New American Funding (NAF) Mortgage Evaluation for 2020


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

Since its inception in 2003, this lender has built a 204-strong network of branches and is able to lend except in New York State and Hawaii – sometimes to people with nontraditional credit.

New American Funding also offers a wide range of credit options on competitive terms. In certain cases, loans are even made to borrowers with credit as low as 500. However, the rental fees are not particularly low.

In 2019 in particular, the NAF won the coveted Better Business Bureau Torch Award for Ethics. It also receives five out of five launches from more than 7,000 customer reviews online.

Compare the New American Funding rates

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

New American funding
Accelerate Loans
Wells Fargo
30-year average interest rate, 2019


Average Original Fee, 2019 *


Average Loan Cost, 2019 *


* Average origination fees and average loan cost are expressed as a percentage of the company's average loan amount. Your own price 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 offer is often much more useful than the prices quoted. With some lenders, these ads can be misleading as they are only available to a tiny minority of borrowers.

Request Custom Quotes Today (November 7, 2020).

New American Funding Review for 2020

There's a lot to like about New American Funding. Specifically:

NAF examines each application on a case-by-case basis. So, if there's a good reason you have a low credit score, NAF can take into account factors that other lenders may ignore
It has a wide variety of mortgage options. Chances are, NAF offers the type of loan that is right for you
You can opt for a fully digital experience. However, there are 204 branches if you'd rather do business face-to-face. And you can apply by phone
There is a 14-day completion guarantee. If you're buying rather than refinancing, NAF says “We guarantee that your loan will be closed within 14 working days. Period"
It has 5 star customer service ratings. NAF receives five stars with over 7,000 customer ratings Zillow. And there are few official complaints against it
Will often work with Down payment support programs to help you obtain additional funding for your down payment and closing costs
NAF is bilingual. The call center has bilingual staff who speak both Spanish and English

Probably the biggest downside is that New American Funding's lender fees aren't all that low.

On average, the NAF charged more on mortgage borrowing in 2019 than some other large corporations.

However, mortgage rates were in the middle of the road. And if you are an "excellent borrower" (with great credit, large down payment, etc.) your interest rates will likely be even lower.

Working with New American Funding

As you would expect from a company founded in the 21st century, New American Funding has mastered the use of technology. Without technology, there couldn't be a 14-day home loan completion guarantee.

New American Funding has a straightforward online application process. This includes uploading documents securely, eliminating the need to submit paper.

NAF also offers a range of mobile apps for customers who want convenience on the go.

However, this lender also keeps the human touch. Each application is weighed by a person. And those who don't like technology can call a phone number or visit a branch to file an application and develop it further.

New American Funding has more than 200 active credit branches in 31 states with good geographic distribution.

But of course not everyone will have a branch that is so conveniently away from home.

Also note that New American Funding does not operate in New York state or Hawaii according to the license list.

New American Funding customer reviews

The Consumer Financial Protection Bureau receives far fewer customer complaints about New American funding than most other lenders. And that is true even if you take into account that fewer loans are given out than some others.

Mortgage origins 20194
CFPB complaints 20195
Complaints per 1,000 mortgages6
2019 JD Power Rating7
New American funding

N / A

Accelerate Loans


Wells Fargo




NAF is an A + accredited company with the Better Business Bureau. BBB also awarded him a top award for ethics in 2019.

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

Most of the negative reviews appear to relate to a single event when the company took over the management of a large portfolio of mortgage services. Missing, inaccurate or lost information during the handover has put some borrowers in distress.

