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New American Funding

Best for Diverse Borrowers

The lender that actually helps first-time buyers navigate down payment assistance programs instead of saying "figure it out"

4.4
(11,300+ reviews)
Michael Chen Written by Michael Chen, CFA, CFP
Rachel Kim Reviewed by Rachel Kim, JD, CRCM
Updated:

At a Glance

Founded
2003
Headquarters
Tustin, CA
Loan Volume
$75B+
APR Range
6.00%-8.75%
Loan Amounts
$50,000-$3M+
Min Credit Score
580

Rating Breakdown

Performance Overview

Scores out of 5, based on our editorial analysis

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

1

Apply Online or In Person

Start your application online, by phone, or at one of over 200 branch locations.

2

Get Pre-Qualified

Receive a pre-qualification letter with estimated rates and loan amounts.

3

Submit Documentation

Provide income, employment, and asset verification for final underwriting.

4

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

Origination Fee
0.5%-1.0% of loan
Application Fee
None
Prepayment Penalty
None
Rate Lock Fee
None

Regulatory & Trust

BBB Rating
A+
CFPB Complaints
3,600 (last 3 years)
Accreditations
NMLS #6606 HUD Approved VA Approved USDA Approved Ginnie Mae Issuer
States Served
All 50 states + DC

Review Summary

4.5
Trustpilot
4.4
Google
11,300+
Total Reviews

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.

NAF's loan officer identified a state housing finance agency DPA program providing $10,000 as a forgivable grant (forgiven after 5 years of occupancy) plus a local employer-assisted housing program contributing $2,500. Combined with her $3,500 in savings, she closed an FHA loan at 6.875% APR with $1,500 out of pocket. Monthly payment including taxes, insurance, and MIP: $1,720. NAF handled all DPA paperwork and coordinated three funding sources, which the online lender had declined to navigate.

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.

NAF processed the VA purchase loan with zero down payment at 6.25% APR. VA funding fee of 1.65% ($5,115) was rolled into the loan, making the total financed amount $315,115. Monthly payment: $1,939 with no PMI (versus approximately $130/month PMI on a conventional loan with zero down). Total savings versus a conventional 5% down loan with PMI: $78,000 over 30 years from the PMI elimination alone. NAF's local branch handled the rural appraisal logistics that delayed other lenders.

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

User Reviews (10)

4.7
10 reviews
5 stars
8
4 stars
1
3 stars
1
2 stars
0
1 star
0
Showing 10 of 10 reviews
I
ITIN borrower
Jan 10, 2026

ITIN mortgage -- NAF is one of the few lenders who does these

Don't have a Social Security Number but have an ITIN (Individual Taxpayer Identification Number). Most lenders require SSN. NAF offers ITIN mortgages for qualified borrowers. Required 20% down and a higher rate (7.5%) but I'm a HOMEOWNER now. 3 years of tax returns, proof of residency, and they worked with it. If you're an ITIN holder looking to buy a home, NAF should be your first call. The options are limited and they're one of the best.

B
Bay Area buyer
Dec 1, 2025

jumbo loan in a HCOL area, NAF was competitive

$780K mortgage in the Bay Area. Jumbo territory. NAF offered 6.6% which was competitive with the big banks. Their jumbo underwriting was thorough but not excessive -- about 30 days from application to close. The advantage over a bank like Chase or Wells Fargo was the dedicated loan officer who was available nights and weekends via text. For a jumbo purchase where the stakes are high, having responsive communication matters.

A
algorithms said no
Oct 15, 2025

manual underwriting approved me when algorithms said no

Self-employed for 3 years, strong income but messy tax returns (lots of deductions). Automated underwriting at Rocket and Better both declined me. NAF has in-house manual underwriters who actually LOOK at your complete financial picture. They reviewed 24 months of bank statements, my P&L, and client contracts. Approved at 6.75% for $340K. The human element in underwriting matters when your financial life doesn't fit neatly into an algorithm.

R
rural buyer
Sep 28, 2025

USDA loan -- NAF actually knew how to process it

Buying in a rural area that qualified for a USDA loan (0% down, no PMI). Three lenders I called didn't do USDA loans or said they "technically" do them but clearly had no experience. NAF processes USDA loans regularly. My loan officer knew the county eligibility maps by heart and walked me through the income limits. Closed in 35 days at 6.1%. USDA loans are fantastic if you qualify but you need a lender who actually processes them routinely.

C
community first
Aug 3, 2025

they actively serve communities other lenders ignore

NAF's marketing isn't just talk. Their loan officer demographics actually reflect the communities they serve -- bilingual staff, cultural understanding, familiarity with non-traditional income documentation. As a first-generation homebuyer from a family with zero real estate experience, having a loan officer who understood my background and didn't make assumptions was invaluable. Rate was competitive at 6.39%, closed in 25 days.

