New American Funding Reviews and Ratings

New American Funding logo

TL;DR: Summary

• New American Funding (NAF) is a direct lender licensed in all 50 states, with conventional APRs starting at 5.244 percent, a 620 minimum credit score, and down payments as low as three percent.
• It fits first-time buyers, self-employed borrowers, and anyone who wants branch access.
• Rates and origination fees run above average, so collect quotes from three to five lenders before you commit.

New American Funding is a legitimate mortgage lender. This lender offers a wide range of home loan programs for buyers and homeowners.

Borrowers still want to know what they’re signing up for because a mortgage is usually a 30-year commitment.

So does the lender deliver on its promises? This review covers its loan programs, costs, requirements, and customer feedback.

What is New American Funding?

New American Funding Website Homepage

New American Funding (NAF) is a direct mortgage lender and servicer founded in 2003 by Rick and Patty Arvielo in Tustin, California. The company holds NMLS license 6606 and works with borrowers in all 50 states and Washington, D.C.

Company overview

NAF operates more than 270 branches across 43 states and services the bulk of the loans it originates, with a servicing portfolio of $73.5 billion.

It is approved by Fannie Mae, Freddie Mac, and Ginnie Mae. The lender has also pledged $20 billion in new mortgages to Black families and $10 billion to Latino families by 2028, alongside programs for LGBTQ+ buyers.

In August 2026, NAF partnered with Kastle to deploy voice AI agents for 24/7 self-service. This is part of a wider shift to AI-driven customer service in banking.

Editor's choice

4.6

• Eligibility: Minimum $7,500 debt, no minimum credit score required.
• Program: 24-48 months, no upfront fees.
• Experience: Decades of trusted services.

Learn More

Key services or programs

NAF offers 20 mortgage programs. Here is what each one covers.

• Conventional loans: Standard mortgages for buyers with solid credit and a down payment ready
• FHA loans: Government-backed mortgages built for buyers with lower credit or smaller savings
• VA loans: Government-backed mortgages for veterans, active-duty service members, and eligible spouses
• USDA loans: Government-backed mortgages for buyers purchasing homes in rural and suburban areas
• Jumbo loans: Financing for homes priced above standard conforming loan limits
• Home equity loans: HELOC or second mortgage options that turn your equity into cash or credit
• Non-QM loans: Alternative-documentation mortgages for self-employed borrowers and real estate investors
• Reverse mortgage: Homeowners 62 and older can convert equity into retirement income
• Construction loan: Financing for buyers building a custom home from the ground up
• I CAN Mortgage: Pick any term between eight and 30 years to fit your monthly budget
• 30-year fixed: Locked monthly payments for the life of the loan
• 15-year fixed: Higher payments in exchange for paying the loan off faster
• ARM loan: Adjustable payments that start lower and shift with the market
• Buydown loan: Pay points upfront for a reduced rate in the first one to three years
• FHA 203(k) loan: Rolls renovation costs into your purchase or refinance
• Interest-only loan: Low initial payments for borrowers expecting income growth
• Cash-out refinance: Converts home equity into cash for renovations, debt payoff, or other expenses

Rates and fees

Here are New American Funding mortgage rates, from advertised APRs to the fees it doesn’t publish online.

Rates

As of December 18, 2025, NAF advertised these purchase rates on an $806,500 loan:

• 30-year fixed: 5.625 percent rate, 5.924 percent APR, $4,643 monthly principal and interest
• 15-year fixed: 4.750 percent rate, 5.244 percent APR, $6,273 monthly principal and interest
• FHA 30-year fixed: 5.250 percent rate, 6.435 percent APR, $4,454 monthly principal and interest
• VA 30-year fixed: 5.250 percent rate, 5.880 percent APR, $4,454 monthly principal and interest

These quotes assume a 740 FICO score, 3.000 discount points, and a primary residence purchase.

The conventional quotes also assume a 45-day lock at 60 percent loan-to-value. FHA assumes 80 percent LTV, and VA assumes 100 percent.

Every advertised APR requires paying 3.000 discount points upfront at closing.

Monthly payments also exclude taxes and insurance, so your actual obligation will run higher.

Your own rate depends on credit history, property type and location, loan terms, and verified information.

NAF doesn’t publish refinance rates online. Refinancing can also raise your total finance charges over the loan’s life.

