Lender review
New American Funding review: what Michigan borrowers should know
New American Funding is a large family-owned lender with dedicated Michigan FHA, VA, and USDA loan pages and a well-known focus on underserved and lower-credit buyers, including manual underwriting and its I CAN customizable-term loan. It's a strong fit for borrowers big banks turn away, though rates require a conversation and servicing can move.
Best for: underserved and lower-credit borrowers wanting flexible underwriting
- Headquarters
- Tustin, CA
- Founded
- 2003
- NMLS
- #6606
- Min. credit score
- 580
- Min. down payment
- 3%
- MSHDA MI Home Loan
- Approved lender
What works
- Flexible underwriting and low 580 FHA credit floor
- Full product set with dedicated Michigan loan programs
- I CAN loan lets borrowers pick a custom loan term
What to watch
- Rates and fees are loan-officer-dependent, not posted
- Servicing may be transferred after closing
- Volume-driven model can mean uneven service quality
The full picture on New American Funding
Family ownership sets the tone here. New American Funding grew out of Tustin, California in 2003 and built a reputation around borrowers the big banks quietly decline.
Flexible underwriting for thin files
It publishes dedicated Michigan pages for FHA, VA, and USDA, and for a buyer with a thin credit file it will underwrite manually and accept FHA scores down to 580.
Caveats of a high-volume shop
You won't find rates posted online, so pricing depends on which loan officer picks up, and service quality can swing from excellent to uneven.
Your loan may also change hands to a new servicer after closing, which surprises some first-time owners.
Loan programs at New American Funding
Which core Michigan loan types New American Funding offers, with the typical minimum down payment for each program. Program floors are industry standards — New American Funding's own minimums or credit overlays may run higher.
| Loan program | Offered | Typical min. down |
|---|---|---|
| Conventional | ✓ Yes | 3% |
| FHA | ✓ Yes | 3.5% |
| VA | ✓ Yes | 0% |
| USDA | ✓ Yes | 0% |
| Jumbo | ✓ Yes | 10–20% |
| Construction | — No | — |
Where New American Funding's credit bar sits
New American Funding's roughly 580 minimum sits in the fair credit range. Below, that 580 floor is plotted against the four broad credit tiers and the 620 median for the 55 Michigan lenders we track.
| New American Funding | Michigan median* | |
|---|---|---|
| Editorial score | 4.0 / 5 | 4.0 / 5 |
| Min. credit score | 580 | 620 |
| Loan programs offered | 5 | 5 |
| Michigan-headquartered | No | — |
*Median across the 55 Michigan lenders in our catalog.
Compare: AmeriSave Mortgage Cardinal Financial Freedom Mortgage This week's Michigan rates
New American Funding: frequently asked questions
What credit score do you need for a New American Funding mortgage?
New American Funding generally looks for a credit score around 580 on its most common loans. Its FHA loans can go lower — often to 580, or 500 with a larger down payment — while conventional and jumbo loans usually want higher scores. That 580 is a floor, not a promise: every lender layers on its own overlays, and approval still turns on your income, debts and the property.
Will New American Funding sell my mortgage after closing?
Possibly. Borrowers report that New American Funding frequently transfers servicing after closing, so the company you pay may change even though your loan terms don't. That's common industry-wide, but if keeping one servicer matters to you, ask before you lock.
Independent and unpaid — New American Funding did not pay for placement. How we score every lender (and where our rate data comes from) is set out in our editorial policy. Figures reflect public information as of 2026-07-16 and can change; the only rate that binds a lender is a written Loan Estimate. Verify the license at NMLS Consumer Access (#6606). MSHDA status reflects the state's MI Home Loan lending-partners list dated June 12, 2026, which changes over time.