New American Funding Mortgage Review 2023

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Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.

About New American Funding

New American Funding lends mortgages throughout the US with the exception of Hawaii and New York. It offers the following types of mortgages:

  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Reverse mortgages
  • Non-QM loans
  • Interest only mortgages
  • Construction loans
  • HELOCs
  • I CAN mortgages: Choose any loan term between eight and 30 years
  • Buydown loans: This is a type of mortgage that lets you pay up front to temporarily lower your rate for the first one to three years of your loan

To apply for a mortgage with this lender, you begin your application online or over the phone. Or, if you prefer, you can get started in person if you live near a branch.

New American Funding has branches in Alabama, Arkansas, Arizona, California, Colorado, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, North Carolina, New Jersey, New Mexico, Nevada, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.

Is New American Funding Trustworthy?

The Better Business Bureau gives New American Funding an A rating instead of an A+ due to government action against the business. In January 2023, Broker Solutions Inc., New American Funding’s legal name (New American Funding is the business’ trade name), entered into a consent order with the Commonwealth of Massachusetts to settle allegations that the company facilitated unlicensed mortgage activities in the state. The company paid a $25,000 administrative penalty.

The BBB evaluates companies by looking at responses to customer complaints, honesty in advertising, and transparency about business practices.

In the J.D. Power 2023 Mortgage Origination Satisfaction Study, New American Funding ranked No. 18, which was below the study average.

On its Zillow lender profile, New American Funding has a 4.91 out of 5-star rating, based on almost 9,000 customer reviews.

New American Funding Interest Rates and Fees

New American Funding shows sample rates for conforming 30-year and 15-year fixed mortgages, FHA 30-year fixed mortgages, and VA fixed-rate mortgages on its website. To get a personalized rate quote, you’ll need to apply for preapproval or talk to a loan officer.

In 2022, the average borrower getting a conventional loan with this lender paid $4,400 in origination charges, according to Home Mortgage Disclosure Act data. This is around average compared to other lenders.

New American Funding: Overall Lender Rating

FeatureInsider rating (out of 5)
Loan types5
Customer satisfaction3.46

New American Funding: Pros and Cons

Pros Cons
  • Offers a wide variety of mortgage options

  • Can get a specialized mortgage, like a buydown loan or I CAN loan 

  • You may be able to apply with alternative forms of credit if you have a no credit score

  • Can’t apply for a loan if you’re buying in Hawaii or New York 
  • Can’t see personalized rates online

New American Funding FAQs

Is New American Funding legit?

Yes, New American Funding is a legitimate mortgage lender that’s been around for two decades. 

Is New American Funding reputable?

New American Funding has many positive customer reviews on its Zillow lender page, and it has an A rating from the BBB. 

What is New American Funding?

New American Funding is a direct mortgage lender. This means it originates its own mortgages, whereas a mortgage broker connects you with multiple lenders to find the best fit.

Who is New American Funding owned by?

Husband and wife Rick and Patty Arvielo founded New American Funding in 2003. Today, Rick acts as CEO and Patty is president of the company.

Does New American Funding sell their loans?

New American Funding does service its own loans, but it doesn’t say whether it services 100% of the loans it originates, so it may sell some of its loans after closing.

How long does it take to get approval from New American Funding?

It takes just a few minutes to start an application with New American Funding, and you can get preapproved within a day or two as long as you submit your documents on time.

How long does New American Funding take to close?

New American Funding offers a “14 Business Day Close Guarantee” on some of its conforming and FHA mortgages. 

How New American Funding Mortgage Compares

New American Funding vs. Rocket Mortgage

Rocket Mortgage – Product Name Only and New American Funding are both some of the best mortgage lenders available. The best fit for you depends on your needs.

You might like Rocket Mortgage if you’re looking for a quick, smooth online application process. New American Funding’s online process is also pretty easy, but Rocket Mortgage is known for its online features. Rocket Mortgage also ranked as the second-place lender for customer satisfaction from J.D. Power in 2023.

Both lenders offer an option to customize your term length between eight and 30 years. New American Funding’s flexible term mortgage is called an I CAN mortgage, while Rocket Mortgage’s offering is called a YOURgage.

But Rocket Mortgage only offers conforming, jumbo, FHA, and VA mortgages, and home equity loans. If you want a wider variety of loans to choose from, you might prefer New American Funding.

New American Funding vs. Guild Mortgage

Guild Mortgage – Product Name Only and New American Funding each offers a wide range of mortgages, so they’re both solid options if you’re looking for a more niche type of loan.

New American Funding’s I CAN loan is a good option for customizing your mortgage term, and the buydown loan gives you a lower rate for the first few years. Guild has doctor loans, manufactured loans, and its own buydown loan called Payment Advantage. 

Both Guild and New American Funding allow borrowers to apply using non-traditional credit, such as rent or utility payment history, if they don’t already have a credit score. Guild Mortgage’s version of this is called its Complete Rate program.

Why You Should Trust Us: How We Reviewed New American Funding

To review New American Funding, we used our methodology for reviewing mortgage lenders.

We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don’t have any recent public controversies.

Read the original article on Business Insider