MoneyGeek’s Take

Navy Federal Mortgage Review

Navy Federal Credit Union is a full-service lender specializing in loans for military personnel, veterans and their families. The credit union — founded in 1933 and based in Vienna, Virginia — serves over 11 million members and has 350 branches worldwide. Navy Federal offers a variety of mortgage products such as VA loans, military choice, conventional fixed-rate, homebuyers choice and adjustable-rate mortgages.

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Last Updated: 10/24/2022

Navy Federal Credit Union is a good option for people affiliated with the military because it offers a variety of mortgage products to fit the needs of different borrowers, including those with low credit scores and buyers who need low down payments. MoneyGeek's Navy Federal Credit Union loan review will help determine whether this lender is right for you.

At a Glance: Navy Federal Mortgages


  • Navy Federal

    • VA loans: 0% Military choice: 0% Conventional fixed rate: 0% Homebuyers choice: 0% Adjustable-rate mortgage: 0%–10% Minimum Down Payment
    • VA loans, military choice, conventional fixed-rate, homebuyers choice, adjustable-rate mortgages, refinancing, second-home financing and investment property loansLoan Products Offered
    • Available in all U.S. statesStates of Operation
    • Yes Online Application

    on Navy Federal Website

Navy Federal Mortgage Loan Types, Details and Requirements

Loan rates and terms vary depending on the lender and the type of loan. MoneyGeek reviewed Navy Federal Credit Union’s rates, fees and loan application requirements.

Mortgage Types Offered

Navy Federal Credit Union offers the following mortgage types:

  • VA loans
  • Jumbo
  • Military choice
  • Conventional fixed-rate
  • Homebuyers choice
  • Adjustable-rate mortgage

Navy Federal Credit Union offers additional mortgage options such as refinancing, second-home financing and investment property loans. However, it does not offer FHA and USDA loans.

Mortgage Rates

Navy Federal Credit Union mortgage rates depend on the loan type, amount, mortgage term, creditworthiness, loan-to-value (LTV), occupancy and loan purpose, so your rate and terms may differ. The credit union’s website publishes the most up-to-date rates.

Additional Fees

Navy Federal Credit Union does not charge processing or underwriting fees, nor does it charge a fee to relock your rate on purchases or refinances; nevertheless, additional costs may apply.

  • Origination fees: Navy Federal Credit Union homebuyers choice, military choice and investment property mortgages require a 1.00% loan origination fee. However, you may substitute the origination fee for a 0.25% increase in the interest rate.
  • Funding fees: The credit union charges a funding fee of 1.75% of the loan on both homebuyer and military choice loans. You can finance this funding fee into the loan up to a maximum loan to value ratio of 101.75%, or you can waive it for a 0.375% interest rate increase.

Minimum Borrowing Requirements

Although Navy Federal Credit Union does not advertise minimum credit score criteria on its website, it does assess customers's creditworthiness before processing loan applications.

According to MoneyGeek’s research, Navy Federal Credit Union does not require down payments for some loan products, such as VA loans, military choice and homebuyers choice.

Meanwhile, the lender requires a 5% down payment for conventional fixed-rate mortgages and a 0%–10% down payment for adjustable-rate mortgages.

Navy Federal Mortgage Application Requirements

Navy Federal Credit Union requires loan applicants to provide the following documents to verify the information on their application:

1

Date of birth

2

Social Security number

3

Navy Federal Share Savings account number

4

Two-year address history

5

Two-year work history

6

Gross monthly income

7

Any other income to be considered

8

Deposit account and asset information held by financial institutions other than Navy Federal Credit Union

9

Current tax, homeowners/condo dues, insurance and lien information

Depending on the type of mortgage you're applying for, you may need to provide additional information. For example, applicants for VA loans must provide a certificate of eligibility.

