New American Funding (NAF) Mortgage Review for 2022

New American Funding offers loan products to meet just about everyone's needs. It will also let you apply for a mortgage online, over the phone, or in person.

New American Funding
Minimum down payment3%
Minimum credit score580
Loan Products Offered

Conventional mortgages
Jumbo mortgages
FHA, VA, and USDA
Self-employed mortgage
I CAN mortgages

Best Features

  • Wide range of loan products
  • Equally good online and in-person applications
  • Branches in 33 states

Drawbacks

  • Rates and fees are average
  • Not available in Hawaii

Overview

New American Funding is a 21st-century phenomenon with technology to match.

Since its founding in 2003, this lender has built up a branch network of over 150 locations and can lend anywhere except Hawaii — sometimes to those with nontraditional credit.

New American Funding also offers a wide range of loan options at competitive rates. It will even lend to borrowers with credit as low as 580 in certain cases. However, its lending fees are not especially low.

Notably, in 2019, NAF won a coveted Better Business Bureau Torch Award for Ethics. It also gets an average of five out of five stars from more than 8,000 customer reviews online.


Compare New American Funding rates

New American Funding publishes its current mortgage rates, which is handy for those who are comparison shopping. Still, you’ll need to request a customized quote to see the specific rates it can offer you.

A personalized quote is often much more useful than advertised rates. With some lenders, those ads can be misleading because they’re available to only a minority of borrowers.

Average interest rate data from 2021 (the most recent numbers available) show that New American Funding rates and fees are about average compared to other major lenders.

Average mortgage rates at major lenders

New American FundingRocket MortgageWells FargoFreedom Mortgage
Avg 30-Yr Interest Rate, 202113.08%3.00%3.14%2.66%
Median Total Loan Costs, 2021$4,577$4,670$3,600$3,880
Median Origination Fee, 2021$1,629$2,430$1,330$0

Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).

Keep in mind that this data is from 2021. Since mortgage interest rates have risen since then, your rate will likely be higher. But this gives you an idea of how New American Funding mortgage rates compare to the broader market.

Naturally, your interest rate will depend on a variety of borrowing factors, including your debt-to-income ratio (DTI), credit report, and down payment. So be sure to get rate quotes from several mortgage companies and comparison shop before committing.

Also, check your quotes for discount points. Discount points involve prepaying interest upfront to receive a lower rate over the life of the loan. And they can make your quoted rates seem lower than they really are.

New American Funding review for 2022

There’s a lot to like about New American Funding. In particular:

  1. NAF looks at each application on a case-by-case basis. This may be particularly helpful for borrowers with lower credit scores or thin credit histories
  2. It has a broad range of mortgage options. Chances are good NAF will offer the type of loan that’s right for you
  3. You can opt for a totally digital experience. But there are over 150 branches if you prefer to do business face to face. And you can apply by phone
  4. There's a 14-day closing guarantee. If you’re buying rather than refinancing, NAF says, “We guarantee that your loan will close in 14 business days. Period”
  5. It has 5-star customer service reviews. NAF earns five stars with over 8,000 customer reviews on Zillow. And there are few official complaints against it
  6. Will often work with down payment assistance programs to help you get extra funds for your down payment and closing costs
  7. NAF is bilingual. Its call center has bilingual agents who speak Spanish as well as English

Probably the biggest drawback is that New American Funding’s lender fees aren’t especially low. On average, NAF charged more to originate mortgages than some other big companies in 2021.

However, its mortgage rates were right in the middle of the road. And if you’re an “excellent borrower” (with great credit, a big down payment, etc.), you may even get a lower interest rate.

Working with New American Funding

As you’d expect of a company founded in the 21st century, New American Funding has mastered the use of technology. Without technology, it couldn’t offer its 14-day closing guarantee for home purchase loans.

New American Funding has a straightforward, online loan application process. This includes the secure uploading of documents, cutting down on the amount of paper you have to submit.

The New American Funding website offers educational resources for first-time home buyers, repeat buyers, real estate investors, and those looking for a mortgage refinance loan. And it features a variety of mortgage calculators to help you understand your home buying budget and monthly mortgage payments — all to get you started on your homeownership journey.

In addition, the company has a suite of mobile apps for customers who want on-the-go convenience.

However, this lender also retains the human touch. Each application is evaluated by a person. And those who dislike technology can call a phone number or visit a branch both to make an application and to progress it.

