New American Funding

New American Funding is a one-stop shop for all your home lending needs. It serves prospective homebuyers from varying backgrounds through a diverse suite of mortgage products with competitive rates. Borrowers also receive personalized support beyond closing, even once payments commence.

About New American Funding

New American Funding provides mortgage products to consumers with varying financial backgrounds, including the underserved. The lender opened its doors over 20 years ago and has since morphed into a top privately owned direct mortgage provider with more than 190 locations nationwide.

Its team of experienced professionals understands that no two borrowers are unique. So, New American Funding offers various home loan products, valuable resources and a streamlined lending process to help bring your homeownership dreams to life. The lender also works tirelessly to create more homeownership opportunities for minorities, active-duty military personnel and veterans.

Types of Loans Offered By New American Funding

Whether you’re seeking a purchase, refinance or home equity loan product, New American can help.

Home Purchase Loans

New American Funding offers a variety of mortgage products to meet your unique lending needs, including:

• 30-year fixed-rate mortgages: You’ll get a fixed interest rate and predictable monthly mortgage payments over a 30-year term.
• Conventional loans: These loans are accessible with a down payment as low as 3 percent.
• I CAN mortgage: Borrowers can choose a loan term between 8 and 30 years.
• Buydown loan: This mortgage product lets you lower the rate on your mortgage payment.
• Non-QM loan: It may be a good fit if you can’t get approved through traditional income verification methods.
• Guest-House – ADU loan: Use it to fund the construction of a guest house on your existing property.
• Adjustable-rate mortgage (ARM): These loans offer a lower introductory rate, making your mortgage payments more affordable for a set period.
• Interest-only loan: It helps lower your monthly mortgage payments at the beginning of the loan.
• Jumbo loan: You can use a jumbo loan to purchase a property exceeding the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
• One-time close construction loan: Build the home you’ve always dreamed of with this loan product.

Refinance Loans

If you want to refinance your current mortgage, here are your options:

• Fixed-rate mortgage: It gives you a set interest rate and predictable monthly mortgage payments over the loan term.
• Cash-out refinance: Replace your current mortgage with a new one that includes the equity you pull out.
• FHA refinance: If you have an FHA loan, you can use this loan to reduce your interest rate and monthly mortgage payment.
• VA interest rate reduction refinance loan (IRRRL): If you have a VA loan, it lets you refinance to lower your rate and payments.

Government-issued Loans

These loan products feature a bit more flexibility compared to traditional mortgages:

• FHA loan: Backed by the Federal Housing Administration, it requires a down payment of just 3.5 percent and a 580 credit score.
• USDA loan: Borrowers buying in designated rural areas can access USDA loans without a down payment.
• VA loan: These loans are reserved for active-duty military, veterans, and qualifying spouses and feature competitive rates with no down payment requirement.
• FHA 203(k) loan: You can use it to bundle purchase and renovation costs into a single loan product.
• Reverse mortgage: If you are at least 62, a reverse mortgage gives you a stream of income from your home equity without added debt.

Home Equity Loans

You can leverage your home equity with a home equity line of credit (HELOC). You get access to a pool of cash, accessible as needed up to the credit limit. The line replenishes for continued use as you repay what you borrow until the draw period ends.

Applying for a Loan with New American Funding

When you’re ready to apply, familiarize yourself with the lending criteria, availability of loan products and the application process. That way, you’ll know what to expect moving forward.

Loan Requirements

Loan requirements vary by the mortgage product you select. It’s worth noting that New American has home loans for diverse financial backgrounds. A smaller down payment, higher DTI or lower credit score may not be a barrier to homeownership.

Availability

New American Funding is licensed to originate mortgages in all 50 states.

Application Process

The loan process starts with a rate quote. Online inquiries take just three minutes and won’t impact your credit score. Or you can call or visit a branch to receive live support.

If you’re pre-qualified for a mortgage, view potential loan offers, select the best fit, and formally apply with the lender. You’ll need to submit personal and financial documents to the lender for review by the underwriting team. The lender will also request more information about the property.

The final step is the closing, which can only occur once you receive a final approval. Also called a “clear to close,” it indicates you’ve satisfied all the lender’s conditions and can move forward with sealing the deal.

Benefits of Choosing New American Funding

• Diverse portfolio: The lender features traditional, government-backed and unique mortgages with flexible terms, along with reverse mortgages and construction loans.
• Non-traditional mortgages: There are also options for self-employed borrowers who cannot qualify with traditional income verification methods.
• Rate transparency: The lender publishes rates online.
• Online resources: Mortgage calculators and educational tools are available to enhance your knowledge.
• Branch access: You can get in-person support nationwide at one of 190 branch locations.

Areas for Improvements for New American Funding

• Website: At first glance, the website can be overwhelming as there is loads of information to sift through.
• No online chat feature: Customers must call or visit a physical branch to connect with a loan officer.

Where New American Funding Stands Out

Beyond the benefits already mentioned, here are some other reasons why New American Funding stands out amongst the competition:

• Fast closings: Many transactions come with a 14-business-day closing guarantee.
• 5-Year rate protection pledge: New American Funding will refinance your loan without assessing an appraisal or lender fee if your rate drops within five years.
• Pathway to homeownership: It’s an initiative for first-time homebuyers that features a down payment grant and flexible income guidelines and requires a credit score of just 620.
• NAF cash: This program makes moving into your new home easily even if you haven’t sold your current one.

Is New American Funding Worth It?

New American Funding is a viable option for first-time homebuyers, underserved borrowers and those with unique financial situations. It’s also ideal if you like the idea of a digital lending experience but with in-person support available if needed.

You also get peace of mind knowing you’re doing business with a reputable, BBB-accredited lender with over 20 years of experience. Still, it’s worth shopping around and comparing loan offers before deciding if this lender is the best fit for you.

How to Get Started with New American Funding

Visit the New American Funding website to request a free rate quote, or call 800-890-1057. You can also visit a branch if you’d like to speak with a loan officer before applying for a mortgage.

FAQs About New American Funding