New American Funding Mortgage Review 2020

New American Funding mortgage rates

ProductInterest RateAPR
30-year fixed rate2.750%2.940%
15-year fixed rate2.250%2.610%
FHA 30-year fixed rate2.750%3.620%

*Rates assume a 740 credit score. 

New American Funding has one of the largest selections of different mortgage loans in the industry, including reverse mortgages and interest-only mortgages. It’s a non-bank lender that offers loan products that are usually exclusive to banks, such as home equity loans. Though not as much of an established household name, New American Funding has options for a wide range of borrowers. 

Why it might pique your interest

New American Funding serves all U.S. states except Hawaii and New York. It provides a lot of information online that other lenders will only share if a potential borrower prequalifies, such as the minimum credit score it requires. New American Funding gets top marks for transparency, stating that it accepts credit scores 500 and up for an FHA loan, with a 620 credit score being the minimum requirement for most conventional loans.  

New American Funding offers reverse mortgages and interest-only mortgages, which are not usually an option at competing lenders. Reverse mortgages allow borrowers to refinance for cash if they’re over 62.  Interest-only mortgages allow borrowers to only pay interest on the loan for a certain period of time. In addition to its more uncommon mortgage products, New American funding provides all three government-backed loans and its own I CAN mortgage. 

The I CAN mortgage offers a flexible term length that the borrower can set, which can be anywhere between 8 to 30 years, and borrowers will have the option to refinance at a lower rate at any point during the life of their loan without resetting the clock. This mortgage is unique not only because of the flexible term, but the flexibility overall: the lender will work with your budget and financial goals, and they will accept credit scores as low as 620 in some cases.

New American Funding overview

Loan options:

  • 30-year fixed
  • 15-year fixed
  • ARM
  • FHA 
  • VA
  • USDA
  • Jumbo loan 
  • I CAN mortgage (unique to this lender)
  • Reverse mortgage
  • Interest-only
  • Non-QM

Pros and cons


  • Wide variety of mortgage products to choose from, including reverse mortgages
  • A non-bank lender that provides HELOC. 
  • Transparent site allows you to review rates and loan terms before committing 


  • Doesn’t have the same established reputation as some other larger lenders 
  • Not available for New York or Hawaii residents

The final word 

New American Funding is worth considering if you’re looking for a hard-to-find type of mortgage, especially a reverse mortgage. In addition to its offerings for government-backed loans, it offers the I CAN fixed-rate mortgage that offers a custom term length. These mortgage options make New American Funding a comparable alternative to bank lenders. 

The downside is that loans from this lender are not available in all states, and it has less of an established reputation compared to more prominent bank lenders. However, it’s transparent in its online presence and offers a wide variety of mortgage options, which makes New American Funding worth a look for potential borrowers. 


Is New American Funding good for mortgages?

New American Funding is a good choice for those with poor credit, however conventional mortgages still require a 620 credit score. The company offers a wide variety of mortgage options, including no-money down mortgages, low down payment mortgages, adjustable and fixed-rate mortgages. The Better Business Bureau rating for the company is A+ and it has been BBB accredited since 2004. BBB accreditation means the lender has made “a commitment to make a good faith effort to resolve any consumer complaints.” In 2020 the company funded nearly $1 billion a month in home loans and was servicing a portfolio of over 137,000 homes valued at over $33 billion.

Is New American Funding a bank?

New American Funding is not a bank, it is a family-owned independent mortgage lender that was founded in 2003 by husband and wife Rick and Patricia Arvielo. The lender does all of their mortgages with manual underwriting, which makes them a better choice than a bank for those with non-traditional credit or income. Manual underwriting means New American Funding looks at the complete financial picture, not only the borrowers’ residential mortgage credit report. Aside from that it offers many of the same mortgage products as banks, and has a similar fee structure and interest rates.

Who owns New American Funding?

New American Funding is a family-owned independent mortgage lender founded in 2003 by Rick Arvielo and Patricia Arvielo. The business began as a 40-person call center and in 17 years has grown to be a mortgage industry leader, employing roughly 3,600 people in over 200 branches across the U.S. As of 2020 the lender has a servicing portfolio of 137,000 loans worth $33.6 billion and operates both a lending division and a loan-servicing unit.

Rayna Perry

Personal Finance Copywriter

Rayna Perry is a Personal Finance Copywriter at and a Public Relations major at the University of Georgia. When not writing about personal finance, she is usually watching a great movie or creating a new playlist.