Today we’ll review NewDay USA, a mortgage lender that is geared specifically toward veterans and active duty military.
Like other mortgage companies, they offer both home purchase loans and refinance loans, but only those backed by the United States Department of Veterans Affairs (VA) and the Federal Housing Administration (FHA).
Let’s discover more about this company, whose goal is to become one of the largest VA lenders in the country.
NewDay USA Quick Facts
- Top-10 VA mortgage lender headquartered in Fulton, Maryland
- Founded in 1998 by current CEO Rob Posner
- Direct-to-consumer company offering VA loans and FHA loans
- A Ginnie Mae (GNMA) approved issuer/servicer
- Licensed to lend in 43 states and the District of Columbia
- Originated around $2.5 billion in 2019
How to Apply with NewDay USA
NewDay USA is a direct-to-consumer mortgage lender. This means you work directly with a loan officer at their company to obtain your mortgage.
To get started, you fill out what amounts to a lead form and then a loan officer will contact you to go over your options and eligibility.
You enter basic information including the type of loan you’re looking for, property type, estimated home value, property address, name, and contact info.
It’s also possible to call the company directly or fill out a much shorter contact form if you’re interested in getting a loan.
Unfortunately, they don’t seem to offer the ability to apply for a home loan directly on their website.
So you will need to speak with a human being to get the ball rolling.
In terms of whether they offer a digital mortgage process, that’s unclear.
They don’t really talk about the loan process on their website, but I assume you have the ability to upload documents and complete most items online.
NewDay USA’s SafeClose
Just this month NewDay launched “SafeClose,” a new process where customers can sign their mortgage closing documents without a notary agent entering their home.
This initiative is part of their effort to continue lending during the coronavirus epidemic, and adheres to the CDC’s social distancing guidelines.
How it works is pretty simple.
First, loan documents are reviewed by the borrower and signed electronically using the applicant’s home computer.
Next, five key loan documents that must be signed in the presence of a notary are physically delivered to the customer’s front door for signature.
The notary observes the customer signing the documents from a safe distance, then verifies and notarizes them so the loan can fund.
What Types of Loans Does NewDay USA Offer?
- Primarily offer VA loans and some FHA loans
- Can get a home purchase loan with zero down
- Or a refinance loan including streamline or cash out
- Fixed-rate mortgages only with either 30-year or 15-year term
As noted, NewDay USA is a veteran-focused home loan lender, meaning they specialize in VA loans.
If you’re unaware, it’s possible to purchase a home with zero money down when utilizing a VA loan, a great benefit for veterans that isn’t available to others.
Aside from home purchase loans, NewDay USA also offers home refinance loans, including a cash out refinance up to 100% of the home’s value.
Many lenders limit VA cash out refinance to 90%, so this is a unique program offered by NewDay USA.
They also offer a “Rate Reduction Loan,” otherwise known as a VA streamline refinance, which doesn’t require a home appraisal or income verification.
It allows you to lower your mortgage rate if you already have a VA loan, and closing costs can be financed into the loan amount so nothing is paid out-of-pocket.
The company also appears to offer FHA loans, though these might be a secondary offering if you don’t qualify for a VA loan for some reason.
They do not offer conventional loans, such as those backed by Fannie Mae or Freddie Mac, nor do they offer home equity lines/loans.
In 2019, their product mix consisted of 97% VA loans and 3% FHA loans. With regard to loan purpose, 90% were cash out refis, 6% were purchases, and 4% were rate and term refinances.
NewDay USA only appears to offer fixed-rate mortgages, with the 30-year fixed commanding a 97% share.
The states of California and Florida account for nearly a quarter of their loan volume.
NewDay USA Cash Buyer Certificate and Operation Home
If you’re a veteran or servicemember looking to purchase a home, you can take advantage of the company’s so-called “Cash Buyer Certificate” and “Operation Home” initiative.
