New American Funding vs. Rocket Mortgage: Which Is Better?

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Here’s how New American Funding and Rocket Mortgage compare, including their pros and cons and who they’re best for.

New American Funding and Rocket Mortgage are well-known mortgage lenders offering a solid range of loan products. That said, they’re designed for different types of borrowers. 

To help you determine which lender better fits your needs, we interviewed a mortgage expert to break down the pros and cons and understand how these two stack up against each other. 

What is New American Funding?

New American Funding is an independent mortgage lender offering various loan products, including conventional loans, FHA, VA and non-qualified mortgages. It’s also known for catering to self-employed borrowers or those with unique income. 

Plus, New American Funding services approximately 90% of the conventional, FHA and VA loans they originate. You’ll most likely deal with them directly throughout your loan rather than getting transferred to a different loan servicer. This typically also translates to better customer service and more consistent communication. 

Pros

• Offers multiple mortgage options
• Has hundreds of branch locations
• Bilingual loan officers and programs aimed at Latino and Black communities

Cons

• No 24/7 customer service
• Doesn’t disclose lender fees online
• Not available in all states

Who is New American Funding Best for?

“New American is great for borrowers who want someone to really explain things, especially if English isn’t their first language or they’re first-time buyers,” says Marifer Vergara, mortgage loan originator at USA Mortgage Homes. “They have bilingual agents, more flexibility with underwriting and a strong focus on underserved communities. Plus, they’re known for working closely with Latino and first-time homebuyers, which I love.” 

Overall, New American Funding is best if you’re looking for a more personalized mortgage experience and want to work with a lender that’s committed to increasing homeownership among underrepresented groups.

Who Should Choose Something Else?

If you prioritize a fully online experience, 24/7 support or want instant access to customized rates without speaking to a loan officer, New American Funding might not be the best fit.

What is Rocket Mortgage?

Rocket Mortgage is a fully online mortgage lender from Rocket Companies, known for its digital application and loan process. It offers conventional, FHA and VA loans and a fast and user-friendly application process that allows you to get approved entirely online.

Pros

• Quick online application with real-time rate estimates
• Trusted brand with a strong reputation
• Comprehensive library of educational content
  

Cons

• Doesn’t offer USDA loans or home equity lines of credit 
• Less personalized support
• No in-person service available

Who is Rocket Mortgage Best for?

“Rocket is best for borrowers who are tech-savvy, have W-2 income, great credit and want everything fast with minimal talking to humans,” Vergara says. In other words, if you want a streamlined and almost DIY experience, Rocket is worth looking into. That said, it might not be the best option if you need guidance or have a unique situation (like being self-employed or having a thin credit file). 

Who Should Choose Something Else?

As mentioned earlier, if you're self-employed, have inconsistent income or need help navigating different mortgage options, Rocket Mortgage may not be flexible enough to meet your needs.

Comparison

How to Choose Between New American Funding and Rocket Mortgage

Both lenders can get the job done, but the experience is different. “Rocket is great for speed,” Vergara explains, “but if you need warmth, cultural understanding or you’ve got a more complicated financial picture, New American might be the better choice.” Another thing worth mentioning is that New American Funding’s advertised rates are lower than Rocket Mortgage’s. Though a small percentage in difference may not seem like much, it could save you thousands in interest over the life of your loan.

So, no matter which lender you choose, always compare mortgage rates and work with a loan officer you trust.

Why You Should Trust Us

Around 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 vs. Rocket Mortgage and help you make a confident choice, we spoke with Marifer Vergara, mortgage loan originator at USA Mortgage Homes.

FAQ

Sources:

• New American Funding. https://www.newamericanfunding.com
• Rocket Mortgage. https://www.rocketmortgage.com
• Better Business Bureau. “New American Funding BBB Rating.” https://www.bbb.org/us/ca/tustin/profile/mortgage-broker/new-american-funding-1126-13216611
• Better Business Bureau. “Rocket Mortgage BBB Rating.”https://www.bbb.org/us/mi/detroit/profile/mortgage-broker/rocket-mortgage-0332-8059