New American Funding Mortgage Review: Good for first-time homebuyers and people who want to tap home equity

Couple carrying a big box together, moving into their new homeImage: Couple carrying a big box together, moving into their new home

Editorial Note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted. Availability of products, features and discounts may vary by state or territory. Read our Editorial Guidelines to learn more about our team.
Advertiser Disclosure

We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.

Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.

Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

New American Funding mortgage loan at a glance

  • Conventional loans: Yes
  • FHA loans: Yes
  • Veterans Affairs loans: Yes
  • Refinancing: Yes
  • Jumbo loans: Yes
  • Adjustable-rate mortgages: Yes — 5/1 ARM, 7/1 ARM and 10/1 ARM
  • Fixed-rate mortgages: Yes — 8 to 30 years

New American Funding is a mortgage lender with more than 200 branches in 31 states across the U.S. It offers a variety of loans, including FHA loans and reverse mortgages, which may make it a good choice whether you want to buy your first home or refinance an existing mortgage.


  • Low down payment options are available
  • Transparent about lowest mortgage rates offered
  • Offers reverse mortgages


  • You must agree to receive emails and phone calls to get a rate quote
  • Doesn’t have branches in all U.S. states

4 things to know about a New American Funding mortgage loan

If you’re considering applying for a mortgage from New American Funding, here are a few things to keep in mind.

1. Low down payment options can give flexibility to first-time homebuyers

New American Funding offers mortgages for people who want to purchase a home or refinance their current one. If you’re a first-time homebuyer, you may be particularly interested in applying for an FHA, VA or conventional loan since the company has low down payment options available.

  • FHA loans may be ideal for people with less-than-perfect credit, with down payments starting at just 3.5% of the home price.
  • VA loans have even lower down payment requirements — 0% — than FHA loans, but you’ll have to meet eligibility standards.
  • Conventional loans are worth exploring if you have stronger credit. New American Funding has down payment options as low as 3%.

Keep in mind that if you don’t put at least 20% down on a mortgage, you’ll likely have to pay either a mortgage insurance premium or private mortgage insurance.

Get tips for how to choose the best mortgage for you.

2. An opportunity to pull out equity

If you want to refinance your home loan, New American Funding has a cash-out refinancing option. If you qualify, this option allows you to take some of the equity you’ve built in your home and use it for another purpose, such as home renovations. You’ll replace your old mortgage with a new one, which may have a different rate and terms.

New American says you’re typically limited to accessing 80% to 90% of your home equity.

If you’re at least 62 years old, you might qualify for a reverse mortgage, where a lender makes monthly payments to you. But you’ll have to keep living in the home and stay current on bills such as property taxes, insurance and homeowner association fees.

3. You’ll have to agree to get emails or phone calls for a rate quote

If you want to get a rate quote from New American Funding, you’ll have to fill out an online form or give the lender a call. Although the online form is straightforward, you’ll have to agree to receive emails or phone calls in order to receive your rate quote.

This might not be a dealbreaker for some people, but if you prefer a truly all-digital experience, you’ll want to look elsewhere.

On the other hand, if you prefer an in-person experience, New American Funding has branches in 31 states. Check online to see if New American Funding has a location near you.

4. A resource-rich website

New American truly excels at educating its customers and potential customers. Its website is filled with useful information that can help you understand such topics as applying as a first-time homebuyer and buying a house out of state.

The company publishes some of its daily mortgage interest rates — though these are the lowest rates available, so keep in mind you won’t necessarily qualify for these rates.

New American has a mortgage calculator and a regular market update that highlights trends the company is seeing in home loans.

Who is a New American Funding loan good for?

New American Funding is good for people who prefer more in-person interaction in the loan application process, since it has offices across the U.S. and requires you to speak to a loan officer to get a rate quote. The educational resources on its website also provide a lot of information for people who aren’t familiar with the mortgage process.

Combined with its low down payment options, this makes it stand out for first-time homebuyers.

If you want to customize your mortgage term, to something other than a 15-year or 30-year term, New American’s I Can Mortgage gives you the option to pick a term between eight and 30 years. That may give you flexibility with your monthly payment.

New American also offers adjustable-rate mortgages.

And New American is worth considering if you want to pull money out of your home either with a cash-out refinancing or reverse mortgage. But if you’d prefer a home equity loan or home equity line of credit, you’ll have to look elsewhere.

How to apply for a mortgage from New American Funding

If you want to get a rate quote or apply with New American Funding, you can fill out an online form, call or visit a branch. The lender’s online application is straightforward and you’ll provide your phone number and email address when you submit your information.

You also may have to meet minimum qualifications depending on the type of loan you want. For instance, New American says it requires a minimum FICO® credit score of 620 for a conventional loan.

A history of bankruptcy, foreclosures or a high debt-to-income ratio also can affect whether you’re approved, the amount you’re approved to borrow, or your rate.

Not sure if New American Funding is right for you? Consider these alternatives.

If you’re shopping for a mortgage, you have a window of time where multiple inquiries are only counted as one for your credit scores. That shopping period can be as little as 14 days, depending on the scoring model.

  • Better mortgage: This online lender may be a good fit if you want a company that provides other services such as a real estate agent match and homeowners insurance.
  • Rocket Mortgage by Quicken Loans: Rocket Mortgage may be a good choice for you if you value a simple online application process without many hoops to jump through.

About the author: Erin Dunn is an editor at Credit Karma who specializes in personal loans and is passionate about financial literacy and budgeting. She’s an award-winning business journalist and editor w… Read more.