Quicken Loans vs. New American Funding: A Lender Showdown

When it comes to securing a mortgage, choosing the right lender can make or break your homebuying experience. Two of the biggest names in the industry—Quicken Loans (now Rocket Mortgage) and New American Funding—often go head-to-head for borrowers’ attention. But which one is the better fit for you?

In today’s volatile housing market, where interest rates fluctuate and housing inventory remains tight, selecting a lender that aligns with your financial goals is more critical than ever. This showdown will break down the strengths, weaknesses, and unique offerings of each lender, helping you make an informed decision.

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Company Overviews

Quicken Loans (Rocket Mortgage)

Quicken Loans, rebranded as Rocket Mortgage, revolutionized the mortgage industry with its fully digital application process. As the largest retail mortgage lender in the U.S., it’s known for speed, convenience, and a tech-driven approach.

Key Features:
- Fully online mortgage approval
- AI-powered tools for instant pre-approval
- Wide range of loan options (conventional, FHA, VA, jumbo)
- Strong customer service reputation

New American Funding

New American Funding (NAF) is a direct lender with a strong focus on diversity and financial inclusion. Unlike Rocket Mortgage, NAF combines digital tools with a personal touch, offering in-person consultations alongside online applications.

Key Features:
- Specializes in loans for underserved communities
- Offers unique programs like "Chengguan" (a special loan for self-employed borrowers)
- Strong emphasis on customer education
- Competitive rates for first-time homebuyers

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Loan Products & Flexibility

Conventional Loans

Both lenders offer conventional loans, but Rocket Mortgage stands out for its streamlined process, while New American Funding provides more flexible underwriting for borrowers with non-traditional income sources.

FHA & VA Loans

• Rocket Mortgage excels in fast approvals for government-backed loans.
• New American Funding offers specialized support for veterans and low-to-moderate-income borrowers.

Jumbo Loans

• Rocket Mortgage has competitive jumbo loan options but stricter credit requirements.
• New American Funding provides more lenient terms for high-net-worth individuals.

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Interest Rates & Fees

In today’s high-interest-rate environment, even a slight difference in APR can save (or cost) thousands over the life of a loan.

• Rocket Mortgage: Often advertises low rates but may have higher fees (e.g., origination charges).
• New American Funding: Tends to offer more transparency in fee structures, with occasional rate discounts for first responders and teachers.

Pro Tip: Always request a Loan Estimate from both lenders to compare true costs.

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Customer Experience & Support

Digital Experience

• Rocket Mortgage wins for tech-savvy borrowers who prefer a fully automated process.
• New American Funding blends digital tools with human interaction, ideal for those who want guidance.

Customer Service

• Rocket Mortgage has high satisfaction ratings but can feel impersonal.
• New American Funding receives praise for its local loan officers who provide tailored advice.

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Approval Speed & Underwriting

Rocket Mortgage

• Pros: AI-driven underwriting speeds up approvals (some loans close in as little as 8 days).
• Cons: Less flexibility for complex financial situations.

New American Funding

• Pros: Manual underwriting allows for more nuanced approvals (great for gig workers or those with past credit issues).
• Cons: Slower processing times compared to Rocket.

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Special Programs & Innovations

Rocket Mortgage’s Strengths

• Yourgage: A customizable loan term (anywhere between 8-29 years).
• Borrower Bonuses: Cash rewards for timely payments.

New American Funding’s Edge

• Chengguan Loan: Tailored for self-employed borrowers with non-traditional income proof.
• Community Reinvestment: Strong focus on minority homeownership.

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Final Verdict: Who Wins?

• Choose Rocket Mortgage if: You want speed, convenience, and a fully digital experience.
• Choose New American Funding if: You need personalized service, flexible underwriting, or belong to an underserved demographic.

In today’s competitive market, the "best" lender depends on your unique financial situation. Always compare offers, read reviews, and consider both digital efficiency and human support before making a decision.