Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.
Business Insider's personal finance team compared New American Funding to the best mortgage lenders and found its offerings to be fairly standard, with a good range of mortgages to choose from and up to $8,000 in down payment assistance for eligible borrowers.
New American Funding is one of our top low credit score mortgage lenders. We think it's an affordable lender for a variety of different types of borrowers, and its buydown loan and I CAN mortgage make it easy to customize a mortgage to your specific needs.
620
3%
Conforming, jumbo, FHA, VA, USDA, reverse, buydown, non-QM, interest only, construction, I CAN mortgage, ADU loan, HELOC
- Variety of home loans
- Offers down payment assistance
- Apply with non-traditional forms of credit if you have no credit score
- Its I CAN mortgage lets you customize your term
- Higher than average rtes
- Can't explore customized rates online
New American Funding is one of our top low credit score mortgage lenders. It's a strong mortgage lender overall, and its buydown loan and I CAN loan make it easy to customize a mortgage to your specific needs
New American Funding- Offers mortgages in all 50 US states
- Branches in 38 states
- If you have no credit score, you may be able to apply with alternative data such as proof of paying bills on time
- A buydown loan lets you pay a fee at closing to get a lower interest rate for the first 1-3 years of your mortgage
- I CAN Mortgage provides terms as short as 8 years
- Minimum credit score and down payment displayed are for conforming mortgages
Introduction to New American Funding
Background and History of New American Funding
New American Funding was founded in 2003 by husband and wife Rick and Patty Arvielo, who both still serve as co-CEOs.
"New American Funding" is actually the company's trade name; its legal name is Broker Solutions, Inc.
Availability
New American Funding originates mortgages in all 50 U.S. states and Washington, D.C. It has branches in Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.
New American Funding Mortgage Options and Eligibility
New American Funding 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
- Accessory dwelling unit loans: These loans can be used to finance the construction of an additional living space on your property (like a guest house)
Conventional Loans
New American Funding offers multiple types of conventional loans. Conventional loans are mortgages that aren't backed by a government agency.
They're often a good option for borrowers with strong credit scores or those who need a more specific type of mortgage.
This lender's conventional loan options include both conforming and non-conforming options like jumbo loans. It even offers some less common types of mortgages, like interest-only mortgages and reverse mortgages.
Government-Backed Loans (FHA, VA, USDA)
Government-backed mortgages are often a good choice for first-time homebuyers or borrowers who don't have much money for a down payment.
New American Funding offers all three major government-backed mortgages, which includes FHA, VA, and USDA loans. It also has FHA 203(k) loans, which are a type of home renovation loan.
Jumbo Loans
New American Funding has both fixed-rate and adjustable-rate jumbo loans. You'll likely need a high credit score and a large down payment to qualify for one of these mortgages.
Pathway to Homeownership Down Payment Assistance
The lender has a program called Pathway to Homeownership that provides up to $8,000 in down payment assistance for eligible first-time homebuyers in certain areas.
New American Funding Mortgage Rates and Fees
How Rates Compare to National Averages
Based on our review of the latest HMDA data, we found that New American Funding's rates were around average compared to other lenders.
New American Funding shows a handful of sample mortgage rates on its website. To get a personalized rate quote, you'll need to apply for preapproval.
Fixed vs. Adjustable Rates
This mortgage lender offers mortgages with both fixed and adjustable mortgage rates. With a fixed-rate mortgage, your rate will remain the same for the entire life of the loan.
As the name suggests, with an adjustable-rate mortgage your rate will change periodically based on current market rates.
Average Fees
In 2023, the average borrower getting a conventional loan with this lender paid $5,102 in origination charges, according to HMDA data. This is slightly high compared to other lenders.
New American Funding Overall Rating
Loan Types: 5 out of 5
New American Funding offers a wide range of types of mortgages that should satisfy most borrowers' needs. This includes conforming loans, government-backed loans, and less common types of mortgages like non-QM loans or ADU loans.
Affordability: 4.5 out of 5
New American Funding is overall a very affordable lender. It has options for borrowers with low credit scores or no credit score, multiple low down payment mortgages, down payment assistance, and a specialty loan that allows you to tailor your term length to your needs so you can strike the right balance between saving on interest and keeping your monthly payment low. But its average fees are slightly higher than average.
Customer Satisfaction: 3.46 out of 5
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 over 9,000 customer reviews.
Trustworthiness: 4.5 out of 5
The Better Business Bureau gives New American Funding an A+ rating. The BBB evaluates companies by looking at responses to customer complaints, honesty in advertising, and transparency about business practices.
