New American Funding Mortgage Review

New American Funding provides both fixed and variable interest mortgage loans, government mortgage loans, mortgage refinance loans, home equity loans, home improvement loans and jumbo loans for qualified homebuyers.

J.D. Power Rating
Min. Credit
Min. Down Payment
4 / 5.0
SimpleScore New American Funding 4
Perks 4
Credit Impact 4
Customer Satisfaction N/A
Product Variety 5
Fees 3

New American Funding is a family-owned independent mortgage lender headquartered in Orange County, California. It was founded in 2003 when Rick and Patricia Arvielo decided to combine their mortgage lending and technology expertise to start their own mortgage lending business.

Since then, New American Funding has earned numerous awards and accolades, including the Better Business Bureau (BBB) Torch Award for Ethics and a Gold Stevie Award for Company of the Year. As of 2018, the company funded approximately $980 million a month in home loans and had a servicing portfolio of over 100,000 homes totaling $26 billion.

In this article

    New American Funding at a glance

    LenderMin-Max Loan AmountRatesTermsMinimum Down PaymentMinimum Credit ScoreKey Benefits
    New American Funding$50,000 – $679,650 (Jumbo)3.111% – 3.549%*3 – 30 years3%500Uses manual underwriting

    What we like about it

    New American Funding is an ideal lender for anyone whose financial picture isn’t traditional. Because this lender only does manual underwriting, it will look at factors other than your credit score — such as income — to determine you’re a good fit for a mortgage. Nonetheless, it’s also a good option if you have a great credit score.

    New American Funding offers every type of mortgage in the marketplace, including government mortgages like FHA mortgages, VA mortgages and USDA mortgages. It also offers mortgage refinance options, interest only loans and conventional loans. One of the unique things about New American Funding is that it offers a Home Equity Line of Credit (HELOC), which isn’t typical for non-bank financial institutions.

    Its website has helpful tools for understanding which type of mortgage is best for you, and you can use their mortgage calculator to get a snapshot of your potential monthly payments. You can go through the mortgage process entirely through their website, although this lender won’t give you a preapproval or automatic quote online due to the fact that it does manual underwriting.

    New American Funding has an A+ rating with the Better Business Bureau and close to a five-star rating on SocialSurvey. It also has high marks on both Indeed and Glassdoor for employee satisfaction and it has won numerous awards.

    Things to consider

    New American Funding doesn’t provide loans to buyers everywhere in the United States — it doesn’t serve customers in New York State or Hawaii.

    The company isn’t very transparent about their fees, either. It has a blog post that says homebuyers “may pay 1% of the loan amount in the form of an origination fee” and another blog post indicating that “in general closing fees total between 2% and 5% of the home’s overall purchase price.” Beyond that, there isn’t much information about fees. There doesn’t appear to be a specific webpage dedicated to listing their fees.

    Some online reviews indicate that New American Funding could use a technology update, and some customers felt that the loan officers handling their cases weren’t as knowledgeable as they could be. That said, New American Funding does have an online portal for managing loan payments and getting assistance. You can also start applying for your mortgage online, but you’ll have to wait until an underwriter reviews it before you are approved.

    What you need to know

    New American Funding’s mortgages come in terms ranging from 3 to 30 years, but it features standard 15-year and 30-year fixed-rate mortgages on their website. You can obtain either a fixed-rate mortgage or an adjustable-rate mortgage (ARM) if you’re seeking a traditional loan, but it also offers every type of government-backed loan if you qualify for them.

    New American Funding doesn’t specify how high its APRs range, but as of late January 2020, its minimum ranges from 3.111% to 3.549%, which are reasonable rates.

    To apply for a mortgage from New American Funding, you can start on the website. Click the “Get a Quote” button in the navigation, then select whether you intend to purchase or refinance a home. You’ll be met with a series of questions about the state in which you intend to buy, the price of the home, your down payment, your credit score and other information. Once finished, you’ll need to enter your name and contact information.

    If you prefer, you can also call (800) 473-4136 to start the mortgage process.

    Fees and penalties

    As with most mortgages, you can expect to pay an origination fee and a closing fee if you get a mortgage from New American Funding. Unfortunately, it aren’t very transparent about its fees, so you’d have to start the application process to learn more.

    If you do decide to apply, you can ask about other potential fees, such as appraisal fees, title fees, insurance fees and other property-related fees. You can also expect to pay a late fee if you’re late on your mortgage payments.

    Collateral and criteria

    One of the best things about New American Funding is that it considers criteria other than credit score when examining a mortgage application. It approves some mortgages for homebuyers with credit scores as low as 620, but it may even approve you if you have little to no credit history.

    Of course, that doesn’t mean this lender will approve everyone who applies. You’ll likely need to prove that you have a steady income so it’s clear you’ll be able to pay off your loan.

    If you decide to get a HELOC with New American Funding, you’ll need to put up your home as collateral, just as you do with other lenders.

    Compare top mortgage lenders



    We’ve created the SimpleScore to help you objectively compare products and services here at The Simple Dollar.

    Our editorial team:

    • Identifies five factors to compare across each brand
    • Determines the rating criteria for each factor
    • Calculate an average of those five factor scores to get one SimpleScore

    We break down each of these five factors and their rating criteria for our review of the best mortgage companies.

    Why do some brands have different SimpleScores on different pages?

    Some brands like Bank of America, Wells Fargo, and Chase have different SimpleScores because they offer more than one financial solution — like home loans, auto loans, personal loans and more.

    For instance, in our Bank of America Mortgage Review, we give the company a 3.8 out 5 based on our five rating factors for mortgages. In our Bank of America Auto Loans Review, we give the company a 4.4 out of 5 based on our rating factors for auto loans. By tailoring our SimpleScore to each financial solution, we’re able to give you a more accurate view of a brand’s services and how it compares to competitors’ services.


    Mortgage lending companies that provide more perks receive a higher score from us.

    Hard/Soft credit checks

    We know that credit checks affect your score –– that’s why we favor companies that offer soft credit checks or hard credit checks when you want to see your pre-approval rates.

    Customer satisfaction

    We use the J.D. Power 2019 Mortgage Origination Satisfaction Study℠ to find out how customers rate their experience with each company. (If a company is not included in J.D. Power’s study, we skip this rating factor and average the remaining factor scores.)

    Product variety

    Mortgage lenders that offer more products for their home loans are given higher scores.


    Fees can add up fast. Companies that don’t require as many fees for your home loan receive a higher score with us.

    Michael Rand

    Contributing Writer

    Michael Rand is a business and personal finance writer based in Beverly, Massachusetts. He holds a master’s degree in writing from Salem State University and spent years producing content for financial services clients as an agency writer. His work has been featured in publications like, The Simple Dollar, and