Business Insider's personal finance team reviewed Navy Federal Credit Union and found it to be one of the best mortgage lenders available thanks to its affordability and strong customer satisfaction ratings. Navy Federal earns a 4.10 out of 5-star rating from Business Insider based on its loan options, affordability, customer satisfaction, and trustworthiness.
Navy Federal Credit Union is also one of the best VA mortgage lenders, and it has a number of affordable mortgage options to choose from on top of its VA loan offerings. But this lender lacks transparency around its minimum credit score requirements.
Navy Federal Credit Union Mortgage Pros and Cons
Pros
- Multiple no-down-payment mortgage options
- Can apply with non-traditional credit data
- Fees are on the low end
The down payment is a big barrier to homeownership for many, and Navy Federal has multiple loan options that remove this hurdle, including VA loans and its specialty Military Choice and Homebuyers Choice loans.
Many lenders require a traditional credit history to apply for a loan, but Navy Federal will look at alternative forms of credit if you don't have a traditional score. And its average fees are relatively low compared to other lenders.
Cons
- No FHA or USDA loans
- Need to meet eligibility requirements to become a Navy Federal member
- Can't see personalized rates before applying for preapproval
- Doesn't disclose its minimum credit score requirements
The main downside to this lender is that not everybody can use it. To get a mortgage with Navy Federal, you'll need to become a member of the credit union. If you don't meet the eligibility requirements, you won't be able to get a loan here.
We also feel that the lender lacks transparency when it comes to its minimum credit score requirements. Many lenders provide their minimum score requirements publicly so prospective borrowers can know whether they meet the lender's minimum requirements before they take the time to apply.
Get Mortgage Rates
Undisclosed
Conforming, VA, jumbo, Military Choice, Homebuyers Choice, home equity loan, HELOC
- No-down-payment mortgages available
- Apply with non-traditional credit data if you don't have a credit score
- Low average fees
- No FHA or USDA mortgages
- You must be eligible to join Navy Federal Credit Union to get a mortgage
- No personalized mortgage rates available online
- Doesn't disclose minimum credit score required
Navy Federal Credit Union is one of our best VA mortgage lenders. It's a good option for people affiliated with the military overall, especially if you're looking to avoid making a down payment. But it lacks transparency around its credit score requirements.
- You may be eligible for a mortgage if you are an active military member, veteran, family member of someone affiliated with the military, Department of Defense civilian, or housemate of an existing Navy Federal member
Navy Federal Credit Union (NFCU) Mortgages Overview
Navy Federal is a credit union that specifically serves those affiliated with the U.S. military. To get a mortgage with Navy Federal Credit Union, you'll need to become a member. Membership is available to armed forces servicemembers and veterans, their families or household members, and Department of Defense civilians.
The credit union has more than 300 branches around the world. It provides mortgages for residents all around the U.S.
Loan Options
VA Loans
Navy Federal was the fifth-largest VA loan lender in the U.S. in 2024, according to the Department of Veterans Affairs. You'll need to meet the minimum service requirements to qualify for one of these mortgages.
NFCU offers VA loans with 30-year and 15-year terms.
Military Choice Loans
NFCU's Military Choice Loans are 30-year mortgages with no minimum down payment for those who've used up their VA loan entitlement
Homebuyers Choice Loans
The lender also offers Homebuyers Choice Loans, which are similar to Military Choice, but for people who aren't eligible for VA loans.
Conventional Loans
If you want a standard, non-government-backed mortgage, you can get a conforming loan or jumbo loan from this lender as well.
Fixed-rate mortgages and adjustable-rate mortgages (ARMs)
If you get a conventional loan from Navy Federal, you can get a fixed-rate or adjustable-rate mortgage. Both options are available on conforming and jumbo loans.
Its fixed-rate mortgages come with 30-year and 15-year term length options. If you prefer an adjustable rate, you can get either a 3/5 ARM or a 5/5 ARM.
Home Equity Loans and HELOCs
Navy Federal also offers two different types of second mortgages:
- Home equity loans
- Home equity lines of credit (HELOCs)
How to Apply
You can start a mortgage application on Navy Federal's website, over the phone, or in person at a branch near you.
Eligibility Criteria
Navy Federal doesn't disclose its minimum credit score requirements. According to a company representative, "we work with our members to find the right mortgage for their needs and explore ways to improve their eligibility."
If you don't have a credit score, you may be able to use non-traditional credit (like rental payments, utility payments, or subscriptions) to apply for a mortgage with this lender.
Documents Needed
The documents you'll need to apply for a mortgage include things that show your income and the assets you'll use for your down payment and closing costs. So be prepared to provide tax returns, W-2s, paystubs, and bank statements.
Navy Federal Credit Union Mortgage Interest Rates and Fees
Comparison of NFCU's Rates to National Averages
Based on Business Insider's review of Home Mortgage Disclosure Act data, Navy Federal's interest rates are around average compared to other lenders.
Navy Federal Credit Union displays sample mortgage rates on its website, so you can see its current mortgage rates to get an idea of what you might pay with this lender. But to get a customized rate, you'll need to apply for preapproval or talk to a loan officer.
Fees and closing costs
Navy Federal's website says it charges a 1% origination fee, but you can waive it in exchange for a mortgage rate that is 0.25% higher. According to HMDA data, borrowers getting a conventional loan from this lender paid an average of $1,915 in origination charges in 2023. This is much lower than what other lenders typically charge. VA loan borrowers paid an average of $963 with this lender.
