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 Learn More Annual Percentage Rate (APR) Apply online for personalized rates
Types of loans Conventional, VA, Military Choice, Homebuyers Choice, refinancing, HELOC
Terms 10-30 years
Credit needed Not disclosed
Minimum down payment 5% for conventiona, 0% for VA, Military Choice and Homebuyers Choice
Terms apply. Pros 0% down payment for most loans
Origination fee can be waived for 0.25% rate increase
$1,000 rate-match guarantee
No private mortgage insurance
Up to $9,000 back if you buy or sell through RealtyPlus program Cons Limited to active military and veterans
No USDA or FHA loans Learn More View More
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.
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.
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.
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.
: Varies, although non-traditional forms of credit and a borrower’s past relationship with NFCU will be considered. Down payment : 5%
: 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.
: Not disclosed. Debt-to-income ratio : Not disclosed.
: 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 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 Learn More Annual Percentage Rate (APR) Apply online for rates.
Types of loans Conventional, jumbo, refinance, FHA, USDA, refinance
Terms 10-, 15-, 20-, 25- and 30-year fixed-rate
Credit needed 620
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 Learn More View More
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 Learn More Annual Percentage Rate (APR) Apply online for personalized rates
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 620
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 Read our review of Rocket Mortgage 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 Learn More View More
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,
Navy Federal Credit Union
