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New American Funding

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7.7

Overall Score

Author: Kalicia Bateman

LAST UPDATED: February 14th, 2022

New American Funding was founded in California in 2002 as a Fannie Mae, Freddie Mac, and Ginnie Mae direct lender, seller, and servicer. Since the start of New American Funding, growth has accelerated year after year with a servicing portfolio of over 197,000 loans for a total of over $51.4 billion. The company is licensed in 49 states and has branches in 32 states.

New American Funding appeals to all types of homebuyers by offering traditional and specialty loan options. It also has a variety of resources and services that make homeownership possible for many who normally do not qualify.

In addition, New American Funding further sets itself apart from the competition by implementing streamlined technologies. Through its customized software, apps, and processes, New American Funding is able to cut down on costs and time.

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Customer Review: Cheri Chenoweth from Pylesville, Maryland

"I have been working with New American Funding for about a year now. The loan officers I have worked with were very professional and always available. They followed the loan process throughout the entire transaction. I would strongly recommend working with New American Funding."

Check out New American Funding Reviews below to see what borrowers are saying about their experience.

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The Good

  • Fully Online Mortgage Process
  • Manual Underwriting
  • Variety of Loan Types
  • On-Time Closing Guarantee
  • Mortgage Refinance Options
  • Mortgage Assistance
  • Mobile App
  • Financial Calculators and Tools
  • Positive Customer Reviews

Fully Online Mortgage Process

While you can begin the mortgage loan process in person or over the phone, New American Funding offers a streamlined, online mortgage application that can reduce stress and save you more time.

On the New American Funding website you can complete get rate quotes, begin and complete your mortgage application, upload documents, and track your loan. Through the My Mortgage App, provided by New American Funding, you can easily manage your loan on the go with your mobile phone.

Manual Underwriting

To evaluate creditworthiness and whether or not you will qualify for a mortgage, New American Funding uses manual underwriting in some cases. 

Manual underwriting involves an actual underwriter analyzing your finances and documents, resulting in more personalized rates and service. Compared to automated underwriting, manual underwriting may take longer and typically requires more paperwork, but with New American Funding's On-Time Closing Guarantee you can rest assured that you will get to closing quickly.

Variety of Loan Types

New American Funding has a loan option for nearly any situation. Borrowers will be pleased to find a wide variety of home loan services available. These loan services include:

  • 30-year fixed rate mortgage
  • 15-year fixed rate mortgage
  • Conventional loan
  • VA loan
  • FHA loan
  • Adjustable rate mortgage (ARM) loan
  • Reverse mortgage
  • I CAN Mortgage (Customizable loan from 8-30 years)
  • Buydown loan

The variety of loan products offered by New American Funding shows that it is truly dedicated to making the home buying process accessible to nearly any kind of borrower.

The most unique loan that New American Funding offers is its I CAN Mortgage. This loan allows you to customize the length of the loan with options to refinance in the future.

On-Time Closing Guarantee

Upon pre-approval, New American Funding provides an on-time closing guarantee, getting you to a home purchase faster (average closing time is less than 35 days).

The New American Funding On-Time Closing Guarantee only applies to home purchase loans. It does not apply to the following loan types, programs, transactions, or properties:

  • USDA loans
  • Mortgage Revenue Bond Programs
  • Bank-owned properties and Short Sale Transactions
  • Brokered Loan Transactions
  • Refinance Transactions
  • Reverse Mortgage Transactions
  • Renovation Loan Transactions
  • Jumbo loans
  • NAF employee loans
  • Non-warrantable condominiums
  • All properties located in a flood zone
  • Manufactured homes
  • Non-QM Loans
  • Down Payment Assistance Loans

Additional terms and conditions may apply. If you are interested in New American Funding's On-Time Closing Guarantee, speak with a company representative to see what options are available to you.

Mortgage Refinance Options

If you are looking to lower your monthly payment, increase cash flow, pay off debt, or get a better mortgage loan, New American Funding offers a variety of refinance loan options:

  • Cash Out — Tap into your home's equity and receive cash in return. Cash can be used for nearly any project or purchase you choose.
  • Rate and Term — Adjust your existing mortgage rate and loan term, lowering your monthly payment and allowing you to save more money.
  • Cash In — Bring cash to closing and pay down your mortgage loan balance.
  • Home Equity Line of Credit (HELOC) — Borrow cash against your home equity and use when needed.

It is important to note that although mortgage refinancing could save you more money overall, New American Funding charges additional fees to complete the process. The following fees will apply:

  • Application fee
  • Title insurance and search fee
  • Lender's attorney fees
  • Loan origination and other fees

To determine whether or not refinancing is a good option for you, you can speak with a New American Funding representative or loan officer, or crunch some numbers with the company's online refinancing calculator.

Mortgage Assistance

If you are having trouble paying your mortgage, New American Funding offers a variety of options/solutions to help you make or modify your payments and remain in your home:

  • Refinance — lower your monthly payment and/or improve your loan terms
  • Reinstatement — avoid foreclosure by demonstrating that you have funds that will become available at a specific date in the future
  • Repayment Plan — catch up on late payments without having to come up with a lump sum
  • Modification — permanently modify your loan so that your payments are more manageable

New American Funding also has options if you'd prefer to leave your house, but not foreclose:

  • Short sale — sell your home and pay off a portion of your mortgage balance; relocation assistance may be available
  • Mortgage release (deed-in-lieu of foreclosure) — transfer property ownership to New American Funding

To find the best solution for you, New American Funding will work with you based upon your specific needs.

Mobile App

New American Funding offers a mobile app through which you can make payments, easily view and manage your home loan information, and view updated information about your current home equity and estimated property value (if this information is available in your area).

