You’re probably well aware that in order to get a home loan, you need a stellar credit score. That will open up the doors to a home loan at a great interest rate.

If you have bad credit, does that mean that you can’t buy a home? Not at all. One of those lenders is New American Funding. About a third of Americans are considered to have bad credit. That could leave many shut out of the home buying process.

Do you want to know more about New American Funding? Read on for an in-depth New American Funding review.

History of New American Funding

New American Funding is known for growing and growing quickly. The company started in 2003 in Orange County, California. Even though they’re a national company, they still consider themselves to be a family-owned business.


    Our take:Online marketplace to find you a personal loan offer that matches your needsAPPLY NOWCredit ScoreLoan Size/AmountLoan TermAPROrigination FeeAll can apply$100 – $15,0001 – 605.99% – 35.99%Varies by lender

Today, they hold over 122,000 loans at a value of $30 billion. That quite a lot of growth in a short period of time.

Types of Loans Offered

In this New American Funding review, we’ll take a look at the types of loans you can get through New American Funding.

You’ll find plenty of options no matter what your financial situation is. You can get a traditional 30-year fixed rate loan or n adjustable rate loan.

If you don’t have much set aside for a down payment, you shouldn’t fear not being able to buy a home. A first-time homebuyers’ loan or a VA loan can be a big benefit to you. These are loans that are backed by the US government, and they usually have a lower down payment threshold.

One thing to note is that if you have bad credit, you typically want to have a higher down payment. The more you can set aside for a down payment the better. That’s because banks will usually give you a better interest rate.

If you don’t have the down payment available, an FHA or VA loan are good options as long as you qualify.


    Our take:Online marketplace to find you a personal loan offer that matches your needsAPPLY NOWCredit ScoreLoan Size/AmountLoan TermAPROrigination FeeAll can apply$100 – $15,0001 – 605.99% – 35.99%Varies by lender

They also offer the USDA loans, which you may qualify or if you’re buying in a rural area. You can also get a jumbo loan or a reverse mortgage through New American Funding as well.

They go beyond home loans and offer options to refinance or take out a home improvement loan.

Buying a Home with New American Funding

When you’re buying a house, your first step will be to get pre-approved for a home loan. Going into the process of looking at homes is time-consuming, and you don’t want to waste your time looking at homes that are well outside your budget.

Not only that but being preapproved makes the home buying process much easier when you do have a home that you’d like to put an offer on.

When you apply for a home loan with New American Funding, you’ll find that the application process is pretty standard. They require that you present two-years of continuous income, proof in the form of W-2s and pay stubs, the last two years of tax returns, and bank statements.

What if you’re self-employed? You still need to show everything except paystubs or W-2 forms. You’ll need to give profit and loss statements, and up to a year of bank statements in addition to your tax returns and other documentation.

What makes New American Funding so different from the other loan companies is that they’ll lend to people with credit scores as low as 580. That’s pretty impressive. Most lenders won’t go near you if your credit score is below 600.

That little change in credit scores opens up the doors for some many people with bad credit to get a loan. When you look at the average credit scores in the U.S., you’ll find a trend where younger Americans are having a difficult time buying a home because they have lower credit scores.

Working with New American Funding

A lot of your experience with New American Funding will come down to the loan officer you work with. New American Funding has 2,200 employees across 214 branches across the U.S.

Some loan officers will have more experience than others, so you want to make sure that you choose the right one.

For the most part, the team at New American Funding is professional and easy to work with. They are strong communicators who focus on customer service and they get the job done.

Why Your Credit Score Still Matters

Not only is this a New American Funding review, but a quick lesson on how your credit score affects your ability to get a mortgage.

It’s great to know that you have options when it comes to getting a home loan, regardless of your credit score and how much you have as a down payment.

That being said, you still want to position yourself in the best possible light to get the best interest rate and the best deal possible.

When banks lend money, they’re taking on a lot of risk. The more risk they’re taking on, the higher the interest rate you’ll have to pay. When you have good to fair credit, you’re still seen as a potential risk with a higher interest rate.

You have to show the banks that you’re a limited risk to them. That can be by having a larger down payment or by improving your credit score.

New American Funding Review

When you have bad credit, it may seem impossible to get a home loan at an interest rate that you can easily afford. New American Funding makes the dream of homeownership available for everyone, even if you have bad credit.

This New American Funding review has shown that they are a well-known company that has almost 16 years of history. They have many different types of home loan products, including FHA loans.

If you want more information on getting loans with bad credit, read this article that will tell you everything you need to know.

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