Navy Federal Credit Union Mortgage Review 2024

Navy Federal Credit Union overview

Navy Federal Credit Union is a credit union and full-service lender for military members, veterans and their families. It was established in 1933 and operates as a member-owned credit union with over 13 million members serving all 50 U.S. states.

In addition to mortgages, Navy Federal provides loan servicing, title services and real estate services. It also offers banking products, credit cards, auto loans, student loans and personal loans. The credit union offers customized financing options for members with its own portfolio products. 

This multifaceted approach can make Navy Federal a good option for military members and veterans looking for a one-stop shop for their banking and homebuying needs.

Pros and cons of Navy Federal Credit Union

How Bankrate scored Navy Federal Credit Union

Affordability: 10/10

Overall, Navy Federal Credit Union’s mortgage rates are competitive. It charges a 1 percent origination fee but offers the option to waive the fee in exchange for a higher interest rate. The credit union doesn’t charge processing or underwriting fees, however, and there’s no cost to relock your rate on purchases or refinances. (As part of its Freedom Lock feature, you can relock your rate up to two times if rates improve.) This combination of low rates and low fees lands it a high score for affordability.

Availability: 9.6/10

Navy Federal Credit Union serves over 13 million members and operates more than 355 branches worldwide, providing conventional loans as well as VA loans, Military Choice loans and Homebuyers Choice loans, along with options to refinance your existing mortgage. The credit union also offers investor loans. It scores well due to its availability in all 50 states and its offering of conventional and government-backed loans. The catch, of course: You can only become a member if you or a family member has served.

Borrower experience: 5/5

Navy Federal Credit Union has been in business for 90 years and has an “Excellent” rating from Trustpilot. J.D. Power ranks the credit union highly but notably behind Veterans United. While Navy Federal has a great reputation and many ways to contact it, the credit union receives a 6.9/10 largely due to a lack of mortgage rate transparency on its site.

If you’re interested in a mortgage from Navy Federal, you can get prequalified and preapproved and apply for a mortgage online. In some cases, you can get preapproved instantly through the credit union’s home loan management platform, HomeSquad. Generally, though, you can expect a response from a loan officer within six to 10 days after applying. You can communicate with the lender through secure messaging online, via chat or through social media. You also can sign certain loan documents using e-sign, and pay your mortgage through the credit union’s app. For a purchase, closings typically take 30 days. Refinance closings can take 30 to 45 days.

Learn more: How to choose a mortgage lender

How to apply for a mortgage with Navy Federal Credit Union

You can apply for a mortgage with Navy Federal Credit Union online or by phone at 888-842-6328. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.

2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.

3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Special offers: Navy Federal’s rate-match guarantee 

Navy Federal offers a rate-match guarantee: If you find a better rate with another lender, the credit union will match it or give you $1,000. To qualify for the guarantee, you’ll need to lock in your rate with Navy Federal before you make the rate-match request, then submit the rival lender’s loan estimate and rate-lock disclosure within three calendar days of locking with Navy Federal. If the credit union can’t match the competitor’s rate, you’ll need to provide Navy Federal with your signed closing disclosure from the other lender within 30 calendar days of your closing.

Navy Federal already offers below-average rates, but this guarantee encourages you to shop around, differentiating Navy Federal further from its competitors. If you find a lower rate elsewhere and Navy Federal won’t match it, you can collect the $1,000 and save on the lower rate.

Refinancing with Navy Federal Credit Union

Navy Federal Credit Union offers both rate-and-term and cash-out refinancing options for conventional loans, plus the VA Interest Rate Reduction Refinance Loan (IRRRL, or streamline refinance). It tends to offer competitive refi rates, especially VA rates.

Along with these more standard offerings, it has some refinance options that set it apart:

• Homebuyers choice refinance: This option allows newer homeowners to do a cash-out refinance, using up to 97 percent loan-to-value (LTV). A typical cash-out refinance only allows for 80 percent LTV.
• 5/5 adjustable-rate mortgage (ARM): Navy Federal offers an ARM that starts with a low introductory rate for five years, then adjusts once every five years after that. You can refinance into this product to take advantage of the low rate.

How to apply for a mortgage with Navy Federal Credit Union

You can apply for a mortgage with Navy Federal Credit Union online or by phone at 888-842-6328. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for, as well as take steps to improve your credit before applying.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Learn more: How to get a mortgage

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability. Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%

  • Availability. Loan products - 50%; licensing - 40%; credit score - 10%

  • Borrower experience. Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.