In January 2023, Broker Solutions Inc. (New American Funding's legal 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.
Even accounting for this, we found New American Funding to overall be a trustworthy business.
Pros and Cons of Choosing New American Funding
| Pros | Cons |
|
|
Benefits of New American Funding Mortgages
Most borrowers should be able to find a loan that suits their needs with this mortgage lender. If you want to customize your loan term or get a non-QM loan, you can do that here. If you're building a new home or renovating an existing one, New American Funding has options for you.
New American Funding's Pathway to Homeownership program provides eligible first-time homebuyers with up to $8,000 in assistance that can be used for a down payment, closing costs, or other upfront costs. There are no income limits with this program, but it is only available in certain areas.
You may also be able to apply for a mortgage here even if you don't have a traditional credit score. In this situation, you'll use non-traditional credit (like rent payment history) to establish your creditworthiness.
Potential Limitations
Compared to other lenders, New American Funding's fees are on the high end. It also doesn't let you explore customized rates online.
New American Funding Customer Service Experience
Customer Reviews and Feedback
New American Funding has mostly good reviews from previous customers. Reviewers frequently mention the process being very smooth, with communicative loan officers.
The negative reviews and comments we looked at didn't indicate larger problems with the company. With bigger lenders like New American Funding, it's not uncommon for a small portion of borrowers to have a negative experience. If this worries you, you might want to look into getting a mortgage from a smaller local lender or credit union.
Support Channels and Service Quality
In reviews, customers generally seem to be pleased with the loan officers they worked with from New American Funding. When getting a mortgage, your loan officer will generally be your point person for getting issues resolved or answering questions you have, so it's important to work with a loan officer who is knowledgeable and speedy.
One of the things we like about this lender is that it has a lot of branches throughout the US, so you may be able to work with a local loan officer or apply in person if that's important to you.
The lender also has a convenient online portal where you can apply, upload documents, and keep track of your application.
New American Funding vs. Competitors
New American Funding vs. Rocket Mortgage
Rocket Mortgage and New American Funding are both strong mortgage lenders. 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, including its convenient smartphone app. 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 and New American Funding each offer a wide range of mortgages, so they're both solid options if you're looking for a more niche type of loan. Which of these lenders is right for you might come down to which one has the type of loan you're looking for.
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.
-
Rocket Mortgage
-
AmeriSave Mortgage Corporation Mortgages
-
New American Funding
Unique Selling Points of New American Funding
New American Funding stands out thanks to the many different affordable features it boasts, including customizable term lengths and the ability to apply with non-traditional credit if you don't have a credit score.
We also like that the lender has so many branches throughout the U.S. With the advent of online mortgage lending, it's now less common to work with a local, in-person lender. When you're buying a home, working with a loan officer who knows your area and has a local network can give you a competitive edge.
Areas for Improvement Compared to Competitors
Many lenders now offer ways for borrowers to explore current rates online commitment-free. Though you can't know exactly what rate you'll get until you apply with a lender and they look at your entire financial situation, being able to use a rate tool to get an idea of what rate you might pay can make it easier to compare lenders. New American Funding loses points for not providing a way for borrowers to explore personalized rates without providing contact information.
How to Apply with New American Funding
To get a mortgage from New American Funding, you can start an application online, over the phone, or in person.
Applying Online or Over the Phone
With the online application, you'll need to provide some information about your situation, including the amount you're hoping to borrow, your income, and your credit score. Then, you'll create an account on the website.
You can also call the phone number on the lender's website to get connected with a loan officer.
Working with a Loan Officer in Person
You can find a list of New American Funding's branches on its website if you want to go in person or connect directly over the phone to someone local to you.
New American Funding FAQs
New American Funding has an A+ rating from the BBB and many positive online customer reviews. Overall, we found it to be a trustworthy mortgage lender.
Yes, New American Funding is a legitimate mortgage lender that's been around for over two decades.
New American Funding offers a diverse range of mortgages, including both conforming and non-conforming loan products as well as government-backed programs.
Yes, in addition to offering mortgages to purchase a home, this lender also offers many different refinancing options.
We think New American Funding is an overall good choice for first-time homebuyers, especially for those who don't have an established credit history or have less saved up for a down payment.
To approve your mortgage application, a lender will give your file to an underwriter, who will look closely at the information and documentation you provided to ensure you meet the lender's requirements. The amount of time this part of the loan process can take varies.
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.
