consecutive year by Scotsman Guide’s Top Mortgage Lenders list.

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