New American Funding Home Equity Review: An Accessible HELOC Option But Lacks Transparency

4.1 _/5

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Home Equity Line of Credit

• View your prequalified rate with a soft credit check
• Excellent customer service
• Accessible to credit applicants as low as 620
• Approval in 5 minutes
• Funding in as a little as 5 days
• Option to redraw 100% over draw period
• All-online application, including notary
• Fixed rates

• Not available in Hawaii, New York, or West Virginia
• Lacks transparency on HELOC details on website
• Some have said customer service is worse after loan approval
• Full loan amount must be drawn at origination

Rates (APR)	Not disclosed
Loan amounts	Up to $400,000
Fees	4.99% origination fee
Min. credit score	620

New American Funding offers a fixed-rate HELOC with fast approvals, a fully digital application, and accessibility for borrowers with credit scores as low as 620. It allows secondary and investment properties, making it a more flexible option than some competitors.

However, New American Funding lacks transparency on key details like interest rates, appraisal costs, and repayment terms. It also requires borrowers to take 100% of the loan amount upfront and charges a 4.99% origination fee, which some lenders don’t. While it’s a solid choice for fair-credit borrowers, those seeking more flexibility or clearer terms may find better options elsewhere.

Table of Contents

1. How does the New American Funding home equity line of credit work?
2. New American Funding HELOC requirements
3. How long does it take to get a HELOC from New American Funding?
4. New American Funding HELOC pros and cons
5. New American Funding alternatives

How does the New American Funding home equity line of credit work?

New American Funding’s HELOC stands out for its fixed-rate structure—but with a twist. Unlike a traditional HELOC where you borrow as needed, this one requires you to take the full loan amount upfront. That initial draw gets a fixed rate, giving you stability from the start.

But here’s where it gets different: As you pay down the balance, you can take additional draws. Each new draw locks in a fresh fixed rate based on the Prime Rate at that time, plus a margin. This setup is similar to Figure’s fixed-rate HELOC, but it’s still not the industry norm. Most HELOCs have variable rates that change over time.

Example

Let’s say you take an initial draw of $100,000 at 7.5% APR. A year later, you borrow an extra $50,000, but the Prime Rate has gone up. Your new draw might be locked in at 9% APR. Now, you have two separate balances—one at 7.5% and one at 9%—each keeping its fixed rate for the life of the loan.

Another feature to consider: You can choose a draw period, typically between two and five years. A shorter draw period makes sense if you’re confident you’ll only need a HELOC for a short-term goal—like funding a renovation and paying it off quickly. A longer draw period gives you more flexibility, but it also extends your repayment timeline.

New American Funding charges a 4.99% origination fee—not unheard of for a fixed-rate HELOC, but it’s still a hefty upfront cost. Figure and Aven also charge origination fees, while some lenders, like Bethpage Federal Credit Union and Navy Federal Credit Union, don’t. It’s another trade-off for rate predictability.

New American Funding also doesn’t disclose appraisal costs. Here is a closer look at the details.

Term	Detail
Rates (APR)	Fixed at origination; future draws are fixed based on Prime Rate plus margin; exact rates undisclosed
Loan amounts	Up to $400,000
Draw period	2 – 5 years
Repayment period	Varies based on draw period
Fees	4.99% origination fee
Discounts	0.25% for autopay

So, is this HELOC right for you? If you value fixed rates and don’t mind withdrawing your full loan amount upfront, New American Funding is worth considering. But if you want to borrow on a rolling basis without a big origination fee, you might be better off with a more traditional HELOC.

New American Funding HELOC requirements

New American Funding’s HELOC has eligibility requirements that make it accessible to a broad range of borrowers while still following industry norms. The minimum credit score of 620 is slightly lower than what many lenders require, and it allows financing for secondary and investment properties, which isn’t always the case with HELOCs.

Here are New American Funding’s key requirements at a glance:

Requirement	Details
Min. credit score	620
Min. income	Varies
Max. LTV	80% (may allow more based on qualifications)
Max. DTI	Typically 43%, but up to 50% in some cases
State eligibility	Not available in Hawaii, New York, or West Virginia
Home types	Primary, secondary, and investment properties (single-family, condos, townhomes)
Property value	Must meet minimum equity thresholds
Employment status	Verification required

NAF’s credit score requirement of 620 makes its HELOC slightly more accessible than lenders that require 640 or higher. That’s a plus for borrowers with fair credit.

The maximum loan-to-value (LTV) ratio is 80%, meaning you can borrow up to 80% of your home’s value, including your existing mortgage. Some lenders offer HELOCs with higher LTV limits—sometimes up to 85% or 90%—so NAF’s cap may require you to have more equity built up.

Another standout feature: NAF allows secondary and investment properties to qualify for its HELOCs. Many lenders limit HELOCs to primary residences only, so this adds flexibility.

However, if you live in Hawaii, New York, or West Virginia, NAF’s HELOC isn’t an option.

Is New American Funding’s HELOC easy to qualify for?

NAF offers some borrower-friendly features, including a lower credit score minimum. The 80% LTV cap is fairly standard, though some lenders allow higher limits. If you need a HELOC for a secondary or investment property, NAF could be a strong contender.

How long does it take to get a HELOC from New American Funding?

New American Funding offers a fast approval process, with some applicants receiving approval in as little as five minutes. However, final approval is subject to income and employment verification and a property condition report.

If everything checks out, funding can happen in as little as five business days, assuming you close with NAF’s remote online notary. The timeline may be longer for in-person closings or if your county requires a waiting period before recording e-signatures.

