New American Funding Mortgage Review

New American Funding Mortgage Review

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.

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.

New American Funding at a glance

Lender Min-Max Loan Amount Rates Terms Minimum Down Payment Minimum Credit Score Key Benefits
New American Funding $50,000 – $679,650 (Jumbo) 3.111% – 3.549%* 3 – 30 years 3% 620 Uses manual underwriting

*Rates as of 1/22/20

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.

The bottom line

New American Funding is a good choice for most homebuyers, and it’s a possible option for homebuyers who have poor credit or don’t have much credit history. This lender could be a bit more transparent with its fees, so don’t hesitate to ask straightforward questions before you sign on the dotted line.

Customer complaints indicate it may need to work on its communication. However, this is an award-winning lender and a viable option if you don’t want to go with a traditional bank.

Michael Rand
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

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