Navy Federal Credit Union Mortgage

Navy Federal Credit Union Mortgage

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About Navy Federal Credit Union Mortgage

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Navy Federal Credit Union (NMLS #399807) was founded in 1933 by a small group of Navy Department employees, and it has since grown to over 12 million members. The organization is a leading lender for VA loans, originating close to $10 billion in VA loans in 2021. It also offers conventional loans, HELOCs and home equity loans. However, you must be a member to apply for its loans.

    Pros & Cons


    • No PMI requirement
    • Offers rate-match guarantee
    • Fast (possibly instant) preapprovals
    • Get cash for using a RealtyPlus real estate agent


    • Must be a member to apply
    • No FHA or USDA loans

    Bottom Line

    Navy Federal Credit Union offers home purchase loans, refinances and home equity financing. It serves members in all 50 states and Washington, D.C. Navy Federal’s multiple possible incentives can make it a good option for veterans, military service members, their families and other qualified members.

    Top Navy Federal Credit Union Mortgage Reviews

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    Navy Federal gave us an excellent rate, they worked with us to get everything done quickly, as the seller was in a hurry due to having already purchased another home. Closing went...

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    I sold my house and purchased a new home in April during this pandemic. My previous mortgage company was SunTrust and I decided to go with Navy Federal. I was a little put off by ...

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    Navy Federal Credit Union publishes the current starting rates for all its home loan products on its website. Just keep in mind that these rates are based on assumptions about the loan’s purpose, the hypothetical borrower’s credit history, the property’s occupancy and the loan-to-value ratio. You’ll need to contact Navy Federal Credit Union if you want a customized quote based on your individual circumstances.

    We looked at Navy Federal Credit Union’s average rates over the last few years to see how it compared with those from other lenders. In 2021, Navy Federal’s average home purchase rate was in line with the national average, but its rate was higher and lower than average at different times in the two years before that.

    The organization offers both fixed-rate and adjustable-rate mortgages (ARMs). Fixed-rate mortgages offer stable monthly payments that won’t change, while an ARM has payments that can fluctuate. On the other hand, ARMs may offer lower rates (at least for the first few years) than fixed-rate mortgages.

    Navy Federal Credit Union offers a 5/5 ARM, which means the interest rate is fixed for the first five years, then adjusts every five years after that. An ARM could be preferable if interest rates are currently high, because you could take advantage of the introductory rate to save money in the short term. On the other hand, if rates continue to rise, you could be stuck with a higher interest rate unless you refinance.

    Navy Federal Credit Union Mortgage average home purchase rate vs. national average

    YearDifference from national average
    2021 0.00%
    2020 0.28%
    2019 -0.07%
    Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

    Application process

    To get a mortgage, start the preapproval process by logging in to your Navy Federal Credit Union account online. You should find a mortgage application or preapproval link within the portal.

    As you begin the application, be prepared to answer questions about your income, assets and debts. The organization uses a program called HomeSquad to assist you through the application process. It can connect to your bank accounts and verify account balances electronically.

    Within HomeSquad, you can also check your application status and upload documents. Once you’ve completed the application, you could receive a preapproval decision instantly.

    A ConsumerAffairs reviewer from Indiana had this to say about getting a mortgage with Navy Federal Credit Union:

    “So I decided to go with Navy Federal Credit Union for my VA Home Loan because they were offering a great mortgage rate (beating my old standby USAA by about 0.5%). ... I live in a state where they do not have a physical branch. Therefore, I had to ensure I downloaded, signed and then uploaded all their online documents. After that, I ensured I faxed them too (just to be sure). If you're someone who needs lots of guidance, then this is probably not the best lender for you.”

    Navy Federal Credit Union Mortgage application features

    Online application
    Mobile document upload Undisclosed
    Physical branches 350 worldwide
    Publishes minimum rate on website
    Rate lock 60 days
    Pre-qualification (no hard credit pull) X
    Certified approval letter

    Loan types

    Navy Federal Credit Union offers conventional loans (with fixed or adjustable rates) and VA loans. Loan terms are available between 10 and 30 years. The credit union does not currently offer FHA or USDA loans.

    Navy Federal also offers two additional loan products:

    • Military Choice is suitable for veterans, active military service members and reservists who may have used up their VA loan benefits already.
    • Homebuyers Choice is available to any Navy Federal Credit Union member.

    Both options offer 100% financing (no down payment required) and have no private mortgage insurance requirements.

    In 2021, borrowers initiated 69,413 home purchase applications with Navy Federal Credit Union. Of those applications, about 15% (10,334) were denied. The denial rate is higher than that of the industry as a whole, which is at about 8%. About 52% (35,869) of its home purchase loans were ultimately closed, though.

