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New American Funding VA Loans Review
By Kat Tretina MONEY RESEARCH COLLECTIVE
New American Funding is one of the largest privately-owned direct mortgage lenders in the country. It offers a variety of loan products, including U.S. Department of Veterans Affairs (VA) loans. It’s one of our picks for the best VA loan lenders because of its 14-business day closing guarantee; eligible loans are guaranteed to close within 14 business days, or you’ll get a $250 credit toward closing costs.
A lender that offers quick closing times can help you get into your new home faster, a major perk for veterans and their families.
New American Funding VA Loans Overview
- Closing guarantee
- Funding fees can be rolled into loan
- Options for self-employed borrowers
- Does not list its fees online
- Branches only available in some states
- Not licensed in all states
New American Funding’s VA loans allow you to buy a home with no down payment and no private mortgage insurance (PMI). And while VA funding fees and lender financing fees can add to your loan cost, New American Funding allows you to roll the funding fee into the loan, eliminating the need to come up with upfront cash.
According to the Small Business Administration, veterans own more than 9% of all U.S. businesses, and they are more likely than civilians to start and run their own businesses. However, self-employed borrowers sometimes have a harder time qualifying for a mortgage.
New American Funding helps self-employed veterans navigate through the mortgage process. Depending on your situation, you can qualify for a loan using your bank statements or tax returns, and you can still take advantage of a VA loan.
For those worried about closing on time, New American Funding offers a 14-business day close guarantee on qualifying loans. If your loan doesn’t close on time, the lender will give you a $250 credit toward closing costs.
However, New American Funding has very limited information about its fees and credit requirements not available online. You must work with a loan officer to view personalized rates and to see if you’re eligible for a loan.
New American Funding is not licensed in all states; those in Hawaii will have to work with another lender. If you’re looking for a lender that provides in-person assistance, you should be aware that New American Funding only operates branches in 32 states, so you may not have a branch near you.
New American Funding Services
Unlike some other mortgage lenders, New American Funding is privately owned. But that doesn’t mean the lender is small. In fact, New American Funding originated $31.8 billion in loans in 2021.
What is offered
As a leading mortgage lender, New American Funding offers a variety of home loan options, including conventional loans, government-backed mortgages and jumbo loans. Homeowners can also tap into their home equity with a cash-out refinance loan or home equity line of credit (HELOC).
Its VA loan program has lower interest rates than its other loan options, and you can use a VA home loan to finance up to 100% of the home purchase price — you don’t need a down payment. Unlike conventional mortgages, there is no PMI with a VA loan, so you can save money. Loan terms range from 15 to 30 years.
New American Funding VA loans can have fixed or adjustable interest rates. While the interest rate on a fixed-rate mortgage never changes, an adjustable-rate mortgage (ARM) can fluctuate over time. As the rate changes, your monthly payments can change too. ARMs may make sense for those who think they will only be in the home for a few years or that want to utilize the lower initial rate.
New American Funding also offers U.S. Department of Agriculture (USDA) and Federal Housing Administration (FHA) loans. FHA loans are good options for first-time homebuyers and those with less-than-perfect credit, while USDA loans are for individuals that want to purchase property in rural areas.
What isn’t offered
Unlike some other lenders, New American Funding doesn’t operate homebuyer assistance programs. Some major lenders have their own programs that give homebuyers credits toward closing costs, making homeownership more affordable.
Requirements for a New American Funding VA Loan
To qualify for a New American Funding VA mortgage, you must meet the following requirements:
- You must be purchasing real estate to use as a primary residence; investment properties and second homes are not eligible
- You or your spouse must meet one of the following service requirements:
- 90 consecutive days of active-duty service during wartime
- 181 continuous days of active service during peacetime
- Six years or more of service with the National Guard or Reserves
- You are the spouse of a military service member that died in the line of duty or as a result of a service-related disability. If you have since remarried, you aren’t typically eligible for a VA loan.
- You have a certificate of eligibility (COE) from the U.S. Department of Veterans Affairs
New American Funding doesn’t list its minimum credit score or income requirements on its site. However, it will perform a credit check as part of the underwriting process, and you will need to demonstrate that you earn enough income to satisfy its debt-to-income ratio requirements. , and you must have enough income to satisfy its debt-to-income ratio criteria.
New American Funding’s Credentials
New American Funding is well known in the lending industry, and has received high marks from third-party organizations.
Licenses and Registrations
New American Funding is licensed to issue mortgages in 49 states. The only state it is not licensed in is Hawaii.
Awards and Certifications
In 2022, INC Magazine recognized New American Funding as one of the fastest growing companies based on its revenue growth over a three-year period.
