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What is New American Funding?
New American Funding is an accredited mortgage company with the Better Business Bureau. Rick and Patty Arvielo founded the company in 2004, with headquarters in Tustin, California. They combined their lending experience with new technology to bring more loans to more consumers.
Its mission is to use technology to save consumers time and money in the lending process. For example, it offers a convenient online application and mortgage calculators on its website. The company has grown extensively from its roots, with more than 4,500 employees.
New American Funding is available in every state except Hawaii.
New American Funding is dedicated to impacting communities where lending and home buying have been challenging. According to the New American Funding website, the company plans to provide $10 billion in new mortgages to Latino homebuyers and and $20 billion in new mortgages to Black homebuyers by 2028.
Which loan products does New American Funding offer?
New American Funding offers a full line of home loans, including conventional loans, fixed-rate mortgages, adjustable-rate mortgages (ARM), FHA loans, USDA loans, VA loans, jumbo loans, and reverse mortgages. It also offers refinancing loans and home equity lines of credit (HELOCs) for current homeowners.
Fixed-rate mortgages have an interest rate that doesn't change for the life of the loan. ARMs typically start with a fixed rate for a set period. Then lenders have the option to adjust the interest rate based on criteria spelled out in your loan documents.
Let's take a closer look at some of New American Funding's offerings.
Conventional mortgages at New American Funding
Conventional loans are not backed by a government entity. These loans are usually best for people with good credit who have at least 3% of the loan amount set aside for a down payment.
These loans have fewer restrictions than government-backed loans and don't require upfront mortgage insurance. Borrowers might pay private mortgage insurance (PMI) on loans with a down payment of less than 20%.
Conventional loans may process faster than government-backed loans because they have fewer requirements. These loans are best suited for someone with good credit who wants more flexible terms.
| Loan amount | Up to $1,209,750 in high-cost areas |
| Loan term | 10 to 30 years |
| APR | 6.008%-6.563% (as of 05/02/2025) |
| Credit needed | 620 |
FHA mortgages at New American Funding
The FHA loan is insured by the Federal Housing Administration (FHA). FHA loans are designed to help borrowers with less-than-perfect credit or who have limited down payment funds. While backed by the government, these loans are offered by approved private lenders like New American Funding.
This loan is known for having a low down payment requirement of 3.5%. This is for those with a FICO score of 580 or better. Those with lower FICO scores (down to 500) can still get approved if they have at least 10% down. Borrowers must have a debt-to-income (DTI) ratio of 43% or less.
Borrowers can use gifted funds for a down payment. First-time borrowers will appreciate that the FHA loan allows sellers to pay some of the closing costs, making it even more affordable to buy the home.
New American Funding offers FHA purchase and refi mortgages.
| Loan amount | Up to $1,209,750 in high-cost areas |
| Loan term | 15 or 30 years |
| APR | 7.091% (as of 05/02/25) for a 30-year FHA fixed-rate mortgage |
| Credit needed | 580 |
VA mortgages at New American Funding
A VA loan is another federally insured mortgage option designed for qualifying military personnel and veterans. It is backed by the U.S. Department of Veterans Affairs and offered through approved private lenders such as New American Funding.
To be eligible for a VA loan, the borrower must obtain a certificate of eligibility (COE). VA loans have no down payment requirement, and there is no set credit requirement, though most lenders impose a credit score minimum for their products.
The DTI ratio for a VA loan is no more than 41% for borrowers. This means that their monthly debt payments can't exceed more than 41% of their monthly income.
New American Funding offers purchase and refinance VA loans. Here are the basics of their purchase loans:
| Loan amount | Up to $1,209,750 in high-cost areas |
| Loan term | 15 or 30 years |
| APR | 6.532% (as of 05/02/25) for a 30-year VA fixed-rate mortgage |
| Credit needed | Varies |
I CAN mortgage at New American Funding
The I CAN mortgage with New American Funding allows the borrower to choose a loan term of 8 to 30 years. This allows borrowers to work within their budget and create a home purchase plan that meets their long-term financial goals. If they want to pay off the home faster and save on interest, they can apply for a shorter term. Of course, this means a higher monthly payment.
This loan is also popular with borrowers who are refinancing their mortgage. For example, if you're nine years into a 30-year mortgage and want to refinance for a lower rate, you might not want to refinance for another 30 years. The I CAN mortgage will allow you to refinance for 21 years so that you keep the same goal of paying your house off within the original 30 years.
This loan option is only good for primary residences that are either a single-family home, townhouse, or condo.
| Loan amount | $510,400 |
| Loan term | 8 to 30 years |
| Minimum down payment | 5% |
| Credit needed | 620 |
Refinances at New American Funding
New American Funding has multiple refinance loan options available. A refinance takes an original loan and replaces it with a new loan that either has a more desirable term, lower interest rates, or both.
You can also choose a cash-out refinance, which allows you to take out a new mortgage for more than your current mortgage balance. You receive the difference as cash that you can use for any purpose, including paying off credit card debt, paying for college, or home renovations
Cash-in mortgages are another option that allows you to put more money into your mortgage, which may lower your monthly payments, shorten your loan term, and/or remove PMI.
What New American Funding customers are saying
New American Funding is accredited with the Better Business Bureau and gets an A+ rating from the organization. While negative reviews focus on a lack of professionalism, the company does respond to all negative reviews in an effort to resolve the issue.
The company likewise fares well on Trustpilot, with nearly 2,000 reviews and an average rating of 4.9 stars. Those who were upset with the company felt that there was a bait and switch of rates during the underwriting process, but positive reviews appreciated the efficiency of the process and how the company was able to beat out top competitors with rates.
FAQs
What type of lender is New American Funding?
New American Funding is a direct mortgage lender. They are privately owned and are headquartered in Orange County, California.
Does New American Funding offer a money-back guarantee if the loan doesn't close?
New American Funding does not offer a money-back guarantee if the loan doesn't close. However, it does offer an on-time closing guarantee for certain loans.
What are the New American Funding mortgage rates?
New American Funding offers competitive rates. A 30-year fixed-rate mortgage has an APR of 6.008%-6.563% (as of 05/02/2025). Rates are subject to change at any time. Be sure to lock a good rate in so that you can take advantage of paying less interest.
Bottom line
New American Funding is a direct lender that uses technology to help expedite the loan process. It has competitive rates with a variety of loan programs available to meet your real estate needs.
If you're learning how to get a loan, one important step is to consult multiple lenders for quotes so you can find the best rate. In addition to New American Funding, consider contacting other lenders from our list of the best mortgage lenders.
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