New American Funding (NAF) Mortgage Review for 2020

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.

Lending flexibility 4.5
Customer service 4.5
Ease of application 4.0
Online experience 4.5
Minimum down payment 3%
Minimum credit score 580
Loan Products Offered

Fixed-rate mortgage
Adjustable-rate mortgage
"I CAN" mortgage
Jumbo mortgage
FHA & VA mortgage
USDA mortgage
Self-employed mortgage

Best Features

  • Huge range of loan products
  • Equally good online and in-person applications
  • Branches in 31 states

Drawbacks

  • Rates and fees are average
  • Not available in New York and 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 204-strong branch network and can lend anywhere except New York state and 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 five out of five starts from more than 7,000 customer reviews online.


Compare New American Funding rates 

New American Funding does not publish current mortgage rates. However, 2019 data from the Home Mortgage Disclosure Act (HMDA) shows NAF rates and fees are about average compared to other major lenders.

 
New American Funding
Quicken Loans
Wells Fargo
Chase
Average 30-Year Interest Rate, 2019
4.16% 4.16% 4.22% 4.22%
Average Origination Fee, 2019*
0.62% 1.11% 0.38% 0.38%
Average Loan Costs, 2019*
1.84% 2.0% 1.10% 1.01%

*Average origination fees and average loan costs are shown as a percentage of the company’s average loan amount. Your own rate and fees will vary.

New American Funding also makes it easy to get a customized quote through a quick and easy online process.

And 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 tiny minority of borrowers.

Request custom rate quotes today (Dec 2nd, 2020)

New American Funding review for 2020

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

  1. NAF looks at each application on a case-by-case basis. So if there’s a good reason why you have a low credit score, NAF may consider factors that other lenders might ignore
  2. It has a huge range of mortgage options. Chances are good NAF will offer the sort of loan that’s right for you
  3. You can opt for a totally digital experience. But there are 204 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 7,000 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 2019.

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.), your rates will likely be even lower.

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, all-online application process. This includes the secure uploading of documents, cutting down on the amount of paper you have to submit.

NAF also 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 weighed 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 200 active lending branches in 31 states, with a good geographical spread.

But, of course, not everyone will have a branch as convenient distance from home.

Also note that New American Funding does not operate in New York state or 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.

Company
Mortgage Originations 20194
CFPB Complaints 20195
Complaints per 1,000 Mortgages6
2019 JD Power Rating7
New American Funding
91,800 13 0.14 N/A
Quicken Loans
774,900 187 0.24 880
Wells Fargo 
1,026,800 342 0.33 837
Chase
527,600 188 0.36 850

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 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:

  • Fixed-rate mortgages — Fixed payments over 15 or 30 years (but see “I CAN” below)
  • I CAN” mortgage — Customize the term (length) of your fixed-rate loan. Pay it back over 8 to 30 years
  • Adjustable-rate mortgages (ARMs) — Your interest rate can go up and down in line with other rates
  • FHA loans — Backed by the Federal Housing Administration and allowing down payments as low as 3.5%
  • USDA loans — Backed by the US 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 typical loan limits
  • Self-employed mortgages — Use nontraditional ways to verify your income
  • Cash-out refinances — Take out a lump sum from your equity when you refinance
  • Home improvement loans — to buy a fixer-upper or renovate your existing home
  • 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 — Hyper-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 these loans
  • 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.

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 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 is willing to consider “nontraditional credit.”

That means evaluating your credit-worthiness 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 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.

New American Funding FAQ 

Where can you get a mortgage with New American Funding? 

NMLS ID: 6606

New American Funding is licensed in 48 states, with New York and Hawaii as the only exceptions.

For those who prefer to do their mortgage business face to face, New American Funding has branches in 31 states, including: AL, AR, AZ, CA, CO, DE, FL, GA, IA, ID, IL, KS, MA, MD, MI, MN, MO, NC, NJ, NM, NV, OK, OR, PA, SC, TN, TX, UT, VA, WA, and WI, according to the NMLS registry.

Map showing New American Funding branch locations in 31 states — from NAF review by The Mortgage Reports

California residents are especially well served with 45 branches there. NAF is based in Tustin, Calif. Residents of Alaska and other places without nearby branches can apply online or by phone.

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 and fees.

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, Calif., 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 homebuyer? 

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 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 refinance loans let homeowners withdraw home equity to use for home improvements, to consolidate your 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 pre-qualification letters?

Yes, you can start a mortgage pre-qualification online. Getting pre-qualified helps you know your home shopping price range, and it helps show home sellers you’re serious and capable of buying a home. You will have to share contact information including your phone number and email address to get pre-qualified. To request a pre-qualification letter, which you can show your Realtor and home sellers, you’ll have to call your loan officer.

Will New American Funding have the best rates?

New American’s interest rates are about average, but home shoppers should always remember their individual borrowing credentials will impact the actual rate. Homebuyers 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. Thanks to New American Funding’s big loan portfolio, it could fit the bill for many people. 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.

Verify your new rate (Dec 2nd, 2020)

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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