New American Funding Review: Is It the Right Mortgage Option for You?
Written by
Jacob Wade
Edited by
Melanie Grafil
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New American Funding offers home mortgages and refinancing for first-time homebuyers and existing homeowners alike. They are an online lender with a streamlined application process and competitive rates.
We’ll review New American Funding mortgage options, how its rates and fees stack up, who qualifies and how it compares to other lenders.
New American Funding Overview
New American Funding is an established lender that offers home mortgages, home refinancing, FHA loans, VA loans and even cash-out refinancing. New American Funding has been around for over 20 years and has over 270 offices around the U.S.
New American Funding has been pushing to provide home mortgages to underserved communities, and has even committed to funding billions in mortgages for Black and Latino families by 2028.
Founded by husband and wife Rick and Patty Arvielo, New American Funding has grown to over 4,000 employees and is servicing over 275,000 loans.
How the New American Funding Mortgage Process Works
Applying for a mortgage or a refinance requires you to complete an application, submit personal and financial information and complete closing on the home. You might need to bring a down payment to closing and pay for additional closing costs, depending on your purchase.
Here’s a breakdown of how to get a mortgage from New American Funding:
Get Prequalified
You can apply for mortgage prequalification by filling out a quick online application through New American Funding. This process will perform a “soft” credit check and use your estimated income numbers to qualify you for a mortgage.
To get pre-qualified with New American Funding, you must:
- Provide personal and financial information, such as your name, address, Social Security number, income, etc.
- Provide information about the home you are purchasing or refinancing
- Provide proof of income, if necessary
- Once approved, you’ll receive a prequalification letter that you can use when submitting offers on a home
Complete a Mortgage Application
Once you’re prequalified, you can make offers on homes until you get an accepted offer. Once accepted, you’ll need to walk through due diligence, inspections and other homebuying steps. This includes completing your mortgage application and getting approved for the loan amount you need to purchase the home.
This includes providing:
- Income statements, such as pay stubs or award letters
- Current bank statements
- Tax returns
- Other supporting documents
Your lender will help you estimate your payments, including taxes, homeowner’s insurance, and mortgage insurance, if applicable. If additional documentation is needed, a loan officer will reach out to guide you through the process.
Closing
Once your mortgage application has been submitted, you’ll await approval from New American Funding. Once approved, you can close on your home. This includes signing your closing documents with the title company, including mortgage documents.
On the closing date, funds are dispersed to the seller, and you’ll need to bring the following to the appointment:
- A valid photo ID
- Cashier’s check or wire transfer to cover down payment and closing costs
You will work closely with your New American Funding loan officer during the application and closing process. If any additional details are needed, your loan officer can help walk you through the steps to take.
Pros and Cons of New American Funding
Pros:
- Large footprint nationally, with over 207 branch locations
- Financial programs to help underserved communities
- Several loan options are available, such as conventional, FHA, VA, refinance, etc.
- A “Cash Buyer” program to make more competitive offers on homes
Cons:
- Lowest advertised rates require paying substantial points and a large down payment
- Loan fees not disclosed online
- You cannot get pre-qualified online; you must speak with a loan officer.
New American Funding Loan Options
New American Funding offers mortgages for almost every type of borrower. Here’s a quick summary of what it offers:
Conventional Loans (Fixed and Adjustable)
Both 30-year and 15-year conventional loans are available, as well as multiple adjustable-rate mortgages, or ARMs.
FHA Loans
FHA loans are available with as little as 3.5% down and a minimum credit score of 580. FHA 203(k) loans are also available to fund home renovations.
VA Loans
If you’re a military veteran with a VA entitlement, New American Funding offers no-down-payment VA loans with no mortgage insurance.
USDA Loans
You can get a USDA loan for a house in designated rural and suburban areas, with up to 100% funding available.
Jumbo Loans
For loans larger than $806,500 or $1,209,750 in high-cost areas.
Refinance Options
There are multiple refinance options available for your loan, including rate-and-term and cash-out refinancing.
Cash Buyer Program
New American Funding offers a unique “cash” funding option, allowing you to make an all-cash offer in competitive markets. This can save money on the purchase price, but it does come with a potentially high fee.
Other Loan Programs
There are several other loan programs available, including reverse mortgages, flexible loan term mortgages, ADU loans and mortgages for underserved communities. The Pathway to Home Ownership program offers up to $6,000 in down payment assistance.