    Loan applications for home purchases only by year

    Home purchase applications 69,413 70,672 95,711
    Home purchase loans closed 35,869 38,831 47,886
    Home purchase applications denied 10,334 9,019 7,100
    Home purchase preapprovals denied 0 2 20,587
    Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.


    For the past two years, Navy Federal Credit Union devoted more of its business to refinances than it did in 2019. In 2021, about 54% of loans it originated were for refinancing (with rate-and-term and cash-out refinances combined). About 45% were home purchase loans.

    Other lenders saw a rise in refinancing applications during this period as well. Interest rates dropped to record lows in 2020 and 2021, and many borrowers reacted by refinancing their existing mortgages to lock in lower rates.

    In the first six months of 2021, there was a 33% increase in refinancing activity compared with the first six months of 2020, according to data by Freddie Mac. However, rates have been rising in 2022, so fewer borrowers are expected to refinance this year.

    Even if rates are high, you may still consider refinancing if you're able to save money anyway. Check your loan details if you can’t recall your interest rate. Then, gather free rate quotes from various lenders to compare. You may find that you can still lower your rate with a refinance. If you can lower your rate by 1%, refinancing is worth considering. Just be sure to account for the closing costs of refinancing when you do the math.

    Home purchase vs. refinance loans by year

    Home purchase loans 45.29% 48.51% 59.20%
    Refinance loans 31.50% 27.98% 7.94%
    Cash-out refinance 22.07% 18.46% 13.58%
    Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

    HELOC and home equity loans

    Navy Federal Credit Union offers both home equity loans and home equity lines of credit (HELOCs).

    A home equity loan from Navy Federal allows you to borrow up to 100% of your available equity with no origination or application fees. These loans have fixed interest rates and are available in loan terms of five, 10, 15 or 20 years.

    A Navy Federal HELOC allows you to borrow up to 95% of your available equity, and the company doesn’t charge origination fees, application fees, annual fees or inactivity fees on its HELOCs. HELOC interest rates are variable, so they can fluctuate based on market conditions over the 20-year draw period and 20-year repayment period.

    Home equity loans are best used in cases where you need a lump sum of cash upfront, while a HELOC may be best when you need access to a revolving line of credit for an extended period of time. For example, you may choose to get a home equity loan to consolidate debt on your credit card balances. You have to begin repaying these loans immediately, though, so be sure you can handle a new monthly payment.

    Keep in mind that HELOCs usually require interest-only payments during the draw period, so you won’t truly begin repaying what you've borrowed until much later.


    In order to apply for a mortgage with Navy Federal, you’ll need to be a member of its credit union. The lender’s website states that you can apply for membership online, by phone or in person at a branch location. To join, you have to be either: 

    • A veteran or active-duty or retired military personnel
    • An immediate family member or housemate of a Navy Federal member
    • DoD civilian personnel

    Navy Federal Credit Union does not list many specific borrower requirements on its website, but here are some general mortgage requirement guidelines for context:

    • VA loans often require a 580 credit score to qualify. There are no down payment requirements on a VA loan.
    • Conventional loans generally have higher credit score requirements (usually 620). While other lenders may only require 3% down payments on conventional loans (average down payments are usually higher), you will need to offer at least a 5% down payment to qualify with Navy Federal.

    Bear in mind that these are general guidelines, so Navy Federal’s requirements will likely differ in some ways, especially since it offers multiple types of VA and conventional loans.

    Navy Federal Credit Union does state that it considers a member’s banking history along with credit score to determine loan eligibility. This can be a good thing for borrowers who have been working to bring up a lagging credit score and have the banking history to show it.

    National mortgage requirements by type

    Min. credit scoreMin. down paymentCompare with other lenders
    Conventional Typically 620 Typically 3% Mortgage lenders
    VA Set by lender (often 580) 0% VA lenders

    For other loan types, read our guides on FHA loans and USDA loans.

    Costs and fees

    Navy Federal Credit Union is transparent about its fees, which is fairly uncommon in the industry.

    It charges an origination fee of 1% of the loan amount. This is within the standard range — most lenders charge an origination fee of 0.5% to 1% of the loan amount.

    Origination fees are part of the overall closing costs, which can add up to 2% to 5% of the loan amount. Other closing costs include third-party service charges like home appraisal fees, title search fees and attorney’s fees. It also includes prepaid items, like some real estate taxes.

    Navy Federal Credit Union has multiple options that do not require private mortgage insurance (PMI), regardless of your down payment amount (most lenders require it for down payments of less than 20%). PMI costs average around 0.5% to 1% of the loan amount annually, so eliminating this expense can save you a significant amount of money.

    The organization also offers several other perks. First, it provides a rate-match guarantee. If you can get a better rate quote from another lender, Navy Federal Credit Union will match it and give you $1,000. Also, if you work with a RealtyPlus real estate agent, you could get up to $9,000 in cash back. Check with Navy Federal Credit Union to see the terms and conditions of these discounts.


