Ideal for mortgage seekers who need to be assessed based on non-traditional credit, New American Funding offers borrowers with non-traditional credit history, FHA and VA loans, as well as down payment assistance programs.
In this article, I’ll provide a detailed review of New American Funding.
What is New American Funding?
They started as a loan company for immigrant communities
New American Funding started in 2003 as a small company targeting a niche market and has grown over time to be an $11 billion company. It comes under the top 30 lenders nation-wide based on operational volume.
Early on, the founders focused mainly on Spanish-speaking and other underserved immigrant communities. The effort paid off, and New American Funding now dominates the minority lending sector and has significant market shares in California, El Paso, and Los Angeles.
They now reach 48 states
New American Funding has now expanded beyond its niche market and is a nationwide company in 48 states. While the national average of mortgage loans stands at around $256,000, the company’s average was at $291,000.
They offer many types of loans
New American Funding has a wide variety of loan products similar to what other large-scale lending companies offer. They offer:
- Jumbo loans
- Interest-only mortgages
- Refinance options
- Home improvement loans
- Fixed/adjustable-rate loans
- All government-backed lending options such as USDA, VA, and FHA.
Though the company offers unique services not found at conventional lenders such as reverse mortgages, New American Funding does not offer home equity loans (or HELOCs). The last two loan types rarely are provided by non-bank loan providers.
New American Funding also has first-time homebuyer loan programs in place and provides consumers with personalized assistance. First-time homeowners can take advantage of the company’s fixed and adjustable rate programs along with government-sponsored FHA and VA loans, which are a great option because of low or no down payment options for military families and mortgage seekers with less-than-optimal credit scores.
New American Funding does its underwriting inside the walls of its own company – meaning that an underwriter assesses your application to check eligibility, not a computer algorithm on its own. This personal touch is what makes the company so accessible to the underserved class.
Most lenders use an automated program or software to sort through loan application requests. But New American Funding’s personalized feature makes it easier for people without a strong credit history or those in a unique profession (such as a freelancer) to get approval.
Low credit profiles may apply
In 2013, New American Funding launched a loan service called “I CAN.” This mortgage program gives borrowers the ability to select a loan term aligned with their financial situation and budget.
Some of their other features on conventional loan packages include:
- Fixed-rate mortgages. New American Funding offers borrowers the option to pay the same monthly payment over a traditional 30 years, as well as a 15-year option.
- Adjustable-rate mortgages. With an ARM, you make the same payment for five years, then the option to switch to a market-adjusted rate becomes available.
- Jumbo loan. New American Funding offers loans outside the average market level for bigger houses.
- USDA, VA, and FHA loans. New American Funding’s government-sponsored loans for those who need it.
- Non-qualifying mortgage. This program is suitable for those seeking other income verification due to unusual financial circumstances.
Great customer reviews
The company has excellent reviews by its previous clients who have praised New American Funding for a personalized service approach and a non-rushed attitude of their loaning officer.
In addition, since New American Funding does not have an automated application process, those with no or bad credit history aren’t automatically rejected.
These features make the company an excellent option for people seeking an alternative choice to conventional lenders. Since New American Funding considers alternative credit markers, it’s able to serve unrepresented communities who otherwise would have no access to credit.
One of the most reported features by their customers was that the whole application process was speedy. Once they got through the approval stage, customers said closing times of under a month.
New American Funding fees
New American Funding charges no fee for quick quotes and information. To check your individual loan eligibility and corresponding pricing, you’ll want to request a direct quote online or speak directly with a customer service representative.
The application process can be done via phone, email, or online. Documents can be uploaded with ease, and the option for an electronic signature is also there.
The average closing time for applications is under 30 days, and New American Funding says there is no additional charge for an interest-rate lock.
If you are seeking pre-qualification, it can also be initiated online through contact with a customer rep that takes place before you receive a verification letter.
The company has English and Spanish speaking agents for assistance and guidance. The New American Funding helpline is available from 7 AM to 7 PM Pacific Standard Time.
The application process has five simple steps
- Pre-approval stage where the applicant provides information on income, expenses, assets, and credit. A loan officer then determines whether an applicant can be approved for a specific amount or not.
- An official offer is sent to the loan seeker which contains details on the down payment, loan amount, purchase price, deposit, and terms.
- The borrower then provides a deposit.
- The application then is forwarded to an underwriter who assesses the file and gives the final go-ahead.
- New American Funding then wires the funds.