Navy Federal Credit Union mortgage review: A good lender if you’re affiliated with the military
Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Overall lender rating
| Feature | Insider rating (out of 5) |
| Loan types | 3 |
| Affordability | 4 |
| Customer satisfaction | 4 |
| Trustworthiness | 4 |
| Total | 3.75 |
3.75 out of
5 Stars
3.75
out
of
5 Stars
Navy Federal Credit Union Mortgage
Details
5 Stars
Pros & Cons
Highlights
Additional Reading
Pros and cons
| Pros | Cons |
|
|
Navy Federal Credit Union mortgage rates and fees
When you select “Mortgages” on the Navy Federal website, you’ll scroll down to see rates for VA loans and conventional loans. Click on the type of loan you want, and you’ll see typical rates for 15-year and 30-year terms.
Navy Federal doesn’t show customized rates based on your credit score, down payment, and zip code, though, as some other lenders do.
Navy Federal charges a 1% origination fee, but you can waive it in exchange for a mortgage rate that is 0.25% higher.
Navy Federal Credit Union vs. Veterans United mortgages
|
Navy Federal Credit Union
|
Veterans United
|
|
Types of mortgages Conforming, VA, jumbo, Military Choice, Homebuyers Choice, home equity loan, HELOC |
Types of mortgages Conforming, jumbo, VA, FHA, USDA |
|
Alternative forms of credit Yes |
Alternative forms of credit Yes |
| Get started | Get started |
You’ll want to choose Veterans United for an FHA or USDA mortgage, because Navy Federal doesn’t offer these types of loans.
But you may like Navy Federal’s Military Choice or Homebuyers Choice mortgages, which don’t require down payments.
Navy Federal Credit Union vs. USAA mortgages
|
Navy Federal Credit Union
|
USAA
|
|
Types of mortgages Conforming, VA, jumbo, Military Choice, Homebuyers Choice, home equity loan, HELOC |
Types of mortgages VA |
|
Alternative forms of credit Yes |
Alternative forms of credit No |
| Get started |
USAA normally provides conforming and jumbo mortgages, but at the time of writing this review, the lender has halted these products. It’s only originating VA mortgages right now, but it has plans to reintroduce conforming and jumbo mortgages in the future. So if you want a conventional loan, you’ll want to go with Navy Federal.
Navy Federal is probably the better choice if you have a low or no credit score. It accepts alternative credit data, like utility bills, whereas USAA does not.
How Navy Federal Credit Union works
You can get a mortgage through Navy Federal if you are an active military member, veteran, family member of someone affiliated with the military, or Department of Defense civilian. You may also qualify if you live with a Navy Federal member.
The credit union has over 200 branches around the US, plus nine overseas branches and locations on US military bases. It provides mortgages for residents all around the US.
Navy Federal specializes in mortgages for people affiliated with the military. You can get a regular VA loan. If you’ve already used up all your VA loan benefits, you may qualify for a Military Choice Loan, a 30-year mortgage with no minimum down payment.
It’s possible to qualify to become a Navy Federal member without having all the requirements for a VA loan, so you can also get a conventional mortgage (either conforming or jumbo). You may qualify for a Homebuyers Choice loan, which is similar to Military Choice, but for people who aren’t eligible for VA loans.
You can also refinance your VA, conventional, Military Choice, Or Homeowners Choice mortgage. This lender also has home equity loans and HELOCs.
Navy Federal doesn’t offer FHA or USDA mortgages. It also doesn’t have construction loans or reverse mortgages.
The credit union’s website has an intuitive interface with an online preapproval application. The site says that you may even get preapproved immediately. Or you can apply in person at a branch.
Navy Federal could be a good lender if you have a low credit score, or none at all. Most lenders require you to show your credit score when you apply, but Navy Federal accepts alternative credit data, like proof that you pay your bills on time. This can help you buy a home even if you don’t have a great score.
You can speak with a live customer service agent 24/7 over the phone. Or send a secure online message, talk via online chat, or visit a branch to speak with someone face to face.
Is Navy Federal Credit Union trustworthy?
The Better Business Bureau gives Navy Federal Credit Union an NR, or “No Rating,” because it is responding to customer complaints that had already been resolved.
Navy Federal also received a high score on the J.D. Power 2022 Mortgage Origination Satisfaction Study. The credit union actually doesn’t qualify to rank because it doesn’t meet certain criteria, but J.D. Power notes that the Navy Federal would rank highly if eligible.
Navy Federal does have one recent public scandal, though. An employee has claimed the lender pressured mortgage underwriters to approve loans even if they didn’t have sufficient reason to believe applicants could repay the loans. Then she filed a lawsuit and said Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.
Navy Federal Credit Union FAQ
Is Navy Federal good for a mortgage?
Yes, Navy Federal is a strong mortgage lender, especially for people who are affiliated with the military. You may still qualify if you aren’t a military member, though, as long as you are eligible to become a Navy Federal member.
Is it hard to get a Navy Federal mortgage?
Navy Federal makes it easier to get a mortgage than some lenders. Many lenders place a heavy emphasis on your credit score. Navy Federal looks at your credit score, but it also allows you to apply with alternative credit data, such as proof that you pay your bills.
You do have to become a Navy Federal member to get a mortgage, though. You’re eligible to join if you are an active military member, veteran, for Department of Defense Civilian. You can also join as a family member of someone affiliated with the military or if you live with a Navy Federal member.
How long does it take Navy Federal to approve a mortgage?
According to Navy Federal’s website, it takes around 60 to 75 days from the time you apply to closing day. However, it could take longer if you have to make offers on multiple homes.
