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Navy Federal Credit Union Mortgagemight be for you if: You are a U.S. service member shopping for a mortgage. Navy Federal Credit Union Mortgage is also an excellent choice for a borrower who wants a low down payment mortgage with no private mortgage insurance (PMI).
Read our Navy Federal Credit Union Mortgage review to find out if this company is a good fit for you.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
Navy Federal offers its members a wide range of loans, including the Military Choice Loan for those who have already exhausted their VA loan benefit. Navy Federal offers a rate match guarantee, and if it can't match an offered rate, applicants will receive $1,000.
Min. Credit Score
Undisclosed
Min. Down Payment
0% - 5%
Key Features
High customer satisfaction
Up to 100% financing
Conventional mortgage with no PMI
Rate match guarantee
Loan Types
Conventional
VA
Jumbo
Fixed Rate Terms
10 - 30 years
Adjustable Rate Terms
5/5, 3/5
Top Mortgage Lender
It's important to consider multiple mortgage lenders to find a good fit for you. We've listed one of our favorite lenders below so you can compare your options:
Lender
Min. Down Payment
Credit Score
Next Steps
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
At Motley Fool Money, mortgages are rated on a scale of one to five stars, with five stars meaning "best." We primarily focus on rates and fees, customer service, and loan versatility. This includes factors like application process, customer service channels available, and a variety of loan products.
As a mortgage writer for The Motley Fool, I've heavily researched dozens of mortgage lenders. My job is to find out what special sauce each lender offers, to shorten the time it takes you to find the best mortgage lender to meet your needs.
I've been through the mortgage process five times myself. Lastly, I'm an Accredited Financial Counselor® with a passion for helping people make the most out of their money.
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Unique adjustable-rate mortgages
Navy Federal Credit Union Mortgage stands out for offering an adjustable-rate mortgage that's really friendly to the borrower. That's because NFCU waits a long time between rate adjustments. Most ARMs give you a fixed rate for a few years, and then adjust every few months.
For instance, a 5/6 ARM would have its initial fixed rate for five years, and then adjust every six months.
NFCU's ARM options are 5/5 and 3/5. You get a fixed rate for either five or three years, and then the rate adjusts every five years.
Full Navy Federal Credit Union Mortgage review
Navy Federal Credit Union Mortgage (NMLS # 399807) offers fantastic deals on mortgages to those who qualify for credit union membership. If you have a military or Department of Defense affiliation (or you're a family member or household member), NFCU should be on your short list when you shop for a mortgage. In addition to having low prices, Navy Federal Credit Union Mortgage tends to score very well in independent customer satisfaction rankings.
Pros
Very low mortgage rates
Transparent rates and fees
Free rate lock
Rate match guarantee
Low down payment with no PMI
Cons
Members only
Noncommittal pre-approval
Limited menu of loans
Navy Federal Credit Union Mortgage rates
Navy Federal Credit Union Mortgage'smortgage rates trend lower than the national average. If you qualify for NFCU membership, a Navy Federal Credit Union Mortgage might be the best deal in town. Even if you don't qualify for the lowest advertised rate, mortgages from NFCU are very competitive.
If you have a military affiliation, include this credit union when you research lender options.
Navy Federal Credit Union Mortgage refinance rates
Navy Federal Credit Union Mortgage'srefinance rates trend lower than the national average. If you are eligible to apply for a mortgage at NFCU, looking at this lender is a must when you compare refinance loan offers. Rates are very low, as is the fee to get the lowest rate.
Navy Federal Credit Union Mortgage fees
Navy Federal Credit Union Mortgage's fees are low compared to other lenders, and have lots of flexibility built in.
Borrowers may need to pay the following fees, depending on their loan type and situation:
Funding fee: The Homebuyers Choice and Military Choice funding fee is 1.75% of the loan amount, but can be waived in exchange for a 0.375% interest rate increase. The VA funding fee ranges from 0.50% to 3.60% of the loan amount.
Lock fee: If rates go down more than 0.50% after you lock your rate, you may need to pay a fee to get the lower rate.
