When it comes time to get a mortgage, you want to make sure you choose the right lender. Two popular options are AmeriSave Mortgage and New American Funding. But how do you decide which one is the better fit for your needs?
In this comprehensive guide, we’ll compare and contrast AmeriSave and New American Funding across a variety of factors. Read on to learn the key differences between these two lenders so you can make an informed decision.
A Brief Comparison Table
| Category | AmeriSave Mortgage | New American Funding |
| Years in Business | 23 years since 1999 | 19 years since 2003 |
| Loan Types | Conventional, FHA, VA, USDA, Jumbo | Conventional, FHA, VA, USDA, Jumbo |
| Loan Terms | 15, 20, 30 years | 15, 20, 30 years |
| Rates and Fees | Competitive rates, origination fee of 1%, closing costs $3K-$5K | No published rates, origination fee 0.5%-1.5%, closing costs $2.5K-$4.5K |
| Loan Process | 15-day closing guarantee, pre-approval in 24 hrs | 18-day closing guarantee, pre-approval in 24-48 hrs |
| Customer Service | 24/7 support, 4.7/5 rating | 7 days/week support, 4.1/5 rating |
| Licensing | Licensed in all 50 states | Licensed in 49 states |
| Refinancing | No appraisal or waiting period required | Appraisal required, 6 month waiting period |
| First Time Buyers | 97% LTV conventional, 3.5% down FHA | 97% LTV conventional, 3.5% down FHA |
Overview of AmeriSave Mortgage
Founded in 1999, AmeriSave Mortgage Corporation is a privately held mortgage lender based in Atlanta, Georgia. They are licensed to lend in all 50 states and specialize in a wide array of mortgage programs including conventional, FHA, VA, and USDA home loans.
Some key highlights about AmeriSave Mortgage:
- Offers competitive interest rates and low closing costs
- Has over 500 dedicated mortgage professionals
- Closes $12 billion in home loans annually
- Ranks among top 20 retail mortgage lenders in America
- Known for great customer service and fast loan processing
- Accredited by the Better Business Bureau with A+ rating
Overall, AmeriSave Mortgage is a large, established lender with lots of experience in the mortgage industry. They have a strong reputation for good rates, low fees, and helpful customer support.
Overview of New American Funding
Founded in 2003, New American Funding is a privately held mortgage lender headquartered in Tustin, California. They offer mortgages in all 50 states and are a leading direct-to-consumer lender.
Here are some key details about New American Funding:
- Offers extensive selection of loan programs
- More than 130 branch locations nationwide
- Closes over $30 billion in home loans annually
- Ranks among top 15 retail mortgage lenders
- Accredited by the Better Business Bureau with A+ rating
- Known for technology innovations and fast turnaround
- Strong focus on customer satisfaction
In summary, New American Funding is a large and growing lender with a focus on technology, convenience, and customer service. They have an impressive loan volume and nationwide presence.
Also Read: Choose Between Triad Financial And 21st Mortgage.
Key Differences Between AmeriSave Mortgage And New American Funding
- Loan Types Offered
One of the first factors to compare is the types of mortgage loans offered by each lender.
AmeriSave Mortgage offers:
- Conventional loans
- FHA loans
- VA loans
- USDA loans
- Jumbo loans
- Refinancing options
They provide a full suite of popular mortgage loan programs to choose from. AmeriSave has extensive experience with conventional mortgages in particular.
New American Funding offers:
- Conventional loans
- FHA loans
- VA loans
- USDA loans
- Jumbo loans
- Refinancing options
New American Funding also provides all the standard mortgage loan types. Their website touts expertise in FHA financing and down payment assistance programs.
When it comes to mortgage loan variety, AmeriSave and New American Funding are very similar. They both offer the core loan programs used by most home buyers.
- Mortgage Rates and Fees
Two primary factors that borrowers compare are interest rates and fees/costs. Let’s see how AmeriSave and New American Funding stack up.
