New American Funding Review
New American Funding is a direct lender that can take you from the beginning stages of mortgage qualification through closing the loan, even if you require non-traditional credit evaluation methods. They offer loans for purchasing a home, refinancing your current mortgage, or they’ll work with you to get a cash-out refinance. You can choose from any type of government mortgage and they even offer down payment assistance programs.
| Mortgage types | Purchase, Refinance, Home Equity |
| Mortgage amount | Depends on loan type and qualification |
| Repayment terms | Depends on loan type |
| APR | Varies according to loan type,
qualifications, property location, credit
|
| Minimum credit score | 620 conventional
580 government loans |
| Lender type | Direct |
New American Funding Mortgage Loans Pros
- Manual underwriting available to evaluate credit
- A non-bank lender that offers equity lending and reverse mortgages
- Can participate in the entire process online
- English and Spanish-speaking loan officers available
New American Funding Mortgage Loans Cons
- No mortgages in Hawaii or New York
- Doesn’t work with down payment assistance programs in all states
Application Process
The loan application process depends on how the borrower is most comfortable communicating with New American Funding’s loan officers. You can start the loan application by phone, through the lender’s website, via email, or in person at any of their 180 branches across the United States.
To get a prequalification letter, you’ll need to contact New American Funding and speak with a representative.
While the loan application process is the same with New American Funding as it is with any traditional lender, they also offer a non-traditional underwriting option. Manual underwriting is an ideal option for people with complicated finances who want to get a mortgage, but don’t have the kind of credit history most lenders require for approval.
Automated underwriting systems make the lender’s job easier by putting your financial information through a series of tests. If you fit the profile, your application is approved. With Manual underwriting, staff members at New American Funding analyze your entire credit file (with your permission, of course) to verify you meet manual underwriting guidelines. They don’t rely solely on credit scores and debt-to-income ratios.
You may be a good candidate for manual underwriting if you live a debt-free lifestyle and don’t have a payment history with car loans, credit cards, and personal loans. You may also benefit from manual underwriting if you have less than perfect credit history but you can still prove that you can afford the mortgage you want.
Whether you go through manual underwriting or automated underwriting to get your mortgage, you’ll submit standard financial records such as W-2s, 1099s (if you are self-employed or have a side-gig), the past two years of tax returns, bank statements, and proof of your assets such as retirement accounts or investments.
Taking a Home Equity Loan with New American Funding
New American Funding offers you the chance to get a home equity loan. In order to qualify, you will need to have a certain amount of equity in your home already. This is often up to 80% of the home’s value minus the current mortgage.
Other factors such as credit history, income, and debt obligations also come into account when you are completing the online form. The rates you can get for your home equity loan will vary, as will the various terms lengths that will be on offer.
Terms & Requirements
Mortgage Requirements
- Must be 18
- Must have proof of steady employment and adequate income
- Minimum credit score of 620 for conventional loans
- Minimum credit score of 580 for government loans
- Debt-to-income ratio maximum of 50%
It’s worth noting that although the mortgage requirements for New American Finance match requirements by many other mortgage companies, they also offer non-qualified mortgage. They’ll accept non-traditional and alternative income verification, less-than-ideal credit scores, and they offer multiple loan options. With a non-qualified mortgage, the loan maximum is $2.5 million.
Mortgage Terms
New American Funding offers nearly every type of mortgage imaginable. They specialize in one-on-one customer service, so if you think you may need a mortgage that doesn’t fit the mold, this company may be able to help.
Repayment Terms
The longest mortgage term offered by New American Funding is a 30-year fixed-rate mortgage. Short-term loans are also available, including adjustable-rate mortgages (ARM) and interest only loans designed to serve short-term financial needs.
Privacy & Security
New American Funding has an A+ rating with the Better Business Bureau (BBB). They have over 90,963 customer reviews with an average rating of 4.9 stars out of five on Social Survey. The company is family-owned and dominates the home lending marketplace in El Paso and Los Angeles. They are a $30 billion lender that serves consumers in 48 states.
Customer Support
You can get a hold of English or Spanish-speaking customer service representatives between 7:00 a.m. and 7:00 p.m. Pacific Standard Time seven days a week. The company works to meet the needs of underserved communities, so even if you think your situation won’t allow you to get a mortgage, it’s worth talking with one of their loan experts to find out if New American Funding can help you get a loan.
Final Thoughts
New American Funding has gradually grown from a family-run operation into a huge lender that handles billions of dollars worth of mortgage loans each year. Its repudiator has been building over the years and it caters to a wide range of needs.
With different types of mortgages and a handy manual underwriting service, New American Funding can stand out in numerous areas. It is definitely worth checking out if you are struggling to get a mortgage elsewhere due to having a large debt to income ratio, non-traditional sources of income, or minimal credit history.
If you are looking to get a home equity loan and you are struggling to get competitive rates with more traditional lenders, then New American Funding could be for you. Each case is assessed on a one-to-one basis, meaning that you will often be able to secure some sort of home equity loan if you can adequately showcase how it will be used and how you will be able to repay it. It has gradually expanded over the years and is one of the more popular types of non-bank lenders out there today.
Address
14511 Myford Road
Suite 100
Tustin, CA 92780
New American Funding Disclaimer:© 2020 Broker Solutions, Inc. DBA New American Funding. All Rights Reserved. Corporate Office: 14511 Myford Road, Suite 100, Tustin, CA 92780.†14 business day guarantee only applies to purchase transactions. This guarantee does not apply to Reverse Mortgages, FHA 203k, VA, Bond, MCC, loans that require prior approval from an investor, or brokered loans. The guarantee does not apply if events occur beyond the control of New American Funding, including but not limited to; appraised value, escrow or title delays, 2nd lien holder approval, short sale approval, or lender conditions that cannot be met by any party. The 14 business day trigger begins when the borrower’s initial mortgage application (including income and assets documentation) is complete and the borrower has authorized credit card payment for the appraisal. If New American Funding fails to perform otherwise, a credit of $250 will be applied toward closing costs.
