New Fed Mortgage Mortgage Review 2021

By Mitch Strohm

Please note: In response to the coronavirus pandemic, lenders are changing their requirements continuously. Although we strive for accuracy at the time of publication, please be sure to check with the lender for updated details on down payments, credit scores, etc.

At a glance

New Fed Mortgage

NMLS: 1881

3.9

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Loans offered

Conventional, FHA, VA, USDA, fixed-rate and adjustable-rate (ARM), jumbo, 203(k), portfolio, reverse mortgages; refinancing options include rate-and-term refinancing and cash-out refinancing
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Nationwide availability

Available in Connecticut, Florida, Illinois, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, Pennsylvania, Rhode Island and Virginia
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Min. credit score required

620 for conventional loans; 500 for FHA loans

Pros and cons

Pros

  • Wide range of loan options for borrowers of all types
  • Borrowers choose mortgage terms from eight to 30 years
  • Homes for Heroes program can save eligible borrowers in public-service professions up to $3,500

Cons

  • Doesn't offer online approval process; you have to speak to a loan officer
  • Only licensed in 12 states
  • Branch access limited to Massachusetts and New Hampshire

New Fed Mortgage overview

New Fed Mortgage is a full-service mortgage lender operating in multiple states throughout the country. It offers a wide range of loan options for borrowers with varying qualifications. Founded in 2000, New Fed Mortgage is headquartered in Danvers, Massachusetts. It's the parent company of Commonwealth Mortgage, which offers discounted rates and a best-rate guarantee — it’ll pay $500 if you can find a better deal at another lender. In 2017, New Fed Mortgage was named the best mortgage company in Massachusetts Banker and Tradesman newspaper.

Loan types

  • Conventional
  • FHA
  • VA
  • USDA
  • Fixed-rate
  • Adjustable-rate (ARM)
  • Jumbo
  • 203(k)
  • Portfolio
  • Reverse mortgages
  • Rate-and-term refinancing
  • Cash-out refinancing

Lender fees

New Fed Mortgage and Commonwealth Mortgage offer a no-cost closing option, which includes fees in APR — like origination and application fees — as well as non-APR fees such as title costs. Both New Fed Mortgage and Commonwealth Mortgage partner with CMR Closing Services, LLC, to provide a discounted closing.

If you’d like to lower your obligation at closing, keep in mind there are several mortgage programs that can help. FHA, VA and USDA loans may provide the option to wrap closing costs into your mortgage.

Minimum borrower requirements

New Fed Mortgage doesn’t publish borrower requirements, but you can generally expect it to follow Fannie Mae’s underwriting guidelines for conventional loans. It takes a credit score of 620 or higher to qualify for a conventional loan. You’ll also need a down payment of at least 3 percent and a debt-to-income ratio (DTI) of 43 percent or lower.

FHA loans generally require borrowers to have a credit score of 500 or higher, a DTI of 50 percent or lower and a down payment of at least 3.5 percent. VA loans don’t have a down payment or minimum credit score requirement, but you’ll typically need a FICO score of 620 or higher.

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New Fed Mortgage consumer reviews

5.0

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11 reviews

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Customer service rating

Knowledge
5.0
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5.0
Professionalism
5.0
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5.0

91% of reviews would recommend this lender

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Write a review of your experience with NewFED Mortgage.

4 of 4 reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.

To help serve you with relevant information the consumer reviews shown below are limited to only those that this advertiser has received during the past 12 months.

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Lowest Rates, Best Service

Mike | Woburn | 5/14/2020

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New Fed helped me out

Chris | North of Boston | 5/28/2020

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Best rates and experience

Edward | Schaumburg, IL | 6/11/2020

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Excellent

Mike Demers | Methuen, MA | 8/28/2020