New American Funding Mortgage Review 2024
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Our Take
4.0
New American Funding offers a large menu of loan products, as well as programs like first-time home buyer assistance, but personalized mortgage rates aren't available on its website. Most likely to appeal to borrowers looking for unusual loan types like 203(k) or non-QM.
Pros
- Offers a wide variety of purchase and refinance mortgages, as well as unique buyer assistance programs.
- Its home equity line of credit can be used for a primary residence or second home.
Cons
- Average origination fees are on the high side, according to the latest federal data.
- Personalized mortgage rates are not available on the website without providing contact information.
Lender | Min. credit score | Min. down payment | |
|---|---|---|---|
580 | 3% | Visit Lenderat New American Funding at New American Funding | |
620 | 3% | Visit Lenderat NBKC at NBKC | |
580 | 3.5% | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
New American Funding is a nonbank lender based in Tustin, CA. Loans are available in all 50 states, as well as the District of Columbia and Puerto Rico.
🏠Popular loan types include: Fixed or adjustable rate; conventional; FHA; VA; USDA; jumbo; rate-and-term or cash-out refinance.
🔑 Specialty loan options include: Interest-only; non-QM; reverse mortgages; construction; FHA 203(k); ITIN.
đź’µ Home equity borrowing options: HELOC.
New American Funding offers several loan options that can help home buyers achieve specific goals, including:
The I CAN Mortgage, which allows conventional purchasers and refinancers to choose any loan term between eight and 30 years.Â
The Pathway to Homeownership program, which offers first-time home buyers in select markets up to $8,000 in grant money toward their down payment, closing costs or other upfront homebuying expenses. The program does not have income requirements.
Through an affiliated company, NAF Cash, New American Funding allows qualified conventional and VA borrowers to make cash offers. NAF Cash buys the home upfront; the borrower then buys it back from NAF Cash with a mortgage.
How we score New American Funding
Every year, writers and editors use the latest data and independent research to score lenders on an overall rubric, reflecting factors that are most important to mortgage borrowers. Select Why This Category Matters below to learn more.
New American Funding has a NerdWallet home loans rating of 4 stars overall. Here’s a breakdown of this year’s score.
Category | Star rating |
|---|---|
Average mortgage rates and fees | |
Mortgage rate transparency | |
Variety of loan types | |
Customer experience |
- Why This Category Matters
Average mortgage rates and fees (30%)
Our team analyzes federal data to compare mortgage lenders’ origination fees and offered mortgage rates, measuring annual averages across all loan types, as reported by the lenders. The lowest combination of average rates and fees earns the highest star rating in this category. (It’s worth noting that loans considered higher risk, including those such as FHA loans that are easier to qualify for, often have higher interest rates and fees.) Pro tip: In some cases, paying upfront fees may lower a borrower’s mortgage interest rate.
Mortgage rate transparency (25%)
We check how straightforward it is to comparison-shop rates online. NerdWallet’s transparency ratings are higher for lenders that post sample rates on their sites, and highest for sites with self-serve tools that allow shoppers to see what rates might be like for their particular loan. Pro tip: Borrowers who compare customized rate quotes by applying to three or more lenders could save thousands of dollars over the life of their loan.
Variety of loan types (25%)
Finding the right mortgage is different for each borrower. The highest star ratings in this category are awarded to lenders that our research shows offer a wide range of loan types, improving the odds that a borrower will find the best match for their needs: options for purchase and refinance; fixed-rate and adjustable-rate loans; government-backed FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.
Customer experience (20%)
How easy is it to interact with this lender? The highest-rated lenders in this category offer features that are convenient and clarifying for borrowers, such as: an online application, multiple customer service options, a helpful mobile app and candid closing timeline communications.
MORE NERDY PERSPECTIVE 🤓
 | Beyond the stars: A deeper dive into New American Funding's score Don't be too put off by New American Funding's unimpressive score in our rates and fees category. Our research shows that NAF offers loan types, like ITIN and non-QM, that can be really helpful for borrowers who might not otherwise qualify for a home loan. Because loans like these can't be resold to Fannie Mae or Freddie Mac or insured by a government agency, they're considered riskier for lenders and tend to have higher rates and fees. If you're a conventional borrower, you might find that NAF has competitive rates — though you'll have to contact the lender to find out what those rates are. - Kate Wood, Lead Writer/Spokesperson, Mortgages |
» MORE: How to get the best mortgage rate
What borrowers say about New American Funding
NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To help you understand borrowers’ subjective experiences, NerdWallet has gathered customer satisfaction ratings from J.D. Power and Zillow. We also contacted New American Funding customer support.
→ Below-average score in J.D. Power’s 2023 U.S. Mortgage Origination Satisfaction Study. Mortgage origination covers the initial application through closing day.
Score: 713 out of 1,000. Industry average for origination is 730.
→ Above-average score in J.D. Power’s 2024 U.S. Mortgage Servicer Satisfaction Study. A mortgage servicer handles loan payments.
Score: 645 out of 1,000. Industry average for servicing is 606.Â
→ Excellent customer rating on Zillow.
Customer rating: 4.91 out of 5, as of the date of publication. Rating reflects more than 9,000 customer reviews.
🤓 Our Nerds say...
When we called New American Funding's main customer service number, we were almost immediately connected to a representative who was able to answer our questions. Also notable: While the lender has a highly rated app, it's for servicing existing home loans — you can't use the app to apply for a mortgage. Once your application is in progress, you can manage it on the New American site.
» MORE: How to apply for a mortgage
Alternatives to a home loan from New American Funding
We recommend comparing mortgage rate offers from three or more lenders.
Rate is another nonbank lender offering a wide variety of loan types and branches for in-person service.
If you're looking for down payment assistance, Flagstar also has grant programs for first-time home buyers.
More from NerdWallet
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: average mortgage rates and origination fees, rate transparency to consumers, variety of loan types (purchase, refinance, fixed and adjustable, for example) and customer experience. Among the factors we consider in these categories are: options to apply for home loans online, typical time to close, mobile app experience, level of detail about mortgage rates on lender websites, and NerdWallet’s own analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These and other items inform detailed rubrics, which generate ratings from 1 star (poor) to 5 stars (excellent). Read more about how we rate mortgage lenders here.
