New American Funding

New American Funding has established itself as a major player in the mortgage lending industry, offering an extensive array of home financing options to borrowers across the United States. For consumers considering mortgage refinancing or home purchase, understanding what this California-based lender offers can help inform better financial decisions.

Company History

New American Funding was founded in 2003 by husband-and-wife team Rick and Patty Arvielo in Tustin, California. What began as a modest 40-person call center operation has grown into one of the largest privately-owned direct mortgage lenders in the nation. The company has expanded to over 230 branch locations across the country and employs more than 4,500 team members.

Since its inception, New American Funding has originated over 257,600 loans totaling approximately $67.6 billion. The lender operates under NMLS #6606 through its parent company, Broker Solutions, Inc. The founders’ personal experience with homeownership and their cultural roots have shaped the company’s commitment to making mortgage financing accessible to diverse communities, particularly Hispanic and Black borrowers who have historically faced lending barriers.

Products and Services

New American Funding provides a comprehensive portfolio of mortgage products designed to serve varied borrower needs. The company offers conventional loans in both fixed-rate and adjustable-rate formats, with terms typically ranging from 15 to 30 years. For government-backed financing, they provide FHA loans requiring as little as 3.5% down, VA loans for military members with zero down payment, and USDA loans for rural property purchases.

The lender’s specialty offerings include jumbo loans for high-value properties, reverse mortgages for seniors converting home equity to cash, and non-QM (non-qualified mortgage) loans for borrowers who don’t fit traditional qualification criteria. Their construction loans and FHA 203(k) renovation loans help buyers purchase and improve properties simultaneously.

One standout product is the I CAN Mortgage, an exclusive fixed-rate loan allowing borrowers to select customizable terms from 8 to 30 years with down payments as low as 5%. This flexibility helps borrowers tailor monthly payments to their budget while accelerating payoff timelines. New American Funding also provides cash-out refinancing and home equity lines of credit (HELOCs) for homeowners seeking to access their property equity.

The company’s Pathway to Homeownership program offers up to $8,000 in grant money to qualifying first-time buyers for down payment and closing cost assistance. Their innovative NAF Cash program allows the lender to purchase homes in cash through an affiliate, then sell them back to buyers once financing is secured—a strategy that helps borrowers compete in competitive markets.

Industry Reputation

New American Funding maintains an A+ rating with the Better Business Bureau, demonstrating strong business practices and complaint resolution. The company has received an “Excellent” rating on Trustpilot based on thousands of customer reviews. Independent rating agencies like NerdWallet give the lender 4.5 out of 5 stars, while Bankrate awards high marks for affordability and product availability.

The company distinguishes itself through meaningful commitments to underserved communities. New American Funding has pledged to provide $20 billion in new mortgages to Black families and $10 billion to Latino families by 2028. Federal lending data shows the company delivers above-average lending rates to Hispanic and Black borrowers, backing up their diversity commitments with tangible results.

New American Funding services approximately 90% of the conventional, FHA, and VA loans they originate, meaning borrowers typically maintain their relationship with the company throughout their loan’s life rather than seeing it sold to another servicer. This continuity can simplify payment management and customer service interactions.

Understanding the Tradeoffs

New American Funding offers considerable flexibility for borrowers with non-traditional financial profiles, including self-employed individuals, those with lower credit scores, and applicants using alternative income verification. This accessibility comes with some considerations. According to Home Mortgage Disclosure Act (HMDA) data, the lender’s 2024 median mortgage rate of 6.75% and average total loan cost of $8,444.69 were higher than industry medians. However, borrowers with unique circumstances often face elevated costs regardless of lender choice.

The company’s advertised rates frequently require purchasing discount points and making substantial down payments, which increases upfront expenses. New American Funding does not publish specific fee schedules on their website, requiring applicants to contact loan officers for personalized quotes. While this allows for customized pricing negotiations, it reduces initial transparency compared to competitors displaying detailed fee structures online.