    What is Navy Federal Credit Union Mortgage?

    Navy Federal Credit Union is a member-owned, not-for-profit financial institution. It offers conventional loans, VA loans, HELOCs and home equity loans. You can apply for preapproval online, but you must be a current member of its credit union.

    Is Navy Federal Credit Union Mortgage legit?

    Navy Federal Credit Union has been in business since 1933. It has over 12 million members, and it was one of the top 10 VA loan lenders by volume in 2021, according to the VA.

    At the time of publishing, Navy Federal Credit Union has an overall satisfaction rating of 3.7 out of 5 on our site based on 478 ratings from the last year.

    Where is Navy Federal Credit Union Mortgage available?

    Navy Federal Credit Union mortgages are available to members in all 50 states and Washington, D.C. The organization has 350 branches worldwide.

    Navy Federal Credit Union Mortgage Reviews

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    Page 1 Reviews 0 - 10
    Verified Reviewer
    Original review: March 24, 2023

    After 40 years, I have to say NFCU is simply not the bank it once was. The personnel are incapable of understanding anything beyond the most basic of financial data, do not make complete requests for documents, and constantly move the goal posts for a complete loan application. If you are a high net worth individual, look elsewhere if you are needing a mortgage. This is not a sophisticated bank, and seems to have lost the desire to truly serve its members.

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    Verified Reviewer
    Original review: March 19, 2023

    Have all of the NF credit cards and have the highest limit on all! Outstanding credit and 5 % DTI. We applied for VA mortgage loan with a huge down. Feb 2nd Pre approval no problem then came all of the issues. First they made a mistake on all of the forms for my husband social then they had to re-run our credit because of their error. Uploaded all the forms that were needed by me and they called me and asked me about the veteran's COE and told me I was deceased. I am not the veteran, my husband is I tell them? Next they had all of the closing costs wrong with VA funding fee we are exempt from.

    Three weeks goes by after we are in underwriting with no response is no calls. No nothing getting close to closing date..I get a call 3/17 telling me my husband has an old collection. This was not something we were aware of but once confirming it was ours we said no problem will pay it off and she said no problem that will move your loan forward called and paid off the collection and immediately emailed her 30 minutes later and she said, "Sorry we can't move forward with your loan. You'll have to reapply"!! We are 2 weeks out from closing and now have to scramble to see if we can get another lender.

    May lose our house due to their negligence. I could never reach them by phone she told me to always email her then would take 2/3 days to respond. I asked to speak to her supervisor after they said they can't move forward and no call. They now tell me in a very rude email that my husband can't be on the loan and I will need to reapply. STAY AWAY from them for any mortgage needs!! Do yourself a favor. After now almost 4 weeks into our contract I am now needing to hunt for another lender.

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      Verified Reviewer
      Original review: Oct. 29, 2022

      I really wished I viewed this site before applying with NFCU. At first, I had only positive experiences. Until I decided to do my mortgage thru them. Received preapproval. Went under contract. My loan was denied. Claiming insufficient income. My husband literally hits two years in Nov at his new job. It’s Oct . Did I mention it’s a new build and we aren’t closing for another year. My rep knew this and said all was well. Wrong denied. After that heard nothing from our LO. We were notified of our denial because we called. We decided to appeal. Guess what it’s been two weeks and still no word. We’ve called even spoke to her supervisor.. no update. Everyone pins responses on someone else. It’s like pulling teeth to get a response. Lesson learned.. sadly everything on my credit except for my current home is ran through them. This experience has made me reconsider everything.. as for mortgage and NFCU.. don’t do it!!

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      Verified Reviewer
      Original review: Oct. 26, 2022

      Michael ** (loan officer) and Eileen ** (mortgage processor) have provided me the worst service I have ever been around. I was denied a mortgage, not because of credit, because of a form that I was suppose to supply to them but yet I have asked everyday for three weeks what I need to do and they always say we are waiting on underwriting. To call me today and tell me it wasn't approved because I didn't send a form in???? First off you should ask for the form instead of just assuming we can read your mind. I would never recommend anyone to ever do business with Navy Federal on the Mortgage side! Especially from these two people! Be prepared to have little to no communication as well as not telling you everything you need. Shows their lack of knowledge in their field.

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        ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page. Specific sources for this article include:
        1. U.S. Department of Veterans Affairs (VA) “VA Home Loans.” Accessed September 8, 2022.
        2. Freddie Mac, “Refinance Trends in the First Half of 2021.” Accessed September 8, 2022.
        3. The Federal Reserve Bank of St. Louis, “30-Year Fixed Rate Mortgage Average in the United States.” Accessed September 8, 2022.

        Navy Federal Credit Union Mortgage Company Information

        Company Name:
        Navy Federal Credit Union Mortgage
        820 Follin Lane SE
        Postal Code:
        United States