Navy Federal Credit Union mortgage review 2025: A comprehensive analysis of their mortgage products and services.

Navy Federal Credit Union, founded in 1933 by Navy Department employees, has grown into the largest credit union in the U.S. and expanded its membership to include all service members, veterans, Department of Defense employees, and their families. The credit union is one of the largest providers of VA loans, mortgages for military families that don't require down payments or private mortgage insurance. Additionally, Navy Federal Credit Union offers proprietary loans that make homeownership affordable.

Pros and cons of Navy Federal Credit Union mortgages

Navy Federal Credit Union types of home loans

Navy Federal provides conventional, VA, and jumbo loans across all 50 states in the U.S.

• Navy Federal Credit Union provides fixed-rate loan terms ranging from 15 to 30 years.
• ARMs from NFCU come with fixed rates for the initial period, followed by regular rate adjustments.
• VA loans: Veterans and active-duty service members can apply for this lower-rate loan without a down payment or private mortgage insurance. NFCU offers financing for VA loans up to $2 million.
• Jumbo loans are loans that exceed the conforming limits set by the Federal Housing Finance Agency. Navy Federal Credit Union offers jumbo loans of up to $2 million for those who put 10% or more down and $1 million for those who put at least 5% down.

How do I qualify for a Navy Federal Credit Union mortgage?

• NFCU considers non-traditional forms of credit and past borrower relationships when determining credit scores.
• Down payment: 5%
• A debt-to-income ratio that varies is typically required by lenders to be no more than 50% for borrowers.

Benefits and discounts

Navy Federal Credit Union offers a variety of unique programs for borrowers.

Military Choice loan

Military Choice loans are a type of zero-down payment mortgage that is available to military members who do not need mortgage insurance. These loans can also be used for secondary homes by service members who have used up their VA loan benefits, and the seller can contribute up to 7% of the closing costs, which is more than the 4% limit on VA loans.

Homebuyers Choice loan

This mortgage, designed for first-time homebuyers, requires no down payment but has a slightly higher interest rate compared to the Military Choice loan, which is only accessible to military personnel.

No-Refi Rate Drop

If mortgage rates decrease, you can switch to the lower rate for a one-time fee of $250 without undergoing refinancing.

Rate Match Guarantee

If you find a better rate elsewhere, Navy Federal will match it or pay you $1,000 after you close with the other lender.

Refinancing

Navy Federal Credit Union provides cash-out and rate-and-term refinancing, home equity loans, and HELOCs.

• Credit score: Not disclosed.
• Debt-to-income ratio: Not disclosed.
• Home equity: 20%, but will accept lower

Customer service

Although Navy Federal Credit Union has restricted membership, it surpassed the average in mortgage origination in 2024 and received the highest servicing score among all lenders.

You can find interest rates on the Navy Federal website, start the application process, and get pre-approved on the HomeSquad platform.

The company provides round-the-clock customer service at 888-842-6328, in addition to secure online chat and a mobile banking app.

Nearly half of Navy Federal's 364 branches are situated near military installations.

How does Navy Federal Credit Union compare to other mortgage lenders?

Here's how Navy Federal stacks up to two leading mortgage providers.

Navy Federal Credit Union vs. Veterans United Home Loans

Two of the top VA lenders in the country, Navy Federal and Veterans United, excel in providing affordable rates and exceptional customer service.

A Navy Federal Military Choice loan enables members to finance a second home if they have exhausted their VA loan benefits, and sellers can contribute more to closing costs compared to a VA loan.

Veterans United is the only government-backed loan option for veterans.

Navy Federal Credit Union vs. Rocket Mortgage

Navy Federal Credit Union and Rocket Mortgage are two of the largest VA loan lenders in the U.S. by volume, but NFCU offers lower rates and the ability to adjust your mortgage rate through refinancing.

Rocket does not have brick-and-mortar locations or home equity products, unlike Navy Federal.

Rocket Mortgage is known for its user-friendly and informative website, and it offers FHA and USDA loans, unlike Navy Federal. Additionally, Rocket Mortgage has a faster closing time, with an average of 21 days compared to 30 days with Navy Federal.

How do I apply for a mortgage with Navy Federal Credit Union?

To be eligible for a mortgage from Navy Federal Credit Union, one must be a member of the organization. Membership is open to active-duty military personnel, veterans, Department of Defense employees and retirees, as well as their family members.

To open a savings account with an initial $5 deposit into a qualified savings account, all you need to do is fit those qualifications.

To apply for membership, members can choose from three options: online, in-person, or by phone at 877-573-2324. In order to apply, members must provide verification of their identity, Social Security number, address, and work history for the past two years, as well as proof of income, banking history, and information on any property they currently own.

To get your Navy Federal Share Savings account number, you can either obtain it online or by contacting NFCU.

To manage your finances effectively, you'll need a list of monthly bills, additional banking statements, paperwork showing your income for the last two years, and two months' worth of pay stubs if you're self-employed.

Is a Navy Federal Credit Union mortgage right for me?

Navy Federal Credit Union is a great choice for veterans, active-duty military, and their families, as they offer a range of options beyond VA Loans that don't require a down payment or PMI.

If you don't have a military connection or are set on obtaining an FHA or USDA loan, you may need to continue searching for another lender.

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Our methodology

CNBC Select evaluates mortgage products based on various factors, such as loan types, average rates, terms, accessibility, fees, down payment options, online platform, and customer satisfaction.

We also utilize data from external sources, such as J.D. Power's mortgage origination and servicing surveys and Better Business Bureau ratings, in addition to our own research.