New American Funding has more than 150 active lending branches in 33 states, with a good geographical spread. But, of course, not everyone will have a branch a convenient distance from home.

Also note that New American Funding does not operate in Hawaii, according to its list of licenses.

New American Funding Customer Reviews

The Consumer Financial Protection Bureau receives way fewer customer complaints about New American Funding than most other lenders. And that applies even if you take into account that it originates fewer loans than some.

CFPB Complaints, 20214Complaints Per 1,000 Mortgages, 20215J.D. Power Satisfaction Score, 20216
New American Funding300.16Not ranked
Rocket Mortgage3760.24876/1,000
Wells Fargo4880.58832/1,000
Freedom Mortgage2620.35829/1,000

NAF is an A+ accredited business with the Better Business Bureau. BBB also gave it a top award for ethics in 2019.

When it comes to New American Funding mortgage reviews on consumer forums, opinion is generally positive. But there are a handful of particularly poor reviews, too.

Most of the negative reviews seem related to a single event when the company took over the management of a large mortgage servicing portfolio. Missing, inaccurate, or lost information during the handover caused distress to some borrowers. However, this doesn’t seem representative of New American Funding’s typical service and customer satisfaction standards.

Mortgage loan products at New American Funding

New American Funding has a remarkably broad portfolio of mortgage products, including:

  • Conventional loans: A loan conforming to guidelines established by Fannie Mae and Freddie Mac. First-time home buyers can usually qualify with 3% down. Keep in mind that conventional mortgages require private mortgage insurance (PMI) with down payments less than 20%
  • FHA loans: Backed by the Federal Housing Administration and allowing down payments as low as 3.5%
  • USDA loans: Backed by the U.S. Department of Agriculture and available with zero down payment
    VA loans: No down payment and great rates, available to select service members and veterans
  • Jumbo loans: Larger mortgage sizes above and beyond conforming loan limits, which is currently $ in most areas of the country
  • Self-employed mortgages: Use nontraditional ways to verify your income
  • Adjustable-rate mortgages (ARMs): Your interest rate can go up and down in line with other rates
  • Fixed-rate mortgages: Fixed payments over 15- or 30-year mortgage (but see “I CAN” below)
  • I CAN mortgage: Customize the loan term (length) of your fixed-rate loan. Pay it back over 8 to 30 years
  • Cash-out refinances: Take out a lump sum from your equity when you refinance
  • Home equity line of credit (HELOC): A second mortgage that provides a line of credit secured by some of the equity you have in your home
  • Buydown loans: Reduce your mortgage payment rate
  • Interest-only mortgages: Low monthly payments. But you’ll still owe the sum you borrowed
  • Reverse mortgages: Release some of the equity in your home with no monthly payments. But you must be 62 years or older
  • Energy-efficient mortgages: Make your home more energy efficient with a Fannie Mae HomeStyle Energy-Efficient Mortgage (EEM)
  • Guesthouse mortgages: An accessory dwelling unit (ADU) loan helps you build or convert accommodation on your property into a home for a relative or as a rental investment

Not many other lenders can match the sheer variety of mortgages New American Funding offers. If you’re unsure which loan option is right for you, an NAF loan officer can help you choose the best mortgage for your financial situation.

New American Funding credit requirements

New American funding credit score requirements vary depending on the loan type you use. Conventional loans require a 620 FICO score. FHA loans, USDA loans, and VA loans typically require at least 580.

There’s one big benefit to this company: manual underwriting. New American Funding’s underwriters will assess each loan application on its merits.

So if you have a low score for a good reason (maybe you’re too young to have borrowed much, or you can show the problems that caused your score to drop are in the past), it may try to approve your application anyway.

And for those with thin credit histories, NAF is sometimes willing to consider “nontraditional credit.” That means evaluating your creditworthiness based on on-time payments of rent, utility bills, and the like. Those things typically aren’t recorded by credit bureaus and don’t form part of your score.

Don’t expect miracles, but the right borrower wanting the right type of loan may get approved with a sub-600 FICO score. And remember, the higher your score, the lower your mortgage rate typically is. With a lower rate you’ll get a lower monthly payment.

Where can you get a mortgage with New American Funding?

NMLS ID: 6606

New American Funding is licensed in 49 states and Washington D.C. Unfortunately, home buyers in Hawaii will have to go elsewhere.

