Navy Federal Credit Union Review
Navy Federal at a glance
 | Minimum credit score: Not disclosed. Minimum down payment: 0% to 5% Available loan products and programs: VA, Conventional, Jumbo, Home equity, HELOC |
Our verdict: With a variety of mortgages and a user experience that can be mobile first or in a local branch, Navy Federal Credit Union serves military borrowers and their families.
| Pros | Cons |
|---|---|
You’ll be with a lender that caters to the military community. More than half of its branches are located on or near military installations. You can rest assured you aren’t overpaying, since Navy Federal guarantees it will match a competing lender’s rate or pay you $1,000. You’ll have conventional loan options without the private mortgage insurance (PMI) requirement. | You can only get a loan at Navy Federal if you’re a military service member or family member You won’t find USDA or FHA loans in Navy Federal’s lineup. You may not be near a branch, as Navy Federal has far fewer branches than a typical large bank. |
Navy Federal Credit Union is a direct mortgage lender serving members of the U.S. armed forces, veterans and their families. Founded in 1933 and headquartered in Vienna, Va., Navy Federal has more than 11 million members and 350 branches worldwide.
Navy Federal’s mortgage products
VA
- VA purchase loans, which are backed by the U.S. Department of Veterans Affairs (VA), offer veterans and their qualifying family members the opportunity to buy a home with zero-down and no private mortgage insurance (PMI) requirement.
- VA Interest rate reduction refinance loans (IRRRLs) are available to military borrowers who wish to refinance an existing VA home loan.
Conventional
- Purchase mortgages with fixed 10- to 30-year loan terms are available with a minimum 5% down payment.
- Adjustable-rate loans (ARMs) are also an option and come with an initial fixed-rate period of 5 years.
- Rate-and-term refinances can help homeowners save on their monthly mortgage payments or alter their loan term.
- Cash-out refinances are available for homeowners who wish to borrow against their home equity.
Jumbo
- Jumbo home loans are offered to buyers in the market for high-priced homes. Just be aware that in some cases you may be required to show that you have six to 12 months of cash reserves.
Home equity
- Home equity loans up to $500,000 are available for those seeking a lump-sum payout that can be repaid with a fixed interest rate.
- Home equity lines of credit (HELOCs) offer borrowers a way to use their home equity to access funds as needed — up to 95% of your home equity — on an ongoing basis. They’re repaid at a variable interest rate over a 20-year period.
Special programs
- Military Choice loans at Navy Federal may give service members who have exhausted their VA loan entitlement access to loan terms similar to typical VA loan terms — including the ability to put zero down.
- The RealtyPlus program offers up to $9,000 cash to eligible consumers who buy or sell a house through the RealtyPlus real estate service.
- Navy Federal’s closing-cost credit may give you up to $1,000 that you can use to cover your closing costs when you buy a home with a Navy Federal mortgage.
Navy Federal’s mortgage rates and fees
Rates
Navy Federal publishes mortgage rates online for all of its loan products. These rates include 0.125 to 0.75 mortgage points, also called discount points, which allow borrowers to “buy down” the interest rate to a lower percentage.
Compared to other large national lenders, Navy Federal’s rates are reasonably competitive, and on average came in around 0.51 percentage points above the average prime offer rate (APOR) in 2022. The APOR is a benchmark rate that captures what is, in effect, the lowest APR a bank is likely to offer in the current market. Mortgage loans aren’t typically considered “higher-cost” until they reach 1.5 percentage points over the APOR.
Fees
For closing costs, Navy Federal advises homebuyers to expect to pay between 2% and 4% of the total loan amount. It also provides a closing costs calculator, which estimates your taxes and insurance costs, origination fees and other fees related to closing.
The average total cost of taking out a mortgage with Navy Federal was $4,962 in 2022, according to data from the Federal Financial Institutions Examination Council (FFIEC). That included an average of $1,276 in origination fees.
| Mortgage rates published online? | |
| Rate information updated daily or weekly? | |
| Lender fees disclosed? |
Navy Federal’s application experience
You can get preapproved for a mortgage with Navy Federal online, in some cases instantly. You can also apply for a loan, track the status of your application 24/7, and more — all from your internet-connected phone or laptop.
Once you’re in your new home, you can use Navy Federal’s app or online portal to manage your payments, see your loan’s amortization schedule or access additional information about your loan. You can even look at recent sales and property values in your neighborhood and track real estate trends through the app.
How to boost your loan approval odds
Navy Federal doesn’t disclose the exact minimum requirements it uses to approve or deny your application. However, based on nationwide data from 2022, we can say that Navy Federal approved customers who — on average — had a 77% loan-to-value (LTV) ratio or better. Most also had a debt-to-income (DTI) ratio below 40%.
In that same year, Navy Federal denied about 38% of its mortgage applications. That’s on the higher side when compared with other large, national mortgage lenders. For comparison, some large lenders have denial rates in the low teens.
Navy Federal’s customer service experience
Navy Federal’s customer service is available by phone 24/7, and you’ll reach a real, U.S.-based human. You also have a number of other options: go into a branch, enter a live chat on Navy Federal’s website, send a secure message from your account or even reach out via Twitter — whatever works best for you.
How does Navy Federal compare to other lenders?
| Navy Federal Credit Union | Veterans United | Pentagon Federal Credit Union | |
|---|---|---|---|
| Lender rating | |  |  |
| Minimum credit score | Not disclosed | 620 | 620 to 650 |
| Minimum down payment | 0% to 5% | 0% to 3% | 0% to 3.5% |
| Loan products and programs |
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| Rate spread* | 0.51% | 0.34% | 0.11% |
*Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) Navy Federal offered to mortgage customers in 2022. The higher the number, the more expensive the loan.
How we rated Navy Federal
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Navy Federal’s scorecard: 4.5/5
Publishes rates online
⭕ Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application