New American Funding offers a fixed-rate HELOC that lets you apply and get approved for up to $400,000 entirely online. It allows secondary and investment properties – which isn’t always the case with HELOCs – and is available to borrowers with credit scores as low as 620.
However, you must withdraw the full loan amount (minus the origination fee) at the time of origination. As you pay down the balance, you could take additional draws. The interest rate of each additional draw will be based on the Prime Rate at that time plus a fixed margin.
New American Funding doesn’t provide much information on its website about the HELOC’s interest rates, appraisal costs and repayment terms.
- Entirely online application
- Accessible to applicants with credit scores as low as 620
- Approval in five minutes
- Funding in as little as five days
- Fixed rates
- Minimal information about HELOC details on the website
- Must withdraw 100% of the loan amount at closing
- 4.99% origination fee
- Not available in Hawaii, New York or West Virginia
New American Funding offers a HELOC with fast funding and a fully online application. However, it comes with high origination fees and requires you to withdraw the full loan upfront.
A home equity line of credit (HELOC) is a line of credit borrowed against your home's available equity. You can use a HELOC to pay for home renovations, medical bills and other big-ticket expenses. That said, HELOC features can vary widely depending on the lender.
Learn more about the New American Funding HELOC and whether it’s the right financing method.
Who is a HELOC From New American Funding Best For?
The HELOC from New American Funding is a solid option if you need cash fast and don’t mind withdrawing the full loan amount upfront rather than in stages.
“You can often access more money with New American Funding’s HELOCs than with other lenders. Plus, the requirements for getting a HELOC for a second or investment property are often not as high as they are with other HELOC lenders, so that’s a benefit as well,” said Adam Hamilton, an expert in real estate investing and the cofounder of REI Hub. “That said, you have to withdraw 100% of the amount at closing, which is a pro in some cases and a con in others – depending on your situation.”
Who Should Choose a HELOC From a Different Lender?
The HELOC from New American Funding isn’t the best fit for everyone. If you prefer the flexibility of drawing money as you go and want to avoid paying interest on unused funds, you may want to check out other lenders that offer traditional revolving HELOCs. You’ll also want to look elsewhere if the 4.99% origination fee feels too steep or would put too much strain on your budget.
How to Apply for a HELOC from New American Funding
You can apply for a HELOC from New American Funding directly on its website. NAF allows you to link your financial accounts in the online application, which helps speed up the process. If you need someone to talk you through the application process, call 1-888-964-7404 on weekdays from 6 a.m. to 9 p.m. PT and weekends from 6 a.m. to 5 p.m. PT.
To qualify for a HELOC, NAF requires a FICO score of at least 620 and at least 15% equity in your home. You should also have a steady income stream and be able to meet other HELOC eligibility criteria.
New American Funding HELOC vs Bethpage Federal Credit Union HELOC
Bethpage Federal Credit Union offers a more traditional HELOC with a revolving credit line. It lets you borrow as needed over time instead of taking the full amount upfront like with New American Funding. Plus, Bethpage HELOCs have zero application, origination or appraisal fees.
While New American Funding still stands out for its fully online application and flexibility for second or investment properties, Bethpage could be the better pick if you want to avoid a hefty origination fee and prefer to tap into your equity bit by bit.
The Bottom Line
New American Funding’s HELOC is a solid choice if you want to get approved for a HELOC fast and are okay with taking out the full amount upfront. However, since you’re withdrawing 100% of the loan at closing, you’ll start paying interest immediately, even if you don’t use it all. So, if your costs are more unpredictable or spread out, you may want to look elsewhere.
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Approximately 25 million readers monthly trust Benzinga for in-depth financial coverage, including mortgages, investing and other personal finance topics. Our commitment to thorough research and expert-backed insights has solidified our reputation as a go-to resource for financial information.
Jamela Adam, the author of this piece, has been a personal finance writer since 2021. She’s also a Certified Financial Education Instructor. To provide expert perspectives on New American Funding’s HELOC and help you make a confident choice, we spoke with Adam Hamilton, an expert in real estate investing and the cofounder of REI Hub.
FAQ
Is it hard to get approved for a HELOC with New American funding?
New American Funding’s HELOC is rather borrower-friendly. It has a lower credit score minimum than other lenders and less stringent borrower requirements.
How trustworthy is New American Funding?
New American Funding is a trustworthy and reputable lender with an A+ BBB rating, which means it has a strong track record of resolving customer complaints and operating with transparency.
Does a HELOC from New American Funding require an appraisal?
Yes. New American Funding typically requires a home appraisal to determine your home’s current value and available equity before approving a HELOC.
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About Jamela Adam
Jamela is a certified financial education instructor (CFEI) with a background in covering mortgages, home buying, and real estate financing. She specializes in breaking down complex topics like mortgage rates, home loan options, and market trends to help readers make smarter decisions with their homes.