New American Funding is a family-owned independent mortgage lender serving borrowers in 49 states and DC. It has appeared in the annual Inc5000 list of the fastest-growing privately held companies in the United States several times. It is best known for its customizable loan options, including mortgage rate buydowns (where the borrower pays a one-time fee to earn a lower interest rate) and flexible 8-30-year repayment terms.
You can apply for a mortgage from New American Funding by walking into a branch (in 32 states) or using the online platform. The digital platform involves the following steps:
The best thing about New American Funding is that there’s a great deal of flexibility built into each loan. While most lenders restrict you to a 15-year or 30-year term (or occasionally loans in other intervals of five, such as a 10-year, 20-year, or 30-year term), New American Funding lets you choose any number from 8-30 years. It also gives you the opportunity to lower an already market-beating interest rate in exchange for a one-off fee.
While New American Funding does serve 49 states, it isn’t licensed in Hawaii. Hawaiians: if you’re reading this: you’ll need to search around for other lenders for your next purchase or refinance.
New American Funding offers a wide range of loan types, ranging from conventional and government-backed loans to customizable loan options (which we’ll discuss in the next section, “Loan Features”). Like most mortgage lenders, it supports purchasing and refinancing and offers a choice between a fixed rate or adjustable rate.
Here’s the breakdown:
As mentioned, New American Funding offers a greater level of customizability than most mortgage lenders.
* Mortgage Rate Buydown: This is when a borrower pays an additional charge (called a ‘point’) in exchange for a temporary lower interest rate and lower payment on their mortgage. This one-time fee is paid at closing by the borrower. There are three buydown options:
* I CAN Mortgage: This is when the borrower chooses a different repayment term to the standard 15, 20, 25 or 30-year term. Options are for 8-30 years with down payments as low as 5% (or refinancing of up to 95% of your primary home’s value).
One of the things we like most about New American Funding is that it displays its rates at the top of the home page. This is no surprise given its rates are well below the national average. As discussed, New American Funding offers borrowers the opportunity to earn an even lower rate for a 1-3-year introductory period in exchange for a one-time fee. Repayment terms are for 15-30 years with a standard loan or 8-30 years with a customizable I CAN Mortgage (see “Loan Features” above).
New American Funding is led by married couple Rick and Patty Arvielo and based out of Orange County, California. Founded in 2003, it has grown into one of the country’s largest independent mortgage lenders, originating more than $40 billion in loans to date. It serves borrowers in 49 states and DC (with New York being the only place it isn’t licensed). It has branches in 32 states, and can be reached by phone from anywhere on 855-276-3747 or through its website.
New American Funding offers the level of customer service and flexibility of loan options that could only come from an independent mortgage lender. Rather than offer only cookie-cutter loan options like the big banks, New American Funding lets you play a part in determining the most important aspects of your loan – namely, your interest rate and repayment term.