Achieve vs New American Funding: In-Depth HELOC Comparison Guide
Last updated 06/04/2025 by
Ante MazalinEdited by
Andrew LathamSummary:
When tapping into your home’s equity, a Home Equity Line of Credit (HELOC) can be a flexible way to access cash without refinancing your first mortgage. Two digital-forward lenders—Achieve and New American Funding—offer HELOC products designed for quick approvals and competitive rates.
This comparison breaks down the key differences between their HELOC offerings, comparing eligibility requirements, interest rates and fees, product features, application processes, and borrower suitability.
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Quick Comparison: Achieve vs. New American Funding
| Feature | Achieve HELOC | New American Funding HELOC |
|---|---|---|
| Rate Type | • Fixed‐rate option (10, 15, 20, 30 yr) • Variable: Prime – 0.50% (floor 2.75%, cap 18%) | • Fixed‐rate on initial draw (100% at closing) • Subsequent draws: variable (Prime + margin) |
| Maximum LTV | Up to 90% | 80 – 85% |
| Minimum Credit Score | Typically 680+ | 620 |
| Origination Fee | • $0 for lines ≥ $25 K • $350 fee if < $25 K | 4.99% of approved credit line |
| Funding Time | 10 – 12 business days | 30 – 45 days |
| Fixed‐Rate Option | Yes (available tiers for full amortization) | Yes (entire line at closing; no partial advance) |
| Initial Draw Requirement | No minimum—draw as needed during draw period | Must advance 100% of approved line at closing |
| Closing Costs | No closing costs on lines ≥ $25 K; AVM used to limit appraisal | Borrower pays full appraisal, title, and recording fees |
| Property Types | Owner‐occupied primary residences only | Primary, secondary, and investment properties |
| Geographic Availability | Nationwide (all 50 states) | All 50 states (excludes HI, KY, NY, WV for HELOCs) |
Overview of Achieve’s HELOC
Dive into our comprehensive New American Funding HELOC review to see if it’s the right fit for your financial needs.
Product Features & Flexibility
Draw & Repayment Structure
Achieve HELOC
- Draw Period: 120 months (10 years) during which borrowers can make interest-only payments on any amounts they draw. As principal is repaid, that available credit becomes accessible again during the draw period.
- Repayment Period: After the draw period ends, a 120-month (10-year) fully amortizing repayment phase kicks in, converting any remaining balance into equal monthly principal + interest payments.
- Fixed-Rate Option: Borrowers who elect a fixed-rate HELOC choose a single fixed APR at closing (available terms: 10, 15, 20, or 30 years). That fixed rate applies only to the balance drawn at closing; any additional draws during the draw period revert to the variable Prime-based rate.
New American Funding HELOC
- Initial Draw Structure: The borrower must advance 100 percent of the approved credit line at the locked-in fixed rate. That means interest begins accruing immediately on the entire amount, even if part remains unused.
- Subsequent Draws: Once a portion of the principal is paid down, the borrower can request additional draws up to the original credit limit; those subsequent advances carry a variable rate tied to Prime + margin.
- Repayment Amortization: After the draw phase (which effectively ends at closing since the full line is drawn), the borrower enters a standard amortization schedule—typically spread over 20 to 30 years—depending on the contract terms.
Which Borrower Is Each Best Suited For?
Achieve HELOC
- Debt Consolidators: Ideal for borrowers looking to refinance high‐interest credit cards or personal loans into a single, fixed‐rate HELOC. The fixed‐rate option provides certainty in monthly payments.
- Home Improvement Projects: Homeowners planning large renovations who want to spread repayments over 20–30 years at a locked‐in rate will benefit from Achieve’s long‐term fixed‐rate tiers.
- Speed‐Critical Needs: If you need capital quickly—such as for medical bills or urgent repairs—Achieve’s 10–12 business day funding cycle is a major advantage.
- High‐LTV Borrowers: Those who want to maximize equity access (up to 90% LTV) and avoid closing costs on lines ≥ $25 K.
New American Funding HELOC
- Investment Property Owners: Best for borrowers who own secondary or rental homes, since NAF allows HELOCs on non‐owner‐occupied properties. This gives real estate investors direct access to rental property equity.
- Fixed‐Rate Lump‐Sum Needs: Borrowers who prefer a one‐time, fully locked‐in rate on the entire approved credit line can take advantage of the fixed‐rate initial draw. This is useful for large, single‐phase projects.
