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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 Credit Union mortgage review
Pros and cons of Navy Federal Credit Union mortgages
Pros
- Some of the lowest VA loan rates on the market
- Will match competitor’s rate or pay $1,000
- Military Choice Loan lets sellers contribute up to 7% to closing costs
- Can lower mortgage rate without refinancing
Cons
- Limited to to active-duty military veterans, Department of Defense staff and their families
- Credit score requirements not disclosed
- FHA and USDA loans are not available
Navy Federal Credit Union types of home loans
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.
How do I qualify for a Navy Federal Credit Union mortgage?
- Credit score: Varies, although non-traditional forms of credit and a borrower’s past relationship with NFCU will be considered.
- Down payment: 5%
- Debt-to-income ratio: Varies. Lenders typically require borrowers to have a DTI of no more than 50%.
Benefits and discounts
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.
Refinancing
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
Customer service
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.
How does Navy Federal Credit Union compare to other mortgage lenders?
Here’s how Navy Federal stacks up to two leading mortgage providers.
| Navy Federal Credit Union | Veterans United Home Loans | Rocket Mortgage | |
|---|---|---|---|
| Loan types | Conventional, VA loans, jumbo loans, refinancing, home equity loans, HELOCs | Conventional, FHA, VA, jumbo, Rocket ONE+, HomeReady, HomePossible, construction-to-permanent, refinancing, home equity loans | Conventional, FHA, VA, jumbo, Rocket ONE+, HomeReady, HomePossible, construction-to-permanent, refinancing, home equity loans |
| Credit score | Undisclosed, alternative forms of credit accepted | 620 | Conventional: 620 jumbo: 700 |
| Terms | Fixed-rate: 15 or 30 years, adjustable: 3/5 and 5/5 |
Fixed-rate: 15 or 30 years, adjustable: 7/6, 10/6 |
Fixed rate: 20 or 30 years, adjustable: 7/6, 10/6 |
| Perk | No PMI on conforming conventional loans | Free credit counseling | Rebate of up to $10,000 with Rocket Homes |
| Best for | Low rates | Credit assistance | Loan type variety |
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.
Veterans United Home Loans
-
Annual Percentage Rate (APR)
-
Types of loans
Conventional, jumbo, refinance, FHA, USDA, refinance
-
Terms
10-, 15-, 20-, 25- and 30-year fixed-rate
-
Credit needed
-
Minimum down payment
0% for VA loan, 3% for conventional, 3.5% for FHA
Pros
- Available in all 50 states
- Specializes in home loans for veterans
- Largest VA loan lender
- 24/7 customer service line
Cons
- Locations in only 16 states
- No HELOC or home equity loan options
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.
Rocket Mortgage
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Annual Percentage Rate (APR)
Apply online for personalized rates
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Types of loans
Conventional, FHA, VA, jumbo, HomeReady, Home Possible
-
Terms
10-, 15- and 30-year fixed-term conventional loans, 30-year VA and FHA loans, custom mortgages with fixed-rate terms from 8 to 29 years.
-
Credit needed
-
Minimum down payment
0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo
-
Already have a mortgage through Rocket Mortgage or looking to start one? Check out the Rocket Visa Signature Card to learn how you can earn rewards
Pros
- One of the largest home lenders in the U.S.
- Offers 1% down mortgage
- High scores for customer satisfaction from J.D. Power
- Shorter-than-average closing time
- Rebate of up to $10,000 for buying with Rocket Homes
Cons
- No USDA mortgages, construction loans or HELOCs
- Hard credit check required for customized rate
- Higher origination fees than the competition
- No physical branches
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
How do I apply for a mortgage with Navy Federal Credit Union?
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.
Is a Navy Federal Credit Union mortgage right for me?
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.
Navy Federal Credit Union FAQs
Who can join Navy Federal Credit Union?
Navy Federal Credit Union membership is open to active-duty members of every branch of the military, as well as veterans, current and past Department of Defense employees and the spouses, children, grandchildren, grandparents and siblings.
How do I join Navy Federal Credit Union?
If you’re eligible for membership, you can sign up for Navy Federal Credit Union online, on the phone or in person. You must deposit at least $5 into a qualifying NFCU savings account.
Who owns Navy Federal Credit Union?
Navy Federal Credit Union is a not-for-profit institution owned by its members. According to NCFU, “any surplus funds are returned to our members as dividends, reduced loan interest and improvements to our products and service.”
What credit score do you need to get a Navy Federal Credit Union mortgage?
Navy Federal Credit Union does not disclose credit score requirements. The typical credit score most lenders want to see for a VA loan, however, is 620. NCFU also accepts non-traditional forms of credit, like a history of ontime bill payments.
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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.
Our methodology
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.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