Reverse mortgage borrowers remain responsible for property taxes and insurance.

Fees

NAF does not list lender fees on its website, and independent rate data shows origination costs above the industry average.

Ask your loan officer for a written breakdown of application, origination, underwriting, rate-lock, and third-party fees before you sign.

Discounts offered

Three programs cut costs.

• Pathway to Homeownership grants eligible buyers up to $6,000 toward down payment and closing costs.
• Uqual, a free credit-readiness coaching program, pays a $500 lender credit at completion.
• The 5-Year Rate Protection Pledge also reduces lender fees if you refinance with NAF within five years.

Eligibility and requirements

For a conventional loan, expect these baseline standards:

• FICO score of 620 or higher
• Two years of continuous employment
• No bankruptcy within the past two years
• Assets seasoned in your bank account for at least 60 days
• Debt-to-income ratio at or below 43 percent

How to boost your loan approval odds

Start with Uqual if your credit or savings fall short, since coaches help you pay down debt and build a down payment fund.

Next, gather bank statements, tax returns, and pay stubs before you apply, because organized files move through underwriting faster.

Finally, compare written quotes from three to five lenders. Rate data shows borrowers with nontraditional income pay more across the board, and shopping limits that premium.

How to apply

Applying with New American Funding takes three steps, and you can start online, by phone, or at a branch.

1. Choose your loan type

Use the free calculators on the NAF website to estimate payments and affordability before you commit to a program.

2. Get prequalified

Select “I am Purchasing” on the site, answer prompts about the property and loan amount, and submit your contact details.

The online form takes about three minutes. A licensed loan officer then calls you with a quote, since NAF doesn’t generate instant online estimates.

3. Submit a loan application

Apply online, by phone at (800) 890-1057, or in person at a branch. NAF backs the process with a 14-business-day closing guarantee, and its mobile app tracks your loan status, payments, and home equity after closing.

Documents you’ll need for prequalification or preapproval

• Bank statements
• Tax documents
• Pay stubs or W-2s
• Government-issued ID
• Housing history records
• Proof of any gifted funds

Is it safe to get prequalified with New American Funding?

Yes, and if you’re still asking, “is New American Funding legit,” NAF is a licensed lender in all 50 states and closed more than 40,000 loans last year with few formal complaints filed to the Consumer Financial Protection Bureau (CFPB).

Prequalification involves no obligation to proceed.

New American Funding pros and cons

Every lender has disadvantages, so here’s where New American Funding delivers and where it falls short.

Pros

• 620 credit score and three percent down on conventional loans
• Zero-down VA and USDA options
• Manual underwriting helps self-employed and gig workers
• Up to $6,000 in down payment assistance
• 14-business-day closing guarantee
• More than 270 branches for in-person help
• Services most loans it originates, so your account stays put

Cons

• Lowest advertised rates require points and 40 percent down
• Origination fees run above average
• No lender fee schedule published online
• No instant online quotes or preapproval
• Some borrowers report slow responses on refinances and home equity loans

New American Funding reviews, ratings & complaints

New American Funding reviews from the BBB, Trustpilot, and Reddit shows how New American Funding treats borrowers before and after closing.

Better Business Bureau (BBB) reviews

New American Funding Website Homepage

New American Funding is BBB accredited and holds an A+ rating.

Customer reviews average 4.62 stars from over 1,000 reviews. This strong average suggests most borrowers report satisfactory experiences with the lender overall.

Service or repair issues make up the largest share of complaints. Borrowers cited last-minute closing cost increases, including one case requiring $32,000 more.

Others reported billing after payoff, a $500 appraisal fee lost, and delayed insurance checks. Unresponsive service and stalled files after staff departures were also recurring concerns.

New American Funding answers every complaint, and 46 were resolved to the customer’s satisfaction. While responses show engagement, recurring issues with surprise costs and communication remain concerns.

Trustpilot reviews

New American Funding Trustpilot profile

New American Funding holds an Excellent 4.8 TrustScore on Trustpilot, based on over 2,000 reviews. Ninety percent of reviewers gave five stars.

Borrowers consistently praise loan officers for responsiveness, patience, and clear guidance from pre-approval through closing. Many describe smooth, stress-free processes with emails answered within hours and timelines met as promised.

The six percent of one-star reviewers mention excessive requirements, unexpected fees, and repeated escrow payment errors. Some report endless delay tactics, while others describe promised callbacks from management that never arrived.