AmeriSave Mortgage
- Displays daily rate quotes on website
- Emphasizes low rates and fees as advantage
- Closing costs average $3,000 to $5,000
- Origination fee of 1% of loan amount
- Discount points available for lower rate
New American Funding
- Does not publish rates publicly
- Loans issued at competitive market rates
- Closing costs usually between $2,500 and $4,500
- Origination fee of 0.5% to 1.5% of loan amount
- Discount points offered for rate reduction
Based on these details, both lenders offer competitive pricing that is in line with industry averages. New American Funding advertises slightly lower origination fees and closing costs. But AmeriSave provides more rate transparency upfront on their website.
To get an accurate rate quote, you would need to complete a full application with both lenders. Overall pricing is similar, but New American Funding may have a slight edge in lower fees.
- Loan Process and Turnaround Time
How quickly can you close on your mortgage loan? The loan process and turnaround time is another important consideration.
AmeriSave Mortgage
- 15-day loan closing guarantee
- Streamlined online application
- In-house underwriting and processing
- Pre-approvals in 24 hours
- Refinancing in as fast as 15 days
New American Funding
- 18-day closing guarantee on purchases
- Digital mortgage process
- In-house underwriting
- Pre-approvals in 24-48 hours
- Refinancing in as fast as 21 days
Both lenders promote fast turnaround times and have in-house teams to speed up the process. AmeriSave guarantees 15-day closings on purchases while New American Funding guarantees 18-day closings. For refinancing, AmeriSave claims they can close loans in as fast as 15 days compared to 21 days for New American Funding.
Based on these published timelines, AmeriSave appears to have a slight edge in faster loan processing and closings. But both lenders can provide relatively quick financing.
- Customer Service and Reviews
Mortgage lenders live and die by their customer service. How do AmeriSave and New American Funding compare when it comes to support, reviews and complaints?
AmeriSave Mortgage
- 24/7 customer service via phone, email and live chat
- Mobile app for managing mortgage account
- 4.7 out of 5 rating on LendingTree reviews
- Over 85% recommend AmeriSave on GuildQuality
- Few public complaints found on CFPB database
New American Funding
- Customer service reps available 7 days per week
- Online portal to track loan status
- 4.1 out of 5 rating on LendingTree
- 78% recommend New American Funding on GuildQuality
- Moderate complaints on CFPB site
Both lenders provide solid customer service options and have reasonable satisfaction ratings on third-party review sites. AmeriSave appears to have a slight edge in customer satisfaction based on higher ratings and fewer public complaints. But many borrowers are happy with both companies.
Also Read: Comparison Amerisave And Rocket Mortgage
- Licensing and Accreditation
It’s essential to check that any lender you consider is properly licensed and accredited. This helps ensure they meet high standards in their industry.
AmeriSave Mortgage is:
- Licensed in all 50 states
- Accredited by the Better Business Bureau with A+ rating
- Has not been involved in any major public scandals
New American Funding is:
- Licensed in 49 states except New York
- Accredited by the Better Business Bureau with A+ rating
- Had 2015 lawsuit regarding employee overtime pay
AmeriSave and New American Funding both hold licenses nationwide and have excellent BBB accreditation. AmeriSave comes across as the more controversy-free option, while New American Funding faced some past litigation regarding employment practices. Still, both are accredited lenders in good standing.
- Refinancing Policies
Refinancing an existing mortgage can help borrowers reduce their rate and monthly payments. Here is how AmeriSave and New American Funding handle refinancing:
AmeriSave Mortgage
- Offers streamlined online refinance process
- Rate/term refinancing has no appraisal required
- Cash-out refinancing available up to 80% LTV
- No restrictions on when or how often you can refinance
New American Funding
- Has designated loan officers for refinancing
- Requires appraisal for all refinance programs
- Cash-out refinancing up to 75% LTV
- Must wait 6 months to refinance an existing loan
For borrowers focused on refinancing, AmeriSave appears to offer more flexibility. They do not require an appraisal for simple rate/term refis and they have no limits on how often you refinance. New American Funding restricts cash-out amounts and requires a waiting period before refinancing.
- First Time Home Buyer Programs
For first time home buyers, getting into a mortgage can be tough due to lack of credit history and down payment funds. But both of these lenders offer some programs targeted at first time buyers.
