New American Funding Mortgage Review 2024 | Bankrate (2024)

At a glance

New American Funding overview

New American Funding is a brick-and-mortar and online mortgage lender especially focused on “serving the underserved,” as its website says, aiming to provide $25 billion in loans to Hispanic borrowers by 2024 and $20 billion in loans to Black borrowers by 2028. One notable option is its “I CAN Mortgage” program, which allows borrowers to choose any repayment period between eight years and 30 years. The lender also offers loans not advertised on its website, including jumbo loans and non-qualified mortgages (non-QM).

How Bankrate scored New American Funding

• Affordability: New American Funding’s rates are often below Bankrate’s averages (as of the time of this review).
• Availability: This lender offers a comprehensive suite of loan products for borrowers in the majority of states.
• Borrower experience: New American Funding routinely earns high marks from customers as it strives to offer a complete homebuying and moving experience.

Affordability: 10/10

New American Funding’s rates are generally lower than Bankrate’s averages; you’ll find the lender’s latest APRs for various loan programs on its website. Note that these rates assume that a borrower has a credit score of 740, so if your credit score is lower than that, your rate will likely be higher than what’s advertised. The lender doesn’t disclose its fees online, so be sure to ask for a breakdown of your anticipated closing costs.

Availability: 10/10

New American Funding operates in 48 states, providing conventional, government-backed and refinance loans. It’s also equipped to work with borrowers in unique credit or financial circ*mstances, offering access to non-qualifying (non-QM) loans, plus reverse mortgages and home equity lines of credit (HELOCs).

Borrower experience: 8.5/10

New American Funding was founded 20 years ago. The lender is Better Business Bureau-accredited with an A+ rating. On Trustpilot, the lender has a 3.7 out of five stars based on more than 250 customer reviews. In addition, J.D. Power rated the lender below average for customer satisfaction in 2023. Once you get your loan, you can use the New American Funding mobile app for payments and to keep track of your home’s value and your level of equity.

Images courtesy of New American Funding as of 4/3/2024. Note: Depending on method of contact, your individual credit profile and other circ*mstances, your experience might differ.

How to apply for a mortgage with New American Funding

You can apply for a mortgage with New American Funding in person at a branch location, online or by phone at 855-276-3747. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.

2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.

3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with New American Funding

New American Funding offers both rate-and-term and cash-out refinancing options. The lender won’t charge fees on refinances for existing customers if done within five years of the original mortgage.

FAQ about New American Funding

What is New American Funding’s 5-Year Rate Protection Pledge?

It’s a fact: If you’re buying a home now, you’re paying a higher interest rate. With New American Funding’s 5-Year Rate Protection Plan, you can still buy now with the ability to refinance, without fees, to a lower rate later, provided you do so within five years.

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