New American Funding Mortgage could be a great fit for self-employed borrowers, since it offers non-qualified mortgages that you can't get from all lenders. Another strength is New American Funding's focus on helping people in underserved communities become homeowners. This is a mortgage lender that works to accommodate most borrowers' needs.
On New American Funding's Secure Website.
New American Funding
On New American Funding's Secure Website.
Best for: Diverse offerings and homeowners building credit
Competitive rates and a diverse set of loan terms and products are a rare combo. Fast service simplifies the homebuying process even more.
This mortgage lender is a good fit for: Borrowers who need a low down payment mortgage. New American Funding Mortgage is also a great option for borrowers who prefer to conduct business entirely in Spanish.
In addition to the standard home loan offerings you'd expect, New American Funding also offers several other special types of mortgage loans. These products include:
New American Funding connects first-time home buyers with resources that can help make home ownership a reality. If you want to get a home loan with little or no money down, New American Funding can point you to down payment assistance and grant programs that might be available in your area.
New American Funding can approve borrowers with a debt-to-income ratio of up to 50%, which is higher than some other banks allow.
It's easy to find answers to many initial questions on the New American Funding website. Prominent buttons lead to helpful information about FHA loans, VA loans, cash-out refis and a mortgage calculator. Current mortgage rates are prominently displayed, thanks to a recent website update.
New American Funding places a high priority on providing services in both Spanish and English in order to better serve the Latino community.
One of the most interesting things about New American Funding Mortgage is that it is Hispanic-owned. New American Funding places a special emphasis on serving the Latino community. Many of its customers and employees appreciate the company's focus on diversity and inclusion.
New American Funding does not currently offer either a home equity loan or a home equity line of credit. If you want to tap the equity in your home, you'll need to take a cash-out refinance or specialty loan. That's especially inconvenient for a borrower who wants a HELOC in order to avoid borrowing even one dollar more than they ultimately need.
New American Funding has an online portal where you can start and manage the application process and upload your documents, but underwriting is done by actual humans. Manual underwriting is good for borrowers who need special consideration. But other borrowers prefer a fully digital experience, with more automation and less human interaction.
Axos Bank more readily discloses its mortgage lender fees and promises to waive its origination fee for existing customers who borrow at least $250,000. For smaller loans, Axos offers a $200 lender fee discount. Borrowers who aren't currently customers can still qualify by opening a new account during the application process.
PNC Bank still offers a home equity line of credit (HELOC), unlike many major lenders who have temporarily suspended applications for home equity credit products. Rates are disclosed online without requiring any personal information.
The three main parts of your mortgage loan application are your credit score, down payment, and debt-to-income ratio.
Conventional loans at New American Funding require a FICO® Score of at least 620. You might still qualify even if you are working toward building a higher credit score. If your score is below 620 but above 500, you can apply for an FHA loan.
The down payment requirement varies with the loan type. New American Funding offers many choices for borrowers looking for a low down payment mortgage.
Keep in mind that low down payment loans typically come with higher costs. Advertised mortgage rates are typically reserved for borrowers who have excellent credit and a 20% down payment.
|Loan Type||Down Payment Requirement|
|VA loan||No down payment|
|Conventional 97 loan for first-time homeowners||3% down payment, but money can come from gifts and grants, including homeowner assistance programs|
|FHA loan||3.5% down payment if your credit score is above 580 and 10% if your score is between 500 and 579|
|Regular conventional loan||At least 5% down payment|
The debt-to-income (DTI) ratio is a figure all mortgage lenders look at. It is the sum of all of your required monthly debt payments (including the housing payment on the home you want to buy) expressed as a percentage of your gross (before taxes) income. Only the required minimum monthly payments that appear on your credit report will be used in the calculation. At New American Funding, your DTI should be under 50% (28% without the proposed housing expense).
New American Funding's mortgage rates trend quite a bit lower than the national average. That said, you'll need to pay fees to get those super low rates. When we checked, New American Funding's advertised rates assumed that the borrower would pay 2 mortgage discount points. That means a fee equal to 2% of the loan amount. In other words, if you borrow $300,000, you'll need to pay $6,000 to get New American's lowest rate. That will either be an out-of-pocket cost, or it'll increase the amount of your loan. You can always opt to save the upfront cost and instead pay a higher rate for the life of the loan.
New American Funding's rates trend lower than the national average, but you'll have to pay an upfront fee to get the low rate.
Yes. New American Funding offers competitive pricing on a wide selection of mortgages. Plus, the company has a social conscience. One thing people like about New American Funding is its commitment to serving the Latino community nationwide.
Yes. Unlike some other lenders, New American Funding does not charge a higher rate for refinance loans.
New American Funding will look at your credit score, your loan amount, the amount of your down payment, and how much debt you have in addition to why you want the loan. Then, they'll let you know what mortgage is best for your situation. You'll be eligible for more options if your credit score is at least 620, but you can qualify with a lower score. You'll need a down payment of at least 3% unless you qualify for the zero down VA loan.
New American Funding offers traditional conventional and government-backed loans, plus a few special mortgages that you can't find everywhere:
If you want to uncover more about the best mortgage lenders for low rates and fees, our experts have created a shortlist of the top mortgage companies. Some of our experts have even used these lenders themselves to cut their costs.
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