Content on is based on in-depth research & analysis. Opinions are our own. We may earn a commission when you click or make a purchase from links on our site. Learn more.


New American Funding 2022 Mortgage Review

Key Takeaways

  • A mortgage lender offering a wide variety of loan types to suit different financial situations.
  • Offers special programs for Black and Hispanic borrowers, as well as for veterans and active-duty military customers.
  • Interest rates and APRs for mortgages lower than those of other major mortgage lenders.
  • Minimum credit rating to qualify for a mortgage is 620 and minimum down payment is 3%.

Whether you’re buying a new home or looking at refinancing, finding the best mortgage funding company can be daunting. In this New American Funding review, we’ll detail the types of loans this company offers and compare them with those of other popular mortgage companies.

In 2021 and 2022, mortgage rates increased dramatically. At the time of writing in early 2022, rates have increased to 3.82% on an average 30-year fixed-rate mortgage, compared with 2.79% in the previous year. This has sparked a flurry of new loan applications from prospective buyers, worried that rates will continue rising.

Unfortunately, the spike in rates means that buyers are saddled with pretty high average monthly payments. George Ratiu,’s manager of economic research, recently said that, “at the current rate, buyers of a median-priced home are paying around $219 more a month than a year ago, which adds more than $2,600 to their annual housing costs.”

If you’re worried about receiving high rates on a new mortgage, you might want to consider New American Funding. They offer a variety of mortgage loans to help you take your first steps toward homeownership at a rate you can afford.

For those looking to adjust their monthly outgoings, New American Funding also offers refinancing. The company’s resources explain the intricacies of how a New American Funding mortgage works. They also provide guides on different types of housing and how to get a better interest rate on your loan.

As you’re shopping around to find the right mortgage funding option, check out the following key points we’ve collated about New American Funding vs. three other popular mortgage lenders.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
With the proper help, you can buy a new home
A mortgage expert from New American Funding will work with you to organize your budget, so you'll be on your way to a new home. Click on your state and let's get started.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
View Rates

About New American Funding

New American Funding was founded in 2003 by Rick and Patty Arvielo and is now the largest Latino-owned private mortgage company in the U.S. With headquarters in Orange County, California, it now has more than 170 branches across the country.

The Orange County Register recently named New American Funding as one of the best places to work for the tenth year running.

New American Funding focuses on improving the home buying experience for minorities and is now one of the largest lenders to Hispanic and Black borrowers.

New American Funding Mortgage Products

Here’s an overview of the mortgages New American Funding offers:

Loan typeWhat is it?ProsConsPopular with
30-year fixed-rate mortgageSteady monthly payments over 30 yearsLower monthly paymentsTakes a long time to pay offMost home buyers
15-year fixed-rate mortgageSteady monthly payments over 15 yearsShorter time to pay offHigher monthly paymentsHome buyers in a higher income bracket
Conventional loanLoan not insured or guaranteed by the governmentGreater flexibility and range of benefits offeredGreater risk of foreclosure if you cannot keep up repaymentsHome buyers with stable long-term income prospects
I CAN mortgageLike a conventional loan with flexible repayment period from 8–30 yearsPossibility of paying off loan fasterGreater risk of foreclosure if you cannot keep up repaymentsSingle families purchasing a primary residence
VA loanSpecial low-interest loans for veterans or those in active military serviceNo down payment required and no monthly premiumsOnly accessible for those working in the militaryVeterans and military personnel
USDA loanGovernment-insured loanLower down payment than conventional loanA variety of guidelines to followFirst-time home buyers with less than perfect credit
FHA loanGovernment-insured loanLower down payment than conventional loanA variety of guidelines to followFirst-time home buyers with less than perfect credit
Buydown loanFixed-rate loan with initial lower payment ratesAllows you to ease into mortgage paymentsOnly applicable for primary residenceFirst-time home buyers
ARM (Adjustable-rate Mortgage)Variable rate mortgageOffers upfront savingsInterest rates can increase after first few yearsFirst-time buyers who expect to earn more income in the next few years
Reverse mortgageLoan for retirees to convert home equity to cashGives an income stream in retirementFees and interest rates can be highPeople over 62 years of age

New American Funding Refinancing

Refinancing means replacing your existing mortgage with a new one, typically with better rates. It may also allow you to access cash immediately, or eliminate certain costs, such as private mortgage insurance (PMI). New American Funding offers the following types of refinancing:


This type of refinancing involves taking out a loan that’s larger than your original one. After paying off your original loan, you’ll receive the excess in cash. This can be useful if you need a lump sum to cover unforeseen expenses like medical bills or elderly care.

Home Equity Line of Credit (HELOC)

A HELOC functions a bit like a credit card: You can access cash up to the amount you’ve already paid into your mortgage. You’ll need to pay back what you borrow with added interest. People often use this type of refinancing to pay for home repairs or renovation.

FHA Streamline

An FHA streamline refinance loan can lower your interest rate and requires less documentation than other refinance loan types. Alternatively, a Streamline 5/1 Adjustable-Rate Refinance Mortgage gives you a lower interest rate for the first five years.

VA Interest Rate Reduction Refinance Loans (IRRRL)

This is a form of refinancing specifically for VA loans (mortgages guaranteed by the U.S. Department of Veteran Affairs). It’s another form of streamlined refinancing that requires less documentation than refinance loans typically do.

New American Funding Rates

To know whether you’re getting the best deal on your mortgage, it’s important to understand funding rates. There are two to watch out for: The interest rate and the APR (Annual Percentage Rate). The interest rate is how much the lender charges you for borrowing money. But it’s the APR that shows you the true cost of borrowing. It represents the interest rate plus the origination charges, discount points, or any other fees or extra costs that are part of your loan.

