New American Funding has gained recognition for its dedication to helping borrowers achieve homeownership. In this comprehensive review, we will delve into the various aspects of New American Funding’s mortgage offerings, including loan types, ease of application, rates and fees, transparency, and borrower experience.
New American Funding: A Lender for All
New American Funding operates nationwide, with branches in 163 locations across the country, except for New York and Hawaii. This extensive reach enables borrowers from various states to access their mortgage products and services. The lender’s website allows potential borrowers to check interest rates for different loan programs, including 15- and 30-year fixed-rate conventional loans, as well as 30-year fixed-rate FHA and VA loans. Notably, the starting interest rate on the 30-year fixed-rate conventional loan at New American Funding consistently remains lower than the national average reported by Freddie Mac.
A Variety of Loan Types
New American Funding offers a diverse range of mortgage options to meet the needs of different borrowers. Alongside traditional fixed-rate mortgages, the lender provides 5/1 adjustable-rate mortgages (ARMs) for conventional, jumbo, FHA, and VA loans. For conventional and jumbo loans, borrowers can also choose 7/1 and 10/1 ARM options. A notable offering from New American Funding is the “I CAN Mortgage” program, which allows borrowers to select a repayment term ranging from eight to 30 years, providing flexibility to tailor the loan to their financial goals. Additionally, the lender offers specialty loans, including jumbo loans and non-qualified mortgages (non-QM), which are not prominently advertised on their website.
Assisting Underserved Communities
New American Funding has made a name for itself by actively supporting minority communities and addressing their unique challenges in accessing mortgage financing. The lender has set ambitious lending goals, aiming to provide $25 billion in loans to Hispanic borrowers by 2024 and $20 billion in loans to Black borrowers by 2028. With its “Pathway to Homeownership” initiative, New American Funding offers qualified borrowers in select areas up to $8,000 in direct assistance, which does not have to be repaid. This initiative aims to empower individuals from underserved communities and make their dream of homeownership a reality.
Buyer Accepted Program: Empowering Home Buyers
In a competitive real estate market, New American Funding’s Buyer Accepted program provides a valuable solution for home buyers who want to make competitive offers against cash buyers. This program allows the lender to purchase the home from the seller and then sell it back to the buyer at the original price, along with a convenience fee. This offering is available for conventional or VA loans and can give borrowers a competitive edge when purchasing a home, particularly in hot sellers’ markets. The Buyer Accepted program demonstrates New American Funding’s commitment to finding innovative ways to support home buyers and facilitate the homebuying process.
Seamless Application Process
New American Funding offers a streamlined and convenient application process to help borrowers get started on their mortgage journey. Borrowers have the flexibility to initiate the application in person, over the phone, or online. The online application allows borrowers to upload documents and electronically sign them, simplifying the paperwork involved. Notably, New American Funding offers a guarantee on some purchase mortgages, promising that the loan will close within 14 business days. This commitment to a swift and efficient closing process can provide peace of mind to borrowers seeking a quick turnaround.
Rates and Fees: A Balanced Perspective
When considering a mortgage, borrowers must strike a balance between interest rates and fees. New American Funding’s rates are generally competitive, often falling below the national average. However, it is important to note that the rates advertised assume a credit score of 740 or higher. Borrowers with lower credit scores may experience slightly higher rates. Unfortunately, the lender does not disclose its fees online, so it is crucial for borrowers to inquire about the breakdown of anticipated closing costs to ensure transparency and alignment with their financial goals.
Rate Transparency: A Clear Picture
New American Funding stands out for its commitment to rate transparency. On the lender’s website, borrowers can easily access information on interest rates by selecting the “Mortgage Rates” option from the menu. This provides rates and annual percentage rates (APRs) for four popular loan types. By clicking on “View Disclosures,” borrowers can gain further insights into the fine print associated with the rates. For example, disclosures may reveal that New American Funding considers a 60% loan-to-value ratio for conventional loans, which can impact the advertised fixed mortgage rates. This level of transparency empowers borrowers to make informed decisions when comparing rates online.
Borrower Experience: A Priority
New American Funding prioritizes providing a positive borrower experience throughout the mortgage process. Founded 20 years ago, the lender has funded over $60 billion in mortgages and maintains an A+ rating with the Better Business Bureau. While customer reviews on platforms like Trustpilot indicate a mixed sentiment, with a 3.1 out of five-star rating based on over 80 customer reviews, it’s important to consider individual experiences and preferences when evaluating borrower satisfaction. New American Funding offers a mobile app for convenient payment management and provides customer service support during specified hours. This commitment to customer service reinforces the lender’s dedication to ensuring a smooth experience for borrowers.
Refinancing Options: Flexibility for Homeowners
New American Funding understands that homeowners may have changing financial needs and offers refinancing options to accommodate these situations. Borrowers can explore cash-out refinancing and other options such as streamline FHA 5/1 ARMs and VA Interest Rate Reduction Refinance Loans (IRRRLs). Low-income borrowers may also benefit from the Freddie Mac Refi Possible program, which offers a $500 credit toward appraisal costs. Additionally, New American Funding has implemented a five-year promotion, waiving “repeat fees” for refinancing transactions, providing cost savings for borrowers seeking to refinance their existing mortgages.
Conclusion
In summary, New American Funding has established itself as a prominent mortgage lender, catering to the needs of diverse communities and offering a wide range of loan options. With a commitment to serving the underserved, the lender has set ambitious lending goals to support Hispanic and Black borrowers. The “I CAN Mortgage” program provides borrowers with repayment term flexibility, while the Buyer Accepted program empowers home buyers in competitive markets. New American Funding’s seamless application process and commitment to rate transparency contribute to a positive borrower experience. While rates and fees should be carefully considered, the lender’s dedication to customer service and refinancing options further enhance its appeal. For borrowers seeking a lender that values diversity, flexibility, and customer satisfaction, New American Funding is a compelling choice.