New American Funding also won six Stevie American Business Awards in 2022, including awards for the fastest-growing company and the minority-owned business of the year.
Third-Party Ratings
Previously, New American Funding had a negative ratings outlook from Fitch Ratings, a credit-rating agency focused on lenders and businesses. In 2021, Fitch Ratings revised New American Funding’s rating to “stable” reflecting changes the company made to its management team, risk environment and compliance management systems.
Regulatory or Legal Actions
It’s common for major lenders to experience lawsuits and regulatory actions, but activity against New American Funding has been relatively sparse.
- In 2014, Broker Solutions, Inc. — the company that owns New American Funding — entered into a settlement agreement with California over alleged overcharges on customer accounts.
- In 2019, a false claims lawsuit was filed against Broker Solutions, Inc. The lawsuit alleges that the company presented false or fraudulent claims for payment or approval to the federal government. The lawsuit is still pending.
Mortgage lenders are often the target of lawsuits, so be sure to carefully review your loan documents and ensure that the fees, loan amounts and rates are what you agreed to before signing.
New American Funding’s Accessibility
New American Funding can be reached online, over the phone or in person.
Availability
Although there are some lenders that offer 24/7 customer support, New American Funding is more limited. Customer service is reachable Monday through Friday from 8:00 a.m. until 9:00 p.m. CST. On Saturdays, it’s available from 10:00 a.m. until 2:00 p.m. CST.
Contact Information
You can reach customer support via phone or email.
- Phone: 800-893-5304
- Email: CustomerCare@NAFInc.com
You can also use the branch locator tool to find a loan officer near you.
User Experience
As a New American Funding customer, you can use the lender’s portal to track your loan application’s progress. Once your loan closes, you can also manage your mortgage online, make payments and get information about mortgage payment assistance programs.
Limitations
If you’d like to meet with a loan officer in person, New American Funding does operate branches. However, its branches are only available in 32 states, so you may not have one near you.
New American Funding’s Customer Satisfaction
New American Funding has top ratings for customer satisfaction from third-party agencies, although New American Funding VA reviews from individual customers are limited.
Customer Complaints
Compared to some other lenders, reviews about New American Funding are relatively limited. On TrustPilot, there are only about 50 customer reviews. Based on those reviews, New American Funding has a TrustScore of 2.8 out of five, putting it in the “average” category.
Third-Party Ratings
JD Power ranked New American Funding as the top company in the 2022 U.S. Mortgage Servicer Satisfaction Study. The study measured customers’ mortgage servicing experience based on six factors:
- Level of trust
- Ease of doing business
- Keeps customer informed and educated
- People
- Resolving problems or questions
- Digital channels
New American Funding FAQ
Is New American Funding a reputable company?
New American Funding is a legitimate company with a strong reputation in the lending industry. The company was recognized by JD Power as a leading mortgage servicer in its 2022 study.
How much is the interest rate on a New American Funding VA loan?
The annual percentage rate (APR) for a New American Funding VA loan can be as low as 5.271% as of August 8, 2022. However, your rate may vary since rates are dependent on several factors, including your credit score, the size of the loan, desired repayment term and whether you opt for a fixed interest rate or an adjustable interest rate.
What are the benefits of a New American Funding VA loan?
When you take out a VA loan from New American Funding, you can take advantage of the following benefits:
- Up to 100% financing
- No private mortgage insurance
- Funding fees rolled into the loan
- Quick loan closings
How long does it take to close a loan with New American Funding?
Closing times can vary based on your loan type, amount and your documentation. However, New American Funding does have a 14-business day closing guarantee on some loans. If your mortgage qualifies, the lender guarantees that your mortgage will close within 14 business days. If the lender doesn't meet that deadline, it will give you a $250 credit toward closing costs.
How We Evaluated New American Funding VA Loans
We researched VA loans from 20 leading mortgage lenders to identify the top options for veterans and their families. We compared New American Funding to other lenders offering VA loans and evaluated the group, based on their rates, repayment options, fees, customer service, closing times and added benefits. In our analysis, we particularly focused on origination fees, funding fees and APRs.
Summary of the New American Funding VA Loan Review
Military service members, veterans and their family members looking to take out a VA loan to purchase a home may find New American Funding appealing. You can finance up to 100% of the home’s value, and New American Funding offers quick closing times — a major perk in a hot housing market. With its 14-business day closing guarantee, you can be confident that your mortgage will close on time.
However, New American Funding doesn’t list its credit and income requirements online, and it doesn’t operate branches in every state. If you’re looking for a lender that offers in-person assistance or is more transparent about its rates and fees, check out the best VA loans from top lenders.
