Skip to Main Content

New American Funding: 2023 Home Equity Review

Bankrate logo

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

At a glance

NMLS: 6606

Info We are in the process of gathering reviews for this lender and will have them available starting October 2023
Bankrate Score
Info
4.2
Rating: 4.2 stars out of 5
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star

Bankrate Score

Customer Rating
Info
This lender has 0 reviews.
Moneybag

Loan amount

Up to $400,000

Credit Good

Min. credit score required

620

Rates

Repayment terms

Up to 20 years

Funds available in

New American Funding features

Here's a breakdown of some of the benefits and drawbacks of New American Funding home equity loans.

PROS

  • Checkmark

    With a New American Funding HELOC, you can borrow up to 85 percent of your combined loan-to-value (CLTV) ratio, up to $400,000.

  • Checkmark

    You’ll get a fixed rate on your initial draw. (For subsequent draws, however, that rate moves higher or lower based on prevailing market rates.) 

CONS

  • Close X

    New American Funding requires HELOC borrowers to withdraw all of their equity funds at closing.

  • Close X

    The lender doesn’t work with HELOC borrowers in some states, including New York and Texas.

New American Funding overview

New American Funding is a mortgage lender headquartered in Orange County, California. It has been offering home loans for two decades, over time spearheading initiatives to support underserved communities, particularly Black, Latinx and veteran homebuyers. In addition to purchase loans and refinances, the lender offers home equity lines of credit (HELOCs) to homeowners in most states.

New American Funding snapshot

Home equity loan types Home equity line of credit (HELOC)
Loan amounts Up to $400,000
Credit score minimum 620
Repayment terms Up to 20 years
Average time to approval As few as five minutes; funding in as few as five days

How Bankrate rates New American Funding

Bankrate Score 4.2
Affordability 3.6/5
Availability 4.1/5
Borrower experience 4.8/5

Methodology

To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.

Benefits

  • With a New American Funding HELOC, you can borrow up to 85 percent of your combined loan-to-value (CLTV) ratio, up to $400,000.
  • You’ll get a fixed rate on your initial draw. (For subsequent draws, however, that rate moves higher or lower based on prevailing market rates.) 

Drawbacks

  • New American Funding requires HELOC borrowers to withdraw all of their equity funds at closing.
  • The lender doesn’t work with HELOC borrowers in some states, including New York and Texas.

Type of fees charged

New American Funding charges a 4.99 percent origination fee on HELOCs, along with an appraisal fee as well as recording fees, depending on your location.

Home equity loan products offered

New American Funding offers HELOCs to borrowers in the majority of states (excluding Delaware, Hawaii, Kentucky, Maryland, New York, South Carolina, Texas and West Virginia). Depending on your home’s value and level of equity, you could take out up to $400,000 with this lender’s line of credit. However, unlike some other HELOC lenders, you’re required to draw all of these funds initially; you can then draw more as you repay. Your repayment period could last up to 20 years after the draw period.

With a New American Funding HELOC, you’ll get a fixed interest rate on the initial draw. If you borrow more during the draw period, you’ll pay whatever the prevailing market rate is at the time, which might be higher than the initial rate. The most competitive HELOC rates go to well-qualified borrowers who set up auto-pay.

You can only get a HELOC through New American Funding on your primary residence.

How to qualify for a HELOC with New American Funding

To qualify for a HELOC with New American Funding, you’ll need a credit score of at least 620 and at least 15 percent to 20 percent equity in your home. Like many types of home loans, the debt-to-income (DTI) ratio caps out at 43 percent. You’ll also need to have sufficient income and meet other eligibility criteria, such as having homeowners insurance.

How to get started

You can apply for a New American Funding HELOC on the lender’s dedicated HELOC website. The lender allows you to link your accounts in the online application, which can help speed up the process. New American Funding is also available by phone at 888-964-7404, Monday through Saturday, 9 a.m. to 8 p.m. ET.

New American Funding - CPC customer ratings and reviews

logo

NMLS: 6606

This lender has 0 reviews.

Be the first to write a review of your experience with New American Funding - CPC.

Knowledge
Rating: 0 stars out of 5
Level of service
Rating: 0 stars out of 5
Professionalism
Rating: 0 stars out of 5
Responsiveness
Rating: 0 stars out of 5
5 stars
4 stars
3 stars
2 stars
1 star
0%
0%
0%
0%
0%