Auto, personal, student loans and more may be available to you at a low rate.
Some seriously cute commercials have come out of Navy Federal Credit Union. But cute doesn’t really communicate what it offers. If you’re a servicemember, a Department of Defense (DoD) employee or a family member, you may qualify for a loan with Navy Federal. Choose from loans for auto, personal, mortgages and even student loans, all with fair rates.
What types of loans does Navy Federal Credit Union offer?
Navy Federal hosts a variety of loans for its members, no matter if you’re looking to buy a new car or refinance your student loans. Interest rates and term lengths vary dramatically depending on the type of loan you’re looking for, but its rates are fairly solid when compared to traditional banks. Take a look at the different loan products Navy Federal has on offer to see if it can help you get the financing you need.
You’ll find options with Navy Federal to buy new or used cars, or to refinance your current auto loan. Up to 100% financing is available for as much as Varies. Auto loan terms are as high as 8 years with rates from 2.89% (As low as) APR. Though terms from 85 to 96 months need a minimum amount of Varies.
Motorcycle, boat and leisure vehicle loans
- New and used boat loans. Terms go up to 180 months, with a starting APR of 5.35% for a new model. A $25,000 minimum is required for terms of 61 to 84 months, and a $30,000 minimum is required for any terms over 84 months.
- New and used motorcycle loans. APR starts at 6.55% for a new motorcycle, with terms of up to 84 months. A $25,000 minimum is required for terms of 61 to 72 months, and a $30,000 minimum is required for terms over 73 months. Financing over 72 months is not available for used motorcycles.
- Collateral loans. Up to 180 months with APRs starting at 7.89%. A $25,000 minimum is required for terms of 61 to 84 months, and a $30,000 minimum for any terms over 84 months.
Navy Federal offers three types of personal loans:
- Unsecured personal loan. Borrow up to $50,000, with APRs between 7.99%–18.00% for loans up to 36 months. Terms go as high as 15 years, with a $25,000 minimum for terms between 61 and 84 months, and a $30,000 minimum for terms over 84 months.
- Shares Secured loan. Secured by shares in your Navy Federal account start as low as 2% APR plus Navy Federal’s share rate. Terms go as high as 180 months.
- Certificate Pledged loan. Allows you to borrow against your certificate’s principal balance. Terms are shorter for this loan, only going up to 60 months. The lowest APR is 2% plus Navy Federal’s certificate rate.
You can choose from seven different mortgage options with Navy Federal:
- VA loan. Get 100% financing with a fixed-rate loan backed by the Department of Veterans Affairs (VA). APRs start at 4.149% with terms between 10 to 30 years. No down payment or mortgage insurance (MI) is required for this type of loan.
- Military Choice loan. Apply for 100% financing with this fixed-rate mortgage with APRs starting at 5.547% and loan terms between 16 to 30 years. No down payment or private mortgage insurance (PMI) is required.
- Conventional fixed-rate loan. With a minimum down payment of 5%, this fixed-rate mortgage has APRs starting at 4.010% with terms between 10 to 30 years. No PMI is necessary, and jumbo loan options are also available.
- 100% Financing HomeBuyers Choice loan. A great option for first-time homebuyers, this fixed-rate loan offers 100% financing with APRs starting at 5.252% and terms between 10 to 30 years. No down payment or PMI is required.
- FHA loan. Backed by the Federal Housing Administration (FHA), this option is ideal for first-time homebuyers looking for a low down payment. Fixed and adjustable rates are available with APRs starting at 4.888% with terms between 10 to 30 years. Buyers will need a 3.5% minimum down payment for this loan.
- Adjustable rate mortgage (ARM). With terms of 10 to 30 years, the APR for an ARM starts at 4.544%. The minimum down payment could be anywhere between 0% and 10%, with no PMI required for many loans. Jumbo, conforming and interest-only options are available.
- Interest-only mortgage. A 30-year loan available in both fixed and adjustable rates, with a minimum down payment of 20% and no PMI required. You’ll need to contact Navy Federal for its rates.
Refinancing, second home financing and investment property loans are also available. Investment property loans are at a fixed rate with a 15-year term and no prepayment penalties.
Home equity loans
Navy Federal offers loans and line of credit based on equity in your home.
- Fixed-rate equity loan. Allows you to borrow up to 100% of your property’s value and can be taken out for 5, 10, 15 or 20 years. Rates can be as low as 4.87% APR for qualified borrowers.
- Interest-only fixed-rate equity loan. Available for 15- and 20-year terms and allows you to borrow up to 80% of your property’s value. The lowest rate for this loan is 7.75% APR for those who qualify. These aren’t available in Texas.
- Home equity line of credit. Borrow up to 95% of your property’s value, with APRs starting at 5% for qualified borrowers. Rates are variable and can change on the first business day of every month. You’ll only be charged interest on the money your withdraw from your credit line. These aren’t available in Texas.
