New American Funding Mortgage Review 2023

Good for: first-time home buyers and other borrowers looking for a broad array of loan choices.
By Phil Metzger 

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.

Our Take


NerdWallet rating 

The bottom line:

New American Funding offers a large menu of loan products, including government loans, but its mortgage origination fees tend to be on the high side.

New American Funding
Great for: first-time home buyers | customer service
Min. credit score
Min. down payment
Loan types and products
Purchase, Refinance, Home Equity, Reverse, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Learn more

at New American Funding

Pros & Cons


  • Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
  • Its home equity line of credit can be used for an owner-occupied or second home.
  • Has a program to enable buyers to make cash offers.


  • Mortgage origination fees tend to be on the high end.

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Full Review

What borrowers say about New American Funding mortgage

NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To assess borrowers’ subjective experiences with lenders, NerdWallet has gathered customer satisfaction ratings from J.D. Power and Zillow.

  • New American Funding receives 695 out of 1,000 in J.D. Power’s 2022 U.S. Mortgage Servicer Satisfaction Study. The industry average for servicing is 607. (A mortgage servicer handles loan payments.)

  • New American Funding receives a customer rating of 4.90 out of 5 on Zillow, as of the date of publication. The score reflects more than 8,800 customer reviews.

New American Funding mortgage variety of loan types

  • 5 of 5 stars

New American Funding offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities overcome barriers to get home loans. The company has specific initiatives and lending goals to help Hispanic and Black customers and military service members achieve homeownership.

The lender offers fixed- and adjustable-rate loans, government-backed FHA, USDA and VA mortgages, and conventional, jumbo and reverse mortgages.

In addition, New American Funding offers a mortgage that gives borrowers the flexibility of setting their repayment term to anywhere from eight to 30 years. And it works with an affiliated real estate company to enable home buyers to make cash offers.

New American Funding HELOC

New American Funding offers a home equity line of credit, or HELOC. These second mortgages are one way for homeowners to access existing home equity without refinancing or selling their home. Funds obtained with a second mortgage can be used for expenses such as home improvements, education costs or debt consolidation. New American Funding offers HELOCs for owner-occupied and second homes.

New American Funding mortgage ease of application

  • 5 of 5 stars

You can start your loan application in person, by phone or online. You can upload and electronically sign documents. On some purchase mortgages, the lender offers a guarantee that the loan will close in 14 business days.

New American Funding mortgage rates and fees

  • 2.5 of 5 stars

  • New American Funding earns 2 of 5 stars for average origination fee.

  • New American Funding earns 3 of 5 stars for average mortgage interest rates.

Borrowers should consider the balance between lender fees and mortgage rates. While it's not always the case, paying upfront fees can lower your mortgage interest rate. Some lenders will charge higher upfront fees to lower their advertised interest rate and make it more attractive. Some lenders just charge higher upfront fees.

New American Funding mortgage rate transparency

  • 5 of 5 stars

If you’re looking for information on interest rates, select "Mortgage Rates" from the menu and you'll see rates and APRs for four popular loans.

Drilling down on "View Disclosures" shows you the fine print.

On the day we looked, the disclosures showed that New American Funding was including three discount points for each of the loans and considering a 60% loan-to-value on conventional loans to sweeten its advertised fixed mortgage rates. It's a good idea to look for clues like these when shopping rates online so that you won't be disappointed when you're quoted a higher rate.

Alternatives to New American Funding mortgage

Here are some comparable lenders we review that borrowers can consider.

Alterra Home Loans focuses on underserved borrowers, and Carrington Mortgage Services offers multiple low-down-payment options, including FHA loans.

Getting ready to buy a home? We’ll find you a highly rated lender in just a few minutes.

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More from NerdWallet

at New American Funding


NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: variety of loan types (purchase, refinance, fixed and adjustable, for example), ease of application, rates and fees and rate transparency. Among the factors we consider when scoring these categories are options to apply for and track loans online, the level of detail about mortgage rates on lender websites and our analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These scores generate ratings from 1 star (poor) to 5 stars (excellent).