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Navy Federal Credit Union Mortgage Review 2024

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At a glance

Navy Federal Credit Union

Editor's take

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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4.4
Rating: 4.4 stars out of 5
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Mortgage Percent

Loans offered

Conventional, jumbo, VA, refinancing

Credit Good

Min. credit score required

Undisclosed

Location

Nationwide availability

All U.S. states

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Min. down payment

3% for conventional loans, none for VA loans

At a glance

Navy Federal Credit Union

4.4

Rating: 4.4 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, VA, refinancing

Location

Nationwide Availability

All U.S. states

Credit Good

Min. credit score required

Undisclosed

Navy Federal Credit Union overview

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.

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Bankrate insight

Navy Federal members who pair with a real estate agent through the credit union's RealtyPlus tool can get cash back after closing on their home.

Pros and cons of Navy Federal Credit Union

Pros
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    Allows up to two rate relocks

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    Provides rate-match guarantee or pays $1,000

Cons
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    Membership required (only available to current/veteran military and family)

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    No FHA or USDA loans

Our Editor’s Take on 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

How Bankrate scored Navy Federal Credit Union

  • Affordability: Navy Federal Credit Union is a nonprofit, which means you could have access to more competitive rates. Like many lenders, however, you’ll be responsible for paying an origination fee on your loan.
  • Availability: This large lender operates nationally and specializes in loans for military members and their families.
  • Borrower experience: Navy Federal has a 24/7 stateside contact center, providing around-the-clock member service. J.D. Power gives the lender high marks for customer satisfaction.

Affordability: 10/10

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.)

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Bankrate insight

Note: For most VA loans, you'll be responsible for paying the VA funding fee. The credit union's VA loan option allows the seller to contribute to closing costs, up to 4 percent of the value of the home.

Availability: 9.6/10

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.

Borrower experience: 5/5

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.

How to apply for a mortgage with Navy Federal Credit Union

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:

  1. 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.

  2. 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.

  3. 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.)

Refinancing with Navy Federal Credit Union

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.

Frequently asked questions about Navy Federal Credit Union

What is Navy Federal's rate-match guarantee?

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.

Compare Navy Federal Credit Union to other lenders

Navy Federal Credit Union

Rating: 4.4 stars out of 5
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4.4

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Old National Bank
Rating: 4.6 stars out of 5
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4.6

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Read full review
Veterans United Home Loans
Rating: 4.9 stars out of 5
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4.9

Bankrate Score
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Read full review

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