New American Funding is a family-owned that has quickly risen the ranks as a leading mortgage lender in the U.S. Based in California, they service all 50 states plus the District of Columbia, except for New York and Hawaii. In addition to an online application process, you can also schedule an in-person consultation at one of the bank’s 130 branches nationwide.
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New American Funding Mortgage Application Requirements
The minimum credit score for a New American Funding mortgage depends on your desired loan type. For most mortgages, you’ll need a credit score of at least 620, but you can get away with a credit score of 580 if you choose an FHA loan. Of course, just like other lenders, New American Funding uses other factors to decide on your application approval, including income and debt-to-income ratio.
To give you an idea of the lender’s typical borrower, the average loan amount is $291,000. Nearly half of their originated loans are above $350,000. Both of these numbers are slightly higher than the national average.
Types of Home Loans Available from New American Funding
New American Funding has plenty of mortgage options available. Major loan types include; conventional, jumbo, FHA, VA, USDA, renovation loans, adjustable-rate, fixed-rate, refinance, cash-out refinance, I CAN, and reverse mortgages.
New American Funding currently doesn’t offer construction loans, home equity loans, or home equity lines of credit (HELOCs.)
Fixed Rate Conventional Loans
One of the most popular types of home loans, a fixed-rate mortgage, is just that: a loan with an interest rate that never fluctuates. The benefit is that your monthly principal and interest also won’t change, offering homeowners stability and the ability to better plan their long-term finances. No matter what happens to rates down the road, yours is locked in for your full repayment term.
VA Loans
Guaranteed by the U.S. Department of Veteran Affairs, a VA loan helps active-duty military members and veterans get a mortgage. The minimum credit score for a VA loan is typically 580. You can qualify for lower mortgage rates and no down payment at all, plus use your basic allowance for housing towards your monthly payments.
Once you start the application process with New American Funding, your loan officer can obtain your certificate of eligibility for you. The VA requires the COE to make sure your service fits the loan requirements.
FHA Loans
New American Funding offers FHA loans for a home loan with more flexible eligibility requirements than a conventional loan. These are backed by the Federal Housing Administration. You can qualify with a lower credit score and take advantage of a minimum down payment of just 3.5% of the property’s purchase price.
USDA Loans
USDA loans can be used to buy a home only in a rural or suburban area. They are guaranteed by the United States Department of Agriculture and come with no down payment, lenient eligibility requirements, and competitive interest rates.
Adjustable Rate Mortgages
Also known as an ARM, an adjustable-rate mortgage comes with a variable interest rate. You have a fixed rate for the first few years, then it adjusts, usually once a year. Here’s an example of how it works.
A 7/1 ARM would have a fixed rate for five years, then adjust every one year. While your payment could go up at that point, the rates are capped so you can get an idea of your maximum possible payment. The perk is that you get a lower fixed rate, offering more savings in the early years of your mortgage.
Jumbo Loans
For higher-than-normal loan amounts, New American Funding has both jumbo and super-jumbo loans. You can apply for a mortgage as high as $15 million and even have a higher debt-to-income ratio than is usually accepted.
Additionally, you can take advantage of a co-borrower who doesn’t occupy the resident as part of your jumbo loan application. Minimum down payment amounts start at 10%, and you also have the choice between fixed and adjustable rates.
Home Improvement
New American Funding allows you to roll renovation costs into your mortgage with an FHA 203k loan. With a Streamlined FHA 203k, you can get up to $35,000 included in your loan amount for projects like decking HVAC systems, lead paint removal, new appliances, roofing, and siding.
New American Funding also offers a Standard FHA 203k, which covers structural repairs and has no dollar limit for your renovation projects.
Interest Only Loan
To start with a lower monthly payment, some borrowers might consider an interest-only loan. As the name implies, you can pay just on the interest for the first five to ten years.
This is generally best for people who don’t plan to be in the property for many years or those who want to tackle high-interest debt first. New American Funding recommends talking to a loan specialist to learn more about the pros and cons of an interest-only loan.
Cash-Out Refinance Loan
Cash-out refinancing is an excellent option for homeowners who have too much of their wealth tied up in home equity and need some cash. All loan types are available for a cash-out refinance, including conventional, jumbo, FHA, VA, and home equity lines of credit.
Fees and Rates
New American Funding doesn’t publish its mortgage rates online. To access that information, you’ll need to enter some basic personal and contact information. The plus side is that you’ll at least get interest rates that are more personalized to your specific financial situation.
Lender fees vary, but the average you can expect to pay with a conventional loan is around $1,600. You do, however, get a free interest rate lock when you’re ready to move with your mortgage application.
New American Funding’s Mortgage Process
You can apply with New American Funding in a branch, on the phone, or online. The majority of the process can be handled online, with both document upload and e-signature available.
One thing New American Funding does differently from many other online lenders is they use a manual underwriting system. While some lenders tout an automated system as faster, New American claims to look more holistically at a potential borrower’s application. This helps them better work with underserved communities.
Most mortgages close within 30 days.
Looking for a prequalification letter to make an offer on a property? You can start by applying online, then talk to a New American Funding agent to receive your letter.
New American Funding Special Features
New American Funding is privately owned by Rick and Patty Arvielo. The couple has a personal passion for helping underserved borrowers, particularly those in Latino communities. The company regularly implements targeted initiatives such as Spanish home buying seminars, and there are Spanish-speaking agents available to help throughout the process.
Depending on where you live, they can help you apply for local government grants to reduce your down payment or closing costs.
New American Funding also has a mortgage calculator and a Housing Market Update section that highlights trends that impact mortgage rates.
New American Funding Mortgage Reviews
One of the best ways to research mortgage lenders is by reading third-party reviews. You can discover what actual customers are saying about them before you choose to do business with them.
New American Funding currently has a Better Business Bureau (BBB) rating of A+, indicating excellent customer service. They also have very few complaints with the Consumer Financial Protection Bureau. You can find more New American Funding reviews at other review sites as well.
Bottom Line
New American Funding is committed to customer service and providing countless options for the kinds of loans available. Plus, with bilingual loan specialists, this lender is able to serve Spanish-speaking clientele, filling a much-needed gap in the mortgage industry.