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August 22, 2018 / Hollie Shuttlewood
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15-30 Year Fixed Mortgages
New American Funding is a family-owned lender that provides mortgages to residents of all states except New York. It caters to a wide range of home buyers, offering fixed rates and ARMs, in addition to FHA and VA loans as a number of home refinancing options.
How it works
New American Funding is a direct lender offering several types of home loans and refinancing. It allows borrowers to apply for a mortgage online, by phone, or in person in any of the 25 states where it has physical branches. Anyone can fill out a quick online form and get pre-qualified in minutes. Home buyers who wish to continue filling out the application online will need to first speak to a loan agent to be given a special link to the application form.
One of New American Funding’s best features is its “interest-only loan”, which allows borrowers to pay only interest (and not principal) for a 5-year to 10-year introductory period. With this loan, borrowers get to pay off the principal when it suits them rather than on a monthly basis.
To borrow from New American Funding, you must meet the following minimum requirements:
  • Be aged 18+
  • Be a U.S. citizen or have been a permanent resident for at least 2 years.
  • Have credit of at least 620 (although credit of as low as 580 could qualify you for a VA loan or FHA loan).
  • Have money for a down payment of 20% or to pay monthly PMI if making a reduced down payment on VA or FHA loan.
Pros and Cons
New American caters to all types of borrowers, but where it really stands out is for its assistance to minority home buyers – and particularly Latinos. It was founded in 2003 with the stated aim of helping Latino buyers get into the housing market. It continues to strive for that goal today, offering bi-lingual customer service and handy educational resources to help first-time buyers of all backgrounds. In 14 states, New American helps borrowers to qualify for government grants for first-time buyers.
There aren’t many downsides to this service, although the obvious one is that it isn’t available (yet) to home buyers in New York State. The only other noticeable drawback of New American Funding’s service is that it doesn’t show any rates on its website. To get a quote, prospective customers are asked to enter their contact details and some other basics about income and loan amount.
Loan Types
New American Funding services an impressive range of loans covering conventional loans, government-backed loans and refinancing. It offers a choice of the following:
  • Fixed-rate loans with terms of 15 or 30 years and 20% down payment. The 15-year term is ideal for first-time buyers or for home owners refinancing their current mortgage. It allows borrowers to build equity quicker and with a lower interest rate. The 30-year term is for borrowers who prefer lower monthly payments.
  • Adjustable-rate mortgages with terms of 5, 7, or 10 years and 20% down payment. All ARMs come with an initial fixed period. After a while, the rate increases. However, there is a cap on how high the rate can go.
  • Jumbo loans for purchases of $424,100 to $637,150 (depending on the area where the home is located). Super jumbo loans cater to loan amounts of up to $15 million.
  • FHA loans, government-backed loans with down payment of 3.5% to 10%, depending on the borrower’s credit score. Borrowers must agree to pay monthly private mortgage insurance (PMI).
  • VA loans, available to serving and former members of the Military, Reserve, and National Guard who meet minimum requirements, as well as surviving spouses. Low or no down payment. Includes PMI requirements.
  • HARP refinance, special government-mandated refis for people living in specific zip codes where property prices have fallen dramatically since the great financial crisis.
  • FHA 203k renovation loans, for home owners or home buyers who need cash to finance a home improvement or renovation. These types of loans can be used for either purchase or refinance.
  • Cash-out refinance, which allows home owners to retire their existing mortgage and take out a new one for a larger amount than what they currently owe. It’s called “cash out” because the owner gets to cash out the difference between their old loan balance and new loan balance.
  • Reverse mortgage, a government-backed loan similar to a Home Equity Loan that allows home owners aged 62 or more to borrow a percentage of their home equity.
Rates and Terms
Unlike some other lenders, New American doesn’t advertise minimum interest rates or APRs on its website. Presumably this is because interest rates can vary significantly between borrowers, depending on the borrower’s credit history, loan amount, and other metrics. To get a pre-qualified quote, simply call New American directly or fill out your contact details and a few other bits of information through the online form.
Terms are 15 or 30 years for fixed-rate loans and 5, 7, or 10 years for ARMs. Borrowers do get flexibility through add-ons such as the interest-only loan, which allows them to pay principal on their own schedule for the first 5 to 10 years of the loan.
Contact New American Funding
Feedback for New American’s service is mostly positive. It has made a name for itself for being one of the few lenders in the country that offer completely bilingual customer service, with loan agents who are fluent in both English and Spanish.
To speak to one of New American’s agents, go through the following channels:
  • Phone (toll-free): 800-890-1057
  • Email: CustomerService@nafinc.com
  • Visit any of the approximately 160 branches in 25 states.
To contact New American Funding by post, the address is:
Broker Solutions, Inc. DBA New American Funding
14511 Myford Road, Suite 100
Tustin, CA 92780
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5,462 VOTES
15-30 Year Fixed Mortgages
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15-30 Year Fixed Mortgages
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