Pros
- Offers a very wide variety of refinance loan programs.
- Uses manual underwriting to evaluate complex financial situations.
- Provides robust online tools and a helpful mobile app.
- Focuses on serving minority and underserved communities.
- Licensed to operate in most states, providing broad access.
Cons
- Mortgage rates and lender fees are not openly published online.
- Customer service experiences can vary by branch and loan officer.
- Not available in Hawaii, which limits options for residents there.
About New American Funding Mortgage – Home Equity
New American Funding is a direct mortgage lender based in the United States. Founded in 2003, the company has grown into a major national lender. It focuses on helping a wide range of individuals and families achieve homeownership. The company is known for its blend of modern technology and human-touch underwriting. This means they look at more than just your credit score. They work to understand your complete financial picture. As a family-owned business, they emphasize serving diverse communities and providing accessible loan options across the country.
Key Features
New American Funding stands out with a unique set of features. These elements are designed to make the refinance process smoother and more accessible. From specialized loan programs to advanced technology, the company provides tools that benefit many types of borrowers. Understanding these key features can help you decide if their approach aligns with your refinancing goals.
- Manual Underwriting: They often review loan files by hand. This helps borrowers who don’t fit into a standard credit box.
- Interest Only Loan: An interest-only mortgage option that provides payment flexibility for a set period.
- Advanced Mobile App: Allows you to apply, upload documents, and track your loan’s progress from your phone.
- Community-Focused Initiatives: Programs like Latino Focus and New American Dream aim to increase homeownership in diverse communities.
- Fast Closing Times: The company states many loans can close in about two weeks, which is faster than the industry average.
Available Loan Program
One of the strongest aspects of New American Funding is its large selection of refinance programs. This variety ensures that more homeowners can find an option that fits their specific financial needs. Whether you want to lower your interest rate, take cash out of your home’s equity, or switch loan types, they likely have a program for you. The company offers conventional loans as well as government-backed options.
Rate-and-Term Refinance
This is the most common type of refinance. It allows you to replace your current mortgage with a new one. The primary goal is to get the possibly lowest interest rate or to replace your loan term. For example, you could switch from a 30-year mortgage to a 15-year one to pay it off faster. This can largely reduce the monthly payment amount and help you save thousands in interest over the life of the loan.
Cash-Out Refinance
A cash-out refinance lets you tap into your home’s equity. You get a new, larger mortgage and receive the difference in cash. Homeowners often use this money for home improvements, debt consolidation, or other large expenses. New American Funding offers cash-out options for conventional, FHA, and VA loans, providing flexibility based on your eligibility.
FHA Refinance Loans
New American Funding provides Federal Housing Administration (FHA) refinance loans. The FHA Streamline program is a popular choice for those with an existing FHA loan. It requires less paperwork and sometimes no appraisal, making the process faster. They also offer an FHA Cash-Out Refinance, allowing you to borrow up to 80% of your home’s value.
VA Refinance Loans
For eligible veterans and service members, New American Funding offers VA refinance options. The VA Interest Rate Reduction Refinance Loan (IRRRL) helps lower your rate with minimal documentation. The VA Cash-Out Refinance is a great benefit, allowing qualified veterans to borrow up to 100% of their home’s value in some cases.
I-O Mortgage Refinance
This unique program is an interest-only mortgage. For the first 10 years, your payments only cover the interest on the loan. This results in a much lower monthly payment during that period. After 10 years, the loan converts to a standard principal-and-interest payment for the remaining 20 years. This option is ideal for borrowers with fluctuating incomes or those who plan to sell the home within a decade.
Special Features of New American Funding
Beyond its loan programs, New American Funding offers several features that create a distinct borrowing experience. The company invests in technology to streamline the process for its customers. It also maintains a focus on human-centered service. This combination is meant to give borrowers both convenience and confidence. These features help set the lender apart in a crowded market.
Commitment to Technology
Their mobile app is a powerful tool. It allows borrowers to handle much of the loan process digitally. You can get pre-approved, scan and upload documents securely, and see real-time updates on your loan’s status. This reduces the need for phone calls and emails.