The company replies to every negative review, typically within a week, offering direct customer service contact. Feedback overall paints a highly positive picture, though service consistency varies between individual loan officers.

Reddit reviews

Reddit discussions about New American Funding show a divided community, with experiences varying widely by loan officer.

Supporters highlight a user-friendly portal, strong loan servicing, and competitive rates that sometimes beat other lenders. Several borrowers closed smoothly in about a month, including refinances and first-time purchases with helpful closing cost credits.

Is New American Funding bad? by u/Capital_Leadership78 in Mortgages

Critics repeatedly mention slow timelines, with some files stretching five months and closing dates pushed back multiple times. Communication problems come up often: unanswered emails, duplicate document requests, and confirmations that staff later walked back.

Some borrowers report surprise cost increases days before closing, while others saw their loans sold despite earlier assurances. A few also describe aggressive sales calls that continued even after they said they were not interested.

New American funding 😡 by u/iratethisa in Mortgages

Positive stories still exist, usually involving straightforward purchases or refinances without tight deadlines.

Overall, Reddit users advise caution on complex loans or rushed timelines, recommending local brokers and competing quotes instead.

New American Funding outcomes and success rates

NAF services more than 283,000 loans, with a portfolio valued above $73.5 billion.

According to the 2025 Data on Mortgage Lending:

• Approved applicants averaged an 80.9 percent loan-to-value ratio (median 86.5 percent)
• About 43.4 percent of approved borrowers carried a debt-to-income ratio above 43 percent
• NAF accepted 82.1 percent of decisioned applications and denied 17.9 percent

Over two in five approved borrowers were underwritten above the 43 percent DTI benchmark commonly treated as the conventional ceiling, consistent with NAF’s reputation for flexible underwriting.

S&P Global Ratings evaluated NAF as an AVERAGE residential mortgage primary servicer in July 2026. The outlook was stable, and NAF’s financial position was rated sufficient.

Who is New American Funding for?

The right fit depends on your credit, income type, and how much hand-holding you want, so here’s who benefits most and who should look elsewhere.

Best for

• First-time buyers who want down payment assistance and coaching
• Self-employed borrowers who need manual underwriting or non-QM loans
• Veterans and rural buyers seeking zero-down financing
• Borrowers who prefer a local branch over a fully digital process

Not recommended for

• Rate shoppers chasing the lowest possible APR, since NAF averages run high
• Borrowers who want instant online quotes without a phone call
• Fee-sensitive applicants unwilling to request written cost breakdowns

New American Funding alternatives to consider

If NAF’s costs or process don’t fit, these two lenders might be worth a quote for comparison.

AmeriSave

AmeriSave covers the full borrowing cycle online, from purchase to refinance. Buyers get a Buyers Concierge to guide them from home search to closing.

Homeowners can also refinance to lower their rate or term, or tap equity for debt payoff and renovations.

The drawback: AmeriSave operates entirely online, so borrowers who want in-person branch support won’t find it here.

PenFed

Its Power Buyer program delivers full upfront approval, and you can lock your rate while you shop.

First-time buyers can put as little as three percent down, or zero percent with a VA loan. PenFed also waives origination, appraisal, credit report, tax service, and escrow waiver fees for eligible borrowers.

The drawback: PenFed requires credit union membership, which adds an extra eligibility step before you can apply.

Final verdict

Is New American Funding legit? The evidence says yes. This is a licensed, BBB-accredited lender operating in the U.S.

New American Funding reviews also speak to consistent service. But the lender charges above-average rates and fees, hides pricing until you call, and draws complaints about slow refinance timelines.

That’s why none of this makes NAF a clear winner or a lender to avoid. It’s one option worth pricing out. So, request a written quote, compare it against two or three competitors, and let the total cost decide.

Frequently asked questions

Is New American Funding legit?

Yes. NAF is a licensed lender in all 50 states with NMLS number 6606, BBB accreditation, and an A+ rating. It has operated since 2003.

Is New American Funding a lender or broker?

NAF is a direct lender, not a broker. It underwrites and funds its own loans, then services most of them after closing.

How long does it take to close with New American Funding?

NAF backs its process with a 14-business-day closing guarantee. Your actual timeline depends on your documentation, loan type, and how fast underwriting clears your file.