New American Funding Mortgage Review 2021

New American Funding overview

Headquartered in Orange County, California, New American Funding has more than 170 branches across the country. In 2020, the lender originated more than $30 billion in mortgages, helping more than 104,000 borrowers buy new homes or refinance mortgages. The lender is especially focused on minority communities, with a goal to provide $25 billion in loans to Hispanic borrowers by 2024 and $20 billion in loans to Black borrowers by 2028. One notable option of the lender’s loan programs is its “I CAN Mortgage,” which allows borrowers to choose any repayment period between eight and 30 years. The lender also offers loans not advertised on its website, including jumbo loans and non-qualified mortgages (non-QM). (For additional information on these products, you’ll need to contact a loan officer.)

Good for

Borrowers from minority communities or looking for more niche products

Loan types

• Conventional
• Jumbo
• FHA
• VA
• Fixed-rate
• Adjustable-rate
• Rate-and-term, cash-out and streamline refinancing
• Home equity line of credit (HELOC)
• Investment property
• Flex-term
• Non-QM
• Reverse mortgages

Lender fees

New American Funding doesn’t disclose its fees on its website. Be sure to ask for a breakdown of any origination, administrative or underwriting fees to get a sense of what you’ll need to cover at closing. 

Rates

New American Funding lists rates and APRs for conventional, FHA and VA loans on its website, and the rates are updated each day. Note that these rates assume that a borrower has a credit score of 740, so if your credit score is lower than that, your rate will likely be higher than what’s advertised.

Reputation 

New American Funding is a Better Business Bureau-accredited lender with an A+ rating. On Trustpilot, the lender has a solid rating of 4.1 out of five stars based on 40 customer reviews. 

Online services

You can apply for a mortgage on New American Funding’s website and upload all of your information electronically. If you secure a loan through New American Funding, you can use its mobile app for payment and to keep track of your current equity and home value. Additionally, the lender’s website has some helpful calculators, along with a blog about real estate trends. 

Minimum borrower requirements

For conventional loans, you’ll need a minimum credit score of 620 and a minimum down payment of 3 percent. Following Fannie Mae’s guidelines, you’ll likely also need a debt-to-income (DTI) ratio of no greater than 43 percent.

New American Funding doesn’t share specific requirements for other loans online, only offering that “less than perfect credit is not disqualifying” on FHA loans. Since the lender does offer non-qualified mortgages, this might be an option for borrowers with low credit scores or unique situations, such as self-employment. (Keep in mind that the most attractive deals usually go to those with the highest credit scores.)

Refinancing with New American Funding 

You can refinance your mortgage with New American Funding; the lender offers cash-out refinancing and other options like streamline FHA 5/1 ARMs and VA Interest Rate Reduction Refinance Loans (IRRRLs). If you qualify as a low-income borrower, you might be able to take advantage of the Freddie Mac Refi Possible program through New American Funding, which can come with a $500 credit toward your appraisal cost. However, it’s unclear what fees are associated with refinancing through this lender.

Not sure if New American Funding is right for you? Consider these alternatives 

• Wyndham Capital Mortgage review: Offers flexible underwriting standards and doesn’t charge any lender fees
• NBKC Bank mortgage review: Convenient online application, plus a $400 lender credit for Costco members
• Allied Mortgage Group review: Not as widely available, but doesn’t charge lender fees
• Quicken Loans review: The biggest name in the mortgage business also offers a choose-your-term “YOURgage” program that allows you to pick any range from eight to 29 years
• Wells Fargo Home Mortgage review: A lender with a national presence, plus the flexibility to consider alternative credit data on an application

Breakdown of New American Funding overall review score

• Affordability: 13/15
• Availability: 11/15
• Borrower experience: 10/10

Review methodology 

To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.