Is Navy Federal Credit Union a Trustworthy Mortgage Lender?
Overall, we think Navy Federal Credit Union is a trustworthy lender that most borrowers will have a good experience with. However, the credit union previously had an NR, or "No Rating," from the Better Business Bureau because it was responding to customer complaints that had previously been resolved. It now has no rating listed because the company's profile is being updated.
In December 2023, CNN published an analysis showing that in 2022 Navy Federal Credit Union approved more than 75% of its white conventional loan applicants, and less than 50% of its Black conventional loan applicants — a wider disparity than other top lenders. The analysis found that the gap remained even among borrowers with similar financial profiles.
In response, Navy Federal hired civil rights lawyer Debo Adegbile to review the lender's practices. In March 2024, Navy Federal said this review controlled for factors that CNN's analysis did not, including non-public information like credit scores, and "found no race-based decision making in our mortgage underwriting."
What Borrowers Are Saying About Navy Federal Credit Union
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about Navy Federal. Overall, previous borrowers seemed pleased with this lender and frequently mentioned how much they liked the loan officers they worked with.
Positive Experiences, Some Complaints of a Slow Process
Borrowers generally said the people guiding them through the approval process were communicative and knowledgeable, helping things go smoothly.
However, we saw a handful of complaints that Navy Federal is slow to complete the mortgage process compared to other lenders. This could be a concern if you're buying a home, rather than refinancing, since you'll be working on a tighter timeline to get approved ahead of your closing date.
The majority of reviews and comments we looked at had good things to say about this lender. But because it's such a large company, some borrowers may have better experiences than others. If that concerns you, you may also want to consider applying with some local lenders, which have smaller client bases and can often give you more personalized attention.
NFCU Alternatives
Navy Federal Credit Union vs. Veterans United Mortgages
While both of these lenders are included in Business Insider's guide to the best VA mortgage lenders, Veterans United is our "best overall" pick. It's a great VA lender overall because it ranks high in customer satisfaction, offers free credit counseling to those who don't yet meet its credit requirements, and has a wide variety of mortgage types. You'll want to choose Veterans United Home Loans for an FHA or USDA mortgage, because Navy Federal doesn't offer these types of loans.
But you may like Navy Federal's Military Choice or Homebuyers Choice mortgages, which don't require down payments.
Veterans United Mortgage Review
Navy Federal Credit Union vs. USAA Mortgages
USAA Mortgage is another popular VA lender, though its loan offerings aren't as robust as Navy Federal's. You'll need a 640 credit score to get a VA loan from USAA.
Navy Federal might be the better choice if you have no credit score. It accepts alternative credit data, like utility bills, whereas USAA does not.
Why You Should Trust Us: How We Reviewed Navy Federal Credit Union Mortgages
For our review of Navy Federal Credit Union, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then we average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a large number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
Our Overall Lender Rating
Loan Types: 4 out of 5
For a mortgage lender that originates so many VA loans, Navy Federal offers a strong variety of loan types in addition to its VA loan offerings. It has multiple zero-down mortgages, home equity loans and HELOCs, and conforming and jumbo loans.
But it doesn't offer FHA loans or USDA loans, the two other types of government-backed mortgages.
Affordability: 4 out of 5
We think Navy Federal Credit Union is an overall affordable mortgage lender thanks to its zero-down mortgage options and the fact that you can apply using non-traditional credit if you don't have a credit score. Its average fees are also very low.
However, it doesn't offer FHA loans, which are geared toward low-income and first-time homebuyers who have lower scores or higher debt-to-income ratios.
Customer Satisfaction: 4.38 out of 5
On its Trustpilot page, Navy Federal has a 4.5 out of 5-star rating, based on over 30,000 online customer reviews.
Navy Federal also received a high score on the J.D. Power 2024 Mortgage Origination Satisfaction Study. The credit union actually doesn't qualify to rank because it doesn't meet certain criteria, but J.D. Power notes that the Navy Federal would rank highly if eligible.
Trustworthiness: 4 out of 5
Navy Federal Credit Union previously had an NR rating from the BBB because it was responding to complaints that had previously been resolved. But its profile is currently being updated, so there's no longer any rating listed. The BBB measures trustworthiness based on response to customer complaints, honesty in advertising, and transparency about business practices.
Navy Federal was the subject of a 2023 CNN analysis showing a disparity in the number of white applicants the lender approved compared to its Black applicants. The lender hired a lawyer to conduct a review of its practices which, when controlling for factors that CNN didn't use because they weren't part of the publicly-available data, found no evidence of discrimination.
FAQs
Is Navy Federal Credit Union legit?
Yes, Navy Federal Credit Union is the largest credit union in the U.S. and has been in business since 1933.
How competitive are NFCU's mortgage rates?
NFCU's mortgage rates are around average compared to other mortgage lenders, based on our review of the latest HMDA data.
Can non-military individuals apply for a mortgage with Navy Federal?
As long as you're eligible for a Navy Federal membership, you can apply for a mortgage with this lender. Membership is available to military service members, veterans, Department of Defense employees, and their families.
What is the process for applying for a mortgage with NFCU?
You can apply for a mortgage with NFCU online, in person, or over the phone.
What credit score do you need for Navy Federal mortgage?
Navy Federal doesn't disclose its minimum credit score requirements for its mortgages. If you don't have a credit score, you may be able to use non-traditional credit to apply.
