Business Insider's personal finance team compared New American Funding to the best mortgage lenders and found it to be a standard lender. New American Funding earns a 4.37 out of 5-star rating from Business Insider, based on its loan options, affordability, customer satisfaction, and trustworthiness.
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.
Pros and Cons of Choosing New American Funding
Pros
- Offers a wide variety of mortgage options
- Offers up to $7,500 in down payment assistance
- You may be able to apply with alternative forms of credit if you have a no credit score
- Choose a term from eight to 30 years with the I CAN mortgage
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 $7,500 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.
Cons
- Fees are somewhat high
- Can't see personalized rates online
Compared to other lenders, New American Funding's fees are on the high end. It also doesn't let you explore customized rates online.
Get Mortgage Rates
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 fees
- 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 U.S. states
- Minimum credit score and down payment displayed are for conforming mortgages
New American Funding Overview
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 throughout the country.
Loan Options
New American Funding offers the following types of mortgages:
- Conforming loans
- Jumbo loans
- FHA loans, including 203(k) renovation loans
- VA loans
- USDA loans
- Reverse mortgages
- Non-QM loans
- Interest-only mortgages
- Construction loans
- Home equity loans and 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)
Pathway to Homeownership Down Payment Assistance
The lender has a program called Pathway to Homeownership that provides up to $7,500 in down payment assistance for eligible first-time homebuyers in certain areas.
How to Apply
To get a mortgage from New American Funding, you can start an application online, over the phone, or in person.
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. Or you can use the 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 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.
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.
Is New American Funding Trustworthy?
The Better Business Bureau gives New American Funding an A+ rating.
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.
What Borrowers Are Saying About New American Funding
Business Insider looked at positive and negative reviews, borrower feedback, online forums, BBB complaints, and other sources to understand what borrowers think about this lender
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.
How New American Funding Compares
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. Rocket also ranks high in customer satisfaction.
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.
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.
Our Overall Lender 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 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: 3.96 out of 5
In the J.D. Power 2024 Mortgage Origination Satisfaction Study, New American Funding ranked right around 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
New American Funding has an A+ rating from the BBB. The BBB evaluates companies by looking at responses to customer complaints, honesty in advertising, and transparency about business practices.
In 2023, New American Funding settled allegations from the Commonwealth of Massachusetts that it facilitated unlicensed mortgage activities in the state.
FAQs
Can you trust New American Funding?
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.
Is New American Funding legit?
Yes, New American Funding is a legitimate mortgage lender that's been around for over two decades.
What distinguishes New American Funding from other mortgage lenders?
New American Funding offers a diverse range of mortgages, including both conforming and non-conforming loan products as well as government-backed programs.
Can New American Funding help with refinancing?
Yes, in addition to offering mortgages to purchase a home, this lender also offers many different refinancing options.
Is New American Funding a good option for first-time homebuyers?
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.