For those who prefer to do their mortgage business face to face, New American Funding has branches in 33 states, including

  • AL, AR, AZ, CA, CO, DE, FL, GA, IA, ID, IL, IN, KS, KY, MA, MD, MI, MN, MO, NC, NJ, NM, NV, OH, OR, PA, SC, TN, TX, UT, VA, WA, and WI, according to the NMLS registry

California residents are especially well served with 37 branches there. NAF is based in Tustin, Calif. Residents of Alaska and other places without nearby branches can apply online or by phone.

New American Funding FAQ

Is New American Funding a good mortgage company? 

By our review standards, New American Funding is a good mortgage company. It gets very few complaints from customers, offers a huge variety of home loans, and can be flexible with credit scores and other requirements for borrowers. To find out if NAF is a good choice for you, request a quote to see its rates, lender fees, and closing costs.

Who owns New American Funding? 

New American Funding is proud that it remains a family-owned business. It was founded by Rick and Patty Arvielo in Orange County, California, in 2003 and is still theirs. The legal name of their company is BrokerSolutions Inc.

Is New American Funding a direct lender? 

Yes, New American Funding is a direct lender. NAF offers residential mortgages directly to consumers. And it carries all the biggest loan types: conventional, FHA, VA, and USDA. New American Funding also has a long list of specialized mortgage products for borrowers with unique needs.

How long has New American Funding been around? 

New American Funding was founded in 2003. It started out as a 40-person call center. But, by 2020, it had grown to employ 3,200 people, and have 198 branches. It now says it maintains a servicing portfolio of over 128,000 loans worth $31.3 billion. You might think that such success implies it’s doing quite a lot right.

Is New American Funding good for a first-time home buyer? 

Yes, if you’re not already familiar with the mortgage process, your loan officer can help you every step of the way. Your loan officer can even help you find down payment or closing cost assistance programs in your area. Your Realtor or real estate agent can also help guide you through the mortgage process. You should also do some research on your own in advance so you’ll know what to expect.

Does New American Funding offer a cash-out refi? 

Yes, these popular mortgage refinance loans let homeowners withdraw home equity to use for home improvements, to consolidate credit card debt, or for any other purpose. Simultaneously, these refinance loans can lower your existing mortgage rate if you qualify.

Does New American Funding issue preapproval letters?

Yes, you can start a mortgage preapproval online. Getting preapproved helps you know your home shopping price range, and it helps show home sellers you’re serious and capable of buying a home. Be prepared to upload financial documentation like W2s, pay stubs, and bank statements to get preapproved. You will have to share contact information including your phone number and email address.

Will New American Funding have the best rates?

New American Funding mortgage rates are about average, but home shoppers should always remember their individual borrowing credentials will impact the actual rate. Home buyers with the best credit scores, lowest debt-to-income ratios, and ability to make a larger down payment will often qualify for the best rates a lender can offer. Because of its manual underwriting process, New American may be able to approve your loan even if underwriters discover weaknesses in your application.

Is New American Funding the best lender for you?

The “best” mortgage lender depends on your needs. And New American Funding may well be a solid option to finance the purchase of a new home.

Thanks to New American Funding’s big loan portfolio, it could fit the bill for many home buyers. That includes “prime” borrowers as well as lower-income, lower-credit, self-employed, veterans, seniors, and more.

Compare rates from a few different companies to figure out whether New American Funding or another mortgage company is best for you. You can get started here.

Sources:

  1. Average mortgage rates and fees sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act. Rates and fees shown reflect the previous year’s data and may not align with today’s mortgage rates
  2. Monthly principal and interest payments calculated using TheMortgageReports.com mortgage calculator. Payments shown are based on a $200,000 loan amount and assume a “very good” credit score. Property taxes and homeowners insurance are not included. Your own monthly payment will vary
  3. Number of mortgage originations for the previous year sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act
  4. CFPB Complaints reflect the number of mortgage origination or closing-related complaints filed with the Consumer Financial Protection Bureau for the previous year
  5. Complaints per 1000 mortgages reflect the number of official complaints filed against a lender with the CFPB for the previous year, compared to the lender’s total number of mortgage originations for the previous year
  6. JD Power Rating reflects the company’s customer satisfaction score according to JD Power’s most recent Primary Mortgage Origination Satisfaction Study. Survey respondents score their lenders in four areas: application/approval process, communication, loan closing, and loan offerings