On the positive side, many loans come with a 14-business-day closing guarantee, providing valuable speed for purchase transactions. The breadth of loan products means most borrowers can find suitable options, whether seeking conventional financing or specialized programs. The lender’s in-house servicing model offers continuity and potentially easier communication after closing. Their multiple assistance programs, including down payment help and competitive cash-offer strategies, provide meaningful support for buyers facing market challenges.

Getting Started

Prospective borrowers can begin the application process through New American Funding’s website, by phone at 800-890-1057, or by visiting one of their branch locations. The online application takes approximately three minutes to initiate, though comprehensive approval requires additional documentation including pay stubs, tax returns, bank statements, and employment verification.

The company’s Learning Center provides extensive educational resources for first-time buyers, explaining loan options, credit score requirements, and down payment assistance programs. For Spanish-speaking customers, New American Funding offers bilingual customer advisors seven days a week, ensuring language never becomes a barrier to homeownership.

Applicants should prepare for a thorough underwriting process. Some customers report needing to submit documentation multiple times, which can feel redundant but reflects industry-standard verification requirements. Working proactively with your loan officer and maintaining organized financial records helps streamline the experience.

Regulatory Compliance

New American Funding operates as a licensed mortgage lender in all 50 states plus Washington, D.C. and Puerto Rico. The company holds approvals as a Fannie Mae, Freddie Mac, and Ginnie Mae direct lender, seller, and servicer. They maintain FHA Direct Endorsement status, enabling them to approve loans without additional HUD review.

According to the Consumer Financial Protection Bureau, Broker Solutions received 69 mortgage-related complaints in 2024. Given the company’s substantial loan volume of over 40,000 annual originations, this represents a relatively low complaint rate compared to industry standards. The CFPB indicates New American Funding responded to complaints in a timely manner, with most closed through explanation or resolution.

In 2023, the company entered a consent order with Massachusetts regulators regarding licensing oversight, paying a $25,000 administrative penalty. This settlement addressed technical compliance matters without admission of wrongdoing and did not involve consumer harm allegations.

Customer Feedback Patterns

Reviews across multiple platforms reveal consistent themes. Many customers praise responsive loan officers who provide hands-on guidance throughout the process. Borrowers frequently highlight the speed of communication, with loan teams offering evenings and weekend availability. The 14-day closing guarantee receives positive mentions from buyers needing quick transactions.

However, some refinance customers express frustration with the underwriting phase, citing requests for redundant documentation and inconsistent communication between departments. A few borrowers describe last-minute requirement changes that disrupted closing timelines. These experiences, while notable, represent a minority of the overall review volume.

J.D. Power’s 2024 Mortgage Origination Satisfaction Study scored New American Funding below industry average for the application experience, though their 2024 Mortgage Servicer Satisfaction Study rated them above average for ongoing loan management. This suggests stronger performance in post-closing relationships than during the initial transaction phase.

The lender’s loan servicing receives generally favorable feedback, with borrowers appreciating the continuity of maintaining the same servicer rather than having loans sold. The company’s mobile app and online portal facilitate payment management and provide equity tracking tools.

Final Assessment

New American Funding represents a viable option for borrowers seeking extensive product variety, specialized assistance programs, and flexible qualification standards. The lender’s commitment to serving diverse communities and first-time buyers addresses important gaps in the mortgage market. Their 14-day closing guarantee and in-house servicing provide tangible operational advantages.

Prospective borrowers should obtain detailed fee quotes and compare multiple lenders to ensure competitive pricing. While rates and fees may run higher than some alternatives, the accessibility for non-traditional applicants and comprehensive product selection can justify the premium for borrowers who value flexibility and specialized programs.

For consumers with straightforward finances seeking the absolute lowest rates, ultra-competitive online lenders might offer better pricing. However, for those needing customizable terms, down payment assistance, non-QM products, or specialized support, New American Funding delivers substantive value through its diverse offerings and established track record. As with any major financial decision, comparing at least three lender quotes helps ensure you secure the best possible terms for your specific situation.