In short, they want as many veterans as possible to realize the American Dream of homeownership.
The first step is to contact NewDay USA for a Cash Buyer Certificate, which is essentially a mortgage pre-approval that shows home sellers you’re a qualified and serious home buyer.
But unlike some flimsy pre-qualification letters, it’s actually a full credit and income approval verified by a NewDay USA underwriter.
This gives applicants confidence that they’ll be able to close, and an edge relative to other buyers if the seller knows they mean business.
Next, they can connect you with a real estate agent that is veteran-focused, or possibly a veteran themselves, who understands fellow vets.
The agent and NewDay USA loan officer will guide you through the process from start to close.
NewDay USA Mortgage Rates
Like many other lenders, they do not openly advertise their mortgage rates on their website. As such, we have no idea where they stand competitively.
However, VA mortgage rates tend to be quite cheap relative to other loan types, so they’ll probably sound attractive regardless.
NewDay also doesn’t disclose their lender fees upfront, so it’s not clear if they charge an origination fee, or common lender fees like underwriting and processing.
So be sure to take the time to shop around with other mortgage lenders if you care about price. Pay attention to both the interest rate offered and the APR, which factors in the lender fees!
NewDay USA Mortgage Reviews
In terms of customer satisfaction, NewDay USA has a 4.6 out of 5-star rating with Trustpilot based on over 4,000 customer reviews.
Most of the reviews tend to point out that the loan process was very easy and fast, with one mentioning a quick digital process.
Some mention mortgage rates being lower than what their current lender could offer, or them being the “best” or “great.” So that might give us an idea of how competitive they are.
Haven’t seen much mention of lender fees in the reviews, so be sure to consider those, even if they are bundled into the loan amount and not paid out-of-pocket.
They also have a 4.25 rating out of 5 on ConsumerAffairs and an A+ rating with the Better Business Bureau, despite not being an accredited business.
The Pros and Cons of NewDay USA
- Highly rated on Trustpilot and ConsumerAffairs review sites
- Offer cash out refinances up to 100% of property value
- Appear to close their loans quickly
- May be more flexible in approval relative to other lenders
- Tailored toward veterans and servicemembers
- Cash Buyer Certificate offers full pre-approval for home shoppers
The Potential Bad
- Only offer VA loans and FHA loans
- Do not lend in MA, ND, NY, RI, UT, VT, or WV
- Do not offer conventional home loan financing or equity loans/lines
- Unable to apply for a home loan directly online
- Do not advertise mortgage rates or lender fees
My talking to NewDay USA has been short and not so informative. My wife and I have a VA loan, have great credit, and meet all the criteria for a cash out refinance loan, but after filling out their computer process, we were left several days and phone calls to finally be told that cash out department wasn’t currently working or wasn’t available to us or anyone.
What is going on with this company? The only response was that they lied to us about the cash out program. I am now talking to the Better Business Bureau!!
Might be related to the entire industry staying away from cash out refis due to COVID-19. Not just NewDay USA, but they probably should have taken the time to explain that to you regardless.
I called NewDay several months ago when interest rates had lowered significantly. My intent to was try and re-finance with a lower interest rate. However, when I revealed that I had a conventional mortgage, I was told that they were not re-financing conventional mortgages at the time and possibly in several weeks that policy would change. My phone number was taken and told they would keep me posted on the policy. No phone calls and so much for the company for veterans. I gather that my situation just wasn’t profitable enough for NewDay.
Can you find out how much we are qualified for a new mortgage?
You’d need to get a pre-approval that takes into account your income, assets, down payment, and other monthly liabilities.
I contacted NewDayUSA and applied to refinance my home. I spoke with Seth McFall who assisted in the application process. After placing me on hold to put my application, Seth claimed it appeared there was not a significant benefit in savings for me at the time. Seth did say there was a program that would help in increasing the savings but my application would need to be reviewed by his supervisor and management and he would get back with me on the review.
