New American Funding Mortgage Review: November 2024

Best for: Homebuyers who want lots of choices, competitive rates and low fees

New American Funding has a wide variety of mortgage types, including FHA, conventional, construction, VA, USDA, jumbo, and more. It charges a single flat rate for the origination fee, regardless of the size of the loan. All other closing costs are charged by third parties.

New American Funding’s interest rates are also competitive in the current market. Borrowers with high credit scores (760+) were offered rates in the high 5% to low 6% range in October (without buying points). New American Funding is an excellent choice for homebuyers seeking an array of mortgage options with transparent, affordable fees and competitive interest rates.

Methodology 

To determine the best mortgage companies, Credible evaluated lenders based on several different categories: rates and fees, reputation, eligibility, efficiency, customer experience, and discounts and perks. We also looked at the types of loans offered by each lender for research purposes only, they did not factor into the overall score. We assigned a score out of five stars to each lender based on our findings. 

Learn more about our expert lender ratings by checking out our Mortgage Lender Rating Methodology.

New American Funding: Pros and cons

Pros 

• Wide variety of loan options: New American Funding offers many types of mortgages, including conventional, FHA, reverse mortgage, and construction loans.
• Smooth online application process: Apply online with a simple, easy-to-use interface.
• Programs for specific borrowers: New American Funding has programs focused on lending to Latino, Black, military, and LGBTQ+ populations.
• Competitive interest rates: New American Funding’s rates are lower than the national average as of November 2024.
• Mortgages offered in all 50 states: New American Funding added New York and Hawaii to its roster in May 2024, making it accessible to borrowers nationwide.

Cons 

• No online quote: Even if you’re just window shopping for mortgages, you’ll need to sign up for an account and talk to a loan officer to find out what rates and terms you can qualify for.
• Must provide a phone number and email: Your email and phone number are required fields when filling out information to request a quote. 
• No home equity loans: New American Funding offers fixed-rate home equity lines of credit (HELOCs), but not home equity loans.
• Slow customer service: It can be difficult and slow to reach a loan officer on the phone. Many times, the receptionist will leave a message for your designated loan officer to call, which may not be returned right away.

What to consider before applying

If you’re early in the homebuying process, you can request pre-approval from New American Funding. Pre-approval gives you an idea of what terms you’re likely to qualify for, and only results in a soft pull on your credit; a hard inquiry is done after you submit all your documentation. Once you’re pre-approved, New American Funding can lock in your interest rate for about 45 days. If rates drop during that time, your loan officer can adjust the rate if it goes lower.

Also, if rates fall less than five years after you buy your home, New American Funding allows you to refinance at a lower rate with no appraisal or lender fee. 

Before you apply for a mortgage with any lender, it’s important to do your research. Compare offers from at least three lenders (which could include mortgage brokers, banks, or credit unions). 

How to apply for a loan with New American Funding

You can apply for a mortgage, refinance, or other loan online, by phone at 855-276-3747 or at one of its branch locations across the U.S. Here are the steps to apply for a loan:

1. Check your credit score: Do this before you apply to get an idea of what terms and rates you might qualify for. It will also help you get a more accurate rate quote.
2. Gather your documents: You’ll need government ID (driver's license, passport, etc.), tax returns, W-2s, pay stubs, bank statements, loan statements, and more. 
3. Submit an application: The website allows you to fill out personal information and upload documents securely and easily.
4. Speak to a loan officer: A mortgage professional will discuss your options and help you choose the best loan for you given your credit score, down payment amount, whether you’re a first-time homebuyer, and other qualifications.

How to qualify for a loan with New American Funding

To assess whether you qualify for a loan, New American Funding looks at the following:

1. Income: The lender wants to ensure you have enough money coming in each month to repay the loan. In fact, the Dodd-Frank Act requires lenders to make a good-faith determination that borrowers have the ability to pay back their loans.
2. Total assets: Lenders know that life happens. Sometimes layoffs, a medical emergency, or simple money mismanagement can cause borrowers to fall behind. As a failsafe, they want you to have a decent level of savings so you can pay your mortgage if you get in a tight financial spot.
3. Credit history: The minimum credit score requirement for a loan depends on the mortgage type. For example, New American Funding requires a 620 credit score for a conventional loan, in line with guidelines set by Fannie Mae and Freddie Mac. One exception is that FHA loans allow for a 500 or 580 minimum credit score depending on your down payment, but New American Funding adheres to the 580 limit. 

How to refinance with New American Funding

For a new refinance with New American Funding, you can talk to a loan officer or apply online. If you already have a mortgage with New American Funding, know that it doesn’t charge a lender fee or appraisal if you refinance your mortgage within five years of the original. 

If you’re looking for a cash-out refinance, bear in mind that you’ll only be able to take out a maximum of 80% of your equity. New American Funding will also assess your income, assets, debt-to-income ratio, and other financial factors to qualify you for a refinance. Here are the steps you can expect to take to refinance your mortgage:

1. Talk with your loan officer: They can look up your current loan rate and terms and see what you may qualify for. If you’re currently paying PMI, see if you can have it removed with a new loan. The loan officer can help you see how much equity you can tap into with a cash-out refinance.
2. Gather your documents: Refinancing is getting a new mortgage to replace the old one, so you’ll need the same documents for approval, such as tax returns, pay stubs, bank statements, identification, etc.
3. Apply for your loan: Submit the full application to start the refinance process. You can do this online or in a branch office.

How New American Funding compares 

New American Funding is a great choice for borrowers who want a variety of home loan options, discounts, and a smooth online application process. However, borrowers who want to see their rates will need to create an account and request a quote from a loan officer. Here’s how New American Funding stacks up against other lenders.