Navy Federal Credit Union Mortgage Review 2020

By Mitch Strohm

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Bankrate’s editorial team researches, reviews and rates lenders to help you find one that fits your needs. Our experts consider a range of factors, including rates, loan types, time to close, fees and more. Reviews are updated regularly. Bankrate is an independent, advertising-supported comparison service. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy.

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4.4

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Please note: In response to the coronavirus pandemic, lenders are changing their requirements continuously. Although we strive for accuracy at the time of publication, please be sure to check with the lender for updated details on down payments, credit scores, etc.

Navy Federal Credit Union is a full-service lender specializing in loans for military members, veterans and their families. In addition to a broad range of loans, it provides loan servicing, title services and real estate services. Founded in 1933, Navy Federal is headquartered in Vienna, Virginia, and serves more than nine million members of the military community and operates 342 branches worldwide. Along with mortgages and home equity loans, it offers banking products, credit cards, auto loans, student loans and personal loans. The credit union offers a number of incentives for members who use its mortgage services. For example, members who pair with a real estate agent through its RealtyPlus tool can get cash back after closing on their home. It also offers a rate-match guarantee — it will match a better rate found at another lender or pay $1,000 after closing. Navy Federal Credit Union also allows borrowers to relock their rate if rates fall before closing on their home.

Nationwide availability

Available in all U.S. states

Minimum credit score

Navy Federal doesn’t publish credit score requirements on its site. Generally, these are the minimum credit scores you’ll need to qualify: 620 for conventional loans; 620 for VA loans.

Loan types

Conventional, VA, military choice, homebuyers choice, fixed, adjustable-rate (ARM); refinancing options include rate-and-term and cash-out refinancing; offers home equity loans and home equity lines of credit (HELOC), but both are currently suspended

Pros

  • Specializes in loans for military members and their families
  • Online application with quick preapproval
  • Allows up to two rate relocks if rates go down
  • Offers cash back for using its real estate services
  • Provides rate-match guarantee or pays $1,000

Cons

  • Membership is required
  • No FHA or USDA loans

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Navy Federal Credit Union overview

Loan types

  • Conventional
  • VA
  • Military choice
  • Homebuyers choice
  • Fixed
  • Adjustable-rate (ARM)
  • Refinancing including rate-and-term and cash-out refinancing
  • Home equity loans and home equity lines of credit (HELOC); both currently suspended

Lender fees

Navy Federal doesn’t charge processing or underwriting fees for its loans. It also doesn’t charge a fee to relock your rate on purchase or refinance loans. As part of its Freedom Lock feature, you can relock your rate up to two times if rates improve.

The credit union’s VA loan option allows the seller to contribute towards closing costs (up to 4 percent of the value of the home). It offers customized financing options for members with its own portfolio products.

For its no-down payment loan options, Navy Federal may charge an additional funding fee.

Minimum borrower requirements

Navy Federal generally follows Fannie Mae’s underwriting guidelines for conventional mortgages. That means you’ll typically need a credit score of 620 or better, a down payment of at least 5 percent and a debt-to-income ratio (DTI) of at least 43 percent. A notable feature of its conventional loans is that it doesn’t require private mortgage insurance (PMI) for down payments of less than 20 percent.

VA programs through this lender require no down payment and no PMI. There’s also no credit score requirement, but you’ll generally need a credit score of 620 or better to qualify. You’ll also need to meet income and debt requirements.

Get started with Navy Federal Credit Union

Borrowers can apply in person, online or by phone.

Hours

Navy Federal Credit Union’s hours vary by branch, but most offer traditional hours Monday through Friday. It's also open for several hours on Saturdays to serve member needs. Branches located on military installations follow guidelines set by the individual base command. Member representatives are available 24/7 by phone. Contact: 888-842-6328

Navy Federal Credit Union consumer rating and reviews

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