Navy Federal Credit Union offers VA home loans, adjustable rate mortgages, and conventional fixed rate mortgages, all with no private mortgage insurance required. One of its specialty products is the Military Choice Loan, which is available to eligible military members and veterans. This mortgage requires no down payment or PMI, and has special fixed rates.
The Homebuyer’s Choice Loan, which requires no down payment or private mortgage insurance, is designed to help first-time home buyers.
Navy Federal also offers jumbo loans. Home equity loans and home equity lines of credit have been temporarily suspended.
Terms, fees, and discounts on Navy Federal Credit Union mortgages depend on the product. Navy Federal does not charge an application fee. Other fees are shown on your loan estimate and may include origination fees or financing fees. For example, Military Choice loans include a finance charge of 1.75% of the loan amount which can be funded into the loan or canceled for an interest rate increase of .375. This loan also carries a 1% origination fee, which can be waived if the interest rate increases by 0.25.
If you want to lower your interest rate, you can buy discount points, with one point equal to 1% of the total loan amount.
To become a member of the Navy Federal Credit Union and qualify for its mortgages, you must be an active member or veteran of any branch of the military, a civilian employee of the Department of Defense, a contractor working in a DOD facility or family member. of someone who qualifies.
The Navy Federal Credit Union does not disclose a maximum or minimum debt-to-income credit score, but it does say it works with borrowers whose credit is “less than perfect.”
The credit union offers a range of mortgages with various qualifying requirements, including conventional loans that generally require a minimum credit score of 620 according to Fannie Mae and Freddie Mac requirements. Navy Federal works with members who have credit ratings that may not be accepted by traditional lending institutions.
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Navy Federal Credit Union has an A+ rating from the Better Business Bureau, but the lender is not BBB accredited. The credit union has closed 345 complaints in the past 12 months, many of which were related to product, billing or collection issues. Navy Federal Credit Union addressed these complaints in a timely manner.
In 2021, the Consumer Financial Protection Bureau received 219 mortgage-related complaints about Navy Federal Credit Union, mostly related to the application process. Navy Federal provided timely responses to these complaints; 116 were closed with explanation, 19 were closed with monetary relief, 18 were closed with non-monetary relief and 21 were still ongoing as of January 2022.
When it comes to customer service, one thing to note: Navy Federal materials and documents are only available in English. The credit union also conducts business in English only, although it “will attempt to assist members with limited English proficiency where possible”.
Borrowers can apply for a mortgage online and manage their accounts on the credit union’s website. First, Navy Federal requires that you be pre-approved based on your credit score, income, assets, debts, work history, and other financial information such as your bank statements and your payslips. Navy Federal will verify this information and pre-approve you for a certain loan amount. When you’re ready to buy a home, you can go through the application process by contacting your mortgage advisor.
You will need to provide: W-2 forms for the last two years, pay stubs for the last two months, personal tax returns for the last two years, your social security number, your monthly debts and living expenses, as well as bank statements and information about your assets. financial institutions other than Navy Federal.
- Active duty military, veterans, civilians or DOD contractors and their family members
- Member borrowers who want a mortgage with no PMI or down payment
- Those looking for a lender with VA loan expertise
Q: What is Freedom Lock?
A: Freedom Lock is a benefit offered by Navy Federal to help you get the lowest interest rate on your mortgage. Once you’ve completed your application and found the home you want to buy, you’ll need to choose your rate lock option, which determines what happens to your mortgage rate. If you “lock” your rate, you stick with the current rate – this is a good option if you think rates will go up before you close on your home. If you think rates will drop, you can choose to “float” and then lock your rate at a lower level just before closing.
The third option is usually called a ‘locked float’ – you can lock your rate but retain the option to change it if mortgage rates drop during your lock-in period. Mortgage lenders usually charge for this option, but Navy Federal offers it for free. Hence, Freedom Lock. With Freedom Lock, you can lock your mortgage rate twice, as long as your mortgage closes within 60 days of the first rate lock.
Q: Is the Navy Federal Credit Union legit?
A: Navy Federal Credit Union is the largest credit union in the United States. Navy Federal was founded in 1933 to provide financial solutions to those who serve the United States and their families. The Better Business Bureau gives Navy Federal an A+ rating, although it is not accredited. The 2020 JD Power & Associates US Primary Mortgage Origination Satisfaction Study rated Navy Federal Credit Union as above average. In 2020, the Consumer Financial Protection Bureau received 229 mortgage-related complaints about the Navy Federal Credit Union.
Q: How do you get approved for a Navy Federal Credit Union mortgage?
A: To be approved for a Navy Federal Credit Union mortgage, you must be a member. First, secured loan pre-approval. You will need to provide basic financial information, including your credit score and work history. Although certain types of mortgages have minimum credit score requirements, Navy Federal says it works with members to find the best mortgage option for every situation, even those with less than perfect credit. . Your pre-approval letter indicates the amount of money you are allowed to borrow to buy a home. Once you’ve found a home in your price range that you want to buy, you’ll contact your loan advisor, provide additional financial details, and convert your pre-approval into a formal loan application.