New American Funding Mortgage Rates and Fees
New American Funding advertises low rates — but requires a rate buydown with points to get the best rates. Here’s a summary of their current mortgage rates:
| Term | Rate | APR | Points (Cost) |
|---|---|---|---|
| 30-Year Fixed | 6.25% | 6.56% | 3.000 ($8,250) |
| 15-Year Fixed | 5.50% | 6.01% | 3.000 ($8,250) |
| FHA 30-Year Fixed | 5.88% | 7.09% | 3.000 ($8,250) |
| VA 30-Year Fixed | 5.88% | 6.53% | 3.000 ($8,250) |
Here are the current mortgage refinance rates:
| Term | Rate | APR | Points (Cost) |
|---|---|---|---|
| 30-Year Fixed | 6.25% | 6.56% | 3.000 ($8,250) |
| 15-Year Fixed | 5.50% | 6.01% | 3.000 ($8,250) |
| FHA 30-Year Fixed | 5.88% | 7.09% | 3.000 ($8,250) |
| VA 30-Year Fixed | 5.88% | 6.53% | 3.000 ($8,250) |
New American Funding fees will vary by loan type and your situation. You’ll need to speak with a loan officer directly to get fee information for the loan type you choose.
New American Funding vs. Other Mortgage Lenders
New American Funding is well established and offers a wide range of loan options for most borrowers. Locking in low rates requires paying thousands up front in the form of “points” and a down payment of at least 40% of the home purchase price.
Some competitors may offer better rates for similar mortgages. You’ll need to compare lenders yourself to find the best one for your mortgage needs:
| Feature | New American Funding | Bank of America | Better Mortgage |
|---|---|---|---|
| Apply Online | Yes | Yes (hybrid experience) | Yes |
| Fast Pre-qualification | No (one day or more) | Yes (within an hour) | Yes (in a few minutes) |
| In-Person Help | Yes (branches in many states) | Yes | No |
| Mobile App | Good (solid but not best-in-class) | Good (BofA app is robust) | Very Good (simple, streamlined) |
| Loan Types | Wide variety: conventional, FHA, VA, non-QM, jumbo | Conventional, FHA, VA, jumbo, Doctor | Conventional, FHA, VA, jumbo |
| Clear Fees | Not always (some fees not disclosed) | Not always (some fees not disclosed) | Not always (some fees not disclosed) |
| Best For | Buyers wanting personal service and online tools | Existing bank customers, in-person help | Fast digital closings, low fees |
Who Should Consider New American Funding?
New American Funding offers a huge variety of home funding options, with potential for down payment assistance and flexible loan terms. Here’s who should consider using New American Funding for a mortgage and who might not benefit:
- Best for:
- Borrowers in underserved communities.
- Borrowers who’ve saved for a higher down payment.
- Borrowers who can pay points for the best rates.
- Borrowers who want to make cash offers through creative financing.
- Not ideal for:
- Buyers who don’t have a lot of money up-front to buy a home.
- Buyers who want low rates without paying points.
New American Funding Mortgage Review FAQ
If you have additional questions about applying for a mortgage with New American Funding, here are a few more answers.- Is New American Funding a legit mortgage company?
- Yes, New American Funding is a large national mortgage lender with a wide range of loan options for most borrowers. They have offices in over 40 states and have provided over $470 billion in funding over the last 20 years.
- How fast can I get preapproved?
- Preapproval for a mortgage through New American Funding may take up to a week or more. While getting "prequalified" may only take a day or two, a full preapproval requires a credit check and review of your finances to become approved.
- What credit score do I need for New American Funding?
- New American Funding typically requires a credit score of at least 620 for most loans, but also offers loan products for borrowers with low credit scores.
- Can I refinance through New American Funding?
- Yes, New American Funding offers loan refinancing for conventional, FHA, and VA loans -- with quite a few loan options available.
- Does New American Funding charge high fees?
- New American Funding does not disclose loan fees online, so it's hard to compare with industry loan fees. Loan origination fees are usually about 1.5% of a mortgage loan amount, so if the fees are higher, you may be paying too much. You'll need to speak with a loan officer to find out the loan fees from New American Funding.
Information is accurate as of May 9, 2025, and subject to change.
