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Navy Federal Credit Union
You’ve seen the commercials. Navy Federal Credit Union provides members of the armed forces banking and loan services, including mortgages. If you’re already a member (or eligible) and looking to take advantage of a VA loan, count this credit union among the contenders. Its online experience is quite sophisticated, and its customer service scores are high
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Loans offered
Conventional, jumbo, VA, refinancing
Min. credit score required
Undisclosed
Nationwide availability
All U.S. states
Min. down payment
3% for conventional loans, none for VA loans
Navy Federal Credit Union
4.4
Bankrate Score
Loans offered
Conventional, jumbo, VA, refinancing
Nationwide Availability
All U.S. states
Min. credit score required
Undisclosed
Navy Federal Credit Union is a credit union and full-service lender for military members, veterans and their families. In addition to mortgages, Navy Federal provides loan servicing, title services and real estate services, and offers banking products, credit cards, auto loans, student loans and personal loans. It also offers customized financing options for members with its own portfolio products.
Allows up to two rate relocks
Provides rate-match guarantee or pays $1,000
Membership required (only available to current/veteran military and family)
No FHA or USDA loans
You’ve seen the commercials. Navy Federal Credit Union provides members of the armed forces banking and loan services, including mortgages. If you’re already a member (or eligible) and looking to take advantage of a VA loan, count this credit union among the contenders. Its online experience is quite sophisticated, and its customer service scores are high
Overall, Navy Federal Credit Union’s mortgage rates are competitive. It charges a 1 percent origination fee but offers the option to waive the fee in exchange for a higher interest rate. The credit union doesn’t charge processing or underwriting fees, however, and there’s no cost to relock your rate on purchases or refinances. (As part of its Freedom Lock feature, you can relock your rate up to two times if rates improve.)
Navy Federal Credit Union serves 12.7 million members and operates more than 355 branches worldwide, providing conventional loans as well as VA loans, Military Choice loans and Homebuyers Choice loans, along with options to refinance your existing mortgage. The credit union also offers investor loans. The catch, of course: You can only become a member if you or a family member has served.
Navy Federal Credit Union has been in business for 90 years and it carries an “Excellent” rating from Trustpilot. J.D. Power ranks the credit union highly, but notably behind Veterans United.
If you’re interested in a mortgage from Navy Federal, you can get prequalified and preapproved and apply for a mortgage all online. In some cases, you can get preapproved instantly through the credit union’s home loan management platform, HomeSquad. Generally, though, you can expect a response from a loan officer within six to 10 days after applying. You can communicate with the lender through secure messaging online, via chat or through social media. You also can sign certain loan documents using e-sign, and pay your mortgage through the credit union’s app. For a purchase, closings typically take 30 days. Refinance closings can take 30 to 45 days.
You can apply for a mortgage with Navy Federal Credit Union online or by phone at 888-842-6328. Here are some tips to prepare for the process:
Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)
Navy Federal Credit Union offers both rate-and-term and cash-out refinancing options, plus the VA Interest Rate Reduction Refinance Loan (IRRRL, or streamline refinance). It tends to offer competitive refi rates.
Navy Federal offers a rate-match guarantee: If you find a better rate with another lender, the credit union will match it or give you $1,000. To qualify for the guarantee, you’ll need to lock in your rate with Navy Federal before you make the rate-match request, then submit the rival lender’s loan estimate and rate-lock disclosure within three calendar days of locking with Navy Federal. If the credit union can’t match the competitor’s rate, you’ll need to provide Navy Federal with your signed closing disclosure from the other lender within 30 calendar days of your closing.
Navy Federal Credit Union
Rating: 4.4 stars out of 5
4.4
Bankrate Score
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Loans offered Conventional, jumbo, VA, refinancing |
Loans offered Conventional, jumbo, FHA, VA, USDA, refinancing and more |
Loans offered Conventional, jumbo, FHA, VA, USDA, refinancing |
Min. credit score required Undisclosed |
Min. credit score required 620 for conventional loans, 640 for FHA loans, 680 for VA loans |
Min. credit score required 620 for conventional loans, 620 for VA loans |
Down payment 3% for conventional loans, none for VA loans |
Down payment Undisclosed |
Down payment 3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans |
Nationwide availability All U.S. states |
Nationwide availability All U.S. states |
Nationwide availability All U.S. states |