The New American Funding My Mortgage App is available for both Android and iOS devices.

Financial Calculators and Tools

New American Lending offers a variety of tools that make the home buying process easier. Its online set of tools allow you to estimate many of the associated costs with mortgages. These tools include:

  • Mortgage calculator
  • Refinance calculator
  • Affordability calculator
  • Amortization calculator
  • Housing market updates
  • First-time homebuyer help

These tools dive deeper compared to other resources offered by mortgage lenders. For example, these calculators will show you extra details such as your principal versus interest over time, your remaining balance over time and more. These tools help you decide as a borrower if you should move forward with being pre-qualified or if you should continue comparison shopping for another loan. This sort of transparency resonates well with many in the home buying process.

In addition, New American Funding has a number of resources that help educate first-time homebuyers. These resources offer information about down payment assistance, grants, specialty loans and more. It also offers actionable tips to help first-time homebuyers feel more confident throughout the whole buying process.

Positive Customer Reviews

The majority of New American Funding reviews are positive, with 95 percent of customers awarding the company 5 stars. 

These reviews frequently highlight reliable customer service with great experiences with specific loan officers. In addition, customers are quick to mention a quick and easy application process, and competitive rates, saving customers more money overall.

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Customer Review: Ty Brooks from Charlotte, North Carolina

"We initially chose New American because they offered us the best rate for our home loan, but their service ended up being great and out loan officer took great care of us."

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The Bad

  • Not Licensed in Hawaii
  • High Mortgage Rates

Not Licensed in Hawaii

New American Funding does not offer its services to borrowers in the state of Hawaii. In the future, licensing may change and New American Funding may be able to serve Hawaii borrowers, but in the meantime, residents of this state should look into other mortgage lenders for a home loan.

High Mortgage Rates

Compared to the government-reported mortgage rate median of all lenders, New American Funding's rates are high. While the company's offered rates may not differ more than a few percentage points, even the smallest fraction of a point could save you thousands of dollars over the life of your mortgage loan.

New American Funding provides daily updated rates on its website, allowing you to more easily comparison shop for a mortgage.

Please note, the lowest advertised interest rate for any loan type is not guaranteed with any mortgage lender. The most competitive rates are generally only available to borrowers with an excellent credit score, a low debt-to income ratio (DTI), and healthy finances overall*. 

*Additional assessment factors may be applied to determine your mortgage rate.

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The Bottom Line

New American Funding is a great option for those that value a streamlined online process and a wide selection of mortgage services. Those that are in search of more flexible loan terms will especially benefit from New American Funding, in particular, its I CAN Mortgage product, which provides a more customizable experience with loan terms ranging from 8 to 30 years.

In addition to online application convenience, New American Funding is committed to getting you to closing fast and provides an On-Time Closing Guarantee. While certain restrictions may apply, this guarantee may get you to home purchase much faster than competing mortgage lenders.

Be sure to utilize the tools and resources on the New American Funding website, such as its mortgage calculator, refinance calculator, and mortgage assistance options if needed. It will be able to give you accurate estimates and pricing to help you in your home buying journey.

New American Funding reviews are overwhelmingly positive, outlining great experiences with customer service, and a process that wasn't only easy but saved people a lot of time and money. Thus, if you are looking for a mortgage company that focuses on providing an excellent customer experience, we would recommend New American Funding.

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Star Rating

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4.9

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470 Reviews

Review Breakdown

5 grade

97%

4 grade

1%

3 grade

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2 grade

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1 grade

2%

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Service

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Review Source

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Nancy Bailey Berkeley, CA

New American Funding is the company we chose for our refinance. A) They offered us the best rate. B) I like that they fund most of their residential loans themselves and generally do not sell the loans. C) We had an absolutely top notch Agent who was our contact person and handled everything on our end through the entirety of the process. I can't say enough good about her. Having been involved in many different businesses over the years with much exposure to the differing levels of human relations in corporate America, she was one of the best experiences I have had of impeccable dedicated and successful customer service. Based on her service the company deserves 6 stars, on a scale of 5. Her name is Mia J and if you can secure her as your agent you will be assured of a good outcome, no matter what hurdles you encounter. D) Now the reason for the lower # of stars is that there were ongoing problems due to one of the members of the back room team, someone who lacked the experience and confidence and kept asking for documents over and over, slowing down the process, making rookie errors and pushing us into multiple extensions with point penalties. These were errors that were entirely due to either poor training or just poor quality control in staffing. Our agent, Mia J, was able to compensate for this problem initially but eventually she had to go over this persons head and involve multiple levels of management to push the loan through, yet management was unable to take responsibility and so chose to penalize both the customer and the agent for the multiple screw ups of one of their processing team. I was later informed that the assignment of the other members of a team are done randomly so even though the issues of this person were known, there was no way to choose another processor once assigned. Stuff happens in life and we try to roll with it, and Mia did an excellent job of compensating for her team members inadequacies but also managing to remain diplomatic with a person who was almost causing the company to lose a client, close a deal and causing people all around her to be pulling their hair out with the ineptitude. Management was able to acknowledge the problems and had to by involving upper management team in oversight, but in the end they could not take responsibility for their companies negligence and instead let the penalties all lie at their customers doorstep when they were entirely responsible. To me, being a longtime businessman this is a both a practical and an ethical affront to good business practice and customer service. So if New American is your choice, go with Mia J and cross your fingers that you don't get assigned someone who isn't up to the tasks in their job description. If things get screwed up, you will likely have to pay and management will only pay lip service to the problems in their own chain of command.

5 years ago