AmeriSave Mortgage
- Offers conventional 97% LTV programs with 3% down
- FHA loans only need 3.5% down payment
- Can use gift funds from family toward down payment
- Rate slightly higher than with 20% down
New American Funding
- Conventional 97% LTV mortgages offered
- FHA loans require just 3.5% down
- Can use gifts for some down payment costs
- First time buyer rate premiums common
The FHA loan program is a popular option that allows down payments as low as 3.5% for qualified applicants. Both lenders permit using gift money from family toward the down payment.
Overall, the first time buyer programs are very similar between the two mortgage companies. There are options available even with minimal funds saved up for a down payment.
Watch this review video:
Who Gets the Best Rates?
To get a mortgage with the lowest interest rate, you’ll need to have an excellent credit profile and history. Here are some key rate guidelines for AmeriSave and New American Funding:
AmeriSave Mortgage
- Minimum 620 credit score
- Preferred rates above 680 credit score
- Must have 2 years of employment history
- Debt-to-income ratio below 50%
New American Funding
- Minimum 620 credit score
- Preferred rates with 680+ credit score
- At least 2 years on the job
- Debt-to-income ratio of 45% or lower
The credit score requirements are essentially identical between the two lenders. To qualify for their advertised Excellent or Preferred rates, you’ll need a score of around 680 or higher. Stable employment history and low debt ratios are also required. Overall credit guidelines are typical and on par with industry norms.
AmeriSave Mortgage Pros
- Strong reputation with over 20 years of experience
- Competitive rates and reasonable fees
- Fast loan closings in 15 days or less
- Positive customer reviews and service quality
- Streamlined refinancing process
- No restrictions on refinancing existing loans
- Licensed in all 50 states
AmeriSave Mortgage Cons
- Applications only accepted online
- No physical branch locations for in-person support
- Slightly higher origination fees than competitors
- Not available for lending in New York state
New American Funding Pros
- Established lender with 19+ years in business
- Low origination fees starting at 0.5%
- 18-day closing timeline guarantee
- Extensive branch network for support
- Down payment assistance programs available
- Licensed in 49 states nationwide
New American Funding Cons
- Rates not disclosed publicly online
- Mixed customer reviews and complaints
- Refinancing requires waiting period
- Past litigation over employee compensation
Also Read: Comparison Between 21st Mortgage And Vanderbilt Mortgage
Frequently Asked Questions (FAQs)
Yes, AmeriSave Mortgage is a reputable company. They are a large, established lender that has been in business since 1999. AmeriSave is properly licensed and accredited with an A+ rating from the Better Business Bureau. They have a good reputation based on customer reviews and minimal public scandals or controversies.
AmeriSave can be a good mortgage lender option for many borrowers. They offer competitive rates, low fees, and great customer service. Their fast loan closing timelines are a major advantage. AmeriSave also makes it easy to refinance and has helpful programs for first time home buyers. Downsides are the lack of physical branches and higher origination fees.
New American Funding is a large retail mortgage lender that offers a variety of home loan programs nationwide. They are known for low rates, innovative technology, and excellent customer service. New American Funding provides the full suite of mortgage options including conventional, FHA, VA and USDA loans. They also assist first time buyers and have down payment assistance programs.
New American Funding is privately owned by a group of co-founders including CEO Rick Arvielo. It is not publicly traded. The company’s management team has decades of experience in the mortgage industry. New American Funding was founded in California in 2003 and remains headquartered there today.
The Bottom Line
When reviewing AmeriSave Mortgage vs. New American Funding, both provide solid options for prospective home buyers and homeowners looking to refinance. They offer similar mortgage rates and programs.
Some key differences are that AmeriSave boasts faster closing times, easier refinancing, and better customer satisfaction based on reviews. But New American Funding touts slightly lower fees and more physical branch locations.
For the best deal, get rate quotes from both lenders. Compare the specifics on programs, pricing, and timelines. This will determine which lender is the right fit for your unique home financing needs and preferences. With the information provided in this guide, you can make an informed choice between AmeriSave and New American Funding.