Loan Programs Guide_Michelle Lambrich

Loan Programs Made Simple

About New American Funding For over 20 years, New American Funding has been proudly privately owned, driven by innovation, and

dedicated to providing one of the industry’s most extensive selections of mortgage loan programs to meet the unique needs of today’s homebuyers.

NAF is an industry leader in culture, dedication to service, and offers flexible financing solutions to help more borrowers achieve their homeownership goals.

NAF offers an extensive portfolio of loan programs, competitive rates, and efficient turn times to help borrowers move from application to closing with confidence.

NAF is a direct lender and servicer for Conventional (Fannie Mae & Freddie Mac), FHA, VA, and USDA loans. By originating billions in loans annually and servicing approximately 80% of those loans, we deliver a seamless lending experience and continued customer support throughout the life of the loan.

Our mission is to increase and sustain homeownership across America by helping more individuals and families realize their dream of owning a home through personalized lending solutions.

Most borrowers can achieve their homeownership goals through one of our standard mortgage programs.

New American Funding offers a broad portfolio of conventional and government-backed loan solutions designed to provide flexible financing for a wide variety of borrowers.

Standard Loan Programs

Conventional Loan A Conventional loan is a mortgage that is not insured or guaranteed by the federal government. It is backed by either Fannie Mae or Freddie Mac and is one of the most common financing options for homebuyers and homeowners.

PROGRAM HIGHLIGHTS •

Down Payment Options as Low as 3% for First-Time Homebuyers and 5% for Repeat Buyers.

•

Available for Primary Residences, Second Homes, and Investment Properties

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PMI May Be Removed Once Sufficient Equity is Reached

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Flexible Loan Terms and Competitive Interest Rates

IDEAL BORROWER

First-time homebuyers, repeat buyers, move-up buyers, second-home purchasers, and investors with good credit and stable income who are looking for flexible financing options.

Agent Tip: Conventional loans offer flexible financing options, competitive terms, and can be used for a variety of property types, making them one of the most versatile loan products available.

FHA Loan An FHA loan is a government-insured mortgage designed to make homeownership more accessible. Backed by the Federal Housing Administration, FHA loans offer flexible qualifying guidelines and lower down payment requirements than many conventional loan options.

PROGRAM HIGHLIGHTS •

Down Payment as Low as 3.5%

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Lower Credit Score Flexibility

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Higher Allowable Debt to Income Ratios

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100% Financing with Eligible Down Payment Assistance Programs

IDEAL BORROWER

FHA loans are ideal for first-time homebuyers, borrowers with limited savings for a down payment, or those who may benefit from more flexible credit and qualifying guidelines.

Agent Tip: Don’t assume a buyer won’t qualify because of a lower credit score or limited down payment. FHA financing often provides a path to homeownership for borrowers who may not fit conventional guidelines.

VA Loan A VA loan is a mortgage benefit available to eligible veterans, active-duty service members, members of the National Guard and Reserves, and certain surviving spouses. Guaranteed by the U.S. Department of Veterans Affairs, VA loans offer flexible financing designed to make homeownership more affordable for those who have served our country.

PROGRAM HIGHLIGHTS •

100% Financing

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No Monthly Mortgage Insurance

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Competitive Interest Rates

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Flexible Qualifying Guidelines

IDEAL BORROWER

Designed for borrowers who have earned VA home loan eligibility and want to achieve homeownership with affordable financing tailored to their needs.

Agent Tip: VA buyers are often among the strongest qualified borrowers. With no down payment requirement and no monthly mortgage insurance, VA financing can improve affordability and help eligible buyers compete in today’s market.

USDA Loan A USDA loan is a government-backed mortgage designed to promote homeownership in eligible rural and suburban areas. Guaranteed by the U.S. Department of Agriculture, this program provides affordable financing for qualified homebuyers purchasing a primary residence.

PROGRAM HIGHLIGHTS •

100% Financing

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Competitive Interest Rates and Affordable Monthly Payments

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Lower Credit Score Flexibility

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Income and Property Eligibility Requirements

IDEAL BORROWER

Designed for qualified borrowers purchasing in eligible areas who want to make homeownership more affordable without a large upfront investment.