1
1% down
Jun 22, 2025

their DPA program got me into a house with 1% down

NAF offers down payment assistance programs in many states. I qualified for a program that covered most of my down payment on a $275K home. Total out of pocket was about $2,700 instead of $13,750 (5%). The DPA came as a forgivable second lien that goes away after 3 years. Most lenders don't even mention DPA programs. NAF proactively brought it up during my application. Made homeownership possible 2 years earlier than I planned.

M
mi familia
May 28, 2025

entire mortgage process in Spanish -- my parents could finally understand

My parents are native Spanish speakers. Every other lender we tried had English-only documents and maybe one bilingual rep. New American Funding provided the entire process in Spanish -- application, disclosures, closing docs, customer service. My mom could actually read and understand what she was signing for the first time in 30 years of living in the US. This isn't a nice-to-have, it's critically important for a huge segment of borrowers. NAF gets this right.

B
best loan officer
Apr 14, 2025

best loan officer communication I've experienced

My loan officer texted me updates every other day. Not automated messages -- actual personal updates about where my file was, what was needed next, and estimated timeline. Compare that to Better.com where I was a ticket number in a queue. The rate was slightly higher (6.45% vs maybe 6.2% at Better) but the stress reduction from knowing exactly what was happening at every stage was worth the difference. Not everyone needs the cheapest rate. Some of us need the best experience.

Q
quick refi
Feb 12, 2025

FHA Streamline refi done in 10 days

Already had an FHA loan and rates dropped. NAF's FHA Streamline process was incredibly fast -- no appraisal needed, minimal documentation, closed in 10 days. Went from 7.0% to 5.99%. Monthly savings of $225 on a $260K loan. If you have an existing FHA loan and rates improve, FHA Streamline is the fastest refi possible and NAF processes them extremely efficiently.

P
paid a little more
Sep 18, 2024

paid about 0.25% more than the absolute cheapest option

NAF quoted 6.5% when Better.com was at 6.25% and my credit union was at 6.35%. NAF's rate was the highest of my three quotes. The service was noticeably better -- responsive loan officer, clear communication, proactive updates. But 0.25% on a $350K loan is $50/month or $18K over 30 years. You're paying a premium for the service experience. Whether that's worth it depends on how much you value hand-holding vs savings.

Write a Review

Frequently Asked Questions

NAF participates in hundreds of DPA programs nationwide. These programs are run by state housing finance agencies, county governments, and nonprofit organizations. They provide funds as grants (free money), forgivable loans (forgiven after 5-10 years of occupancy), or low-interest second mortgages. NAF's loan officers are trained to identify which programs a borrower qualifies for based on income, location, first-time buyer status, and profession. Some programs stack, meaning you can combine a state grant with a local employer program. NAF handles all the paperwork and coordination, which is the main barrier at other lenders who technically accept DPA but do not actively help borrowers find and apply for programs.
Probably not the best choice for your profile. With a 750+ FICO and 20% down, you are a low-risk borrower that every lender wants. You will get the best rate by shopping aggressively: get a quote from Better.com (zero fees), Rocket Mortgage (strong technology), and a local mortgage broker who can access wholesale rates. NAF's strength is in serving borrowers who need specialized products, DPA expertise, bilingual service, or in-person guidance. For straightforward prime borrowers, NAF's rates and fees are competitive but not typically the lowest.
Yes, NAF is one of few top-20 lenders offering USDA Rural Development loans. USDA loans require zero down payment with no PMI (replaced by a guarantee fee of 1.0% upfront and 0.35% annually). The property must be in a USDA-eligible rural area (which includes many suburbs and small cities), and household income cannot exceed 115% of the area median income. The minimum credit score is generally 640 for automated underwriting. USDA loans are excellent for eligible borrowers but are slow to process (45-60 days is common) due to USDA's own review requirements on top of the lender's underwriting.
NAF offers full-service loan origination in Spanish, with bilingual loan officers, Spanish-language documents, and Spanish customer support available throughout the entire process from application through closing. Limited support is available in additional languages including Mandarin, Vietnamese, Korean, and Tagalog depending on branch location. The company also provides translated educational materials for first-time homebuyers. For borrowers whose primary language is not English, the ability to discuss complex financial terms in their native language significantly reduces the risk of misunderstanding loan terms.
NAF services the majority of loans it originates, meaning you continue making payments to NAF after closing. However, the underlying loan is typically sold to Fannie Mae, Freddie Mac, or Ginnie Mae on the secondary market, which is standard industry practice. What matters to you as a borrower is who services the loan (collects payments, manages escrow, handles customer service), and that remains NAF in most cases. Some loans, particularly jumbo or non-conforming products, may have servicing transferred. Your loan documents will specify whether servicing may be transferred.

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Last Updated
Fact-Checked
March 5, 2026