APR is calculated on the assumption that you’ll keep the loan for the entire term. However, because many people do not—selling their home or refinancing it before they’ve paid off the mortgage—the APR is not always the most informative number to look at. Make sure you do the math and check how much the APR will be over the term you intend to keep the mortgage for.

At the time of writing, New American Funding rates were as follows:

  • 30-year fixed mortgage: 4.000% and 4.276 APR
  • 15-year fixed mortgage: 3.125% and 3.604% APR
  • FHA 30-year fixed mortgage: 3.625% and 4.600% APR
  • VA 30-year fixed mortgage: 3.625% and 4.201% APR

These are the rates if you have a good credit score. To understand what they would look like in a situation with poor credit, consider the following scenario:

Nico and Alejandra decide to take out a 30-year fixed mortgage from New American Funding to buy a house in Idaho for $300,000. They start with a down payment of $40,000. They have a poor credit rating so decide to go for an FHA loan. Using New American Funding’s mortgage calculator, we can see that they’d pay around $2,301 a month for their mortgage.

This is a bit higher than the median monthly mortgage payment in the U.S. (which was $1,600 in 2019 according to the US census). If they wanted to lower their monthly payments, they could look at increasing the initial down payment or trying to improve their credit rating.

New American Funding Unique Features

New American Funding stands out for several reasons:

Focus on diversity

Special programs like Latino Focus and New American Dream assist Black and Latino buyers with getting on the housing ladder. They provide education on home buying, help with accessing credit, and raise awareness about opportunities for careers in mortgage lending.

Support for veterans and military personnel

The Military Heroes program is committed to raising homeownership among veterans and active-duty military. The company plans to lend $12 billion to this group by 2024.

Committed to education

New American Funding has a great selection of resources, as well as a mortgage glossary to help you understand the technical terms you’ll encounter when you start researching mortgage funding.

14-day guarantee

The company guarantees it will close your purchase loan in 14 days or fewer.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer

Customer Reviews

On, New American Funding reviews are excellent, with an average of 4.9 out of 5 stars. Many customers were impressed with the personalized service they received from their advisor. Customers report satisfaction, quick service, and a very smooth process.

Who New American Funding Is Best For

New American Funding makes a particular effort to assist Black and Latino people, as well as veterans and people in active military duty, toward home ownership. They also have some user-friendly information on grants for first-time home buyers.

New American Funding vs. Rocket Mortgage, Better, & Veterans United Home Loans

LenderNew American FundingRocket MortgageBetterVeterans United
Rates (30-year fixed mortgage)4.000% (4.276% APR)4.250% (4.539% APR)4.250% (4.388% APR)4.250% (4.556% APR)
Customer Reviews (TrustPilot)4 out of 5 stars4 out of 5 stars4.1 out of 5 stars4.9 out of 5 stars
Loan types offered10431

Tips for Securing a Mortgage

Before you start shopping around for your dream home, make sure you’re prepared so you can start the process smoothly:

Start with prequalification and preapproval

Before you start applying for mortgages, speak with a loan officer to get a prequalification letter (an initial assessment of your finances). You can then move on to preapproval, which is a more thorough process of assessing your finances with an underwriter. Completing both processes prior to searching for your dream home can speed up the buying stage later on.

Save as much for your down payment as possible

Generally, a down payment of at least 20% is considered wise. Putting down a smaller amount can lead to higher interest rates and extra insurance charges further along the line.

Improve your credit rating

You’ll need a credit score of at least 620 to be approved for a mortgage. The higher your rating is, the better chance you have of getting a low-interest loan.

Don’t quit your day job!

Most lenders will expect you to have been in stable, continuous employment for at least two years before applying for a mortgage. A long-term employment contract will also work in your favor.

What to Know About Selecting a Mortgage Lender

Choosing who you’re going to apply to for a mortgage is a big decision. Before you take the plunge, here are some tips:

Shop around

Before deciding on a lender, talk to at least three companies to check you’re getting the best deal possible.

Ask: Does my profile fit?

Look at the typical clientele of the lender you’re approaching. If you have poor credit, for example, check whether the lender has experience with this kind of situation.

Pay attention to star ratings

Do your research and read plenty of company reviews before you decide who you’re going to go for. This will give you a truer picture of the company than any claims it makes about its own services!

The Bottom Line

A New American Funding mortgage could be the right choice if you’re looking for a mortgage that can be more easily tailored to your individual situation and budget. The company’s lower-than-average interest rates and APRs are also attractive. As its fees are not disclosed on its website, make sure you check these with your loan officer before agreeing to anything.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
When looking to buy a new home, there's a lot of information you'll be required to evaluate properly.
Consulting a mortgage expert from New American Funding is a smart way to get all the facts and make a well-informed decision. Click below and book it now.
View Rates

New American Funding FAQ

Who backs New American Funding?

New American Funding is privately owned by husband and wife Rick and Patty Arvielo.

What does New American Funding do?

New American Funding provides mortgage and refinance loans to people buying homes, with a particular focus on Black and Hispanic borrowers, veterans, and active-duty military customers.

How long does it take to close a loan with New American Funding?

The company has a 14-day guarantee for purchase loans, which is unique to the market.
New American Funding


Meet the Experts’s staff of editorial writers have spent hundreds of hours conducting research, interviewing industry experts, and reviewing the products and services out there to help inform and educate our readers.

Learn More About Our Team