New American Funding HELOC Review 2025
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Our Take
4.0
If you want fast access to your home equity with no annual fee, New American Funding is a solid choice: It closes most HELOCs in five to seven days. A fixed-rate option keeps payments predictable. However, the lender requires a 100% draw when you close, which is less flexible than other HELOCs we review.
Pros
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Offers fixed-rate repayment option.
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Closes HELOCS fast (average 5-7 days).
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No annual fee.
Cons
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No HELOC rates posted online.
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Full line amount must be drawn when you close.
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No introductory rate or other discounts.
Compare to Other Lenders
Full Review
💲New American Funding HELOC Rates
HELOC rates are determined by two things. The first is the prime rate, which is what banks pay to borrow from one another. The second part is a margin, which the lender calculates based on your financial qualifications (including your credit score, existing debts and income). The prime rate plus your margin equals your HELOC rate offer.
Current prime rate | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high |
|---|---|---|---|
7% | 7% | 7% | 8% |
New American Funding doesn’t post HELOC rates online.
👍 Reasons to get a New American Funding HELOC
New American Funding doesn’t charge an annual fee for its HELOC. A fixed-rate repayment option protects you from potential increases in interest rates. HELOCs are available for second homes. The lender lets you borrow up to 85% of your home’s value, which is about average.
New American Funding will appeal to borrowers who want funds fast. On average, the lender closes HELOCS in less than a week. Its repayment period stretches up to 30 years, which is longer than most.
» MORE: Best HELOC lenders
🤔 Reasons why New American Funding’s HELOC gives us pause
New American Funding requires you to draw 100% of the line amount at closing, with only five years to redraw. Borrowing the full amount in one lump sum is typical for a home equity loan, but most home equity lines of credit provide more flexibility.
The lender tells us borrowers will pay an origination fee, but we couldn’t find the exact amount of its origination fee on the New American Funding website. The lender also doesn’t offer any introductory discounts on HELOC rates like we’ve seen at other lenders.
📎 Ways to apply for a New American Funding HELOC
How to Apply | Availability |
Online 🧑💻 | ✅ |
Over the phone 📞 | ✅ |
Mobile app 📶 | ✅ |
In person 🏦 | ✅ |
You can contact New American Funding customer service in person, over the phone or by email.
🛒 Alternatives to a New American Funding HELOC
Wondering if another lender or product might be a better fit? It’s worth it to shop around to learn more about your options.
If a fast closing appeals to you, a Citizens Bank HELOC closes in as little as seven days. Figure can close a HELOC in as little as five days for loans of $400,000 or less.
If you don’t want to take out the full line amount at closing, consider a Truist HELOC which doesn’t have an initial draw requirement.
A HELOC isn’t your only option
You can also explore products outside of HELOCs. Alternatives to home equity lines of credit include a home equity loan, which offers a lump sum with a fixed rate, or a cash-out refinance, which replaces your existing mortgage with a larger loan.
Borrow from your home’s equity
NerdWallet’s HELOC star ratings are independently researched and developed by the editorial team based on the following factors: HELOC lending volume, maximum combined loan-to-value ratio, whether a fixed-rate option is available, initial draw requirements, flexibility of draw and repayment terms, average time to close, interest rate transparency, length of any introductory term below the prime rate, lender fees, availability for second homes, application availability and customer support options. Lenders can receive bonus points for offering options for HELOC rate discounts. A recent regulatory action against a lender may affect its HELOC star rating.
