At a Glance

New American Funding (NAF) is a California-based direct mortgage provider. The lender offers a broad range of home loans, including a home equity line of credit (HELOC) that lets you borrow up to $400,000.

The HELOC from NAF is available for both primary and secondary homes and for various property types, like single-family homes, condos, and townhouses. You can apply online in minutes and receive funds in as few as 5 days if approved.

Key Figures

Loan types: Purchase, refinance, home equity

Loan products: Fixed-rate HELOCs with adjustable-rate terms for additional draws

Minimum credit score: 620

Repayment terms: Up to 20 years

With NAF, you can access a home equity loan of up to $400,000, depending on the current value of your home and the equity amount you’ve built. The online application process is seamless and quick, taking only a few minutes.

One downside, however, is that you need to withdraw all your funds at origination. So, if you prefer to access funds in installments rather than all at once, NAF might not be a good fit. Another drawback is that rates are only available after you complete a questionnaire.

How it works

You can apply for home equity products on NAF’s dedicated HELOC website. Start by clicking on the “Find my rate” button on the Homepage to see what rate and terms you can get.

You’ll need to provide some personal and financial information, including the type of property, address and occupancy, whether it's for sale, your total income, and your name, birthdate, and contact info. This step involves a soft credit pull that doesn’t affect your credit score.

If you’re happy with the offered rate and terms, the next step is to submit a formal application.

During this stage, you’ll need to provide proof of identity and income documentation, such as a passport or driver’s license, bank statements, and pay stubs. You might also be asked for a property condition report to confirm your home’s current physical status.

Have these documents on hand to speed up the process. Also keep in mind that this time the lender will conduct a hard credit inquiry, which might affect your credit score.

If all documentation is in order, you could get approved in as few as 5 minutes. Funding typically occurs within 5 days.

Loan Types

NAF offers home equity loans for various purposes, including debt consolidation, making home improvements, financing education, paying off medical bills, and many more.

The lender requires you to withdraw your full loan amount (minus origination fees) during closing. However, as you repay your balance, you can make additional draws within the allowed period, up to the original loan amount.

Besides HELOCs, NAF offers 2 other products that help you tap into your home equity. These are:

• Cash-out refinance: With this product, you take out a new larger mortgage, use it to pay off the balance on your current one, and then pocket the difference.

• Reverse mortgage: These are available exclusively to older homeowners (62 years and above), allowing you to convert a portion of your home equity into loan proceeds that you can then use as you please. Unlike HELOCs and cash-out refinance, there are no monthly repayments. The loan is repaid when you move out or pass away.

If your goal is to purchase a new home rather than access equity, NAF also has you covered through the following products:

• Conventional loans
• Jumbo loans
• Federal Housing Administration (FHA) loans
• Veteran Administration (VA) loans
• United States Department of Agriculture (USDA) mortgages
• Buydown mortgages
• Non-qualified mortgages
• Interest-only mortgages
• Adjustable-rate mortgages (ARMs)
• Fixed-rate loans
• I CAN mortgages

Loan Features

Various property types: NAF’s home equity loans are available for a wide variety of properties, including single-family homes, townhouses, and condos.

Flexibility: NAF provides plenty of options and flexibility. For example, unlike a lot of lenders, its home equity products are available not just for primary residences but also for second homes.

Access to experts: NAF offers access to licensed loan officers and experts who can provide you with more information about home equity products and help you determine what’s the right option for you.

Online knowledge center: This features a large collection of blog articles on home-buying and mortgage-related topics, such as the difference between HELOCs and home equity loans.

Free calculators: The NAF website has several tools to help you make sense of your home-buying budget and monthly payments. These include calculators for refinance, affordability, and amortization.

Rates and Terms

NAF’s HELOCs have draw periods of 5-10 years and repayment terms of 10-20 years.

The initial funded amount will have a fixed rate that varies depending on your loan-to-value (LTV) ratio. Typically, the higher the LTV, the higher your rate will be.

Meanwhile, additional draws will have an adjustable rate that's based on current market borrowing rates plus a fixed margin. So, the rate for these extra draws might be higher than that of the initial one.

Summary

If you’ve built some equity in your home and are looking to access it through a loan, New American Funding might be worth a look. You can borrow up to $400,000 with repayment terms of up to 20 years. You could potentially get approved in as few as 5 minutes and receive your money in 5 days. Loans are available for both owner-occupied and secondary homes and for various types of properties, including single-family homes, townhouses, and condos.

Contact New American Funding

New American Funding offers customer support for its home equity products via email (loans@newamericanfundingheloc.com) and phone (888-964-7404), Monday-Sunday, 6am-5pm (PT). You can also get in-person support at more than 150 physical branches across the US. A complete list of branches is available on the lender’s main website.

The Better Business Bureau gives New American Funding an A rating. On Trustpilot, the lender boasts a respectable score of 4.2 stars out of 5, with particular praise for its customer service.