Tag: Credit

Founded by a group of Navy Department employees in 1933, Navy Federal Credit Union has expanded into the largest credit union in the U.S., opening membership to all service members, veterans, Department of Defense employees and their families.

It’s among the largest providers of VA loans, mortgages for military families that don’t require down payments or private mortgage insurance. It also offers proprietary loans that can make homeownership affordable.

Navy Federal offers conventional, VA and jumbo loans in all 50 U.S. states.

• Fixed-rate: Borrowers keep the same rate for the life of their loan. Navy Federal Credit Union offers fixed-rate terms between 15 and 30 years.
• Adjustable-rate: Adjustable-rate mortgages (ARMs) start with a fixed rate for a set period and then adjust at regular intervals. NFCU offers ARMS with fixed rates for the first three or five years.
• VA loans: Veterans and active-duty service members can apply for this lower-rate loan without a down payment or private mortgage insurance. NFCU finances VA loans up to $2 million.
• Jumbo loans: A jumbo loan exceeds the conforming limits set by the Federal Housing Finance Agency. Navy Federal Credit Union issues 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.

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

Military Choice loan

Like a VA loan, this zero-down payment mortgage is available to military members with no mortgage insurance. But Military Choice loans can also be used for secondary homes by service members who have exhausted their VA loan benefits, and up to 7% of the closing costs can be provided by the seller, more than the 4% limit placed on VA loans.

Homebuyers Choice loan

Aimed at first-time homebuyers, this no-money-down mortgage has a slightly higher interest rate than the Military Choice loan but it’s available to civilian credit union members, not just military.

No-Refi Rate Drop

If mortgage rates decline, you can switch to the lower rate for a flat $250 fee without going through 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.

Navy Federal Credit Union offers 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

Because Navy Federal Credit Union has limited membership, it is not officially ranked in J.D. Power’s mortgage surveys. However, it scored above average for mortgage origination in 2024 and had the highest score of any lender for mortgage servicing.

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

Customer service representatives are available 24/7 at 888-842-6328. The company also offers secure online chat and a mobile banking app.

Navy Federal also has 364 branches across the U.S., nearly half located near military installations.

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

Navy Federal Credit Union vs. Veterans United Home Loans

Two of the largest VA lenders in the country, Navy Federal and Veterans United are both standouts for affordable rates and first-rate customer service.

Navy Federal has the Military Choice loan, which can finance a second home if a member has maxed out their VA loan benefits and allows sellers to contribute more to closing costs than with a VA loan.

If you decide on another government-backed option, like a FHA or USDA loan, Veterans United is the only option.

Navy Federal Credit Union vs. Rocket Mortgage

Both Navy Federal Credit Union and Rocket Mortgage are among the largest VA loan lenders in the U.S. by volume, but NFCU boasts lower rates and the option to adjust your mortgage rate with refinancing.

Navy Federal also offers brick-and-mortar locations and home equity products, neither of which Rocket has.

But Rocket Mortgage has built a reputation with its easy-to-use and informative website. And unlike Navy Federal, it approves FHA and USDA loans. It’s also faster on the trigger, with an average closing time of 21 days compared to 30 days with Navy Federal

You must be a member of Navy Federal Credit Union to apply for a mortgage: Membership is available to active-duty members of every branch of the military, veterans, Department of Defense employees and retirees, as well as their civilian children, grandchildren, grandparents, spouses and siblings.

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

Members can apply online, in person or by phone at 877-573-2324. You’ll need to provide verification of your 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 you currently own. 

You’ll also need your Navy Federal Share Savings account number, which you can get online or by calling NFCU.

If you’re self-employed, 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.

Navy Federal Credit Union is an excellent option for veterans, active duty military and their extended families, with several options beyond VA Loans that don’t require a down payment or PMI.

If you don’t have a military connection, or are determined to get an FHA or USDA loan, you may want to keep shopping for another lender.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.

CNBC Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, availability, fees, down payment options, online experience and customer satisfaction. 

In addition, we incorporate findings from independent sources, including customer satisfaction scores from J.D. Power’s mortgage origination and mortgage servicing surveys and ratings from the Better Business Bureau.