Agent Tip: Many suburban communities qualify for USDA financing. Always verify property eligibility, as buyers may be surprised by the number of homes that qualify.

Jumbo Loan A Jumbo loan is designed for borrowers who need financing above the conforming loan limits established for conventional loans. It provides financing for higher-priced homes while offering competitive terms for qualified borrowers.

PROGRAM HIGHLIGHTS •

Loan Amounts Above Conforming Loan Limits (2026 Conforming Loan Limit for a SFR is $832,750)

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Eligible for Primary Residence, Second Homes, and Investment Properties

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Fixed and Adjustable Rate Options

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Competitive Financing Options for Luxury or Higher-Priced Residential Properties

IDEAL BORROWER

Designed for borrowers with strong credit and financial profiles who need flexible financing for higher-value properties.

Agent Tip: Don’t assume Jumbo financing is only for luxury homes. As home values continue to rise, more buyers may need a Jumbo loan simply because their financing exceeds conforming loan limits.

Renovation Loan A Renovation loan allows qualified borrowers to finance the purchase or refinance of a home while including the cost of eligible repairs, renovations, or improvements in a single mortgage.

PROGRAM HIGHLIGHTS •

FHA, VA, and Conventional Programs

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Purchase or Refinance

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Eligible for Cosmetic Updates, Repairs, and Major Renovations

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Primary Residence, Second Home, or Investment Property

IDEAL BORROWER

Designed for buyers who see the potential in a home and want to finance improvements without obtaining separate financing after closing.

Agent Tip: Renovation loans can help expand your buyers’ options by making homes that need repairs or updates a viable financing opportunity.

Not every borrower fits into a traditional mortgage program.

That’s why New American Funding offers a broad portfolio of specialty loan solutions designed to meet unique financial situations and homeownership goals.

Specialty Loan Programs

NAF Cash® NAF Cash is an exclusive cash buyer program that allows qualified homebuyers to make a competitive all-cash offer while still financing their home with New American Funding. The program helps buyers compete more effectively in competitive markets by providing the strength and certainty of a cash offer.

PROGRAM HIGHLIGHTS •

Allows Buyer to Become a Cash Buyer

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Buyer Can Purchase New Home Before Selling Current Home

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Stand Out In Competitive Markets

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Conventional and VA Loans Available

IDEAL BORROWER

Designed for qualified buyers who want to strengthen their offer, compete with cash buyers, or purchase a new home before selling their current residence.

Agent Tip: NAF Cash can be a game changer in multiple-offer situations, especially for first-time homebuyers and VA buyers. By allowing qualified borrowers to compete with the strength of a cash offer, the program helps level the playing field, strengthen negotiating power, and increase the likelihood of having an offer accepted.

NAF Bridge Loan NAF Bridge is a unique solution that bridges the financial gap. Buyers can access their home equity to purchase a new home before selling their current one, all without a monthly payment until their current home sells.

PROGRAM HIGHLIGHTS •

Allows Borrower to Access Home Equity

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Purchase New Home Before Selling Current Home

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No Payment Until Current Home Sells (12 Month Max)

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SFR, PUDs, and Warrantable Condos Allowed

IDEAL BORROWER

Designed for homeowners who want to purchase a new home before selling their current home while leveraging their existing home equity.

Agent Tip: The NAF Bridge Loan can help clients make stronger, more competitive offers by reducing or eliminating the home sale contingency. It also gives sellers greater flexibility by allowing them to move before listing or closing on their current home.

DSCR Loan

Debt Service Coverage Ratio A DSCR (Debt Service Coverage Ratio) loan is an investment property financing solution that qualifies borrowers primarily based on the property’s ability to generate rental income rather than the borrower’s personal income.

PROGRAM HIGHLIGHTS •

Qualification Based Primarily On Property Cash Flow – Not Personal Income

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First Time Investors Eligible

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Fixed Rate, Adjustable Rate, and Interest Only Option

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Purchase, Refinance, or Cash-Out Refinance

IDEAL BORROWER

Designed for real estate investors seeking to qualify based on the income potential of an investment property rather than traditional income documentation.

Agent Tip: By having access to flexible financing options you can keep investors coming back, turning one transaction into a long-term, repeat business relationship.

