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New American Funding was founded in 2003 by a married couple as a small-scale call center that grew into a leading nationwide mortgage lender. It was the 15th-largest lender by volume in 2017, according to the Scotsman Guide, and has since outgrown its Orange County base to reach borrowers across nearly all states in the country (except in Hawaii and New York).
It’s still family-owned after all its growth. New American Funding has extensive mortgage offerings to match the needs of different borrowers, whether regarding qualification standards, down payment requirement or loan value. New American Funding also invests in corporate responsibility, starting a focus committee for Hispanic needs in 2013.
The headquarters is in Tustin, California, holding an A+ rating from the organization.
Rick and Patty Arvielo started New American Funding as a small company near the beginning of the 2000s, and as of early 2019, it has a portfolio of more than $28 billion and a workforce of over 3,000.
By offering diverse mortgage options, the company aims to help first-time homebuyers and other borrowers improve their quality of living; for instance, it offers non-qualifying loans that use alternative means of income verification.
Broadly, New American Funding provides mortgages intended for purchase loans, refinances, and investment properties. Within those categories, its products carry diverse terms, conditions, benefits, and uses — across its conventional, conforming, jumbo, and government-backed home loan offerings.
Technology is a core part of New American Funding’s corporate culture and value proposition. Despite having 193 branches spread across the country, it makes a lot of resources available online.
Borrowers can research each loan type and prevailing mortgage rates for basic options, as well as access helpful materials like worksheets, videos, and checklists. Online visitors can apply for a mortgage or request a quote.
Borrowers considering New American Funding can choose from a menu of mortgages to find the one that best meets their needs, which includes:
homeowners looking to settle down often turn to a fixed-rate mortgage because of the long-term stability it can provide. The same goes for borrowers who desire a flat monthly payment. With a fixed-rate mortgage, consumers have a single interest rate over the life of the loan, which often carries a 30- or 15-year term, the same terms offered by New American Funding.
While the interest rate may be higher than variable-rate loans, the structure mitigates inflation risk and ensures a consistent payment that borrowers can plan for.
the opposite of a fixed-rate loan is an ARM, which features an interest rate that moves over time. Such mortgages come with an introductory fixed rate. After that period, the rate goes up or down with the prevailing market.
This allows borrowers to take advantage of lower rates when conditions are right but could also open them up to higher-than-usual payments if overall rates trend upwards. Each ARM may have different terms and rebalancing requirements.
For example, a 5/1 ARM has an introductory rate for five years, then rebalances each year after that for the life of the loan. Typically, ARMs are suited best for borrowers who want to pay off a loan quickly, and homeowners who move often or those with growing their family in the near future and may need a bigger home.
dream homes can be expensive and not all traditional mortgages are designed to finance such purchases. Loans above the conforming limit set by the Federal Housing Finance Agency (FHFA) are called jumbo loans with values above $484,350, and $726,525 located in high-cost areas defined by the FHFA.
Jumbo mortgages can be structured as fixed-rate or adjustable-rate loans. New American Funding offers flexible qualifying standards, including higher debt-to-income ratios, and co-signing of a family member who doesn’t occupy the residence.
these loans are insured by the Federal Housing Authority (FHA), which makes homeownership more affordable for consumers or who have more modest financial means. In general, FHA loans are considered by many types of borrowers. FHA loans come with as little as 3.5 percent down payment and carry lower rates (both fixed and adjustable) than conventional loans.
active and retired members of the U.S. armed forces can get loans backed by the Department of Veterans Affairs (VA), and are also available to certain qualifying widowed spouses. VA loans come with attractive terms, such as no down payments, low-interest rates, no private mortgage insurance premiums, no-prepayment penalties, and reduced fees.
While a bit of paperwork is involved, qualified borrowers should definitely research their options.
Originally purposed to promote rural homeownership, mortgages supported by the U.S. Department of Agriculture do so by requiring no down payment and offering less-strict qualifying standards. Many suburbs are covered under this type of loan as well as more rural areas.
New American Funding allows cast-out refinancing for all of its loan types — except for USDA mortgages. Owners who’ve built up equity in their homes can take out a second mortgage at a lower rate that takes the place of the original loan.
The difference in values is paid out to borrowers, which can help them meet financial goals like paying down debt or pursuing home renovations.
Specialized mortgage products: there are a number of specialized mortgages the lender makes available to borrowers. Nonqualified mortgages, for instance, have alternative means of income verification, which is useful for borrowers who are self-employed or have unique financial circumstances.
A Home Improvement FHA 203K loan can be used to finance home upgrades, while a reverse mortgage can allow seniors to access their home equity to meet lifestyle and care needs. New American Funding also offers interest-only mortgages and loans with customizable terms.
Online customers can take advantage of several resources from New American Funding. Borrowers can start their loan process online by requesting a quote, completing a mortgage application, and/or getting preapproved. Customers can manage their mortgages through a web portal and contact customer service or mortgage professionals as well.
The company’s website has a number of materials that borrowers can take advantage of when shopping for a mortgage. Customers can use borrower assistance forms and homeowners’ checklists to navigate the lending process.
Guides on property taxes, mortgage insurance, and escrow accounts, plus a mortgage glossary and affordability calculators, round out the lender’s library of resources. Additionally, the Consumer Financial Protection Bureau’s (CFPB) complaint database doesn’t show any recorded cases with New American Funding.
An Equal Opportunity Lender, New American Funding began in 2003 in Orange County, California, where it still has its headquarters. Its NMLS identification number is #6606. As of early 2019, the company has been subject to one NMLS regulatory action, which occurred in 2009.
Its Tustin headquarters has an A+ rating from the BBB and has been accredited the bureau since 2004.
Customers can research New American Funding mortgage rates online for basic fixed- and adjustable-rate options; however, the lender does not publish its qualifying standards. It does, however, list the general factors that influence its lending decision, including credit score, loan-to-value ratio, down payment amount, home location, loan term, and loan type.
Credit score can play a deciding role, so consult the table below on how a credit score can impact how likely a lender is to make the loan.
| Credit Score | Category | Likelihood of Approval |
|---|---|---|
| 760 or higher | Excellent | Very likely |
| 700-759 | Good | Likely |
| 621-699 | Fair | Somewhat likely |
| 0-620 | Poor | Somewhat unlikely |
| None | N/A | Unlikely |
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