Human-Centered Underwriting
The lender is known for its “manual underwriting” process. An underwriter personally reviews your file, looking beyond automated credit scores. This is a major benefit for self-employed borrowers or those with a non-traditional financial history. It provides a chance to approve loans that other lenders might deny.
Educational Resources
The company provides a blog and other resources to help educate homeowners. These materials cover topics from understanding credit to preparing for closing. This helps first-time refinancers feel more comfortable and informed throughout the process.
In-House Servicing
New American Funding services most of the loans it originates. This means you will likely make your payments directly to them after your loan closes. It creates a single point of contact for the entire life of your mortgage.
Rates and Fees
Understanding the costs associated with refinancing is critical. New American Funding does not advertise its rates publicly. This is because rates change daily and depend on many factors. These include your credit score, loan-to-value ratio, loan type, and the overall market. You will need to contact a loan officer to get a personalized quote. Generally, their costs incorporate appraisal fees, origination fees, title insurance, and other standard closing costs. Origination fees usually range between 0.5% to 1.5% of the loan amount.
| Fee Type | Estimated Cost Range | Description |
| Origination Fee | 0.5% – 1.5% of Loan Amount | A fee the lender charges for processing your loan application. |
| Appraisal Fee | $450 – $700 | Pays for a professional appraiser to determine your home’s current value. |
| Credit Report Fee | $30 – $60 | Covers the cost of pulling your credit history and score. |
| Title Services & Insurance | $1,000 – $2,500+ | Protects you and the lender from issues with the property’s title. |
| Recording Fees | $120 – $250 | Fees charged by your local government to record the new mortgage. |
How to Apply?
New American Funding has designed its application process to be straightforward. You can start online, on the phone, or through their mobile app. The lender’s goal is to make each step clear and manageable. Following this process will help you move from initial inquiry to closing your new loan efficiently. Here is a step-by-step guide to their refinance application process.
- Start with a Quote: You begin by requesting a free refinance quote. This can be done online in a few minutes. You will provide basic information about your property, current loan, and financial status.
- Consult with a Loan Officer: A loan officer will contact you to discuss your goals. They will help you choose the best refinance program and provide a detailed rate quote.
- Complete the Full Application: Once you decide to proceed, you will fill out the official mortgage application. This can be done online through their secure portal. You will provide detailed financial information at this stage.
- Submit Required Documents: You will need to provide documents to verify your information. Common documents include pay stubs, W-2s, bank statements, and your current mortgage statement. You can upload these securely using the mobile app or online portal.
- Underwriting and Appraisal: Your file goes to an underwriter for review. At the same time, an appraisal may be ordered to confirm your home’s value. The underwriter will verify all your information to give final approval.
- Closing: After final approval, you will schedule your closing. A closing agent will walk you through the final documents. Once you sign, your old mortgage is paid off and your new loan begins.
Customer Support
Good customer support is essential during the refinance journey. New American Funding offers support through several channels. Each borrower is assigned a dedicated loan officer. This person serves as your main point of contact from start to finish. They can answer questions about loan options, rates, and the status of your application. This personalized approach helps simplify what can be a complex process.
In addition to personal support, the company offers a range of digital tools. The website has calculators, articles, and guides to help you make informed decisions. The mobile app also provides a direct line of communication with your loan team. After your loan closes, their in-house servicing department manages your payments and any future needs. This provides a consistent experience throughout the life of your loan.
The Final Verdict
New American Funding is a strong contender in the mortgage refinance market. Its main strengths are the wide array of loan products and its flexible manual underwriting. This makes it an excellent choice for borrowers with unique financial profiles. Self-employed individuals or those with less-than-perfect credit may find success here when other lenders say no. The VA and FHA refinance options are also very competitive.
The tech-savvy approach, featuring a functional mobile app, will appeal to those who prefer a digital process. However, the lack of transparent rate information online means you must contact them for a quote. While service can vary, the company’s commitment to underserved communities and personalized underwriting is a significant advantage. If you value a wide selection of loans and a lender who looks at the bigger picture, New American Funding is definitely worth considering for your refinance.