Self-employed applicants are required to provide the following additional documents:

1

W-2 forms and personal tax returns from the last two years

2

Pay stubs from the previous two months

3

List of monthly expenses (bills you pay each month)

4

Two months of bank, retirement and investment account statements

5

The two most recent years of personal 1040 tax returns with all pages, schedules and worksheets

6

The two most recent years of business tax returns:

  • Partnership: Schedule K-1 (Form 1041), Partnership Income Tax Return (Form 1065)
  • Sole Proprietorship: Schedule C of personal tax return
  • C-Corp: Form 1120, most recent two years with all schedules
  • S-Corp: Form 1120S, most recent two years with all schedules, Schedule K-1 (Form 1041)
7

Copy of business license or a written statement from a CPA confirming at least two years in business

Is Navy Federal Right for You?

The best mortgage loan lender for you depends on your individual needs. MoneyGeek’s Navy Federal Credit Union review will help you determine if the lender is the best option for you.

Who Navy Federal Is Perfect For

Navy Federal Credit Union is excellent for those with military affiliations. If you are not a military member, you may still be eligible if you are qualified to become a Navy Federal member. Members looking for a mortgage with no PMI or down payment and those seeking a lender with VA loan expertise will find Navy Federal a good fit.

Who Should Not Choose Navy Federal

People who do not have military ties are not eligible for Navy Federal mortgage loans. Furthermore, Navy Federal may not be a good option for people searching for government-backed loans because the company does not offer FHA or USDA loans.

How to Apply for a Navy Federal Mortgage Loan

MoneyGeek's Navy Federal Credit Union review outlines the lender’s step-by-step mortgage application process.

1

Prequalify

Navy Federal Credit Union allows prospective borrowers to see if they prequalify for a mortgage loan and for what amount. This lender uses your credit score, income, assets, debts, employment history and other financial information to determine preapproval. Navy Federal will request documents to validate this information later in the mortgage process.

2

Fill Out Application Form

You can proceed to find a property to buy (if you don't already have one) after you've prequalified and the provider has preapproved your application. Once you provide Navy Federal with a property address, your preapproval becomes a mortgage loan application.

3

Wait for Pre-Approval

After the lender receives all of your documents, your application will be processed to ensure everything is in order. An underwriter will conduct one last check to guarantee the financial viability of your loan. Note that Navy Federal may request additional information or documents to clear up any outstanding questions. Afterward, your loan will receive final approval and move to close.

4

Review Closing Disclosure

You'll get your closing disclosure at least three business days before your closing date, allowing you time to double-check for errors. It will contain your interest rate, loan type, loan term, monthly payments and closing fees. Call or email your loan officer to acknowledge receipt as soon as you receive the closing disclosure.

5

Sign Closing Disclosure

Pay your closing fees through wire transfer or cashier's check once you're satisfied with the closing disclosure. Then sign the closing disclosure.

6

Closing

You will sign your last set of paperwork and finalize the process on closing day. Before signing, carefully read the information.

7

Make Payments

Navy Federal offers borrowers various options for making mortgage payments; you may either set up automated payments from your preferred account or divide the monthly amount due into smaller, more frequent installments to lower your interest payments over the life of your loan.

You can also use the flex drafting option, which allows you to make half of your monthly payment on the first and 15th of each month to align with most military and government pay schedules. You can make one-time payments via the lender's online banking or mobile app, pay by phone or in person at a Navy Federal bank or ATM.

What to Do if You Are Rejected by Navy Federal

Prequalification isn't a guarantee that Navy Federal will approve your mortgage application. If your application is rejected, it's essential to understand why so you can correct any issues before you apply again.

You might be rejected because your credit score is below the required minimum, or the lender is concerned that you lack the financial resources to make the monthly mortgage payments.

Get in touch with a Navy Federal Credit Union customer care representative or loan originator if you find yourself in this situation. They can also help you figure out your options.

Frequently Asked Questions About Mortgages From Navy Federal

MoneyGeek answers the most commonly asked questions about Navy Federal mortgages to help you determine if it’s the best option for you.

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