- Interest-only home equity line of credit. Allows you to borrow up to 80% of your property’s value, up to $250,000. Similar to the Home Equity line of credit, rates are variable but start at 6% APR. Additional payments can lower the principal balance. (Not available in Texas)
Private student loans and consolidation loans are available for Navy Federal customers.
- Private student loan. Choose between a variable rate starting at 4.96% (As low as, with autopay) or fixed interest rate starting 6.03% APR. Undergrads can borrow up to $120,000 a year, while graduate students can borrow up to $160,000 a year.
- Consolidation or refinancing loan. Pick from variable rates between 4.57% with autopay and fixed rates as low as 4.70% APR. Both federal and private student loans may be consolidated. Undergrads can refinance up to $125,000 of student debt, while graduate students can refinance up to $175,000.
Compare a selection of Navy Federal loans
Why should I consider taking out a loan with Navy Federal Credit Union?
- Keep your finances all in one place. Navy Federal offers a host of other products, including checking and savings accounts, certificates, money market accounts, IRAs, credit cards and prepaid cards.
- Easy to borrow. Applying for a Navy Federal account only takes around 10 minutes online if you have the information available. But not all loans can be completed online. You can also apply for loans by phone and in a local Navy Federal offices.
- 24-hour customer service, seven days a week. You can access your online account at any point from any Internet-capable device, but Navy Federal also provides support by phone from three of its contact centers.
- Cosigners allowed. Student loans allow for cosigners. Request a release after 24 consecutive, on-time repayments for student loans and after 12 consecutive, on-time repayments for consolidation loans. You may also apply for a personal loan or auto loan with a coapplicant.
Are Navy Federal Credit Union loans safe?
Yes. A full suite of security tools can be accessed by members, including a 24-hour service line. Navy Federal states that accounts are monitored for suspicious behavior and that it tests its security features on a regular basis to keep them up to date. All security measures are in compliance with federal laws and regulations.
What do customers say about Navy Federal Credit Union?
Navy Federal Credit Union doesn’t have the best online reviews. It gets an A- rating from the Better Business Bureau (BBB), which it isn’t accredited with. As of July 2018, over 90% of its 44 customer reviews are negative and nearly 600 customers have filed a complaint against the business. It does slightly better on Trustpilot, scoring an 8.5 out of 10 based on seven reviews.
One of the top complaints was that Navy Federal was not equipped to handle the unique needs of servicemembers and veterans. Complaints ranged from refusing to acknowledge the power of attorney given to a spouse while the customer was deployed to not honoring SCRA benefits that require lenders to reimburse interest over 6% while borrowers are deployed. Its customer service gets mixed reviews — it appears to be excellent until something goes wrong.
Government action against Navy Federal Credit UnionThe Consumer Financial Protection Bureau (CFPB) filed a consent order against Navy Federal Credit Union over its debt collection practices in 2016. The CFPB alleged that Navy Federal Credit Union threatened to take delinquent borrowers to court or garnish their wages if they couldn’t pay back the loan. It also alleged that delinquent had restricted access to their accounts.
Navy Federal Credit Union paid a $23 million in customer compensation and a $5 million fine.
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How to apply for a loan with Navy Federal Credit Union
You’ll first need to be a Navy Federal member to apply for a loan. Apply for membership by following these steps:
- Go to the Navy Federal Credit Union website.
- Hover your cursor over Membership in the upper, right-hand corner of the page.
- Select Become a Member.
- Click Join Now.
- Follow the prompts, selecting the answers that apply to you.
- Fill out the requested information about yourself and your sponsor, if applicable.
- Wait for a decision.
The application itself should only take 10 minutes. You may apply for a loan through your online account, by phone or in person at a local branch. Please note that some loans may not be available to apply for online.
Pros and cons of Navy Federal loans
- Solid rates. Loan rates are fairly solid when compared to traditional banks.
- No origination fees for student loans. Origination fees can be upwards of 5% depending on the lender. Not having one can potentially save you hundreds of dollars.
- Options upon options. Navy Federal has a wide breadth of choices when it comes to loan types, mortgages and credit offerings that rivals traditional banks.
- Membership includes benefits. Special discounts on insurance products and other deals are available to Navy Federal members.
- Limited membership. You must be a current or former member of the armed forces or an employee of the DoD to qualify for an account. Certain family members and household members may also qualify.
- Membership required. An existing membership is required to apply for a loan.
- Trouble with the Consumer Financial Protection Bureau in 2016. Navy Federal was found in violation of the Consumer Financial Protection Act of 2010 by the Consumer Financial Protection Bureau (CFPB) for uncouth debt-collection practices.
Servicemembers and Department of Defense workers — past and present — and their families have access to a wide range of products through Navy Federal Credit Union. Everything from auto to home loans can be found, with varying rates and terms that may fit your needs. Loan options aren’t limited to specialty credit unions though, so make sure to compare your options before getting financed.
Read our guide on credit union loans to compare other similar providers.