Navy Federal: Your Mortgage Journey Companion

Navy Federal Credit Union is a credit union based in Vienna, Virginia, that offers a range of mortgage options to its members. The credit union has a variety of resources for first-time home buyers and provides tools, calculators, and loan products, particularly for military-connected borrowers. Navy Federal offers both fixed-rate and adjustable-rate mortgages, as well as no-down-payment options and loans that do not require private mortgage insurance (PMI). The union also provides customer support 24/7 for borrowers stationed overseas. In addition, Navy Federal provides a RealtyPlus® program, where members can choose a top-performing real estate agent and receive cash back when buying or selling a home.

No down payment options

Navy Federal Credit Union offers a range of mortgage options to help you secure your dream home. One of the most significant hurdles for first-time buyers is saving for a down payment. Fortunately, Navy Federal provides mortgage options with no down payment required, making homeownership more accessible.

No down payment mortgages are an attractive option for those who do not have substantial savings but are otherwise able to manage a mortgage. These loans are often available to specific groups, such as veterans, active military personnel, and their spouses, as well as rural home buyers with moderate to low incomes.

VA loans, backed by the U.S. Department of Veterans Affairs, are a popular choice for those who serve or have served in the military. These loans offer favourable rates and more relaxed qualification criteria. To be eligible, you must meet specific service requirements, such as serving 90 consecutive days during wartime or 181 days during peacetime. VA loans also do not require mortgage insurance, which can save you money.

USDA loans, guaranteed by the U.S. Department of Agriculture, are another option for no down payment mortgages. These loans are designed for buyers in designated rural areas who meet specific area-based requirements. USDA loans often have lower mortgage rates compared to similar low- or no-down-payment options. However, they do require an upfront funding fee, which can be financed into the loan, and an annual fee included in your monthly mortgage payment.

In addition to these options, Navy Federal also provides competitive rates and flexible financing options. They can help you find the best loan option for your unique situation, even if your credit score is less than perfect. Their RealtyPlus® program can connect you with a top-performing real estate agent in your area, and you may even be eligible to receive cash back after closing.

With Navy Federal's range of mortgage options and supportive services, you can make your dream of owning a home a reality without the burden of a large down payment.

Jumbo loans

Navy Federal Credit Union is a top VA loan lender, offering a variety of mortgages for military and qualified civilian borrowers. The credit union provides flexible VA-like loan options, which do not require applicants to be current or former servicemembers, but they must have a military connection to join the credit union.

Navy Federal offers both fixed-rate and adjustable-rate mortgages, with competitive rates and convenient payment options. One option is the Conventional Fixed-Rate Mortgage, which is ideal for buyers seeking stable monthly mortgage payments over the long term. These loans have some of the lowest interest rates offered by Navy Federal, with some loans requiring only a 5% down payment.

Navy Federal also offers a Special Freedom Lock feature for new applications on purchase and refinance loans at no additional fee for a 60-day lock. This allows borrowers to request a lower rate up to two times, with a maximum cumulative interest rate reduction of 0.50%. To take advantage of this feature, borrowers must request the Special Freedom Lock during the initial lock request and at least seven calendar days before settlement.

Pre-approval

Understanding Pre-Approval:

Loan Options:

Navy Federal offers a range of loan options to suit diverse borrower needs. These include fixed-rate and adjustable-rate mortgages, conventional loans, VA loans, cash-out and rate-and-term refinancing, investment property loans, second-home mortgages, and IRRRL loans. They also provide home equity loans and lines of credit (HELOC).

To get pre-approved with Navy Federal, you can start by exploring their website, which offers valuable resources. They provide interactive tools, such as the Mortgage Match video, to help you understand the loan options available and choose the one that aligns with your financial situation. You can compare today's mortgage rates and explore competitive rates exclusive to the credit union.

Once you've decided on a loan option, you can take the next step and contact Navy Federal to initiate the pre-approval process. You'll need to share financial information, such as income, assets, and credit history, to help them assess your loan eligibility. Their specialists will guide you through the process and answer any questions you may have.

