NewFed Mortgage Review 2021

Written by
TJ Porter
Edited By

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At a glance

NewFed Mortgage

NMLS: 1881

3.9

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Bankrate Score

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Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans; flex-term; reverse mortgages
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Nationwide availability

Available in Connecticut, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, 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, including 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 first
  • Only licensed in 13 states
  • Branch access limited to Massachusetts and New Hampshire

NewFed Mortgage overview

NewFed Mortgage is a full-service mortgage lender operating in several states throughout the country. It offers a wide range of loan options for borrowers with varying qualifications. Founded in 2000, the lender is headquartered in Danvers, Massachusetts, and is the parent company of Commonwealth Mortgage, which offers discounted rates and a best-rate guarantee: it’ll pay you $500 if you can find a better deal at another lender. Note that while the lender claims it offers “speedy” closings online, it doesn’t state a precise timeline. Generally, closing times can vary based on the complexity of the loan and other factors.

Good for

Borrowers exploring a variety of loan options, including renovation loans, in the states the lender is licensed in

Loan types 

  • Conventional
  • Jumbo
  • FHA
  • VA
  • USDA
  • Fixed-rate
  • Adjustable-rate
  • Rate-and-term and cash-out refinancing
  • Construction and renovation loans
  • Flex-term
  • Reverse mortgages

Lender fees

NewFed Mortgage does not provide lender fee information on its website. The lender does offer a no-cost closing mortgage option, which includes APR fees — like origination and application fees — as well as non-APR fees such as title costs. Both NewFed Mortgage and Commonwealth Mortgage also partner with CMR Closing Services, LLC, to provide a discounted closing.

Rates

NewFed Mortgage does not advertise its rates online. To learn what rate you might qualify for, you’ll need to connect with a loan officer first, which you can find easily through the lender’s website.

Reputation 

NewFed Mortgage has an A+ rating from the Better Business Bureau. 

Online services

NewFed Mortgage doesn’t have a robust online presence. The lender’s website primarily directs you to an application form that you can use to start the home loan process. You’ll fill out some basic information about the loan you’re looking for, then work with a loan officer to get preapproved for the right loan for your needs.

Minimum borrower requirements

NewFed Mortgage doesn’t publish borrower requirements online. In general, most lenders follow Fannie Mae’s underwriting guidelines, which require 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 (DTI) ratio of 43 percent or lower.

FHA loans generally require borrowers to have a credit score of 500 or higher, a DTI ratio 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. Likewise, USDA loans don’t have a down payment requirement, but are only available to borrowers to specific areas.

Refinancing with NewFed Mortgage

NewFed Mortgage offers refinancing but doesn’t provide many details about these programs online. If you’re interested in refinancing, you’ll need to fill out a basic application with loan details and wait for a loan officer to contact you. There’s no information on its website outlining refi rates or fees.

Not sure if NewFed Mortgage is right for you? Consider these alternatives 

Breakdown of NewFed Mortgage overall review score

  • Affordability: 14.75/15
  • Availability: 9/15
  • Borrower experience: 8/10

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.

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NewFed Mortgage consumer reviews

5.0

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12 reviews

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Knowledge
5.0
Level of service
5.0
Professionalism
5.0
Responsiveness
5.0

92% of reviews would recommend this lender

1 of 1 rates honored

Review this lender

Write a review of your experience with NewFED Mortgage.

1 of 1 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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Easiest process ever

Excellent Experience | Malden, MA | 8/26/2021

Written by
TJ Porter
Contributing writer
TJ Porter is a contributing writer for Bankrate. TJ writes about a range of subjects, from budgeting tips to bank account reviews.
Edited by
Mortgage editor