- Personalized Service Seekers: If you have non‐standard income, complex documentation, or simply value local, loan‐officer guidance throughout the process, NAF’s hybrid approach will be more accommodating.
- Less Sensitive to Upfront Fees: Those who have cash on hand to cover a higher origination fee (4.99% of the line) and full appraisal costs may find the convenience of a single, locked‐in advance worth the extra expense.
Conclusion & Recommendations
Both Achieve and New American Funding offer compelling HELOC solutions, but their strengths align with different borrower profiles:
- Choose Achieve HELOC if you need rapid funding, minimal upfront fees (for lines ≥ $25 K), clear variable‐rate margin (Prime – 0.50%), or a fixed‐rate option spread over 20–30 years. Achieve’s high LTV flexibility (up to 90%) and streamlined online process make it ideal for debt consolidation and home improvement financing where speed and payment predictability are top priorities.
- Choose New American Funding HELOC if you own a secondary or investment property, require a single lump‐sum at a guaranteed fixed rate, or value a personalized, loan‐officer‐guided underwriting approach. While NAF’s higher origination fee and longer funding timeline may deter cost‐conscious borrowers, its allowance for non‐owner‐occupied HELOCs and the certainty of a locked‐in initial draw can be appealing for real estate investors and those undertaking large, one‐time expenses.
Ultimately, you should obtain personalized estimates from both lenders—taking into account your credit profile, equity percentage, and timeline needs—so you can weigh total costs (interest + fees) against the convenience and speed of closing. By analyzing both rate structures and borrower requirements side‐by‐side, you can select the HELOC product that best aligns with your financial goals and urgency.
Key Takeaways
- Achieve funds in 10–12 business days with an AVM‐based process, while New American Funding takes 30–45 days due to full appraisals and title work.
- Achieve offers a fixed‐rate option for amounts drawn at closing and up to 90% LTV for primary residences; New American Funding requires a 100% initial draw at a locked‐in fixed rate and supports primary, secondary, and investment properties.
- Achieve has minimal upfront fees (no closing costs on lines ≥ $25K and a $350 fee if under $25K) and no prepayment penalties; New American Funding charges a 4.99% origination fee plus full closing costs but also has no prepayment penalties.
- Achieve allows re‐borrowing repaid principal during the 10‐year draw period; New American Funding’s structure means you pay interest on the entire approved line from day one, with variable‐rate exposure on any future advances.
FAQ
What is the difference between Achieve’s fixed-rate HELOC and New American Funding’s fixed-rate option?
Achieve’s fixed-rate HELOC allows you to lock in a fixed APR on the balance you draw at closing, with available amortization terms of 10, 15, 20, or 30 years. Any additional draws during the 10-year draw period will revert to a variable rate tied to Prime, so you only lock in the initial amount. New American Funding’s fixed-rate option requires you to withdraw 100 percent of your approved credit line at closing at a fully locked-in rate. That means you pay interest on the entire amount from day one, but you have no variable-rate exposure on that initial lump sum.
How quickly can I access funds with each lender?
Achieve typically funds within 10–12 business days of a complete application, thanks to its fully digital process and use of an automated valuation model (AVM) in lieu of a full appraisal. New American Funding usually takes 30–45 days from application to funding because it requires a third-party appraisal, title work, and a more traditional underwriting workflow.
Can I use either HELOC on a second home or investment property?
Achieve’s HELOC is only available for owner-occupied primary residences. In contrast, New American Funding allows HELOCs on primary, secondary, and investment properties (subject to LTV caps and credit requirements). If you need to tap equity on a rental property or vacation home, NAF would be your better choice.
Are there any prepayment penalties or fees for early payoff?
Neither Achieve nor New American Funding charges prepayment penalties if you pay down your principal early. Achieve also allows you to re-borrow repaid principal during its 10-year draw period without penalty. New American Funding requires you to pay interest on the full initial advance, but if you pay down principal later, you reduce interest accrual moving forward.
What credit score and equity requirements do I need to qualify?
Achieve does not publish a strict minimum FICO, but its underwriting generally favors “good” credit (around 680 or higher) and requires sufficient home equity to reach up to 90 percent LTV for qualified borrowers. New American Funding requires at least a 620 FICO score and 15–20 percent equity in the property (80–85 percent combined LTV). NAF is often more flexible on DTI and documentation if you work closely with a loan officer.
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