Benefits of Pre-Approval with Navy Federal:

Navy Federal stands out for its flexibility and customer-centric approach. They offer unique loan options with no down payment and no mortgage insurance requirements, catering to both military and civilian borrowers. Additionally, they provide resources specifically for first-time homebuyers, including informative articles, tips, and checklists to navigate the home-buying process confidently.

Additional Services:

Navy Federal also offers a RealtyPlus® program, connecting you with top-performing real estate agents in your area. This program can provide cash back opportunities when buying or selling your home, further contributing to a seamless home-buying journey.

In summary, pre-approval is a critical step in securing a mortgage, and Navy Federal Credit Union provides the tools, resources, and guidance to make the process straightforward and accessible. Their range of loan options ensures that you can find a mortgage that suits your unique financial situation, whether you're a current or former military member, a first-time homebuyer, or an individual with a low credit score.

Escrow accounts

When you take out a mortgage with Navy Federal Credit Union, they set up an escrow account for you. An escrow account is a convenient way to have Navy Federal Credit Union manage the payment of your tax and insurance bills for you. It is a great way to manage your budget by helping you plan for these payments. You don't have to worry about saving up money for these large payments or about keeping track of multiple payment due dates.

Every month, Navy Federal Credit Union collects 1/12 of your annual property taxes and insurance costs and sets this money aside in your escrow account. They then make these payments on your behalf when they are due. They also require an extra cushion that's equal to one to two months' escrow payments to cover unanticipated costs, such as tax or insurance increases.

Every year, Navy Federal Credit Union will perform an escrow analysis to make sure the account is adequately funded. They will send you an escrow analysis statement that outlines any changes, such as an increase or decrease in your taxes and insurance costs. If your taxes or insurance costs go down, that could result in a surplus of funds in your escrow account. Depending on the amount of the surplus, these extra funds may be refunded to you.

The most common reason your escrow payment may increase is that your taxes or insurance have gone up. Navy Federal Credit Union will use the cushion in your escrow account to help cover the increase. That means your cushion may have a shortage. And if so, you'll need to replenish it. They will spread out the shortage equally over 12 months and add that amount to your monthly mortgage payment. Or, if the shortage is less than one month's escrow payment, you can pay for it in one lump sum.

Customer service

Navy Federal offers a range of mortgage services to its customers, with a focus on providing options for those with military connections. The credit union is based in Vienna, Virginia, and offers loans nationwide to members with a connection to the armed forces.

One of the standout features of Navy Federal is its flexible loan options, including no-down-payment and no-mortgage-insurance loans for military and civilian borrowers. The credit union also offers a Military Choice loan, a VA-style loan for veterans or servicemembers who have exhausted their VA loan benefit. This loan does not require a down payment or private mortgage insurance (PMI). Additionally, Navy Federal provides a Homebuyers Choice Loan, which also requires no down payment or PMI and is available to non-military borrowers who qualify for credit union membership.

For those seeking a mortgage, Navy Federal offers pre-approval for home loans, allowing buyers to demonstrate their seriousness to sellers and gain more negotiating power. The credit union also provides resources to help first-time VA borrowers navigate the home-buying process, including guides, tips, articles, and checklists.

In terms of customer service, Navy Federal offers 24/7 support to borrowers stationed overseas. They also provide multiple customer service options, including online, over the phone, or in-person at a branch. The credit union has a dedicated phone line for mortgage-related inquiries, and customers can also utilise their RealtyPlus® program to connect with a top-performing real estate agent.

Navy Federal also provides a range of online resources to assist customers with their mortgage decisions. This includes an interactive Mortgage Match video to help customers find the best loan option for their needs, as well as information on managing mortgage payments and escrow accounts. The website also offers details on alternatives to foreclosure for customers facing difficulties in keeping up with their payments.

Frequently asked questions