Seth never called back despite my attempts to call Seth numerous times leaving a message that I was still waiting for his status call. I think it’s a disservice to have a representative like Seth and not follow through on his claim to call back and help. This totally negated Rear Admiral Tom Lynch claiming he has a great team to help veterans get the best service they have earned by serving.
I decided to apply elsewhere, Freedom Mortgage assisted me and in 30 days I was approved at the new lower rate. This was initiated in June and my new payment which was significant would begin September 1st. Thank you Freedom Mortgage for your help!
I’m very disappointed that NewDayUSA failed to assist me a veteran of the US Army during the Viet Nam Era. Two weeks later NewDayUSA changed their commercial to now claim a savings to a veteran 3K from 2K per year.
New day USA seems like a scam to me I’m a retired veteran. Every body else offers much lower rates
Can’t compete with other mortgage companies , they were 1/2 a point higher in interest rates than other commercial lenders, they don’t care about veterans, just out to make as much as they can off veterans, very disappointed.
I called my current loan provider and refinanced with them because NewDay wanted almost $5000 more in closing and points.
I called New Day USA…excited about getting my current V.A. loan at a lower, refinanced rate. I was excited, until they advised me that due to the fact that we have a double-wide manufactured home…that they do no work with those. It’s ok for us veterans to risk our lives, time, and love of country for their freedom…but, when it comes to what we live in…we become “second rate…non advantageous citizens.” And, to think…we made it possible for so-called “New Day USA” to achieve their status on our service! I’m going to file a discrimination complaint with Better Business Bureau…we have EXCELLENT credit…never, ever been late in ANY payment on ANYTHING since 1964…yet, we’re “2nd rate citizens” and made to feel as if we’re “tailor trash” because we live in a double-wide…that is probably better than their “stick built” homes!
I will never recommend this group! I applied and because I had a foreclosure in lieu on a toxic property they would not refinance my house that is a VA loaned house. Fully guaranteed they don’t care about the vets. Their management set this policy with no way to get a waiver. Don’t waste your time!
Run, do not walk from this company. All lies! You can get better deals with local finance companies.
Do you refinance loans in foreclosure?
This company is an absolute disgrace, they don’t deserve one star! We refinanced through them one year ago and thought that they would be good because they’re supposed to be veteran friendly. That’s a complete joke, they do not care about vets, especially disabled vets! We have always made our payments early and sometimes make an overpayment. Recently, we’ve been trying to get them to send an email to our county tax office, that would take them all of 2 minutes, but they have jerked us around for over 3 months! They have no legal reason to not request a tax refund, for overpayment, on our behalf. The only reason we can think of is that they are completely inept and they just don’t care. It’s our money, but they are holding it hostage, out of spite. at this point. I would never recommend this mortgage company and as soon as we can, we’re going to find a different one, a company that truly cares about veterans! In the meantime, we might actually have to hire a lawyer, just to deal with our own mortgage company, incredible!
Beware! This company is a joke when it comes to helping veterans. We contacted them about a refinance, they ran our credit and assured us they could work with us. Did appraisal and termite inspection and they set our closing date. Then, the nick picking started. They needed this and that, wasn’t good enough – they needed even more in-depth things. We had told them up front that we had just got custody of our grandchildren and the costs were catching up to us. Still, all going good and we were on target with closing date. Then, my mother in law passed unexpectedly requiring us to travel out of state but we made plans to be back for our Monday closing. Low and behold, on Friday they said we just,pulled your mortgage pay off and you are one day, yes one day past due date so we won’t be able to close on Monday. We explained that with everything going on, it had slipped our mind and immediately called with a payment and NewDay even verified it. Needless to say, they then started not returning calls and after 2 months of running us ragged with nit picking – they denied us because that late payment made us 1/10th of a point off. They never intended to give us a loan but sure put us though the ringer for over 2 months. Jesse, the loan officer is a joke!