New American Funding is an independent mortgage lender based in Orange County, California. Founded in 2003, it has grown into a significant player in the mortgage industry with a wide range of mortgage products on offer.
In our New American Funding review, we dive into how it ranks in terms of cost, financial health, and loan options, and we’ll see what real customers have to say about the service so you can decide for yourself if New American Funding is right for you.
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How we evaluated New American Funding
We evaluated New American Funding using four key metrics:
- Customer satisfaction: We looked at reviews from Google, the Better Business Bureau (BBB), and Trustpilot to get a sense of how satisfied customers were. We also took into account any awards or industry rankings, such as from J.D. Power.
- Rates and costs: We compared New American Funding’s rates to the industry average and its main competitors. We also took into account whether or not the company was transparent about its rates and fees.
- Market share and volume: We factored in New American Funding’s market share and whether or not it’s growing in order to give us an idea of the financial health of the company.
- Loan diversity: We considered how many different loan types New American Funding offers. We also looked at whether it tended to offer specialized services in particular loan types, such as FHA or VA loans.
Taken together, these four pillars help give you an idea of whether or not New American Funding is able to provide excellent service while also saving you money and time.
Is New American Funding right for you?
New American Funding may be a good choice for you if you’re looking for a competitive interest rate or you have a unique financial situation. With its wide variety of mortgage types, New American Funding can help borrowers for whom conventional mortgages may not be a good fit, such as the self-employed, military veterans, and borrowers with low down payments.
But you should always shop around and compare different mortgage lenders. While New American Funding’s rates are competitive, it’s possible you’ll find a lower rate elsewhere. Plus, although most New American Funding reviews are positive, there are a handful that complain of closing delays and costly errors by loan officers.
New American Funding pros and cons
Pros
- Wide variety of loan types available
- Interest rates are highly competitive
- Works with borrowers in challenging or unique situations
- Fast closing times
Cons
- Some customers experienced long delays getting approved
- Errors by New American Funding sometimes resulted in extra costs for some borrowers
Customer satisfaction
New American Funding has very good customer satisfaction scores, with average ratings above 4.5 out of 5 across the BBB, Google, and Trustpilot. However, in J.D. Power’s 2024 U.S. Mortgage Origination Satisfaction Study it scored 725, which was slightly below the study average of 727 and 11th overall.[1] Certainly not bad, but not great either.
Positive reviews praised New American Funding’s dedicated and friendly representatives who worked with borrowers to find mortgage solutions, even when their financial situations were challenging. Borrowers also praised loan officers for helping them lock in low rates and close quickly.
While negative reviews were rare, they did occur. Complaints tended to focus on individual representatives who caused closing delays or who made errors that ended up causing serious financial repercussions for borrowers.
✅ Work with borrowers in challenging situations
A number of New American Funding reviews highlighted how the company is willing to work with applicants who may not have the qualifications needed for a conventional mortgage. Customers said that representatives helped them find options that better fit their situations or advised them on what steps they could take in order to qualify.
Where I had gotten declined from other places, Alex, gave me guidance on what exact steps I needed to do to get my credit score where I needed it to get approved. What he told me worked and I was amazed at the interest rate he was able to get me.
I didn't think I'd be able to keep my parents home because my siblings wanted to sell it to get quick money and my credit wasn't great. Kaitlyn and Kenzie were able to find a solution that works for me in spite of my credit.
✅ Borrowers were able to lock in low rates
New American Funding’s rates are competitive and can help many borrowers save money over the long term. A number of reviewers highlighted how the company’s representatives appeared committed to helping them lock in a low rate.
I got a great rate and closed on time with zero stress. Highly recommend to anyone looking for a smooth mortgage experience!
My loan officer Mark Tousky went above and beyond throughout the entire process! Mark secured a rate much lower than the current interest rates, thank you Mark! I would recommend NAF to anyone looking for a mortgage.
✅ Mortgages were closed quickly
Quick processing times were mentioned in a number of New American Funding reviews. Customers were often impressed by how quickly their applications were processed and with how loan officers worked diligently to help borrowers get access to their funds as fast as possible. In many cases, loans were processed and closed in less than a month.
Estimated a 30 day closing for our refi, but closed in only 14 days!! Great communication and super fast processing, will recommend NAF to everybody I know!
Was professional and efficient in taking care of our loan needs. We applied and were able to close in less than a month.
❌ Closing delays in some cases
While many customers said their loans closed quickly, others had the opposite experience and complained of delays that left them in difficult positions. Sometimes, applicants were waiting months to access their funds, creating stressful financial and logistical concerns.
