At a Glance
Rating Breakdown
About New American Funding
New American Funding (NAF) was founded in 2003 by husband-and-wife team Rick and Patty Arvielo and remains privately held and family-operated. It is one of the largest independent mortgage lenders in the US, having originated over $75 billion in home loans, and is notably one of the few top-20 mortgage lenders that is minority-owned. NAF is a Ginnie Mae issuer and Fannie Mae/Freddie Mac seller-servicer, meaning it has direct access to the secondary market without relying on intermediary aggregators. This direct access gives NAF more flexibility in pricing and product offerings than smaller correspondent lenders. NAF's genuine differentiator is its focus on underserved borrowers and communities that larger lenders often overlook. The company employs bilingual loan officers fluent in Spanish and several other languages, and actively participates in federal, state, and local down payment assistance programs that many online-only lenders do not bother with because the paperwork is complex and margins are thin. NAF's loan officers will manually navigate DPA programs, FHA 203(k) rehab loans, USDA rural loans, and VA combination products that digital lenders automate poorly. The company operates over 200 branch locations, providing face-to-face service that matters for borrowers navigating their first home purchase or complex government loan programs. The tradeoff is that NAF's rates for prime borrowers with straightforward finances are typically not the absolute lowest available. Borrowers with 760+ FICOs, 20% down, and W-2 income will generally find slightly better rates at Better.com (zero fees) or through a mortgage broker shopping wholesale channels. NAF's value proposition is strongest for borrowers who need DPA program expertise, bilingual service, government loan products (FHA, VA, USDA), or in-person guidance through complex situations. It is also one of the few lenders offering reverse mortgages (HECMs), serving an aging-in-place demographic that digital-first lenders ignore entirely.
Key Features
Bilingual Service
Spanish-speaking loan officers and multilingual support available throughout the application process.
Down Payment Assistance
Participation in federal, state, and local down payment assistance and first-time buyer programs.
In-House Servicing
New American Funding services most of its own loans, providing continuity after closing.
How It Works
Apply Online or In Person
Start your application online, by phone, or at one of over 200 branch locations.
Get Pre-Qualified
Receive a pre-qualification letter with estimated rates and loan amounts.
Submit Documentation
Provide income, employment, and asset verification for final underwriting.
Close on Your Home
Complete your closing in person or through a hybrid digital process.
What They Do
- Conventional Mortgages
- FHA Loans
- VA Loans
- USDA Loans
- Jumbo Loans
- Refinancing
- Reverse Mortgages
Debt Types They Take On
- Home Purchase
- Rate-and-Term Refinance
- Cash-Out Refinance
- FHA Streamline
- VA IRRRL
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
First-Time Buyer with Down Payment Assistance
A single mother earning $48,000/year with a 620 credit score and only $3,500 in savings wanted to buy a $235,000 home in a suburban Texas market. Did not have the $8,225 needed for FHA's 3.5% down payment plus approximately $4,000 in closing costs. Had been told by an online lender that she needed at least $12,000 to proceed.
VA Loan for Veteran in Rural Area
A military veteran with a 670 FICO and $72,000 income wanted to purchase a $310,000 home in a rural Virginia community. Applied to Rocket Mortgage for a VA loan but was told the property was in a USDA-eligible area and suggested a USDA loan instead (Rocket does not offer USDA). The veteran preferred VA benefits including no PMI and the VA funding fee reduction for subsequent use.
Pros & Cons
Pros
- Extensive expertise in down payment assistance programs at federal, state, and local levels, actively navigating complex DPA paperwork that most online lenders refuse to handle
- Bilingual loan officers fluent in Spanish and other languages, with culturally informed guidance for first-generation homebuyers navigating the US mortgage system for the first time
- Broadest product range among top lenders including FHA, VA, USDA, jumbo, FHA 203(k) rehab, reverse mortgages, and renovation loans, covering borrower needs that digital-only lenders cannot serve
- Over 200 branch locations providing face-to-face service, which is critical for borrowers with complex situations or limited digital fluency
- In-house servicing on most loans means your servicer after closing is the same company that originated the loan, avoiding the confusion and errors that often accompany servicing transfers
Cons
- Rates for prime borrowers with simple W-2 income and high FICOs are typically 0.125-0.25% above the lowest available from Better.com or mortgage brokers shopping wholesale channels
- Origination fees of 0.5-1.0% apply on most products, adding $2,000-$5,000 to closing costs that zero-fee lenders like Better.com eliminate
- Digital platform is functional but less polished than Rocket Mortgage or Better.com, with some borrowers reporting that document upload and status tracking feel dated compared to fintech competitors
- CFPB complaint volume of 3,600 over three years is moderate, with common complaints about communication delays and escrow management, suggesting operational growing pains as the company has scaled rapidly
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- Annual Percentage Rates (APRs), loan amounts, and terms displayed are estimates based on publicly available information and may vary based on your creditworthiness, income, and other factors. Actual rates, terms, and availability may differ from what is shown here.
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