New American Funding Review

About New American Funding Home Equity Loans

New American Funding, based in Orange County, California, has been a prominent mortgage lender for two decades. Throughout its history, the company has taken a lead role in launching initiatives aimed at assisting underserved communities, with a particular focus on Black, Latinx, and veteran homebuyers. In addition to providing purchase loans and refinancing options, this lender extends home equity lines of credit (HELOCs) to homeowners in the majority of states.

Loan Products

New American Funding extends HELOC services to borrowers in most states, with the exception of Delaware, Hawaii, Kentucky, Maryland, New York, South Carolina, Texas, and West Virginia. The maximum amount you can access via their line of credit is contingent upon your home’s value and the amount of equity you possess, reaching as high as $400,000. It’s worth noting that, unlike certain other HELOC lenders, you are obligated to withdraw the entire amount upfront, with the option to make additional draws as you repay the loan. The repayment period can extend for up to 20 years following the initial draw period.

When you opt for a New American Funding HELOC, you’ll benefit from a fixed interest rate on the initial draw, providing you with stability and predictability during this period. However, if you decide to borrow additional funds throughout the draw period, your interest rate will be determined by the current market rate, which could potentially be higher than your initial rate. The most competitive HELOC rates are typically offered to highly qualified borrowers who choose to set up automatic payments.

Qualification Requirements

New American Funding exclusively provides HELOCs for your primary residence. To qualify for a HELOC with this lender, certain prerequisites must be met, including:

• A minimum credit score of 620.
• A requirement of 15 percent to 20 percent equity in your home.
• A maximum debt-to-income ratio of 43%.
• Adequate income and compliance with other eligibility criteria, including the necessity of having homeowners insurance.

To apply for a New American Funding HELOC, you can visit the lender’s dedicated HELOC website. They offer the convenience of linking your accounts during the online application process, which can expedite the application. If you prefer to contact New American Funding by phone, you can reach them at 888-964-7404, available Monday through Saturday from 9 a.m. to 8 p.m. Eastern Time.

Terms, Fees, and Other Conditions

New American Funding does not provide specific details about loan fees, and the terms and conditions can differ depending on the type of loan. To obtain comprehensive information on a loan’s estimated annual percentage rate and fees, borrowers will need to request a quote directly from the lender.

Customer Support

For inquiries or assistance, you can contact New American Funding’s customer service using the following information:

• Phone: Reach out at 800-450-2010, extension 7100. Customer service hours are from 8 a.m. to 5 p.m. Pacific Time.
• Email: You can also contact them via email at customerservice@nafinc.com.
• Payment Mailing Address: If you need to mail a payment, the address is P.O. Box 650076, Dallas, TX 75265-0076.

Additionally, New American Funding has branches located in 33 states, offering in-person assistance and support for borrowers.

Final Thoughts

New American Funding stands out with some of the most competitive mortgage rates among the lenders we evaluated, making it a top scorer in the affordability category. This is especially significant for homeowners interested in refinancing, as many seek to lower their interest rates when doing so.

The lender provides a diverse range of refinancing choices, encompassing rate and term refinancing, cash-out refinancing, cash-in refinancing, and even home equity lines of credit, offering homeowners a variety of options to meet their financial needs.