Mortgage origination fee: Navy Federal Credit Union Mortgage's origination fee is 1% of the loan amount, but it can be waived for a 0.25% increase in the interest rate.
Other mortgage fees: Tax service fee, recording fee, assumption fee, and payoff release for first mortgage loans fee vary depending on your location.
Ways to save money with a Navy Federal Credit Union Mortgage
Navy Federal Credit Union Mortgage is currently offering the following promotions.
Rate Reduction
How you qualify: Borrowers must have one of the following fixed-rate loan products to be eligible for the no-refi rate drop:
Homebuyers Choice
Military Choice
15- or 30-year Jumbo
You must contact Navy Federal Credit Union Mortgage and request the rate reduction, and the reduced interest rate must be at least 0.25% lower than your existing rate. You will need to meet certain criteria to be eligible for the rate reduction, and there's a $250 fee for each no-refi rate drop. If you're eligible, there is no limit to how many times you can exercise the no-refi rate drop option.
What you get: With NFCU's no-refi rate drop, borrowers can purchase a home now. If rates drop in the future, you can lower your rate.
Up to $9,000 cash back
How you qualify: Be an eligible borrower and use RealtyPlus to choose your real estate agent. The program is available in most states, but is not available for all transactions.
What you get: You can receive up to $9,000 cash back, depending on the property value.
Navy Federal Credit Union Mortgage customer service
Reviews online are mostly positive. Customers love Navy Federal Credit Union Mortgage's customer service, how easy the mortgage process is, and the great rates the lender offers. NFCU is also highly ranked in independent mortgage origination customer satisfaction surveys.
How to apply for a mortgage with Navy Federal Credit Union Mortgage
You can start the Navy Federal Credit Union Mortgage application process online by requesting a pre-approval letter. NFCU's mortgage system is called HomeSquad, and it allows you to manage both your application and your loan. Borrowers can also start the application process over the phone (1-888-842-6328) or in person.
Navy Federal Credit Union Mortgage says borrowers can get a pre-approval in seconds, but it could take longer. Verified pre-approval also takes longer. Once you find a home, you can upload the signed purchase agreement and Navy Federal will convert the pre-approval request to a mortgage application.
Navy Federal Credit Union Mortgage will send you a loan estimate within three business days after you apply.
Borrowers will need the following documentation to apply for a mortgage with NFCU:
Navy Federal Share Savings account number
Documentation showing two-year address and work history
Proof of income
Asset, debt, and liability documentation
Tax returns
Property information
A Certificate of Eligibility (for VA loan borrowers)
Remember that to qualify for a Navy Federal Credit Union Mortgage loan you will also need to meet its minimum credit score and down payment requirements.
About Navy Federal Credit Union Mortgage
Navy Federal Credit Union is a not-for-profit, member-owned credit union that serves the U.S. military, veterans, and their families. It was founded in 1933 by seven naval employees who wanted to create a credit union that helped members achieve financial security.
Today, Navy Federal Credit Union has over 13 million members, including people from every branch of the military, veterans, DoD employees, and their families. It has 357 branches globally, 175 of which are on or near military installations and a network of over 30,000 free ATMs. Customer support is available 24/7, to accommodate service members around the world.
NFCU's mortgage rates are rock bottom and tend to be lower than the national average.
NFCU is very hard to beat when it comes to home loans. That said, you can't get a loan here if you're not a member, and not everyone will qualify for membership. Also, even for members, there are many types of mortgages that NFCU doesn't offer.
NFCU's great rates apply to refinance mortgages as well as purchase loans.
To get a mortgage from NFCU, you need to be a member of the credit union. You are eligible to join the credit union if you are:
An active duty, retired, or veteran member member of any branch of the armed forces
A Department of Defense civilian employee, retiree, or annuitant
A reservist, ROTC, officer candidate, or delayed entry program participant
A family member or household member of the above
NFCU offers the following types of mortgages:
VA home loan
VA refinance
VA streamline refinance
Military Choice loan
Conventional fixed-rate mortgage
Conventional adjustable-rate mortgage
Home equity loans and HELOCs
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Kimberly Rotter has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axos Financial, PNC Financial Services, and Target. The Motley Fool has a disclosure policy.
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