Navy Federal Credit Union
A Navy Federal Credit Union mortgage is excellent for military service members and their families to get competitive loan rates and top-tier customer satisfaction.
J.D Power 5/5
Origination, application, credit report, appraisal, processing and underwriting
3/5 / 5.0
Navy Federal Credit Union
Navy Federal Credit Union was formed in 1933 and currently has over eight million members. Its primary mission is to serve the military community through its financial offerings and provides competitive mortgage rates to members. It holds its headquarters in Virginia and is known for its top-notch customer satisfaction.
Our Two Cents — Navy Federal Credit Union offers competitive rates and high customer satisfaction on its mortgage loans. Its loans provide a fantastic path toward homeownership for military members and their families.
Navy Federal Credit Union at a glance
|Lender||Loan Amount||APR Range||Terms||Key Benefit|
|Navy Federal Credit Union||VA mortgage limits depend on entitlement and home location||as low as 2.50%||15 to 30 years||Mortgages for military service members|
Rates accurate as of June 23, 2020
What we like about it
There are a lot of things to like about this credit union. Its website is user-friendly, informative and lets you shop for rates online rather than having to call. This feature is especially useful for a casual browser looking into Navy Federal Credit Union mortgage rates. Also, the credit union offers a rate match guarantee, as well as a flexible method to lock in low interest rates. Plus, you can get a cash-back bonus in many states when you use a recommended real estate agent. Customers give Navy Federal Credit Union reviews that are top-notch, and we can see why.
Things to consider
If you’re looking into a Navy Federal mortgage, there’s not as wide of a mortgage selection as some other lenders. You can get a conventional loan, a VA loan or an ARM loan, plus you can refinance. But the credit union doesn’t offer FHA or USDA loans likely because it targets servicemen and servicewomen. Also, to access a Navy Federal Credit Union home mortgage, you must have ties to the military to become a Navy Federal member. However, this relation can be a grandparent or a household member.
What you need to know
Navy Federal Credit Union received the highest possible customer satisfaction results from JD Power. Like with any mortgage lender, you can find a term length of between 15 and 30 years with Navy Federal Credit Union. If you receive a VA mortgage, the loan limit you’ll run into depends on your entitlement and where you buy a home. Your home loan advisor will also need to verify your eligibility for a VA loan.
To apply for a mortgage through Navy Federal, you’ll need to be a member. Becoming a member requires you to be an active or former member of the military, a civilian with the Department of Defense or a family or household member of someone who is. Once you establish membership with the credit union, you can apply for a mortgage through its online platform. You can get preapproval instantly in some cases.
However, keep in mind that only active servicemembers, veterans and their spouses can qualify for a VA loan. Even if you’re already a Navy Federal Credit Union member through your brother or grandmother, you will have to choose a different loan offering from the credit union.
Collateral and criteria
To get a VA mortgage through Navy Federal, you need to be an active service member, veteran or spouse. Navy Federal doesn’t require a minimum down payment on its VA loans, and there is no minimum credit score. Thus, if your credit is less than stellar, but you otherwise qualify, you could still receive a VA mortgage through Navy Federal. Keep in mind, though, your interest rates may increase because of your credit score, requiring you to pay more each month. Additionally, you won’t be charged for private mortgage insurance for making a down payment of less than 20% of your loan.
Navy Federal Credit Union vs. USAA Bank
Another similar lender to Navy Federal Credit Union is USAA Bank. This bank also allows military members and their immediate families to join but is more stringent than Navy Federal. It doesn’t extend membership rights to grandchildren or household members. Also, USAA Bank’s current mortgage rates are a bit higher, falling at 3.72% to 3.90%. Also, the bank only offers VA and jumbo loans, so it’s more limited in scope. However, like Navy Federal Credit Union ratings from JD Power, the bank is almost as well-rated for its customer satisfaction. Still, we would recommend Navy Federal Credit Union for its slightly lower rates, a more extensive array of loan options and more flexible membership opportunities.
Navy Federal Credit Union vs. Veterans United Home Loans
Another fantastic VA home loan option is Veterans United Home Loans. It’s the top VA home loan lender in the country and provides similar rates when compared with Navy Federal Credit Union. Currently, Veterans United rates fall between 3.25% and 3.34% for its VA loan. Unlike Navy Federal, this lender doesn’t have other mortgage options besides its various VA loans, which could make it less enticing. To qualify for a home loan through Veterans United, you’ll need to meet all the requirements for a traditional VA loan, but you don’t need to become a member of the lender. We would recommend Navy Federal Credit Union for most people for its slightly lower rates and a broader array of loan options.
The bottom line
A mortgage from Navy Federal Credit Union is an excellent choice for military members or their families who are looking for competitive rates, high customer satisfaction and more options than some competitors. You won’t be able to get a loan through Navy Federal unless you can qualify for its military-based membership. Anyone who doesn’t qualify will need to look elsewhere. The overall best JD Power score in customer satisfaction convinces us that this is a lender worth considering.