New American Funding is a rarity in that it’s among the top 30 lenders in the nation, based on the number of originations, and it’s family-owned. That puts this mom-and-pop service up there with large regional banks, national credit unions and other mortgage lenders.
Intrigued? Keep reading for everything you need to know about New American Funding
In A Nutshell
- Flexible terms and competitive rates.
- Great customer service, available in Spanish.
- High loan processing fees.
New American Funding has incredibly flexible loan terms, offering almost every conforming and non-conforming loan package you can think of. That means it’ll probably have the type of loan that suits you and what you’re looking for.
Conventional Mortgage Products
- Fixed-rate mortgage
- Provides a fixed interest rate and payment the entire life of the loan.
- Good for borrowers looking for a standard conforming mortgage.
- Adjustable-rate mortgage
- Provides a low interest rate that is fixed for an introductory period. The rate will vary after the lock period.
- Good for borrowers who plan to sell or refinance their homes within a few years.
- Jumbo loan
- Non-conforming loan that is over $424,100, or $637,150 in certain areas.
- Good for borrowers looking to purchase properties in high-cost locations, as designated by Fannie Mae.
- I CAN mortgage (8- to 30-year term)
- Same as fixed-rate mortgage but allows for custom loan terms.
- Good for borrowers looking for a fixed-rate conforming mortgage, but want more control over the repayment period.
Government-Sponsored Home Loans
- FHA fixed-rate mortgage
- Requires a low down payment and considers gift funds in the approval process.
- Good for borrowers with less than perfect credit or without sufficient funds for a down payment.
- FHA 203k Program (30-year term, fixed)
- Allows borrowers to receive up to $35,000 in cash for home renovations.
- Good for borrowers with less than perfect credit who need funds for home improvement.
- VA home loan
- Requires 0% down payment and no PMI required.
- Good for active-duty military or veterans who want to purchase a home.
- VA Interest Rate Reduction Refinancing Loan (IRRRL)
- Does not require a new appraisal or credit underwriting and requires no money out of pocket.
- Good for active-duty military or veterans who want to refinance their mortgages to a lower rate or payment.
- VA Cash-Out Refinance
- Allows you to pull cash out of your home’s equity, even if you’re currently in a non-VA loan.
- Good for active-duty military or veterans who want to refinance and cash out on their home equity at the same time.
- FHA Streamline Refinance
- Simplified FHA refinancing that requires minimal documents.
- Good for FHA borrowers who want to refinance and cash out on their home equity at the same time.
Reverse mortgages allow homeowners over the age of 62 to cash out on their home equity with direct payments from the bank. If you need extra retirement income, you might want to consider a reverse mortgage.
Mortgage rates will vary according to your credit profile. Some factors that New American Funding takes into consideration include credit score, loan-to-value ratio, down payment amount. interest rate type, home location, loan term and loan type.
With that in mind, check out the mortgage rate estimates from the New American Funding website.
New American Funding services most of its own loans, which is key to its high level of customer satisfaction. Other competing lenders originate loans, then hand them off to another company to service after closing.
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When you compare the ratio of complaints to origination volume, you’ll find that New American Funding has a very similar rate to Quicken Loans, who leads the industry in customer service.
Besides high-quality customer care, New American Funding also has a focus on affordability in homeownership and expanding diversity. The lender will help you apply for local government grants so you can get the lowest down payment possible or offset your costs at closing.
New American Funding is also one of the very few lenders who features bilingual employees that services Spanish speakers.
New American Funding is licensed to broker mortgages in all of the United States except New York. It has a network of 185 physical branches for those that want face-to-face service. The majority of these branches can be found in the Western, Midwestern and Southern states.
You can begin your mortgage application in person, by phone, online or via email. The online application features the ability to upload documents and sign electronically. The average time it takes to close is less than 30 days, according to New American Funding, and there is no fee to lock your interest rate.
Because it uses a manual underwriting model, New American Funding examines each borrower’s financial profile comprehensively and from different angles, rather than relying on algorithms. If you were denied by other lenders, you might find your luck with New American Funding thanks to its thorough approval process.
New American Funding gives borrowers an excellent number of choices when it comes to loan terms and products. The lender lets you pick conventional loan terms anywhere between eight years to 30 years, allowing you to choose a monthly payment plan that fits with your budget and your long-term goals. In contrast, most lenders only offer traditional loan terms of 15 or 30 years.
New American Funding also stands out from the crowd with its determination to meet the needs of its customers, offering great customer service with bilingual capabilities.
However, there are a few drawbacks that you should note. First, you can’t get a rate quote online. You’ll have to submit a form or call a loan officer directly in order to get your hands on some numbers. New American Funding also does not offer home equity loans or home equity lines of credit (HELOCs), which are available at most big lenders like Citi, Chase, and Wells Fargo.