Based in Virginia, Navy Federal Credit Union serves all 50 states and the District of Columbia with 344 branches worldwide. Membership is limited to service members, veterans and certain government contractors. In addition to a full suite of banking services for its members, Navy Federal offers conventional, jumbo and VA loans. It doesn’t offer FHA loans, USDA loans, renovation loans, reverse mortgages and other niche products.
Navy Federal advertises daily purchase and refinance rates for each type of loan it offers in 15-year and 30-year terms, though you won’t find customized rates based on credit score or other factors before you apply.
The lender offers no-down payment and flexible credit requirements on most mortgage products to qualified military service members and their families. Navy Federal Credit Union also doesn’t charge private mortgage insurance. The credit union also has a rate lock option: You can lock in your interest rate for up to 60 days before closing, free of charge.
Navy Federal doesn’t charge prepayment penalties, but the lender may charge origination fees and other closing costs that can be wrapped into your loan principal. Closing costs will vary by location and typically run from 2% to 4% of the home’s purchase price.
Navy Federal’s website is easy to use and offers an array of guides that explain the homebuying process and different types of mortgage loans. The lender lists the types of mortgages it offers, but doesn’t advertise minimum credit score and DTI ratio requirements. It does, however, flag minimum down payment requirements, which vary from 0% to 15% depending on the type of home loan you get.
To get a mortgage, you can apply online, over the phone or in person. Navy Federal has streamlined its online process with a digital application called HomeSquad. Applicants can, for example, set up a personalized portal where they can get preapproved, upload documents, connect their bank accounts to verify assets and receive notifications on the status of their loan. According to Navy Federal’s website, it takes 30 days to close on a mortgage loan, and 45 days for a refinance.