NewDay USA Review: Is it Legit?
NewDay USA, found online at NewDayUSA.com, is a licensed mortgage broker focusing on the needs of veterans.
They state that their financial products can help veterans take advantage of certain veteran specific benefits.
Below we take a closer look at NewDay USA and their customer reviews.
How Does NewDay USA Work?
You may have seen one of the company’s many advertisements on television or online offering low rates for refinance or new home purchase.
They state they have already helped over 75,000 veteran families get cash, buy a home, or lower their mortgage payments.
The company’s board of advisors and leadership group features many retired military members whose stated mission is to become the leading VA mortgage company in the nation.
The company offers veterans two main avenues to take advantage of the loan benefits approved by the VA.
The first is the NewDay USA 100 VA Cash Out Loan and the second is with a NewDay Zero Down VA Home Purchase Loan.
VA Cash-Out Loan
This is a way for military service members to access the equity in property that they currently own.
These funds can then be used for things such as paying off debt or doing a major home improvement project on the home.
VA cash out loans can also be used to refinance a non-VA loan into a VA loan to take advantage of the better rates.
Since VA loans are government backed lenders they willing to give much more favorable terms to borrowers.
Another variation on the cash out refi for those who already have a VA loan is an interest rate reduction refinance loan.
This is an option to consider if you want to convert your loan to a different term and/or take advantage of lower rates.
Who Qualifies for a Cash Out Loan?
Those with a current home loan and positive equity with the following requirements:
- Active Duty Service Member
- Veteran with honorable discharge
- Reservist/National Guard with honorable discharge and sufficient time served
- Surviving spouse of an eligible deceased Veteran
- Spouse of a MIA/POW service member
Those in the National Guard or Reserves can read about their full benefits at the US Department of Veteran Affairs website.
NewDay Zero Down VA Home Purchase Loan
These loans come with some unique benefits only available to veterans. They include:
- No Down Payment
- No Private Mortgage Insurance
- Cash Buyer Certificate
These are substantial perks, but borrowers should be aware that they come with some stipulations.
For instance, the 'No Down Payment' option is only a possibility if the home’s sale price is not higher than the appraisal.
Furthermore, while there is no down payment or private mortgage insurance (PMI) VA loans come with a VA Funding fee which is essentially the VA’s own PMI.
This fee is applied for REFIS and new purchase loans and can be paid upfront or rolled into your total loan amount. It's based on a percentage of the loan and that percent also depends on how much your down payment is.
So for instance, if you put 0 money down, at the current rates, your VA fee would be 2.3% of the loan amount.
If you do put money down your fee structure would look like this:
|Down Payment||Fee Rate|
|5% or more||1.65%|
|10% or more||1.4%|
|After First Use||Fee Rate|
|Less than 5%||3.6%|
|5% or more||1.65%|
|10% or more||1.4%|
The VA Funding Fee is not unique to NewDay USA. No matter what VA loan broker you go with you will have to pay this. There are also cases where this fee may be waived, so make sure to do your research.
NewDay USA states that they handle every step of the application process, both the in-house underwriting and loan processing, and offer closing dates in as little as 30 days.
When you call in to speak with a rep the first thing you should do is make sure that NewDay USA operates in your state.
NewDay do not operate in every state at this time, so it's important to check with them first if they offer services where you live.
The last thing to consider is the type of property that you are purchasing, since in some specific situations VA loans will not be available to you.
For instance, you can not use one to purchase raw land for a future home build or to fund a 2nd vacation home.
Customers who would like to speak to a representative about their questions, concerns, or complaints can do so by phone at 800-405-4187 or by submitting your contact information to their website and having a representative call you back.
If you end up on the mailing list for NewDay USA and wish to be unsubscribed you can do so by sending an email to [email protected] with the subject title “Do Not Mail.”
You will have to include your name, address and the reservation number on your mailer.
Cost & Price Plans
With financial issues as significant as home loans, there is no way to quote a specific cost, as all costs depend on the value of the home in question, your personal credit history, and which fees are applicable to your circumstances.
NewDay USA does not publish their lending rates online but rather invites borrowers to call and speak directly with one of their agents.
Major installment loans like mortgages do not come with Refund Policies, though some companies may offer certain Cancelation Policies which allow borrowers to return the principle of their loan without financial penalty.
Customer Reviews & Complaints
NewDay USA has been in business for over 20 years and has amassed enough customer feedback to help you make an educated decision on whether or not to use them as your lender.
There are online reviews available on Reviewopedia (below) and other platforms.
The business is not accredited by the BBB but maintains an A- rating on that website.
In general, their customer ratings are positive and average out to around 4.5 out of 5.
Pros and Cons
Positive customer reviews mention things such as:
- Excellent customer service
- Borrowers felt they were well informed and taken care of throughout the entire lending process
- Appreciating the military support provided by NewDay
Negative customer reviews mentioned the following:
- Feeling pressured to take out larger loans
- Being quoted one low rate at the start of the lending process then ending with a higher one
- Not getting the rate they expecting or felt qualified for
- Missed deadlines due to delays
- Errors in paperwork
- Slow process
- High closing costs
- Feeling that appraisals were incorrect (NewDay notes that appraisals are done by third party companies ordered through the VA)
NewDay USA representatives seem to take an active role in dealing with customer issues and routinely reply to negative reviews in an effort to resolve the situation.
Competitors and Alternatives
There are many different mortgage brokers available today, whether you are interested in going with a large scale traditional bank or a company that specializes in mortgages such as Rocket Mortgage or AmeriSave.
Further there are also other companies that specialize in VA loans. Examples include USAA and Veterans United.
Whichever company you go with, it's a good idea to do your due diligence and thoroughly research them. Look at their customer reviews and try to get personal recommendations for loan officers when possible.
The Bottom Line
There is a lot to like about NewDay USA, with their dedication to helping the military community and their mostly positive reviews.
However, they are a large and growing company so every customer's experience may not be the same.
You are encouraged to shop around for rates and look for the best lender that fits your needs.
If you have any experience with NewDay USA, please leave your reviews below.
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