Homeownership For All: How One Company Is Helping Make It Happen

New American Funding proudly serves the underserved and aims to help everyone in every community realize the dream of homeownership. (New American Funding),

While homeownership is the American dream for many, there are disparities in who gets to experience it. This is particularly true when it comes to minority communities and other traditionally underserved populations, including Black, Hispanic and veteran homeowners. That’s why New American Funding proudly serves the underserved and aims to help everyone in every community realize the dream of homeownership.

Homeownership Statistics Among Underrepresented Groups

According to a 2022 study conducted by the National Association of Realtors, homeownership rates are lower among minority groups. Broken down by race, the rates for homeownership in 2020 were as follows:

72.1 percent for White Americans
61.7 percent for Asian Americans
51.1 percent for Hispanic Americans
43.4 percent for Black Americans

There are various reasons for these disparities, including denial rates, affordability and student loan/debt rates. For instance, denial rates were at seven percent for Black and Hispanic Americans in 2020, compared with just four percent for white Americans and three percent for Asian Americans. Mortgage lenders reject applications for a number of reasons, the most prominent being debt-to-income ratios and low credit scores.

Affordability has become an issue across the board, with home prices increasing and housing supply decreasing. However, white households are 40 percent more likely to afford a home than Black households, as they tend to have higher incomes.

Veterans, on the other hand, are more likely to own a home than the average population. In 2017, 78 percent of veteran households were homeowners — 14 percent higher than the total population. This has been made possible in part by affordable and accessible VA loans. Rates of homelessness among veterans have also dropped — from 74,087 to 37,085 veterans between 2010 and 2019 — which is associated with Housing First and increased government investments.

Minority veterans are at a higher risk of being homeless — specifically Native Hawaiian and Pacific Islander veterans, with 106 out of every 10,000 facing homelessness. American Indian veterans and Black veterans experience similar levels of homelessness. Over the last five years, however, Black veterans have experienced a 26-percent drop in homelessness — the most significant drop among minority groups.

Programs For Homeowners From Underserved Groups

New American Funding offers several initiatives to support homeowners from traditionally underserved groups, including:

Military Heroes Focus — By 2024, New American Funding plans to lend $12 billion in new mortgages to veteran and active-duty military borrowers through Military Heroes Focus. This initiative exists to “increase homeownership and career opportunities for military service members, veterans, and their families.”
Latino Focus — By 2024, New American Funding is committed to offering $25 billion in home loans to the Hispanic community through Latino Focus. This initiative strives to help Latino homeowners determine the loan amount they qualify for, understand refinancing opportunities and learn how to obtain a home.
New American Dream — By 2028, New American Funding seeks to lend $20 billion in new mortgages to Black borrowers through New American Dream. This initiative aims to increase the rate of Black homeownership by providing racial equity and building consumer confidence. To achieve this, New American Funding will offer “home buying education, accessibility to credit, and mortgage industry career opportunity awareness to Black communities.”

New American Funding: Making Homeownership Accessible

New American Funding not only offers a variety of mortgage options, both traditional and non-traditional, but it also connects homeowners with experts who can help them navigate the process. Here are a few programs and loans available to aspiring homeowners:

Buydown Loan — New American Funding’s buydown loan offers a reduced payment rate on the first few years of the mortgage at no extra cost. This allows homeowners to feel settled in their home, or new home loan, without financial stress. Potential borrowers might be eligible for four buydown options:
- 1-0 Buydown, one-percent lower payment rate than the note rate for the first year.
- 3-2-1 Buydown, three-percent lower payment rate than the note rate for the first year, two-percent lower payment rate than the note rate in the second year, and one-percent lower payment rate than the note rate in the third year.
- 2-1 Buydown, two-percent lower payment rate than the note rate for the first year and one-percent lower payment rate than the note rate in the second year.
- 1-1-1 Buydown, one-percent lower payment rate than the note rate for the first three years.
NAF Cash— NAF Cash*, an affiliated company of New American Funding, helps customers compete with cash buyer offers by purchasing the home with cash, then selling it back to the customer at the original price plus a small convenience fee. The program allows buyers to purchase their home for less and close on the purchase faster. Additionally, buyers have up to 90 days to sell their existing home, so they don’t need to rush the selling process to buy their new home.
5 Year Rate Protection Pledge — New American Funding’s 5 Year Rate Protection Pledge locks in interest rates for five years to allow customers to refinance at a lower rate if applicable at that time. To be eligible for the pledge, customers simply need to find their dream home, finance the loan with New American Funding, and lock in the purchase or refinance by Feb. 28, 2023.
RE Home Connect — New American Funding’s RE Home Connect matches customers with a realtor who can help with the purchase process. Dedicated partners have the expertise, tools, and tech needed to secure more leads and close more homes at a quicker rate.

With a range of available options and experts on hand to help customers every step of the way, it’s no surprise customers are praising New American Funding. In 2022, New American Funding was recognized as #1 in customer satisfaction among mortgage servicers by the J.D. Power 2022 U.S. Mortgage Servicer Satisfaction Study. The company was able to achieve this prestigious recognition through its dedication to helping every client from every background achieve homeownership.

New American Funding Proudly Serves The Underserved

New American Funding is committed to serving the underserved and ensuring everyone, in every community, has the tools, information and loan options to make their dream a reality.

New American Funding has over 241,000 loans in its portfolio. In 2021, 33.3 percent of loans purchased through New American Funding were by minority buyers; this is comparable with 28 percent of loans from all other lenders combined. All figures per 2021 HMDA data. With a strong commitment to inclusion and equity, New American Funding is a leader in lending to underserved communities, helping drive sustainable equity for all.

Want to make your dream of homeownership a reality? Contact New American Funding for more information or request a quote for a mortgage today.

*NAF Cash is fulfilled by NAF Cash LLC, an affiliated real estate company of New American Funding that is managed and operated in compliance with applicable legal and regulatory requirements. NAF Cash LLC does not originate loans or issue loan commitments. Terms and Conditions apply. Not available in all states. MI Real Estate Broker #6502431375. 41050 W 11 Mile Rd, Suite 220, Novi, MI, 48375. Phone 844-344-0531