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If you’re in the military now, have been in the past or are an immediate family member of someone who’s served, Navy Federal Credit Union could be a strong option to consider for your home loan needs. It offers a wide array of products and mortgages with 0% down and no private mortgage insurance (PMI).
But getting these benefits can take time, and some say the approval process can be slow. Plus, Navy Federal Credit Union was caught up in a lawsuit in 2016 that’s worth taking into consideration as you narrow down your search for a lender.
Not stated
Minimum credit score
5%
Minimum down payment (Conventional)
Available in all states
State availability
Loan products offered | Conventional, Jumbo, VA, Refinance, Home equity loan, HELOC |
---|---|
Minimum credit score | Not stated |
Minimum down payment (Conventional) | 5% |
State availability | Available in all states |
NMLS # | 399807 |
Navy Federal Credit Union is not currently available on Finder
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With its low- and zero-down-payment home loans — many of which don’t require you to pay PMI — Navy Federal Credit Union is worth considering. Customer majority gives the credit union glowing reviews, and its rate match guarantee ensures you’re getting the best rate available.
Navy Federal Credit Union has its share of negative reviews, mostly regarding a slow approval process. And in 2016, the Consumer Financial Protection Bureau (CFPB) ordered Navy Federal Credit Union to pay $28.5 million for making false threats about debt collection to its members and for unfairly restricting account access when members had a delinquent loan between 2013 and 2015.
Despite these actions, most customers have had great experiences with the credit union. All considered, we think it’s a strong option for most service members and their families.
Like any other credit union, you must be a member to apply for a mortgage. Navy Federal Credit Union membership is open to:
Eligible applicants must meet standard mortgage requirements that include a low debt-to-income ratio and steady employment. Other requirements include:
Navy Federal Credit Union offers FreedomLock, a rate-lock program that allows you to relock your interest rate for a lower rate if interest rates go down within 60 days of your initial rate lock.
This lender also offers its RealtyPlus program and its rate match guarantee. With RealtyPlus, you can receive between $400 and $8,000 in cash back at closing if you buy or sell a home with a RealtyPlus agent.
If you find a better rate with another lender, Navy Federal Credit Union will match it. If it can’t, it’ll give you $1,000 after you close with the competing lender.
This offer is available only for purchase and refinance first mortgages. While it isn’t completely unheard of for credit unions to match competitor’s rates on mortgages when members specifically ask, most credit unions don’t offer the type of guarantee like what Navy Federal Credit Union offers.
Navy Federal Credit Union charges a 1% origination fee on the total loan amount on all its mortgages, which is in the 0.5% to 1% range lenders typically charge. So for a $200,000 mortgage, an origination fee of 1% would be $2,000. Alternatively, some lenders charge a flat origination fee regardless of the loan’s total amount.
We see a lot of lenders charging flat origination fees of around $1,200, though it varies by lender. Considering the same $200,000 from the previous example, you can see how a flat origination fee can sometimes save you money. Calculating the cost of your mortgage is an important step when comparing lenders.
However, Navy Federal Credit Union does offer the chance to waive the origination fee if you agree to pay 0.25% more on the interest rate. In addition, all “Choice” loans are subject to a 1.75% funding fee. But this too can be waived if you agree to pay an additional 0.375% increase in your interest rate.
Member reviews for Navy Federal Credit Union on Trustpilot are overwhelmingly positive. Reviewers there have rated the credit union 4.7 out of 5 stars based on 10,426 reviews as of June 2022.
Most customers commend the credit union for its empathetic, respectful and first-class customer service. Others say they received loans through Navy Federal that they wouldn’t have been approved for elsewhere.
Over on the Better Business Bureau (BBB), it’s a slightly different story. Navy Federal Credit Union isn’t BBB-accredited, and it’s rated 1.42 out of 5 stars based on 145 reviews.
In the last three years, the credit union closed 1,030 complaints. Negative reviews range from complaints about rejection for personal loans and closing credit cards without notice, to long approval processes.
All things considered, Navy Federal Credit Union comes out near the top when compared to other lenders. Its customer reviews are overwhelmingly positive, which is more than you can say about some other lenders on the market.
You must first become a member of Navy Federal Credit Union to apply for a mortgage. This is a simple process and takes only a few minutes to complete. To become a member:
Navy Federal Credit Union has a program called HomeSquad to help you through the mortgage application process. HomeSquad allows you to upload your loan documents, connect your bank accounts to verify your assets, track your application’s status and get updates when you hit milestones.
According to its website, it typically takes 30 days to close on your mortgage once you’ve submitted all required paperwork and documents.
When applying for a home loan, you’ll submit these standard personal and financial details:
Despite being a military-focused credit union, Navy Federal Credit Union offers more than VA loans. Members also have access to conventional and jumbo mortgages, plus options for refinancing.
Navy Federal offers five refinancing options.
Navy Federal offers additional loans that members can take advantage of.
Navy Federal isn’t the only option for current and former military members and their families.
Though its mortgage options are much more limited, offering only VA loans, USAA stands out from other lenders by not charging any sort of origination fee. But unlike Navy Federal Credit Union, customers have had largely negative experiences with USAA.
For borrowers without any military or DoD affiliation who need low down payment options, Morty offers conventional and jumbo loans with down payments as low as 3%. Plus, it doesn’t charge origination or underwriting fees.
Compare these lenders and lender marketplaces by the type of home loan you’re searching for, state availability and minimum credit score (for a conventional loan). Select See rates to provide the company with basic property and financial details for personalized rates.
Disclaimer: The partners on Finder's mortgage comparison tables are sorted in alphabetical order.
Navy Federal Credit Union offers plenty of perks to eligible members: a variety of mortgage products, several 0% down and no PMI options and unique programs that help the credit union stand out from the crowd.
Navy Federal Credit Union won’t be perfect for everyone. But there are two main downsides to going with this credit union as your mortgage provider.