New American Funding: A Comprehensive Overview
Introduction to New American Funding
New American Funding is a mortgage lender that has garnered attention for its wide range of loan options, affordability, and commitment to customer satisfaction. Founded in 2003 by Rick and Patty Arvielo, the company operates under the trade name "New American Funding" and has grown to become a reputable player in the mortgage industry. With operations in all 50 U.S. states and Washington, D.C., New American Funding has established itself as a versatile lender catering to diverse borrower needs. The company offers a variety of mortgage products, including conforming loans, jumbo loans, FHA, VA, USDA, reverse mortgages, and niche options like buydown loans and I CAN mortgages. This flexibility, combined with its focus on affordability, makes it a standout option for many homebuyers.
Loan Options and Customization
One of the standout features of New American Funding is its extensive range of loan options. Borrowers can choose from a variety of mortgage types, including non-QM (non-qualified mortgage) loans, interest-only loans, construction loans, and even loans for accessory dwelling units (ADU). The lender’s I CAN mortgage is particularly notable, as it allows borrowers to customize their loan terms from 8 to 30 years, providing flexibility in managing monthly payments and overall interest costs. Additionally, New American Funding offers down payment assistance through its "Pathway to Homeownership" program, which provides up to $7,500 in assistance for eligible first-time homebuyers in certain areas.
Another unique aspect of New American Funding is its willingness to work with borrowers who may not have a traditional credit score. The lender allows the use of alternative credit data, such as rent payment history, to determine creditworthiness. This feature makes it an attractive option for borrowers who may not meet the traditional credit requirements of other lenders. The variety of loan options, coupled with the ability to customize terms and use non-traditional credit data, makes New American Funding a lender that can meet the needs of a wide range of borrowers.
Affordability and Fees
New American Funding is generally considered an affordable lender, thanks to its competitively priced loan options and down payment assistance programs. The lender’s I CAN mortgage and buydown loans are particularly useful for borrowers looking to reduce their monthly payments or lower their interest rates in the early years of the loan. However, it’s important to note that New American Funding’s origination fees are slightly higher than average. In 2023, the average borrower paid $5,102 in origination charges for a conventional loan, which is higher than what some other lenders charge. Despite this, the lender’s overall affordability remains strong due to its flexible loan terms and assistance programs.
Trustworthiness and Reputation
New American Funding is widely regarded as a trustworthy lender, with an A+ rating from the Better Business Bureau (BBB). The lender has a strong reputation for transparency and customer satisfaction, with many positive reviews from borrowers who praise the smooth application process and communicative loan officers. While New American Funding has faced some regulatory issues in the past, such as a 2023 settlement with the Commonwealth of Massachusetts over unlicensed mortgage activities, the lender has addressed these concerns and remains a reliable choice for borrowers.
Customer Feedback and Satisfaction
Customer reviews of New American Funding are predominantly positive, with many borrowers highlighting the ease of the application process and the helpfulness of the loan officers. The lender has a 4.91-star rating on its Zillow profile, based on over 9,000 customer reviews, which speaks to its commitment to customer satisfaction. While some borrowers have reported negative experiences, these are relatively rare and do not indicate systemic issues with the lender. For borrowers who may be concerned about potential issues, New American Funding’s strong reputation and high customer satisfaction scores provide assurance of a positive experience.
Comparison with Other Lenders
New American Funding is often compared to other major mortgage lenders, such as Rocket Mortgage and Guild Mortgage. While Rocket Mortgage is known for its quick and smooth online application process, New American Funding offers a wider variety of loan options, making it a better choice for borrowers with specific needs. Similarly, Guild Mortgage provides a range of niche loans, but New American Funding’s I CAN mortgage and buydown loans set it apart in terms of customization and flexibility. Both lenders allow the use of non-traditional credit data, but New American Funding’s broader range of loan options makes it a more versatile choice for many borrowers.
Overall, New American Funding is a strong contender in the mortgage lending market, offering a wide range of loan options, affordable terms, and a reputation for trustworthiness. While it may have slightly higher fees than some competitors, its flexibility and customer-focused approach make it an excellent choice for many homebuyers, especially those with non-traditional credit histories or specific financial needs.