However, this does not seem representative of the typical New American Funding 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 – Adjust the term of your fixed rate loan. Pay it back over 8 to 30 years
Adjustable Rate Mortgages (ARMs) – Your interest rate can rise and fall in line with other interest rates
FHA loan – Supported by the Federal Housing Administration and allows down payments of only 3.5%
USDA loan – Sponsored by the US Department of Agriculture and available without deposit
VA loan – No deposit and low prices for selected service members and veterans
Jumbo Loans – Larger mortgage sizes beyond that typical credit limits
Self-employed mortgages – Do not use traditional methods to check your income
Withdrawal Refinancing – Take a lump sum out of your equity when refinancing
Home improvement loans – to buy a fixer upper or to renovate your existing home
Home Equity Credit Line (HELOC) – A second mortgage that offers a line of credit backed by a portion of your home's equity
"Buydown Loan" – Reduce your mortgage payment rate
Interest-only mortgages – Hyper-low monthly payments. But you still owe the amount you borrowed
Reverse mortgages – Free up some of the equity in your home with no monthly payments. But you must be 62 years of age or older
Energy efficient mortgages – Make your home more energy efficient with these loans
Guesthouse mortgages – An Accessory Housing Unit (ADU) loan will help 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 variety of mortgages New American Funding offers.

New American Funding Loan Requirements

The creditworthiness requirements for new American funding vary depending on the type of loan used. Conventional loans require a FICO score of 620. FHA loans, USDA loans, and VA loans typically require a minimum of 580 – although the New American funding for an FHA loan with an otherwise outstanding application may only be 500.

This company has one big advantage: manual underwriting. The underwriters at New American Funding review each application for merits.

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

And for those with poor credit ratings, NAF is sometimes willing to consider “non-traditional loans”.

This means that you need to assess your creditworthiness based on on-time payments of rent, utility bills, and the like. These things are usually not recorded by credit bureaus and are not part of your score.

Don't expect miracles, but the right borrower who wants the right loan may get approved with a FICO score below 600.

And remember, the higher your score, the lower your mortgage rate, typically. With a lower rate, you get a lower monthly payment.

New FAQ on American funding

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 offices 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 registration.

The residents of California are particularly well served with 45 branches. NAF is based in Tustin, California. Residents of Alaska and other locations with no nearby offices can apply online or by phone.

Is New American Funding a Good Mortgage Lender?

New American Funding is a good mortgage company by our audit standards. Very few complaints are filed by customers, it offers a wide variety of home loans, and it can be flexible with credit scores and other requirements for borrowers. To find out if NAF is a good choice for you, get a quote to see prices and fees.

Who Owns New American Funding?

New American Funding is proud to say that it continues to be a family business. It was founded by Rick and Patty Arvielo in Orange County, California in 2003 and is still owned by them. The company's legal name 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 there are all of the largest loan types – conventional, FHA, VA, and USDA. New American Funding also has a long list of specialized mortgage products for borrowers with special 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. By 2020 there were 3,200 employees and 198 branches. The company currently maintains a service portfolio of over 128,000 loans valued at $ 31.3 billion. You might think that success like this implies he's doing pretty much right.

Is New American Funding Good For A First Time Buyer?

Yes, if you are new to 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 graduation aid programs in your area. Your broker can also guide you through the mortgage process. You should also do your own research beforehand so you know what to expect.

Does New American Funding offer a withdrawal reference?

Yes, these popular refinance loans allow homeowners to withdraw home equity to use for home renovations, consolidating their credit card debt, or other purposes. At the same time, these refinance loans can lower your existing mortgage rate if you qualify.

Does New American Funding issue prequalification letters?

Yes, you can start a mortgage prequalification online. Prequalifying can help you know the price range for home buying and show sellers that you mean business and are able to buy a home. You must share contact information like your phone number and email address in order to prequalify. To request a pre-qualification letter to show to your broker and home sellers, you will need to call your loan officer.

Will New American Funding Have the Best Interest Rates?

New American interest rates are average, but home buyers should always remember that their individual credit reports will affect the actual interest rate. Homebuyers with the best credit scores, the lowest debt to income ratio, and the ability to make a larger down payment often qualify for the best interest rates a lender can offer. Because of the manual underwriting process, New American may be able to approve your loan even if insurers discover weaknesses in your application.

Is New American Funding the Best Lender for You?

The "best" mortgage lender depends on your needs. It could be the right choice for many people thanks to New American Funding's large loan portfolio. These include "high quality" borrowers as well as low-income, low-credit, self-employed, veterans, seniors, and more.

Compare the interest rates of a few different companies to see if New American Funding or another mortgage company is best for you. Here you can get started.

Check your new plan (November 7, 2020)

Related Articles