NewDay USA is a mortgage company which claims to offer home loans, particularly to veterans, allowing for a 100% refinancing of a home in as little as 30 days. They promise this will allow you to consolidate your debt, lower your monthly payments, improve your home, and even give you some cash to spend how you please.

The NewDay USA Pitch

NewDay USA’s core focus is on veterans and their families, claiming to provide them VA Loans, backed by the US Government. Their main spokesperson is Chairman Tom Lynch, a retired Rear Admiral who promises a dedicated team of professionals, many of whom are veterans themselves, to help you through the refinance process; NewDay USA does not offer new home loans.

NewDay USA claims that they can offer veterans up to 100% of their home’s value, whereas a traditional lender or other VA lenders can only offer 80 or 90%. The result, they say, means more money for you to pay off credit cards or perhaps go on a vacation with the extra money.

The majority of NewDay USA advertising is through direct mail – between July 2011 and July 2014 they sent over 50 million solicitations (mostly to veterans) through snail mail or email.

To make it easy, they have a Quick Start form, which asks just 3 questions so they can get the ball rolling towards a VA refi; once you’ve taken that initial step, the questions get more detailed. 

NewDay USA Cost

NewDay USA doesn’t specifically list all the costs of their service up front. VA Loans generally take in a number of factors, including length and type of service, amount borrowed, credit score, property info, equity, and more. For these types of loans, there are usually closing costs, appraisal fees, and points, all of which must be paid upfront. 

Bottom Line: Is NewDay USA a Scam?

NewDay USA appears to be very sincere in its efforts to help our men and women who have served in the armed forces. Since the mortgage crisis of 2008, many servicemen and women have had a hard time getting loans at traditional brick and mortar banks.

However, there are problems with their service, most notably what appear to be very high loan rates, points, and fees. While this may allow NewDay USA to give homeowners more cash, it can leave many in even more financial trouble.

On February 10, 2015, the Consumer Protection Financial Bureau took action against NewDay USA (officially known as NewDay Financial LLC) fining them $2 million dollars for claiming to be officially endorsed by a veteran’s association, when in fact they were giving kickbacks to this association in exchange for referrals.

“NewDay profited from the trust that veterans place in their veteran service organization,” CFPB Director Richard Cordray was quoted in their press release as saying. “Veterans, and any consumers getting a mortgage, deserve honest information about lender endorsements.”

Currently, the Better Business Bureau is reviewing NewDay USA, so they have no rating (NewDay formerly had an A+ rating).

As far as customer reviews go (aside from the glowing ones on their website) NewDay USA does not fare very well. Over at our sister publication Highya, NewDay USA currently has a 1-star rating. Consumers complain about aggressive sales tactics, hidden fees, and high interest rates and points. Commenters on other websites have similar complaints. 

So what is a veteran to do if they want to refinance their home? We suggest first visiting the Department of Veterans Affairs website, where you can find the most up-to-date official information about home loans available to you, without any spin from a salesperson.

We found a page about something called an IRRRL (Interest Rate Reduction Refinance Loan), which is a way for veterans to refinance an existing VA loan with no out-of-pocket expenses. This type of loan won’t give you any cash, but it’s a safer way to refinance without any extra/hidden fees.

The Department of Veterans Affairs strongly urges veterans to contact several lenders about IRRRL or any mortgage program, and so do we. The process can be complicated and time consuming and sometimes this can even result in a higher monthly payment.

The bottom line is: do your homework. Don’t fall for any high-pressure sales tactics from NewDay USA or any lender. Find out:

  1. the mortgage rate
  2. whether it’s fixed or adjustable
  3. if there are any points or origination fees
  4. if there are any other costs.

Read any and all fine print and use an online mortgage calculator. Then, shop and compare the costs/savings. 

If something is too good to be true, it probably is.

We hope this helps you make an informed decision about NewDay USA. Let us and our readers know your experience below!