Home equity

Is a New American Funding cash-out refi legit?

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The short answer

Yes — New American Funding is a large, legitimate lender. It opens doors other lenders won't.

  • It's known for flexible, manual underwriting instead of a purely automated yes-or-no.
  • It works with lower credit and non-traditional income that many lenders turn away.
  • For people other lenders decline, it can be the door that opens.
  • The catch: flexible doesn't mean cheapest. Compare its loan estimate against other quotes.
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Is New American Funding a real company?

Yes. New American Funding is a large, nationwide lender that has closed loans in every state. It offers conventional, FHA, and VA cash-out refinances. A cash-out refinance replaces your current mortgage with a larger one and hands you the difference in cash.

What sets it apart is how it decides. Many lenders run a purely automated check and decline anything that doesn't fit the box. New American Funding uses manual underwriting — a person reviews your file — so it can work with lower credit and self-employed or thin-file borrowers. That access is genuinely valuable for people other lenders decline.

What New American Funding offers

Manual
Underwriting style — a person reviews your file
the flexibility
Lower credit
Who it serves — FHA sometimes into the high-500s
the door it opens
2–6%
Typical closing costs on the loan amount
where the cost sits

Illustrative — terms and minimums vary by loan type and your file. See what a cash-out refi costs →

✓ Fits if

  • Your credit or income is non-traditional and other lenders declined you.
  • You're self-employed or have a thin file and need a cash-out refi.
  • You want a person to review your file, not an automated no.

✕ Skip it if

  • You qualify easily elsewhere at a lower rate.
  • A second mortgage would protect a low first-mortgage rate.
  • You haven't compared its loan estimate against other quotes yet.

Weigh the cost, not just the approval

Flexible underwriting can raise your rate. Weaker credit usually means a higher rate, and a cash-out refinance resets the rate on your whole mortgage — not only the cash you take out. You also pay closing costs of about 2–6% on the full new balance.

So the number that matters is the all-in cost: the rate across your entire loan, plus closing costs, over the years you'll hold it. Run that against your other quotes before you sign. Compare the all-in cost →

⚠ The catch

Flexible underwriting helps you qualify. But a higher rate on your whole mortgage is still a real cost, and a cash-out refi resets that rate on the full balance.

Compare the all-in number against other quotes. If you already hold a low first-mortgage rate, a HELOC or second mortgage can protect it, and a ranked comparison shows where NAF lands.

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