Getting a HELOC from New American Funding is simple: 

1. Consider loan options and choose the right one for you. It offers HELOC and cash-out refinance options. Learn more about the difference between the two here.
2. Determine your home’s equity. This will help you decide if you have enough equity to even apply for a loan in the first place. Read how to calculate home equity.
3. Decide on the loan amount needed. Depending on what you want to do (such as home improvements or paying down higher-interest debt), you may need more than you think. Factor in interest payments and possible fees.
4. Ensure you meet HELOC qualifications. With New American Funding, this means a minimum credit score of 620, a DTI of 43-50%, and a minimum home equity of 20%.
5. Gather the required documents. This includes things like proof of income, proof of identity, proof of home value, etc. See the list of required HELOC documents. 
6. Complete the HELOC application on New American Funding’s website. 

7. Click “Home Equity” and complete the application. You’ll be asked to choose the state you’re applying in, the type of home you’re refinancing, and other information.

8. Provide additional details. Once you finish the application on NAF’s website, you’ll be taken to NAF Hub to fill in additional details, such as a credit check and financial information. At this point, NAF will also call you to finalize the process.

9. Speak with an agent. While much of the process is online, you must speak with a New American Funding agent to finalize the details and get your HELOC.

And that’s how you apply for a HELOC! Once you’ve finalized things with your agent, you’ll need to provide the required documents and go through the underwriting process, which takes between two weeks and two months to complete. 

During this time, your agent will verify your documents and schedule an appraisal for your home.

New American Funding home equity customer reviews

New American Funding has earned many positive reviews and an A+ rating from the Better Business Bureau (BBB). However, there are some concerns to be aware of.

Platform	Rating	Number of reviews
Trustpilot	4.7/5	827
Better Business Bureau	4.5/5	1,086

New American Funding’s customers often praise the efficient loan process and professional staff, with many reviews highlighting smooth refinancing experiences. Some customers also mention that NAF outperformed competitors in loan terms.

However, some reviewers mention communication issues and unprofessional interactions, with one customer stating that “they will harass you” over the phone. A few reviewers even mention rate changes during underwriting, describing their experience as a “bait and switch.” 

These reviews are mostly based on NAF’s refinancing options, but it’s good for HELOC borrowers to be aware of them.

Overall, it seems that most customers appreciate New American Funding for its smooth processes and supportive team, but some did have bad experiences.

New American Funding HELOC pros and cons

New American Funding’s HELOC stands out for its fixed-rate structure, accessible credit requirements, and digital application process. However, it also comes with a required full draw at origination, an origination fee, and limited transparency on key details. Let’s break it down:

Pros

• Fixed interest rates

  Unlike many HELOCs that have variable rates, NAF’s HELOC locks in a fixed rate at origination. Additional draws also receive fixed rates, though they may differ from the initial rate.

• Soft credit check for prequalification

  You can check your prequalified rate without impacting your credit score, allowing you to explore options risk-free.

• Accessible credit requirements

  A minimum credit score of 620 makes this HELOC more accessible than some competitors like Figure and Aven, which require 640 or higher.

• Fast funding timeline

  NAF offers approval in as little as five minutes and funding in five days, assuming online notarization. However, closing times may be longer in some locations.

• Supports secondary and investment properties

  Many HELOC lenders restrict borrowing to primary residences, but NAF allows HELOCs on secondary homes and investment properties.

Cons

• Full draw required at origination

  You must take 100% of the loan upfront, unlike traditional HELOCs where you can borrow as needed.

• 4.99% origination fee

  NAF charges an origination fee, which some lenders (like Bethpage FCU) don’t.

• Limited availability

  NAF’s HELOC isn’t available in Hawaii, New York, or West Virginia.

• Lack of transparency

  NAF doesn’t disclose interest rate ranges, repayment terms, or appraisal costs online. Borrowers must call to get full details.

• Potential for delays

  While many borrowers report fast approval, some experience last-minute documentation requests, which can slow down closing.

New American Funding’s HELOC is a good fit for borrowers who want fixed rates and have fair credit, but the full-draw requirement and origination fee may not appeal to everyone. If you need more borrowing flexibility or lower costs, alternative HELOC lenders may be a better fit.

New American Funding alternatives

New American Funding’s HELOC is a solid option for fixed-rate borrowing, but it may not be the best fit for everyone. It requires taking 100% of the loan upfront, charges a 4.99% origination fee, and doesn’t disclose all key details upfront.

If you’re looking for more transparent terms, advanced technology, or a different HELOC structure, there are alternatives worth considering.

Figure and Aven offer HELOCs with nearly identical structures—both require taking the full loan amount upfront at a fixed rate, just like New American Funding. However, Figure and Aven are more transparent about their rates, fees, and loan terms.

Figure, in particular, is known for its cutting-edge technology, using blockchain and automated valuation models (AVMs) to streamline approvals, which can sometimes eliminate the need for an appraisal.

Aven is also highly digital, with strong customer satisfaction ratings. The main advantage New American Funding has over both is its lower minimum credit score requirement (620 vs. 640 for Figure and Aven). In reality, Aven is best suited for applicants with a 720+ credit score, making New American Funding more accessible for those with fair credit.

For borrowers who want a more traditional HELOC, Bethpage Federal Credit Union offers a revolving line of credit with variable rates, allowing you to borrow as needed rather than taking the full amount upfront. It also doesn’t charge an origination fee, unlike NAF, Figure, and Aven. However, if you prefer fixed rates, New American Funding, Figure, or Aven are better choices.

Read More

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How we rated New American Funding

We designed LendEDU’s editorial rating system to help readers find companies that offer the best home equity products. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared New American Funding to several home equity lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating, recapped below.

Product	Rating
New American Funding HELOC	4.1/5