New Day Veteran Loans: Everything You Need to Know

As a veteran looking to purchase a home or refinance your mortgage you may be considering New Day USA for your loan needs. New Day USA is one of the largest veteran mortgage lenders in the country having helped over 100,000 military families with VA loans.

In this comprehensive guide. we’ll explain everything you need to know about New Day veteran loans. including

• Overview of New Day USA
• Types of loans offered
• Loan terms and fees
• Eligibility requirements
• Application process
• Pros and cons to consider
• Alternative lenders to compare

Let’s dive in and see if New Day USA is the right lender for your situation.

Overview of New Day USA

New Day USA is a nationwide mortgage lender based in West Palm Beach, Florida. Founded in 2009, the company specializes in VA loans for active duty military, veterans, reservists, National Guard members and surviving spouses.

As one of the top VA mortgage lenders in America, New Day has provided over $21 billion in loans to service members across the country. They are dedicated to getting veterans low rates and flexible terms on their mortgage.

New Day USA is a subsidiary of Chrysalis Holdings, a private investment company. The company is led by Chairman Rear Admiral Tom Lynch, a veteran who previously served as Director of Navy Legislative Affairs.

Types of Veteran Loans Offered

New Day USA offers a wide range of VA-backed loan programs to suit different needs:

VA Purchase Loans

The VA loan program allows eligible borrowers to purchase a home with no down payment. You can get 100% financing.

VA Cash-Out Refinance

The lender offers VA streamline and VA cash-out refinancing. Borrowers can tap home equity while lowering their rate.

VA Jumbo Loans

These loans exceed the standard conforming loan limits. Ideal for pricier real estate markets.

VA Renovation Loans

Funds to purchase and renovate a home through one VA-backed mortgage.

VA Interest Rate Reduction Refinance Loan (IRRRL)

Lower your current VA loan rate and payment through an easy streamline refi process.

This wide range of products provides options for first-time buyers, homeowners looking to refinance, those needing renovations, and more.

New Day USA Loan Terms and Rates

Loan terms, rates, and fees offered by New Day USA include:

Loan Amounts: Up to $2 million

Down Payment: 0% down payment required

Interest Rates: Around 4.5% – 5.5% for well-qualified applicants, depending on loan type, term, credit score and other factors

Loan Terms: 10- to 30-year options available

Origination Fee: 2% of the loan amount, covers lender costs

Funding Fee: 2.3% for first time use of VA loan benefit or 3.6% for subsequent use

Prepayment Penalty: None

Late Fees: 5% of the late payment or $15, whichever is greater

Overall, New Day USA offers competitive VA rates and does not charge application fees. Closing costs average $2,500 to $6,000 depending on the loan amount.

New Day USA Eligibility Requirements

To qualify for a VA loan with New Day USA, you’ll need to meet the following eligibility criteria:

• Currently serving on active duty or honorably discharged from service
• Sufficient length of service (usually 2 years)
• Good credit score (minimum 620, but 640+ recommended)
• Manageable debt-to-income ratio (typically under 50%)
• Sufficient income and assets
• Meet VA residual income guidelines
• Receive Certificate of Eligibility (COE) from VA

Spouses of deceased or disabled veterans may also be eligible. The lender can guide you through the qualification process.

How to Apply for a New Day Veteran Loan

Applying for a mortgage with New Day USA can be completed in just a few steps:

1. Pre-approve: Complete the pre-approval process to view personalized loan offers. This involves submitting basic personal finance information.

2. Apply: Submit a full loan application along with required documents like your COE, pay stubs, tax returns and bank statements. This officially begins the underwriting process.

3. Process: A loan officer will guide you through underwriting. Any verification or documentation needs will be communicated to you.

4. Close: After approval, you can set your closing date. Review final documents carefully before closing. The funds disburse after closing.

Many borrowers appreciate the smooth online process and helpful loan officers available by phone whenever needed.

Pros of Using New Day USA for VA Loans

There are many benefits that make New Day USA appealing to veteran borrowers:

• Specializes in VA loans: New Day USA’s focus on VA lending means they excel at guiding borrowers through the process. Their expertise and familiarity with the program requirements is invaluable.

• ** VA-trained loan officers:** Their loan officers receive in-depth training on VA lending guidelines. This means they can navigate any complex documentation or underwriting needs specific to VA loans.

• No lender overlays: Unlike some lenders, New Day USA does not add any additional credit score or underwriting requirements beyond the VA’s baseline criteria. This increases approval chances.

• Responsive support: Many reviews praise their friendly and responsive loan officers for providing stellar customer support throughout the entire loan process.

• Fast process: With their expertise in VA loans, New Day USA can often process loans more swiftly than other lenders who rarely handle these loans. Pre-approvals are quick too.

• Gives back to veterans: Through their charitable foundation, a portion of profits are donated to causes supporting veterans, military families, and wounded warriors.

Potential Cons to Consider

Of course, it’s important to weigh the potential downsides too:

• Higher rates than alternatives: Compared to options like Navy Federal Credit Union, USAA or local banks, interest rates may be slightly higher with New Day USA. Retail lenders can’t always compete with the lowest rates credit unions can offer.

• Mixed customer reviews: Reviews are polarized, with some veterans reporting great experiences while others complain of poor or misleading service. It’s important to vet your actual loan officer.

• Aggressive marketing: Some borrowers dislike their frequent promotional emails and phone soliciting. You may need to opt-out of marketing communications.

• No branch locations: As an online lender, New Day USA does not have brick-and-mortar branches. Those who prefer face-to-face interaction may view this negatively.

While they specialize in VA loans, make sure to compare options to ensure New Day USA is offering the best rates and service for your unique scenario.

Compare to Other Top VA Mortgage Lenders

New Day USA isn’t your only option for VA loans. Here are a few top alternative lenders to consider:

Veterans United: This lender is one of the VA loan volume leaders thanks to their focus on personalized service and giving back to veterans causes. Their rates are ultra competitive.

Navy Federal Credit Union: Offering excellent rates and top-notch service, Navy Fed is ideal for borrowers who are members of the credit union and meet eligibility requirements.

USAA: For military members qualifying for membership, USAA offers some of the lowest rates available along with their legendary customer service.

Pentagon Federal Credit Union: PenFed is a great choice for borrowers who are eligible to join the credit union. They offer key loan programs for military personnel.

Quicken Loans: Although not exclusively for the military, they offer very low rates and fast online processes to appeal to veteran borrowers wanting speed and technology.

The right lender for you depends on your financial situation, preferences, and loan needs. Speaking with multiple lenders to compare costs and services is highly recommended.

The Bottom Line: Is New Day USA a Good Lender for Veterans?

For eligible borrowers needing a VA mortgage, New Day USA is certainly an option worth considering thanks to their knowledge of these specialty loans. Their focus and experience with the VA can be invaluable.

However, make sure to compare interest rates and fees with other VA lenders too. While service is important, finding the lowest rate will make the biggest impact on your long-term costs.

Many veterans are extremely satisfied with both the service and financing from New Day USA. But as with any lender, experiences can vary. Discussing your loan options with competing VA lenders as well ensures you make the optimal choice.

At the end of the day, the lender you choose for a VA loan or refinance needs to make you comfortable. Reviewing recent customer feedback, asking the right questions and understanding rates and fees empowers you to make the best decision. Your service and sacrifice deserve the ideal loan experience.