Temporary Buydown Program A Temporary Buydown allows the interest rate to be reduced during the first years of the mortgage, resulting in lower initial monthly payments before adjusting to the permanent note rate. The cost of the buydown is typically funded by the seller or lender, helping make homeownership more affordable during the early years of the loan.

PROGRAM HIGHLIGHTS •

3-2-1, 2-1, 1-1-1, and 1-0 Buydown Options Available

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Reduced Monthly Mortgage Payments During Buydown Period

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Conventional, FHA, VA, and USDA Loan Options

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Remaining Buydown Funds Applied to Loan Payoff if Borrower Refinances During Buydown Period

IDEAL BORROWER

Ideal for rate-sensitive borrowers looking to improve affordability with lower initial monthly payments during the early years of their mortgage.

Agent Tip: When affordability is a concern, consider negotiating a Temporary Buydown. In many cases, a seller-funded buydown provides greater short-term financial benefit than an equivalent reduction in the purchase price.

Bank Statement Loan A Bank Statement Loan is a non-traditional mortgage designed for self-employed borrowers who may not qualify using conventional income documentation.

Instead of tax returns, income is evaluated using eligible personal or business bank statements.

PROGRAM HIGHLIGHTS •

Income Qualification Using Eligible Bank Statements Instead of Tax Returns

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Purchase New Home Without Selling Current Home – Exclude Payment In Debt to Income Ratio

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Purchase, Refinance, and Cash-Out Refinance

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Primary, Second Home, and Investment Property

IDEAL BORROWER

Designed for self-employed borrowers, entrepreneurs, and business owners whose tax returns may not accurately reflect their true income.

Agent Tip: Self-employed clients are often told they don’t qualify because of how they file taxes. A Bank Statement Loan may provide another path to homeownership by using eligible bank statements to document income.

One-Time Close Construction Loan A One-Time Close Construction Loan combines construction financing and permanent mortgage financing into a single loan with one application, one approval, and one closing. Once construction is complete, the loan automatically converts to a permanent mortgage, eliminating the need for a second closing.

PROGRAM HIGHLIGHTS •

Allows For Construction and Permanent Financing With a Single Loan

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New Construction or Tear Down

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Conventional, FHA, VA, and USDA

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Reduces Closing Costs by Eliminating the Need For a Second Closing

IDEAL BORROWER

Designed for buyers who want to build a custom home while simplifying the financing process with one loan from construction through permanent financing.

Agent Tip: This program is an excellent option when inventory is limited. It gives buyers the opportunity to build a home that meets their needs while simplifying the financing process with one loan and one closing.

Medical Professionals Program The Medical Professionals Program is designed to help eligible healthcare professionals achieve homeownership by offering flexible financing options that recognize the unique financial circumstances of those in the medical field.

PROGRAM HIGHLIGHTS •

100% Financing - $0 Down Payment

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No Mortgage Insurance Required

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Fixed Rate and Adjustable Rate Option

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Primary Residence Only

IDEAL BORROWER

Designed for eligible medical professionals beginning or advancing their careers who are seeking flexible financing that reflects their unique income and employment situations.

Agent Tip: Many medical professionals have excellent earning potential but may not fit traditional lending guidelines because of student loan debt or recent career transitions. This program provides a financing solution tailored to their unique circumstances.

NAF Recast Option A Recast Option allows buyers to purchase a new home now and adjust their mortgage balance later by applying a lump-sum principal payment—often from the sale of their previous home. The monthly principal and interest payment is then recalculated based on the new, lower loan balance while maintaining the existing interest rate and loan term.

PROGRAM HIGHLIGHTS •

Apply a $5000+ Lump sum Payment Directly to the Loan Principal

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Payment Recalculated Based on New Lower Loan Balance

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Multiple Recasts Can Be Completed During the Life of the Loan

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PMI Can Be Eliminated In Most Cases

IDEAL BORROWER

Designed for move-up buyers who want to purchase a new home before selling their current home and reduce their monthly mortgage payment after applying the sale proceeds.

Agent Tip: A Recast Option can help clients act quickly in a competitive market by purchasing their next home before selling their current one. Once their home sells, they can apply the proceeds toward their new mortgage and reduce their monthly payment.

