New American Funding is a family-owned that has quickly risen the ranks as a leading mortgage lender in the U.S. Based in California, they service the lower 48 states, plus the District of Columbia. In addition to an online application process, you can also schedule an in-person consultation at one of the bank’s 130 branches nationwide.

New American Funding

Mortgage Application Requirements

New American Funding’s required credit score depends on your desired loan type. For most mortgages, you’ll need at least a 620, but you can get away with a 580 if you choose an FHA loan. Of course, just like other lenders, New American Funding uses other factors to decide on your application approval, including income and debt-to-income ratio.

To give you an idea of the lender’s typical borrower, the average loan amount is $291,000. Nearly half of their originated loans are above $350,000. Both of these numbers are slightly higher than the national average.

Types of Home Loans Available

New American Funding has plenty of mortgage options available. Here’s a quick look at each one.

Fixed Rate Conventional Mortgages

One of the most popular types of home loans, a fixed rate mortgage is just that: a loan with an interest rate that never fluctuates. The benefit is that your monthly principal and interest also won’t change, offering homeowners stability and the ability to better plan their long-term finances. No matter what happens to rates down the road, yours is locked in for your full repayment term.

VA Loans

Guaranteed by the U.S. Department of Veteran Affairs, a VA loan helps active duty military members and veterans get a mortgage. You can qualify for a lower interest rate and no down payment at all, plus use your basic allowance for housing towards your monthly payments.

Once you start the mortgage application process with New American Funding, your loan officer can obtain your certificate of eligibility for you. The COE is required by the VA to make sure your service fits the loan requirements.

FHA Loans

For a home loan with more flexible eligibility requirements than a conventional loan, New American Funding offers FHA loans. These are backed by the Federal Housing Administration. Not only can you qualify with a lower credit score, you can also take advantage of a smaller down payment of just 3.5% of the property purchase price.

Adjustable Rate Mortgages

Also known as an ARM, an adjustable rate mortgage comes with a variable interest rate. You have a fixed rate for the first few years, then it adjusts, usually once a year. Here’s an example of how it works.

A 7/1 ARM would have a fixed rate for five years, then adjust every one year. While your payment could go up at that point, the rates are capped so you can get an idea of your maximum possible payment. The perk is that you get a lower fixed rate, offering more savings in the early years of your mortgage.

Jumbo Loans

For higher-than-normal loan amounts, New American Funding has both jumbo and super jumbo loans. You can apply for a mortgage as high as $15 million and even have a higher debt to income ratio than is usually accepted.

Additionally, you can take advantage of a co-borrower who doesn’t occupy the resident as part of your jumbo loan application. Down payment amounts start at 10% and you also have the choice between a fixed rate and adjustable rate.

Home Improvement Mortgages

New American Funding allows you to roll renovation costs into your mortgage with an FHA 203k loan. With a Streamlined FHA 203k, you can get up to $35,000 included in your loan amount for projects like decking HVAC systems, lead paint removal, new appliances, roofing, and siding.

New American Funding also offers a Standard FHA 203k, which also covers structural repairs and has no dollar limit for your renovation projects.

Interest Only Loan

To start off with a lower monthly payment, some borrowers might consider an interest-only loan. As the name implies, you can pay just on the interest for the first five to ten years.

This is generally best for people who don’t plan to be in the property for many years, or those who want to tackle high-interest debt first. New American Funding recommends talking to a loan specialist in order to learn more about the pros and cons of an interest-only loan.

Fees and Rates

New American Funding doesn’t publish its interest rates online. In order to access that information, you’ll need to enter some basic personal and contact information. The plus side is that you’ll at least get rates that are more personalized to your specific financial situation.

Lender’s fees vary, but the average you can expect to pay with a conventional loan is around $1,600. You do, however, get a free interest rate lock when you’re ready to move with your mortgage application.

New American Funding’s Mortgage Process

You can apply with New American Funding in a branch, on the phone, or online. The majority of the process can be handled online, with both document upload and e-signature available.

One thing New American Funding does differently from many other online lenders is they use a manual underwriting system. While some lenders tout an automated system as faster, New American claims to look more holistically at a potential borrower’s application. This helps them better work with underserved communities.

Most mortgages close within 30 days.

Looking for a prequalification letter in order to make an offer on a property? You can get started by applying online, then talk to a New American Funding agent in order to receive your letter.

Special Features

New American Funding is privately owned by Rick and Patty Arvielo. The couple has a personal passion for helping underserved borrowers, particularly those in Latino communities. The company regularly implements targeted initiatives such as Spanish home buying seminars and there are Spanish-speaking agents available to help throughout the process.

Bottom Line

New American Funding is committed to customer service and providing countless options for the kinds of loans available. Plus, with bilingual loan specialists, this lender is able to serve Spanish-speaking clientele, filling a much-needed gap in the mortgage industry.