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#2

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New American Funding

9.3

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Quick Look at New American Funding

  • Options: Refi, Purchase, or Prequalify
  • Over 137,000 loans served
  • Customer Rating: 4.8 out of 5
  • Min. Down Payment: 3%

New American Funding is ranked #2 on TopMortgageLenders because of its outstanding customer reputation, affordable fees and rates, and the ability of its loan officers to get you the exact loan you need.

One underrated aspect of the mortgage process is the loan officer. We recommend you take a close look at customer reviews to determine whether each company has experienced and qualified loan officers.

In NAF’s case, the loan officers are highly experienced and past customers agree. In fact, most New American Funding reviews specifically thank their loan officer for the excellent service that was provided.

We highly recommend New American Funding.

Do Customers Like New American Funding?

The short answer is yes, customers very much like New American Funding.

New American Funding has one of the highest customer ratings in the industry. Customers gave the #4 ranked lender 4.8 out of 5 stars and highlighted customer service and ease of the mortgage process as the company’s best qualities.

Best Company asks each customer to rank each company according to four categories: Value, Quality, Service, and Trustworthiness. New American Funding was rated 4.5/5 in all four categories.

With over 140 customer reviews (as of April 2021), New American Funding is setting a trend within the mortgage industry by focusing on customer experience throughout the loan process.

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New American Funding Rates & Fees

To give you an idea of how much it will cost to get a mortgage through New American Funding, we rank each company’s fees and mortgage rates on a four point scale: bad, average, excellent. New American Funding’s origination fees have received a ‘good’ ranking. Though the amount will fluctuate, customers can expect their origination fees to be around or under 1% of the total loan amount.

As for mortgage rates, New American Funding has received an ‘average’ ranking. Because these numbers change daily, we offer these mortgage rates as estimates (as of April 2021):

  • 30-Year Fixed Rate: 2.990%
  • 15-Year Fixed Rate: 2.250%
  • FHA 30-Year Fixed Rate: 2.625%
  • VA 30-Year Fixed Rate: 2.625%

New American Funding Mortgage Requirements

Mortgage requirements will depend on the type of loan you’re looking to get. And remember, the mortgage rate will follow suit.

New American Funding can help with the following mortgage options: home purchase, loan refinance, home equity, reverse mortgage, jumbo mortgage, fixed-rate mortgages, adjustable-rate mortgages (ARM loans), FHA loans, VA loans, and USDA loans.

To qualify for any of these loan options, customers must meet the loan requirements:

Conventional Loan Requirements

In addition to completing the loan application and submitting background information, you will need to provide credit history and credit scores.

Requirements for a conventional loan include:

  • 620 min. FICO credit score.
  • Conventional loan limit: $510,400 (-$765,600 for higher-cost areas).
  • Proof of income, assets, and down payment source.

FHA Loan Requirements

There are many different types of FHA loans, so the requirements will vary depending on the type of mortgage loan. Let’s take a look at some general aspect and requirements of FHA loans: * Can have a slightly lower credit score to qualify. * Low down payments. * Grants allowed to pay down payment. * Sellers, builders, and/or lenders are allowed to pay some of the closing costs. * Higher standards for home inspection.

There are also some unique requirements for self-employed borrowers:

  • Two years of tax returns.
  • Up-to-date balance sheet.
  • Profit and loss statements.
  • Good income history in the two years prior to self employment.

VA Loan Requirements

Because VA loans apply only to military-affiliated borrowers, there are special requirements in order to qualify. VA loans borrowing requires one of the following: * 90 days of wartime service, OR * 181 continuous days of service during peacetime, OR * 6+ year of National Guard or Reserves service, OR * Spouses of service members who’ve died in the line of duty or died as a result of a service-related injury (spouses must be un-remarried).

Borrowers are also required to move into the new home in less than 60 days after purchase and it must be a primary residence (some exceptions apply).

VA Loans from New American Funding cannot be used for investment properties or second homes.

ARM Loan Requirements

The requirements for an Adjustable-Rate Mortgage at New American Funding are: * Good credit history (recommended preapproval). * Loan amount limit (~$484,350; may change by region).

Buydown Loan Requirements

Borrowers must speak with a New American Funding loan officer to determine whether you are eligible for the buydown program.

I CAN Mortgage Requirements

I CAN mortgages allow borrowers to pick unique repayment terms from 8 - 30 years. Your FICO credit score should exceed 620, depending on the type of loan.

I CAN mortgages apply only to primary residence loans and include single-family homes and one-unit houses (townhouses and condos).

Reverse Mortgage Requirements

In order to qualify for a reverse mortgage from New American Funding, borrowers must be 62 years old of more. Borrowers must also qualify to pay taxes, insurance, or HOA (if it applies).

You should also have enough cash on hand to pay the ongoing property fees and all borrowers (and their spouses) must undergo independent counseling.

30-Year Fixed Rate Mortgage Requirements

Most of the requirements for a 30-year fixed rate mortgage are credit score related. First, you need to get preapproved for a loan, and that’s where they’ll take a look at your credit score.

A good FICO credit score for a 30-year fixed rate mortgage is between 670 - 739. If your credit score is below these numbers it can be more difficult to get preapproved and may result in higher-than-average mortgage rates.

You should also be aware of your debt-to-income ratio. Lenders like to see lower debt-to-income ratios — do what you can to stay below 43%.

Other documents you may need include:

  • Homeowner’s Insurance
  • Proof of Income
  • Asset Information (investments, 401k documents, and bank statements)

15-Year Fixed Rate Mortgage Requirements

The requirements for a 15-year fixed rate mortgage will be similar to those of a 30-year, it’s just a matter of which you and your loan officer decide on. There are advantages and disadvantages to each.

We recommend that you research whether a 15-year or a 30-year mortgage works best for your goals.

New American Funding Customer Service

As is proven by the many positive customer reviews, New American Funding has excellent customer service. Both its online application process and the customer representatives (including loan officers) give excellent care and attention to every customer.

Our Recommendation

New American Funding has earned the #1 spot on TopMortgageLender.com for its dedication to a positive customer experience. Though prices are fair or average, customers attest that the value of service for the price is well worth it.

We would recommend this company to friends, family, or any other researching customer.

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