Lock-In & Float Program The NAF Lock-In & Float Program allows qualified borrowers to lock in their interest rate while maintaining the opportunity to receive a lower rate if market interest rates improve before closing. It provides added confidence by helping protect against rising rates while still offering the potential to benefit from declining rates.

PROGRAM HIGHLIGHTS • • • •

Interest Rate Can Be Locked Once Purchase Contract is Accepted Client Is Protected From Rising Interest Rates Throughout Lock Period Opportunity to Float Down to a Lower Rate if Market Rates Improve Before Closing Eliminates the Pressure of Trying to Time the Market When Locking an Interest Rate

IDEAL BORROWER

Designed for rate-sensitive buyers who want the security of locking their interest rate while maintaining the opportunity to benefit if market rates decline before closing.

Agent Tip: The Lock-In & Float Program gives buyers the confidence to move forward without worrying about missing out if rates improve. It also helps reduce the temptation to switch lenders mid-transaction in search of a lower rate, keeping the loan—and the closing—on track.

Down Payment Assistance (DPA) Down Payment Assistance (DPA) programs help eligible homebuyers overcome one of the biggest barriers to homeownership by providing funds that may be used toward a down payment, closing costs, or both. New American Funding offers access to a variety of assistance programs to help qualified buyers achieve their homeownership goals.

PROGRAM HIGHLIGHTS • • • •

Down Payment and Closing Cost Assistance Available For Qualified Borrowers Assistance Available as Grants, Forgivable Loans or Repayable Second Mortgages Depending on Program May Combine with Conventional, FHA, and VA Loan Programs Available To Both First-Time and Repeat Homebuyers – Based on Program

IDEAL BORROWER

Designed for buyers who have the income to support a mortgage but need assistance with the upfront costs of purchasing a home.

Agent Tip: Don’t assume a buyer needs a large down payment to purchase a home. Down Payment Assistance programs can help qualified buyers overcome upfront cost barriers and may turn a renter into a homeowner sooner than expected.

NAF Pathway 100 NAF Pathway 100 is a down payment assistance program designed to help make homeownership more attainable by providing eligible borrowers with assistance toward their down payment and closing costs. Combined with flexible financing options and no income restrictions, the program helps qualified buyers purchase a home with little to no money out of pocket.

PROGRAM HIGHLIGHTS • • • •

580 Minimum Credit Score Up to 100% Financing 3.5% or 5% Assistance Available No Income Restrictions

IDEAL BORROWER

NAF Pathway 100 is ideal for first-time and repeat homebuyers who have stable income but limited funds available for a down payment and closing costs. It can be an excellent solution for qualified borrowers looking to preserve their savings while achieving homeownership.

Agent Tip: Many buyers believe they need years to save for a down payment. NAF Pathway 100 may help qualified borrowers achieve homeownership sooner than they expected with down payment assistance and flexible financing.

Chenoa Fund Program The Chenoa Fund Program is a down payment assistance program that helps eligible homebuyers achieve homeownership with up to 100% financing. By combining a first mortgage with down payment assistance, qualified borrowers may purchase a home with little to no money down while benefiting from flexible qualifying guidelines.

PROGRAM HIGHLIGHTS • • • •

Up to 100% Financing 3.5% or 5% Down Payment Assistance Choice of Forgivable or Repayable Second Mortgage Options Non-Occupant Co-Signers Permitted (when eligible)

IDEAL BORROWER

The Chenoa Fund Program is designed for qualified homebuyers who may need additional assistance with their down payment. With flexible qualifying options, it can help open the door to homeownership for borrowers who thought purchasing a home was still out of reach.

Agent Tip: Your buyers may be ready for a home but their savings aren’t. This program allows you to help clients buy a home now, instead of “someday”. It’s a smart way to grow your pipeline and your impact.

The following chart provides a side-by-side comparison of our standard loan programs, highlighting key qualifying factors and program features to help you quickly identify financing options for your clients.

...

