Shopping for a mortgage means sifting through dozens of lenders, each with their own rate structures, loan products, and eligibility requirements. New American Funding is one of the larger independent lenders in the U.S., and it has carved out a niche serving first-time buyers and borrowers who might not qualify with a big bank. Here’s an independent look at what they offer, where they fall short, and who they’re best suited for.
Disclaimer: This article is for educational purposes only and does not constitute personalized financial or mortgage advice. Consult a licensed mortgage professional before making borrowing decisions.
What Is New American Funding?
New American Funding is a privately held mortgage lender and servicer that offers a broad range of home loan products — including purchase loans, refinances, FHA, VA, USDA, jumbo, and reverse mortgages. The company operates branches across more than 30 states and the District of Columbia, and it provides an online application portal for borrowers who prefer a digital experience.
The lender has drawn attention for its commitment to serving underrepresented borrowers: a notable share of its loan volume has historically gone to Hispanic and Black homebuyers, a differentiator in an industry often criticized for disparate access to credit.
Pros and Cons
Pros
- Manual underwriting available. New American Funding will manually review credit files, which can help borrowers with thin credit histories or non-traditional income situations.
- Online application and loan tracking. Borrowers can apply, upload documents, and track loan status through the digital portal.
- Broad product menu. Options include low- and no-down-payment loans (FHA, VA, USDA), conventional loans, adjustable-rate mortgages (ARMs), and reverse mortgages.
- Transparent rate information. Published daily mortgage rates on the website provide a baseline for comparison shopping.
- Custom loan terms. The “I Can Mortgage” product lets borrowers choose a repayment term from 8 to 30 years, rather than being locked into the standard 15- or 30-year options.
Cons
- Not available in all states. New York and Hawaii are notably excluded from New American Funding’s service area.
- Fees are not disclosed upfront. Detailed fee information is only available once you begin the application process.
- Rates may not be the lowest available. Independent lenders generally cannot match the subsidized rates offered by government-sponsored programs for eligible borrowers.
- Rate quotes require contact consent. Borrowers must agree to receive phone calls and emails before receiving a rate quote — an extra step that some find intrusive.
Key Loan Options
Low-Down-Payment Programs for First-Time Buyers
New American Funding offers several paths for buyers who can’t put 20% down:
- FHA Loans: Designed for borrowers with lower credit scores. Down payments start at 3.5% of the purchase price. Private mortgage insurance (MIP) is required.
- VA Loans: For eligible veterans, active-duty service members, and surviving spouses. Down payments can be as low as 0%, though eligibility requirements apply.
- Conventional Loans (3% down): Suited for buyers with stronger credit profiles. Putting less than 20% down typically triggers a private mortgage insurance (PMI) requirement until sufficient equity is reached.
Minimum down payment by loan type at New American Funding
Cash-Out Refinancing and Home Equity Access
Homeowners looking to tap their equity can use New American Funding’s cash-out refinancing option. The lender generally allows access to 80%–90% of a home’s equity, and proceeds can be used for home renovations, debt consolidation, or other purposes. Note that New American Funding does not offer home equity lines of credit (HELOCs) or stand-alone home equity loans — borrowers who need those products will need to look elsewhere.
Reverse Mortgages
Homeowners aged 62 or older may be eligible for a reverse mortgage, in which the lender makes monthly payments to the borrower rather than the other way around. Conditions include remaining in the home as a primary residence and staying current on property taxes, homeowners insurance, and any homeowner association fees.
Custom Mortgage Terms (“I Can Mortgage”)
This proprietary product allows borrowers to select a repayment period between 8 and 30 years, giving more control over the balance between monthly payment size and total interest paid over the life of the loan.
How to Apply
Applications can be submitted online, by phone, or in person at a branch. The online form collects basic personal and financial information, including contact details (required to receive a rate quote).
Key qualification thresholds vary by loan type. For a conventional loan, New American Funding generally requires a minimum FICO score of 620. Factors that can affect approval or rate include debt-to-income ratio, employment history, and any past foreclosures or bankruptcies.
For payment estimation, the Bankrate mortgage calculator is a useful independent tool. Understanding what constitutes a good credit score before applying can also help set expectations.
Who Is New American Funding Best For?
New American Funding is a strong candidate to consider if you:
- Prefer to work with a loan officer directly and value in-person branch access
- Are a first-time buyer looking for low-down-payment options
- Have a non-traditional credit profile that benefits from manual underwriting
- Want a custom loan term outside the standard 15/30-year options
- Are interested in a reverse mortgage or cash-out refinance
It is less ideal if you want to compare rates anonymously online without providing contact information, need a HELOC or home equity loan, or are located in New York or Hawaii.
Final Thoughts
New American Funding offers a competitive suite of mortgage products and is worth including in your comparison shopping, particularly if you’re a first-time buyer or have a credit profile that doesn’t fit neatly into standard boxes. As with any lender, get quotes from at least two or three sources before committing — rates and fees vary more than most borrowers expect, and even a small rate difference can mean thousands of dollars over a 30-year loan term.