If you're looking to get a home equity line of credit (HELOC) through a quick and easy process, consider New American Funding.
This online-first lender with a full suite of mortgage products finances HELOCs in all 50 states, Washington, D.C. and Puerto Rico.
We love that this lender says they will close on the HELOCs in as little as five days and that you can get a HELOC as small as $25,000. But it also requires borrowers to draw the full line of credit upon opening it, which limits their flexibility in using the product.
New American Funding HELOC
Loan types
HELOCs
Minimum credit score
640
Maximum loan-to-value
80% to 85%
HELOC draw amount
$25,000 to $750,000
HELOC draw period
5 years
Repayment period
10 to 20 years
Availability
Available throughout the U.S. and in Puerto Rico
Pros
- Speedy funding timeline
- Nationwide availability
Cons
- Not transparent about rates on website
- Must withdraw the full line of credit upon opening
New American Funding HELOC review
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New American Funding HELOC pros and cons
- Widespread availability
- Lower-than-typical minimum draw
- Lender will fund the HELOC in as little as five days
- Not transparent about rates on its website
- Must withdraw the full line of credit upon opening
- Mixed customer satisfaction record
New American Funding HELOC overview
New American Funding offers HELOCs in all 50 states, Washington, D.C. and Puerto Rico. Unlike most HELOC lenders, NAF requires that borrowers withdraw the full amount when they open the loan.
New American Funding HELOC terms
- Draw period terms: Five years
- Repayment terms: Up to 20 years
- Rate structure: Fixed- and adjustable-rate available
- Loan amount: $25,000 to $750,000
New American Funding HELOC fees
- Origination fee: 4.99%
- Application fee: Not disclosed
New American Funding home equity requirements
In addition to a home appraisal, New American Funding HELOC requires:
- Credit score: 640 or higher
- Max loan-to-value ratio: 80% to 85%
- Max debt-to-income ratio: 43%
New American Funding customer service
New American Funding earned an A+ from the Better Business Bureau for its transparency, truthful advertising, and responses to consumer complaints. It also scored above average in J.D. Power's 2025 Mortgage Servicer Satisfaction Survey — which ranks borrowers' experience with the lender after they closed on the loan — but it scored below average on J.D. Power's 2025 Mortgage Originator Satisfaction Survey — which ranks borrowers' experience from application through closing.
NAF has extensive customer service hours, including evenings and weekends. Customers can reach a service associate via phone at (800) 893-5304, Monday through Friday from 6 a.m. ET to 7 p.m. ET and Saturday through Sunday 8 a.m. ET to Noon ET. Customers can also call this number to get automated assistance 24 hours a day, every day of the week.
How does New American Funding compare?
Here's how New American Funding stacks up against two major players in the home equity space.
New American Funding vs. TD Bank
When compared to New American Funding, TD Bank takes the cake in most categories, such as HELOC size, structure and loan-to-value ratio. But NAF is more widely available, accepts applicants with lower credit scores and funds faster than TD.
TD Bank offers HELOCs up to $6 million and, like most HELOC lenders, allows borrowers to draw on their line of credit throughout the draw period for ease and convenience. By contrast, NAF only offers a maximum HELOC of $750,000 and requires borrowers to withdraw the full line of credit at opening. Additionally, TD will accept applicants with a loan-to-value ratio of as much as 90% while NAF caps its requirement lower.
TD Bank Home Equity Loan
Loan types
Home equity loan and HELOC
Minimum credit score
660
Maximum loan-to-value
Up to 89.99%
Home equity loan limits
$10,000 to $300,000
HELOC draw amount
Up to $6 million
Terms
Home equity loans: 5 to 30 years. HELOC: 20 years
Availability
Available in 15 states and Washington, D.C.
Pros
- High maximum draw amount, great for those who need to take out a large sum.
- High LTVs, meaning you can maximize the amount you take out.
