New American Funding Mortgage Review 2020

4.2 stars out of 5

The Smart Investor reviews are unbiased, and reflect the views of our editorial staff. We’ve collected the information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.

New American Funding prides themselves on being a family-owned business despite having thousands of employees. As a newer company, only 15 years old, they have grown and offer a variety of home financing options available in 48 states. They lend, sell, and service Fannie Mae, Freddie Mae, and Ginnie Mae loans. Loans can be started in person or online.


New American Funding – About The Lender

With branches all over the country, convenient hours, bilingual staff, and an easy to navigate website; you will have no issues finding support. New American funding encourages their employees to be involved in the community and support organizations such as Big Brothers Big Sisters, Mercy House, Toys for Tots, and WHW. They have 145 branch locations and fund about $900 million loans monthly. In 2016 New American Funding was named the #1 place to work in Orange County.

New American Funding headquarters is located in Orange County, California. In 2003 founder’s Rick and Patty started their family owned business as a 40 person refinancing call center. With Rick’s passion for technology and background in Marketing and Patty’s considerable knowledge in Mortgages they grew into a national lender.

In 2013 they formed the Latino Focus Committee which concentrates efforts to help the Latino community achieve their dream of homeownership. New American Funding uses a motto called NAF360, which is their idea of a nurturing atmosphere of 360. It seems their idea has paid off, landing their company to be named a top place to work in Orange County for four years in a row.

New American Funding Mortgage Pros & Cons



New American Funding Mortgage Products

New American Funding offers many mortgage products and we are sure that everyone will be able to find one that fits. They do not discuss their rates on their website, so if you want to learn more about a specific product, you can contact a lending professional for more details.

Insured by the Federal Housing Administration. These loans are backed by the government and are geared towards those who may not qualify for a conventional loan. If you have a credit score of less than 580 or don’t have a lot of money to put down, FHA loans help home ownership be attainable and affordable. New American Funding offers this type of loan in 15 or 30 year terms. They also have a 203K option that allows you to buy a fixer upper and do improvements.

Offered to eligible service members and eligible family members. VA loans offer low fees, low rates, lenient credit score requirements, and little to no down payment. New American’s website does not specify what the VA loan terms are, just that they offer better terms than a conventional mortgage.

15 or 30 year fixed rate mortgages are available and typically the most popular home loan. These types of mortgages are best for those who have a good credit score and roughly a 20 percent down payment. Fix rate meaning the interest rates stays the same throughout the life of the loan. This also means your payment will always stay the same. The 15-year option features a lower interest rate to help pay off your home sooner, but typically a higher payment than the 30-year mortgage. New American Funding charges about $1,600 in fees for a fixed rate mortgage.

mortgages that have a set interest rate for a certain amount of time and then the interest rate will go up or down each year after that. They usually have a great introductory interest rate during the initial term.
New American Funding offers ARMs in 5, 7, and 10 year terms. Adjustable rates mortgages would be a great fit for someone who only plans on staying in the home for a few years. With the lower interest rates for the initial term, it is most common to sell the home before the adjustment period begins or refinance for a fixed rate mortgage.

This is a loan option for homes exceeding Fannie and Freddie conforming loan limits of $424,100. New American Funding offers Jumbo loans with flexible terms and down payment options for homes up to $15 million dollars. Jumbo loans are an option for those who are buying a home for more than $424,100. The loan terms are not mentioned on the website so you will have to contact them for more details.

For those wishing to pay only interest payment of their mortgage. You have the option to pay more of course. The typical terms are between 5 to 10 years. Interest rate only loans are ideally for investors looking to flip a home quickly or buyers who only plan on owning a home for a few years. These loans can be a little tricky, so your best bet is to contact a New American Lending professional for more details.

Typically for older homeowners who want to convert some of the equity from their home into cash. These loans are most popular with retirees or those living on a fixed income.

If you are looking to get a better loan term, interest rate, doing home improvements or cash out; New American Funding offers a variety of refinancing options for many types of loans. You can refinance your fixed rate mortgage, FHA, VA, Jumbo, and ARM loans. To learn more about refinancing and which type of refinancing is best for you, you need to speak with a lending professional.

You can use our extensive set of calculators determine which of the loans are better for you, whether to apply for ARM or fixed rate mortgagewhether to refinancewhether to make extra payments and more.

New American Funding Mortgage Process

You have a couple of options how to start your process, depend on your personal situation:


The first thing you can do if you are buying a home is get prequalified. With some general income verification, New American Funding will issue you a prequalification letter. This will let seller’s know you are a serious buyer and may give you an edge on other buyers. You can typically get approved in less than 48 hours.

You will need to provide: two years of federal tax returns, two years of W-2’s, one month of a pay stub and two months of bank statements. If you are self employed you won’t need to provide paystubs or W2’s, you may be required to provide tax returns instead.

If you have found a home you have the option of calling and speaking with someone at New American Funding, filling out some questions on their website, or going into one of their branches. They will ask you some basic contact information, what the price of the home is, and what type of credit you have. Once you entered everything in, they will send you a quote and contact you.

You can start the process online as well, but they will have to provide you with a link. Expect to close on your mortgage within about 30 days from the start of your application. If you are refinancing, the process is very similar. You will need to fill out some general information about what you want to do and someone from New American Funding will be in touch with you. They will discuss with you best products for your needs and the requirements.

Should You Consider New American Funding Mortgage?

New American funding is a truly unique company due to their family start up. Through their passion, knowledge, and attitude towards their community they have become a major player in the mortgage world. New American Funding has mortgage product for all buyers. First time home buyers, Veterans, those looking to refinance, or a retirees looking for a reverse mortgage can all qualify for a loan with this company.

Their website is easy to navigate and contains easy to understand information about their products. If you are looking for customer service, look no further than New American Funding. You will have friendly and knowledgeable staff there to answer all of your questions and guide you through the application process.