Navy Federal Credit Union Mortgage Review 2024
Not disclosed
0% to 5%
Conventional, VA, jumbo, home equity loans, HELOCs
See how we reached our verdict below.
- No private mortgage insurance
- Most loans require no down payment
- Offers VA-like loan for those not eligible
- Only for military members and their families
- Doesn’t spell out mortgage requirements
- Must be a member to check your rates
Navy Federal Credit Union mortgage overview
Navy Federal Credit Union helps current and former military members and defense contractors — and their families — get affordable mortgages. It specializes in VA loans, but it offers several unique VA loan alternatives.
- Areas of service: All 50 states
- Digital service: Digital or in-person service
- Headquarters: P.O. Box 3000, Merrifield, VA 22119-3000
- Website: NavyFederal.org
Navy Federal Credit Union rates, terms and fees
Rates
Navy Federal Credit Union advertises below-average rates on VA loans. But as with any lender-advertised deals, the only people getting those rates are those with exceptional credit.
In fact, Navy Federal Credit Union charged the average borrower in 2023 an annual percentage rate (APR) that was 1.11% higher than the average prime offer rate (APOR), which is what well-qualified buyers could expect to pay at a typical lender.
This could be because fewer applicants actually had the chops to qualify for that low advertised rate, or maybe because Navy Federal is extra-picky about who it actually considers a “prime” borrower.
Fees
Navy Federal’s origination fees are the lowest of the lenders that LendingTree regularly surveys. The Navy Federal average borrower paid an origination fee of $771 in 2023 — a far cry from the several thousand dollars that other lenders charge on average.
Still, as noted above, Navy Federal’s typical APR is higher than average, even though the origination fees are low. This is due to its relatively high interest rates.
What discounts does Navy Federal Credit Union offer?
- $1,000 rate-match guarantee: If you find a better locked rate on an identical loan within three days of locking in your own rate with Navy Federal, it will pay you $1,000 cash.
- $400 to $9,000 RealtyPlus bonus: If you use one of Navy Federal Credit Union’s partner real estate firms to buy your home, you may qualify for a cash-back bonus.
- Rate lock reductions: Navy Federal offers two rate-locking options (“Lock and Shop” and “Special Freedom Lock”) that allow you to lower your interest rate once or twice after you’ve already locked it in place, protecting you if rates fall while you shop.
What types of mortgage loans does Navy Federal Credit Union offer?
Navy Federal Credit Union offers a variety of home loans including:
Conventional loans
Navy Federal offers four different types of conventional loans for those not interested (or not eligible) for VA loans. Homebuyers can go with a standard 15- or 30-year fixed-rate mortgage or with a 3/5 or 5/5 adjustable-rate mortgage.
Unique to Navy Federal, however, are its Homebuyers Choice and Military Choice loans. They’re structured similarly to a VA loan in that they don’t charge private mortgage insurance (PMI) or require a down payment, unlike most lenders.
Conventional loan qualification requirements
A minimum down payment of 5% is required with some loans, while others require no down payment.
VA loans
Navy Federal Credit Union approved 17,014 VA loans in 2023, making it the fourth-largest underwriter of these government-backed loans in the country. It offers VA loans with 10- to 30-year term lengths, as well as VA “interest rate reduction refinance loans” (IRRRLs) to refinance your original mortgage.
VA loan qualification requirements
Borrowers will need to meet general VA loan eligibility, which usually consists of:
- Time-in-service requirements based on your specific military branch and when you served
- (For veterans) An honorable discharge or a qualified exception
- (For surviving spouses) Service member was killed in action or missing in action
You’ll need to provide your Certificate of Eligibility (COE) for a VA loan when you apply, although a Navy Federal loan officer can also pull this document for you.
Jumbo loans
All of Navy Federal’s loan options are available as jumbo mortgages, meaning that they’re larger than what Fannie Mae and Freddie Mac allow. In 2024, Navy Federal said mortgages for more than $766,550 were considered jumbo in most states.
Jumbo loan qualification requirements
Navy Federal doesn’t disclose its qualification requirements for a jumbo loan, but usually you’ll need to meet higher credit and down payment requirements than with a regular “conforming loan.”
Home equity loans and HELOCs
Navy Federal Credit Union offers fixed-rate home equity loans ranging from $10,000 to $500,000, with five to 20-year term lengths.
It also offers home equity lines of credit (HELOCs) ranging from $10,000 to $500,000. The HELOC has a 20-year “draw period” when you can borrow money, followed by a 20-year repayment period when you’ll repay it all back.
Both options offer the added bonus of not having to pay any closing costs, which is unusual.
Home equity qualification requirements
- Home equity loans: Up to 100% loan-to-value ratio
- HELOCs: Up to 95% loan-to-value ratio
Navy Federal Credit Union mortgage qualifications
Unfortunately, Navy Federal Credit Union doesn’t disclose its mortgage qualifications. It does say that “some” of its conventional loans may require a minimum 5% down payment but doesn’t specify which ones.
Don’t know your credit score? Get your free score on LendingTree Spring today.