- 0.25% rate discount with autopay from TD account, making it an ideal option for existing TD bank customers
Cons
- Not available in most states
- Charges origination, early termination and annual fee
TD Bank's product is more limited: it's available in 15 states, mostly on the East Coast, whereas NAF has broader reach. TD also accepts customers with a minimum credit score of 660, compared to NAF's lower threshold.
NAF also says it will approve applications in as little as five minutes and fund HELOCs in as little as five days — much speedier than most lenders. On its website, TD Bank says closing on mortgages typically takes 30 to 45 days.
New American Funding vs. Figure
Both NAF and Figure are non-traditional lenders with similar limitations and perks. In most areas, NAF is the better choice, but Figure comes out on top for people with less-than-perfect credit.
Unlike NAF, Figure offers HELOC products that require a full draw at opening, a feature that limits flexibility and is uncommon among HELOC lenders. Plus, NAF is more widely available, as Figure does not lend in Hawaii.
Figure
Loan types
HELOC, DSCR, cash-out refinance, crypto-backed loan, small business loans
Minimum credit score
600
Maximum loan-to-value
85%
HELOC draw amount
$15,000 to $750,000
HELOC draw period
2 years or 5 years
Repayment period
10 years, 15 years, 20 years, 30 years
Availability
Figure HELOCs are available in all states but Hawaii.
Pros
- Funding as soon as 5 days, much shorter than most fund timelines so you'll get your money as soon as possible.
- E-closing available, which means you can tap your home equity from your couch.
- No opening fees, prepayment fees or maintenance fees, saving you on closing costs and ongoing costs over the life of the financing
- High LTV maximum, meaning that you'll be able to maximize the amount you take out.
Cons
- Not available in all states
- Maximum draw period is five years
Available APRs range from 6.75% to 14.35%, which includes the payment of a higher origination fee in exchange for a reduced interest rate, which is not available to all applicants or in all states. The lowest APRs are only available to the most qualified applicants, depending on credit profile and the state where the property is located, and those who also select ten year loan terms; APRs will be higher for other applicants and those who select longer loan terms. Your actual rate will depend on many factors such as your credit, combined loan-to-value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay a higher origination fee in exchange for a lower rate. Rates change frequently so your exact APR will depend on the date you apply. APRs for home equity lines of credit do not include costs other than interest. You will be responsible for an origination fee of up to 4.99% of your initial draw, depending on the state in which your property is located and your credit profile. You may also be responsible for paying the costs of valuation if an AVM is not available for your property ($180), or an appraisal if your loan amount exceeds $400,000 ($500-$2,000, depending on property type, property value, and state), manual notarization if your county doesn't permit eNotary ($350), and recording fees ($0 - $315) and recording taxes, which vary by state and county ($0- $1,400 per one hundred thousand dollars borrowed). Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
Figure, however, has an easier credit score requirement and no origination fees. Figure requires just a 600 credit score. It also has a lower minimum draw of $15,000 compared to NAF.
How to apply with New American Funding
You can apply for a New American Funding HELOC online via the lender's portal. Like with all home equity financing, you'll need to provide personal information, including a photo ID, Social Security number, pay stubs and the most recent W-2s. If you're self-employed, you'll also need two years of personal tax returns.
You'll also need to supply details about the property, including the deed and recent mortgage statements. During the underwriting process, the home will be inspected and appraised.
Is New American Funding's mortgage HELOC right for me?
New American Funding is a great option for those looking for speedy application and funding, a smaller line of credit and those who don't mind withdrawing the full line upon opening.
If you're looking for a place with a more flexible draw structure or more rate transparency, you should look elsewhere.
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At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select reviews mortgage products using a variety of criteria, including average rates, terms, availability, fees, types of loans offered, online experience and customer satisfaction.
Additionally, we incorporate findings from independent sources, including lender scores from the J.D. Power mortgage origination and servicing surveys and ratings from the Better Business Bureau.
For home equity loans, we review rates, repayment terms, the amount of equity required and the minimum and maximum loan amounts available.
We also consider requirements for credit scores, debt-to-income ratios and combined loan-to-value ratios.
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