Full-service mortgage lender New American Funding is headquartered in Tustin, California but holds lending licenses in just about every state, aside from Hawaii and New York. The lender’s large portfolio of loan variations includes fixed-rate and adjustable-rate mortgages, VA loans, FHA loans, USDA loans, jumbo loans, its proprietary I CAN Mortgage and more.
Inc. magazine has recognized New American Funding as one of the 5,000 fastest-growing companies in the U.S. for 2018, showcasing the lender’s recent growth. This, however, isn’t the first time New American has taken home this title, as it made this list five other times as well.
|30 year fixed||6.96%||7.12%||-0.15|
|15 year fixed||6.10%||6.48%||-0.38|
|30 yr fixed mtg refi||7.55%||7.49%||+0.06|
|15 yr fixed mtg refi||6.44%||6.44%||0.00|
|7/1 ARM refi||7.63%||7.63%||0.00|
|15 yr jumbo fixed mtg refi||3.06%||3.10%||-0.04|
National Mortgage Rates
Regions Served by New American Funding
Does New American Funding Operate in My Area?
New American Funding is licensed to offer mortgages in 48 states, Washington, D.C. and even Puerto Rico. Residents of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming can get a home loan through this lender.
New American Funding’s 189 branch locations are not present in all of these areas, though. In fact, only Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Mexico, New Jersey, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin house physical locations.
What Kind of Mortgage Can I Get With New American Funding?
Fixed-rate mortgage: Loan customers looking for extreme reliability when it comes to monthly payments need look no further than fixed-rate mortgages. These are by far the most popular style of home loans, as they come with a fixed interest rate for the entirety of the loan’s life. At New American Funding, you can get these in 30- and 15-year forms.
Adjustable-rate mortgage: Adjustable-rate mortgages, more commonly referred to as ARMs, adhere to a very different interest schedule from their fixed-rate counterparts. Mortgagors will receive a short fixed-rate period at the start of the loan. As soon as this passes, your rate will be updated on an annual basis, until 30 years have passed. At New American, you can select from 5/1, 7/1 and 10/1 ARMs.
Jumbo loan: As its name indicates, a jumbo loan is reserved only for homebuyers that are purchasing homes that call for a loan higher than the conventional loan limit. For most places in the U.S., this is $726,200, though some high-cost areas carry a $1,089,300 limit. These are available as both fixed- and adjustable-rate loans and can be had for as much as 90% loan-to-value (LTV) and $15 million.
I CAN Mortgage: The “I CAN Mortgage” is a fixed-rate loan offer exclusive to New American Funding. The institution created this new loan to help satisfy the needs of customers who have fallen between loan types. The top features of this mortgage are down payments as low as 5% and the ability to choose your loan term from 8 to 30 years. You can only apply for this loan if your new home is both a primary residence and single-family.
FHA loan: Offered in conjunction with the Federal Housing Administration (FHA), FHA loans will allow you to escape the need for a large down payment. Besides its low 3% minimum down payment, even home buyers with a checkered credit past can get approved. You can pick between a 30- and 15-year fixed-rate term for this loan.
VA loan: VA loans are backed by the U.S. Department of Veterans Affairs (VA) and aim to help current and former members of the military purchase a home with their family. They provide the seemingly impossible benefit of no down payment requirements, and their interest rates are almost always better than conventional loans. You will need to pay a VA funding fee, though. These come in a 5/1 ARM and fixed-rate variations.
USDA loan: USDA home loans were created by the U.S. Department of Agriculture (USDA) for the sole purpose of getting Americans to move to more rural parts of the country. You will not be obligated to make a down payment, and even those with a lower credit score can achieve approval. What’s the catch? To qualify, you must be purchasing a home in a designated rural area.
Home improvement loan: Mortgages aren’t solely reserved for new homes. If you want to renovate your home in some way, New American Funding offers loans to help you do so. There are two types of these loans: the FHA 203K Home Improvement Loan and the FHA 203K Home Improvement Refinance Loan.
Refinance loan: Customers who want to lower their monthly mortgage payments can consider refinancing through New American Funding. This lender provides most of its mortgage options as a refinance loan, including the cash out refinance, which allows mortgagors to cash out on the equity they hold in their home.
Reverse Mortgage: This options enables customers to convert their home equity into cash. The lender will make monthly payments to the borrower and the money isn't paid back until the home sells, is vacated or the homeowner passes away.
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What Can You Do Online With New American Funding?
New American Funding definitely fits the bill of a new-age, internet-based mortgage lender, even though it still operates a large, nationwide in-person branch network. To get a rate quote, all you need to do is enter the estimated price of your new home, the home’s location, your credit score, your name and some other information on the New American Funding website.
Should you become a mortgage client of New American, you’ll find it provides an extensive online loan management website. From here you can make loan payments, arrange automatic monthly payments, view your loan’s full amortization schedule, take a look at your monthly statements and more.
Would You Qualify For a Mortgage From New American Funding?
In most instances, New American Funding calls for a minimum FICO credit score of 620 to qualify for one of its mortgage options. But if you’re applying for a government-backed loan, such as a VA, FHA or USDA mortgage, you may receive approval even if you’re below that mark. Down payment requirements are as low as 3%, but the type of loan you select could alter that percentage.
Just like every other mortgage lender in the U.S., New American institutes a normal conventional loan limit of $726,200, or $1,089,300 in what are deemed “high-cost areas” around the country. If your prospective loan surpasses those caps, then you’ll have to apply for a jumbo loan, which usually come with more stringent rules considering they are quite large.
What’s the Process For Getting a Mortgage With New American Funding?
New American Funding utilizes a fairly standard mortgage application and approval process. First and foremost, you and possibly your real estate agent will contact one of its loan officers to figure out exactly what type of loan best fits your personal financial situation. Your monthly income and expenses, your credit report and your savings are just some of the factors that the lender will take into account during this time. Your loan officer will also look to get you pre-approved, if possible.
Once you’ve found the home you want to buy, you will make an official offer. This offer is more than just a proposed purchase payment, as it divides the total amount up by the down payment, loan amount, deposit and the terms and conditions of the loan. Once this written agreement has been signed by both you and the seller, you’ll need to make your deposit, which is formally called “opening escrow.” There could be a lengthy waiting time for escrow, as it’s dependent on when New American Funding is able to actually fund your loan.
Then an underwriter will receive the specifics of your loan, along with your personal information, so he or she can confidently confirm all mortgage and risk information. Following this, the lender will send everything to their funding department. The money is then finally disbursed, sent to the escrow and the mortgage process is complete.
How New American Funding Stacks Up
New American Funding has a substantial amount of home loan options available for customers interested in its services. This unfortunately can’t always be said for the lender’s competition, but it should come as no surprise that a company the size of New American has a very complete set of mortgages.
The I CAN Mortgage is of particular interest, as few lenders on today’s market offer a loan with such customizable features and terms. It could be especially appealing if you find yourself unhappy with the other loans out there, meaning this loan could push New American to the top of your preferred lender list.
Tips for Finding the Best Mortgage
- A financial advisor can help you choose a mortgage that fits into your financial plan. SmartAsset free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Closing costs are one of the most important, but most overlooked charges associated with getting a new mortgage. To figure out how much you can roughly expect to pay, stop by our closing cost calculator.