These negative reviews go to show that your experience with any mortgage provider can vary substantially depending on the quality of the loan officer you’re paired with.
Due to slow communication within your company, my closing date was pushed back 10 days passed the original 45 days. Because of this, instead of having 12 days to prep and move, I had to move in 36 hours. In addition I was still being asked for information the day before closing.
My spouse and I ended up waiting 5 months to close and get our money. We were guaranteed a lower interest rate initially, and receiving updates from NAF was very challenging. Some of our questions were never answered and, unfortunately, we invested too much money by the time we realized this company operated so poorly and are now stuck with them.
❌ Costly errors for some borrowers
Similarly, while the vast majority of borrowers were pleased with New American Funding’s loan officers, some weren’t. A handful of reviewers complained of errors made by loan officers. These errors ended up having negative repercussions for borrowers, including damage to their credit ratings and wasted time when they were trying to close.
I am very upset that the loan officer I was working with decided to check my credit with a hard inquiry WITHOUT my permission. I did not give explicit consent. He was just supposed to do a pre approval which is a soft inquiry ONLY.
New American Funding revoked my first approval because the appraisal labeled my property “rural” — even though it’s inside city limits and the value came in well above what was required. This came after they told me I was “good to go” and wanted to schedule closing. They quickly switched me to another loan product that would supposedly solve the “rural” issue. That second attempt made it all the way to “Preparing Notary Documents for Closing” before being denied because my home is in a trust. No warning. No chance to fix it. Just repeated hard credit pulls damaging my score.
Rates and costs
New American Funding has rates that are highly competitive with the top mortgage lenders that are generally under the national average 30-year fixed rate of 6.17% as tracked by Freddie Mac.
That difference can add up to a lot of saved money. For example, with a $400,000 fixed-rate mortgage over 30 years, you’d spend $454,280 in total interest and $509,808 if you had a mortgage with a 6.5% APR. In other words, you’d save $55,528 over 30 years, or $155 per month.
That said, it’s important to stress that advertised rates are just a guide. In reality, your rate will likely be different depending on factors like your income, credit score, loan type, and location. That’s why you should compare quotes from multiple lenders to get the best rate and terms for your individual financial situation.
Company stability: Is New American Funding legit?
Yes, New American Funding is a legitimate and stable company. It has #ERROR No data for New. total loans. New American Funding has an RPS3+ rating from Fitch. While this rating is not quite as high as a RPS1 or RPS2, it indicates an adequate level of service for a mortgage provider with a positive outlook.[2]
The company was founded in 2003 in Orange County, California by husband and wife team Ricky and Patty Arvielo. It opened its first branch in 2012 and today has 287 locations nationwide. It is also licensed in all 50 states.[3]
While New American Funding doesn’t have as much market share as some other lenders, its growth has been impressive and its business outlook continues to look positive. The company’s stability appears solid and it has a proven track record of weathering economic downturns.
Loan diversity and eligibility
New American Funding offers an exceptionally broad range of mortgage options beyond conventional loans. In fact, it advertises 20 different loan types, including VA loans, USDA loans, and buydown loans. This loan diversity makes New American Funding a good choice for borrowers with unique income situations or challenging financial needs.
For example, it offers self-employed and non-QM loans for borrowers who have non-traditional income sources. Also, if you’re looking for a home loan to fund a renovation or home expansion, New American Funding offers ADU loans and FHA 203(k) loans.
In particular, New American Funding has a strong focus on FHA loans. In fact, #ERROR No data for New. of its total loan volume comes from FHA loans. FHA loans are government-backed mortgages that enable borrowers with low to moderate credit scores and limited down payments to qualify for a home loan.
Should you choose New American Funding?
New American Funding is a solid choice if you’re looking for a good rate on your mortgage or you want a variety of loan types to choose from. They excel in offering a diverse array of mortgage options to help borrowers in various situations, including those with poor credit, unique incomes, or limited down payments.
However, while New American Funding’s rates are good, they’re not guaranteed to be the best. Your actual interest rate and terms will depend on many factors, including your income, credit rating, location, desired home, and more. You should always shop around and choose a mortgage lender that best fits your needs and situation.
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| Disclaimer: This review is an independent evaluation and is not affiliated with or endorsed by New American Funding. The information provided in this article is for informational purposes only. It is not intended as legal, financial, investment, or tax advice, and should not be relied upon as such. Consult a licensed financial advisor or tax professional regarding your personal financial situation before making any decisions. |