WHAT

FANNIE

FREDDIE

FORECLOSURE

7 Yrs

7 Yrs

SHORT SALE

2 Yrs/4 Yrs LTV Restrictions & Ext Circumstances

2 Yrs/4 Yrs LTV Restrictions & Ext Circumstances

CH 7 BKCY

4 Yrs from Discharge

4 Yrs from Discharge

CH 13 BKCY

2 Yrs from Discharge Date; 4 Yrs from Dismissal

2 Yrs from Discharge

MINIMUM CREDIT SCORE

580

No Minimum AUS Approval Required

MINIMUM DOWN PAYMENT

3% First-Time Homebuyer 5% If Borrower Owned Property in Most Recent 3 Years

5%

MAXIMUM LOAN AMOUNT

$832,750

$832,750

SELLER CONCESSION

3% (>90% LTV) 6% (75-90% LTV) 9% (≤75% LTV)

3% (>90% LTV) 6% (75-90% LTV) 9% (≤75% LTV)

Exceptions Allowed

FHA

VA

USDA

JUMBO

3 Yrs

2 Yrs

3 Yrs

Investor Specific

3 Yrs 2 Yrs Exception Possible

Underwriter Discretion

3 Yrs

Investor Specific

2 Yrs from Discharge

2 Yrs from Discharge

3 Yrs from Discharge

Investor Specific

1 Yr of the payout must elapse and pmt history must be satisfactory

1 Yr of the payout must elapse and pmt history must be satisfactory

3 Yrs from Discharge

Usually 4-7 Yrs. from Completion

580

500-579 scores permitted w/ additional factors

Exceptions Allowed

500

580

620

3.5%

0%

0%

10%

$541,287 Varies by County

No Maximum Loan Amount With Full Eligibility

Maximum Loan Amount Determined

by USDA Income and Ratio Limits

$10 Million

6%

4%

6%

Investor Specific

Let’s Find the Right Solution Together No two buyers are exactly alike, which is why having access to a broad portfolio of loan programs makes all the difference. From traditional financing to specialty lending solutions, I’m committed to helping you find the right mortgage for every client.

Whether you need a quick Pre-Approval, help with a challenging financing scenario, or answers to your lending questions, I’m only a phone call away.

I look forward to being a trusted resource for you and your clients.

Michelle Lambrich Sales Manager NMLS# 899818

(314) 616-0929

Michelle.Lambrich@nafinc.com NAF.com/MichelleLambrich

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Equal Housing Opportunity. This is not a loan commitment or guarantee of any kind. Terms and conditions apply. Subject to borrower and property qualifications. Not all applicants will qualify. Rates and terms are subject to change without notice. All mortgage loan products are subject to credit and property approval. © 2026 New American Funding, LLC. NMLS #6606. nmlsconsumeraccess.org. Corporate office 14511 Myford Rd., Ste 100, Tustin, CA 92780. www.newamericanfunding.com. Phone: (800) 450-2010. Not intended for distribution to consumers as defined by Section 1026.2 of Regulation Z which implements the Truth-In-Lending Act. This information is to inform the real estate industry only and is not marketing material to be provided to consumers. Using your home equity to pay off debts or make other purchases does not eliminate the debt or the cost of the purchases, but rather increases the loan amount of your mortgage to be paid according to your new mortgage terms. By refinancing your existing loan, your total finance charges may be higher over the life of the loan. Not available in: DC, NY, MA, TX, Guam, Puerto Rico, or U.S. Virgin Islands. Borrower is obtaining a bridge loan secured by their current primary residence to use the cash out proceeds towards the purchase of their new primary residence while they await the sale of their current primary residence.

This loan product contains a balloon payment and requires no monthly payments during the 12-month term. The entire amount of outstanding principal and accrued interest is due at maturity or the sale of the property, if sooner than maturity. Payments do not include amounts for taxes and insurance premiums. Your actual payment obligation will be higher. 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. MI Real Estate Broker #6502431375. NAF Cash, LLC does not originate loans or issue loan commitments. NAF Cash, LLC charges a Transaction Fee of 1.5%-3.5% of purchase price for its service (fee varies by state). Terms and conditions apply, not available in all states. 41050 W 11 Mile Rd, Ste 220, Novi, MI, 48375. Phone 844-344-0531. NMLS #6606. 07/2026