In today’s rapidly changing real estate market, securing the right mortgage is more important than ever. New American Funding stands out as a family-owned enterprise that has climbed the ranks to become a prominent mortgage lender in the United States.
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Operating out of California, the company extends its services across all 50 states, except for New York and Hawaii. Whether you’re drawn to the convenience of an online application or the personal touch of an in-person consultation, New American Funding’s extensive network of 130 branches ensures you’re well-covered.
Overview of New American Funding
New American Funding stands out for its commitment to customer-first service and a broad range of mortgage products that cater to various financial needs and goals. Instead of a one-size-fits-all method, this mortgage lender takes a closer look at each application, ensuring that borrowers are matched with the most appropriate loan options.
This approach creates a financing environment that welcomes a diverse group of borrowers, from those seeking conventional loans to others in need of government-backed options like FHA and VA loans, or even individuals exploring specialized products such as jumbo loans.
New American Funding blends technology with personal expertise to simplify the home buying and refinancing process. Whether applying online, by phone, or face-to-face, the company shows its dedication to both ease and thorough customer support. This thoughtful approach guarantees that all applicants, regardless of their financial situation, receive the guidance and support they need as they work towards homeownership.
New American Funding Mortgage Application Requirements
Applying for a mortgage with New American Funding is tailored to meet the needs of a diverse range of borrowers, from individuals making their first home purchase to those seeking refinancing options. This comprehensive process begins with understanding the credit score requirements and progresses through a series of steps designed to evaluate and approve your loan application efficiently.
Credit Score and Borrower Profile
The foundation of your mortgage application with New American Funding is your credit score, which varies depending on the type of loan you are seeking. For the majority of mortgages, a credit score of at least 620 is necessary. However, for FHA loans, the threshold is lower, allowing for scores as low as 580. In assessing your application, the lender also considers other factors such as income and debt-to-income ratio, offering a holistic view of your financial health.
On average, the loan amount extended by New American Funding stands at $291,000, indicating their capacity to cater to substantial financing needs. This figure also reveals that nearly half of their originated loans surpass $350,000, positioning New American Funding as a lender capable of managing larger-than-average loan requests.
The Application Process
When applying for a mortgage with New American Funding, the process unfolds in a sequence of clearly defined steps, starting with your initial inquiry. This could be through their online platform, a phone call, or a visit to one of their branches. At this stage, you’ll share your personal and financial information, laying the groundwork for your loan application.
Following the initial inquiry, a loan selection process ensues, where a loan officer guides you through their wide array of mortgage products to identify the one that best suits your financial circumstances. The application process then moves into the documentation phase, requiring you to submit necessary documents such as W-2s, pay stubs, bank statements, and tax returns. These documents are crucial for verifying your income and assets.
A credit check is an integral part of the application, assessing your creditworthiness and ensuring you meet the lender’s requirements. Once your application and documents have been thoroughly reviewed during the underwriting process, a decision is made regarding your loan approval. If approved, you’ll receive a loan estimate detailing the terms of your mortgage. The final step is the closing, where you’ll sign the official documents and seal the deal on your new mortgage.
Throughout this process, New American Funding’s commitment to efficient service aims to close most mortgages within 30 days, showcasing their dedication to facilitating a smooth path to homeownership for their clients.
New American Funding Mortgage Options
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 at New American Funding
New American Funding opts for a personalized approach to mortgage rates, choosing not to list them publicly. To see what rates you might qualify for, you’re encouraged to share some basic details about yourself. This method ensures that the rates you receive are tailored to your unique financial scenario, offering a more accurate picture of what you can expect in terms of costs.
The costs associated with securing a loan from New American Funding can vary. On average, borrowers might pay around $1,600 in lender fees for a conventional loan. An appealing feature for many is the complimentary interest rate lock. This means you can secure your quoted interest rate at no extra charge as you proceed with your mortgage application, providing peace of mind in a fluctuating market.
Exclusive Features: The New American Funding Advantage
At the heart of New American Funding are its founders, Rick and Patty Arvielo, who share a deep commitment to assisting underserved communities, especially within Latino populations. The company actively organizes Spanish home buying seminars and ensures Spanish-speaking agents are readily available, demonstrating their dedication to inclusivity and accessibility.
The lender goes beyond language support, offering assistance with applying for local government grants that can significantly reduce the financial barriers to homeownership, such as down payments and closing costs. Moreover, New American Funding equips its customers with tools like a mortgage calculator and access to a Housing Market Update section on their website, keeping borrowers informed of market trends and how they could affect mortgage rates.
New American Funding Mortgage Reviews
When it comes to selecting a mortgage lender, one reliable resource is the feedback from past customers. New American Funding’s commitment to service is reflected in its A+ rating from the Better Business Bureau (BBB) and minimal complaints filed with the Consumer Financial Protection Bureau. Additional reviews across various platforms further underscore the lender’s reputation for excellent customer service.
Bottom Line
New American Funding stands out in the mortgage industry with its unwavering dedication to customer satisfaction and a broad array of loan options tailored to diverse borrower needs. This commitment shines through in their efforts to support Spanish-speaking clients and underserved communities, demonstrating a clear mission to make homeownership more accessible for all.
The lender’s comprehensive service offerings, from personalized interest rates to bilingual support and assistance with local grants, underscore its role as not just a provider of mortgages, but as a valuable ally in the path to owning a home. By prioritizing a blend of personalized customer care, inclusive lending practices, and a wide range of financial products, New American Funding positions itself as a key player in closing the accessibility gap within the mortgage sector.
In summary, New American Funding’s blend of technology, personalized service, and community-focused initiatives marks it as a lender that truly prioritizes the needs and aspirations of its clientele.