How to boost your loan approval odds
Based on 2023 data, the average Navy Federal mortgage approval had a loan-to-value (LTV) ratio of 77%. Most approved customers had a debt-to-income (DTI) ratio above 40%.
For the year, Navy Federal denied close to 41% of mortgage applications, while most large lenders’ denial rates were in the low teens.
How to apply for a Navy Federal Credit Union mortgage
1. Choose your loan type
Click on the “Personal” and “Loans” buttons on the menu at the top of Navy Federal’s homepage, and then hit “Apply for a Mortgage” to be taken to a login page.
You’ll need to already be a member of the credit union in order to apply.
2. Get prequalified
Navy Federal Credit Union doesn’t have a prequalification option, but you can at least get pre-approved for a mortgage.
If you’re preapproved, you can find your preapproval letter in your HomeSquad online mortgage portal. This can help increase your odds of having an offer accepted when you’re shopping for a home.
However, your interest rate may be locked in against any changes for up to 60 days while you’re looking for your next house.
3. Submit a loan application
After you find the home you want to buy and the seller accepts your offer, you can upload the signed purchase agreement to your HomeSquad portal. This will automatically convert your preapproval into a full mortgage loan application, and Navy Federal will start the underwriting process right away.
You should see a loan estimate document in your HomeSquad portal within three business days.
Documents you’ll need for prequalification or preapproval
- Identifying information (including date of birth, Social Security number)
- Proof of income (such as your two-year work history or other earnings)
- Other financial info (such as financial assets and tax payments)
- Property details (if you have a specific property in mind)
Find out more about how to apply for a home loan.Is it safe to get prequalified with Navy Federal Credit Union?
Yes, Navy Federal Credit Union is a legitimate lender. It follows established federal guidelines when working with home loan borrowers. Be aware that Navy Federal will do a hard credit inquiry when you get preapproved for a mortgage, and this can temporarily lower your credit score by a small amount.
Navy Federal Credit Union’s customer service experience
You can access Navy Federal Credit Union’s virtual assistant 24 hours a day. It also offers a limited number of branch locations.
- Phone number: 888-842-6328
- Mailing address: P.O. Box 3000, Merrifield, VA 22119-3000
Navy Federal also offers secure messaging inside your online account, and representatives are available from 9 a.m. to 6 p.m. Eastern time, Monday through Friday, via a live chat feature on any of its web pages.
How does Navy Federal Credit Union compare to other lenders?
|  |  |
|
|---|---|---|---|
| LendingTree’s rating | |||
| Minimum credit score | Not disclosed | 620 | 620 |
| Minimum down payment | 0% to 5% | 0% | 0% |
| Rate spread 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) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 1.11% | 0.53% | 0.15% |
| Loan products and programs |
|
|
|
| Better for: | Borrowers who aren’t eligible for a VA loan but are looking for a VA loan equivalent. | Borrowers who want to keep all loans and banking with the same institution. | Borrowers who want a shot at the lowest VA loan rate or who want to compare their options for an FHA loan or USDA loan. |
Navy Federal Credit Union vs. PenFed Credit Union
Both Navy Federal and PenFed Credit Union offer a full range of banking and loan options designed to support government workers. PenFed is much more open for potential new members, and you don’t need to be associated with the military at all. PenFed’s banking products also feature higher interest rates on savings accounts and have better rewards credit cards if that’s a priority for you.
→ Read more in our full PenFed Credit Union mortgage review.
Navy Federal Credit Union vs. Veterans United Home Loans
You can’t do your banking at Veterans United like you can with Navy Federal, but it has a reputation for offering lower mortgage rates. While the 2023 average for Navy Federal APRs was 1.11% higher than other lenders’ best rates, Veterans United APRs averaged just 0.15% above this level. That may not seem like much, but over the course of a 30-year loan, it can make a big difference.
→ Read more in our full Veterans United mortgage review.
Ready to compare lender offers on LendingTree? Get Your Rates TodayHow LendingTree rated Navy Federal Credit Union
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 Credit Union’s scorecard:
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application
= 0 points = 0.5 points = 1 point
Frequently asked questions
Navy Federal Credit Union offers an online portal called HomeSquad that serves as your go-to place for all mortgage-related documents. You can also sign your loan closing documents online with a virtual notary if you choose. There’s also a handy online chat feature if you need support.
Yes. Navy Federal Credit Union is a real lender. Its Nationwide Multistate Licensing System number is 399807. You can view more info about Navy Federal Credit Union’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
Yes, all home loans will affect your credit score. According to LendingTree’s mortgage credit score study, new borrowers saw their credit scores drop by an average of 20 points after taking out a mortgage, and it took nearly a year for their credit scores to recover.
Yes. Navy Federal was one of the best-rated mortgage lenders in J.D. Power’s 2023 customer satisfaction survey. But as usual for such a large lender, it also has lots of negative reviews online as well, with over 1,700 complaints being filed with the Consumer Financial Protection Bureau against Navy Federal’s mortgage division.