Military VA Loan

New American Funding Lender Review | 2024


Military VA Loan Rating: 4/5

If you’re a nontraditional or first-time home buyer looking for a lender with a personal touch, New American Funding (NAF) may be the perfect fit for you.

One of the few national mortgage lenders to achieve top-twenty status while remaining family-owned, New American Funding offers a wide range of loan products to suit all kinds of home buyers and refinancers.

Learn More

New American Funding Overview

Since it was founded in 2003, this company has issued over 187,000 loans totaling over $48 billion dollars by combining a digital experience with a human touch.

Despite its size and the availability of an all-online application process, New American Funding makes sure every mortgage application is handled manually and considered by a real person.

Borrowers who are technology-averse or who simply prefer to work with an agent can choose to speak to a representative on the phone or, where available, to process their application at one of the company’s 186 active lending branches in 32 states.

Additionally, the company offers various down payment assistance programs as part of its mission to serve diverse and underserved communities.

Pros and Cons of New American Funding

Though New American Funding’s customer service has earned it a stellar reputation.

The company’s customer service has won it over 7,000 five-star reviews on Zillow, though some reviewers dislike having to provide a phone number or email in order to obtain a rate quote.

More than almost anything, New American Funding is extremely user-friendly. Its website is designed to answer any questions borrowers may have, and the company offers several first-time home buyer programs.

The underwriting process involves reviewing each application on a case-by-case basis. In addition, NAF offers the choice of a total digital experience or an in-person process and promises a streamlined 14-day closing guarantee for purchases.

The company’s personalized quote system, manual underwriting and available bilingual agents have earned it the trust of a diverse clientele.

In 2019, New American Funding reported over 19% of loan volume was directed to Hispanic customers and more than 9% to Black customers. These numbers far exceed the national average of 7.85% loan volume to Hispanic and 6.22% to Black customers and reflect the company’s dedication to expanding homeownership to underserved communities.

Though NAF offers a wide range of traditional mortgage products, it is also proactive in helping those who need assistance to locate state and local programs to support its home-buying goals.

Pros of New American Funding

  • High-tech, innovative tools including mobile apps
  • Manual underwriting process can help those with nontraditional or lower credit scores find the best options for borrowing, a significant advantage for borrowers who may be locked out by automated models
  • Choice of a fully digital application process or an in-person process over the phone
  • A family-owned top-twenty lender with a volume of over 187,000 loans
  • Over 7,000 five-star reviews from borrowers
  • Comprehensive online educational material for customers, as well as a mortgage calculator and a market update blog that tracks home loan trends
  • Freedom to customize a mortgage term through its “I Can Mortgage” program, which allows borrowers to choose a term length between eight and thirty years
  • Average closing time is less than 35 days and the company does not charge for an interest rate lock

Cons of New American Funding

  • New American Funding will only provide a rate quote via phone or email
  • Lending fees and rates may be higher than some competitors

How To Get a Mortgage With New American Funding

Applying for a customized quote from New American funding is typically fast and easy. Those who prefer a digital experience can apply online. Otherwise, borrowers can visit one of 186 branches or fill out an application on the phone with one of its helpful, bilingual agents.

Applying online is a streamlined process with no login or registration. The borrower answers a few quick questions about the property type, their previous home buying experience, and the purchase price. The process does require that an email address is provided in order to get a rate quote.

Once the application has been submitted, New American Funding begins its underwriting process. The applicant’s credit history, employment, assets and liabilities will all be considered. If applicable, the company will order an appraisal of the property.

New American Funding will respond to the application with a list of personalized loan options, as well as information about the interest rate, points and fees, and the availability of a variety of down-payment assistance programs if needed. Documentation can be uploaded directly to the website or given to an agent in your local branch office.

Prior to the application process, many of New American Funding’s customers have used the site’s comprehensive educational material to familiarize themselves with the process and get a sense of what they are able to afford.

The site provides a mortgage calculator where borrowers can enter income and fixed expense information to determine the monthly payment they can afford, as well as to learn about the different types of loans available to them.

Buying a House With New American Funding

The entire New American Funding process is designed to appeal to first-time homebuyers and nontraditional borrowers as much as to experienced homeowners.

The availability of a one-on-one manual underwriting process can help ensure mortgage applicants are receiving the care and attention they need.

New American Funding’s home-buying mortgage products include:

  • Conventional Loans: A good option for buyers with higher credit scores and lower levels of personal debt.
  • FHA Loans: Popular with first time, lower-income and/or lower-credit home buyers.
  • VA Loans: Designed for U.S. Veterans, active service members and spouses, and offering many benefits including no requirement for a down payment. New American Funding does not offer VA construction loans or VA manufactured housing loans.
  • Jumbo Loans: Suited for buyers seeking to borrow more than the amount permitted for conventional loans (greater than $510,400 in most states).
  • Reverse Mortgages: Allow older homeowners to access the equity in their home. This is particularly helpful for those who have a limited income and need more money to fund their retirement.

Refinancing a House With New American Funding

New American Funding offers several different types of refinance mortgages, including a cash-out option, which allows homeowners to convert their home equity to cash.

VA mortgage holders may be eligible to refinance with the VA Interest Rate Reduction Refinance Loan (IRRRL) or the VA cash-out refinance, both of which can lower their interest rate.

The IRRRL, sometimes also called a VA Streamline Refinance, process is simplified and offers access to lower rates and monthly mortgage payments without the need for income verification or an appraisal.

Though guidelines from the VA allow up to 100% loan-to-value for VA cash-out loans, New American Funding caps these loans at 90%.

Whatever your objectives for refinancing, the knowledgeable agents at New American Funding can make sure you’re using the refinance product best suited to your needs.

Special Perks for Veterans With New American Funding

New American Funding is proud to provide exceptional service to eligible VA loan applicants.

The special perks available for qualified VA borrowers include negotiable interest rates, down payment assistance and the ability to finance or reduce the VA funding fee.

Active-duty personnel assigned to permanent duty within the United States and not living in government housing can take advantage of the Basic Allowance for Housing (BAH) which can be paid toward a mortgage.

New American Funding’s agents work hard to ensure those who served have full access to all of these special benefits.

Community Involvement

New American Funding has made a commitment to Black Homeownership, creating opportunities and helping to bridge the racial wealth gap. To that end, it established the New American Dream Initiative which offers education, accessibility to credit, and mortgage career awareness to underserved communities.

Additionally, the company has formed a Listening Circle forum providing a safe place for employees to take action on racial and social injustices. The program is intended to create actionable solutions to increase Black employment and leadership opportunities.

New American Funding Summary

Borrowers looking for a wide range of loan options offered through a fast and friendly process will find New American Funding a solid choice.

Though the company’s fees may run higher than competitors in some cases, its high-tech and personal approach will appeal to first-time buyers and experienced borrowers alike.

  • America’s Trusted Refinance Lender – Rated A+ by the BBB
  • Get a Lower Rate, Cash-out, Home Equity, Shorten Your Payment Term – No Hidden Fees
  • Offering Conventional, FHA & VA Loans – Excluding NY & HI
  • Great Rates For Homeowners with Strong Credit Scores Needing a Home Loan $125k+