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The United States Navy’s Federal Credit Union, headquartered in Vienna, Virginia, was founded in 1933 and currently serves over 10 million members and has 344 branches worldwide. He scored above average in JD Power 2020 US Primary Mortgage Satisfaction Survey and offers its members a full range of banking services, including mortgage, car loans, checking and savings accounts, student loans and more.
Some Navy Federal home loans come with a zero down payment, no. private mortgage insurance, as well as benefits for military personnel and their families. But you need to join a credit union before applying for a mortgage. TO become a member, you or a member of your family must be associated with the military, the national guard, or the Department of Defense. If you are eligible, here’s what you need to know about the lender.
Pros and cons of the Federal Credit Union of the Navy
Specializes in providing services and consulting to the military community.
Offers a mortgage without prepayment
Has flexible credit requirements
Doesn’t charge private mortgage insurance fees
Received top marks for customer service
You can lock in your interest rate and re-lock it twice if rates improve.
Membership is limited to military personnel, veterans, and certain government contractors.
The credit union does not offer FHA loans and USDA loans.
You will need to request a personalized quote
Federal Credit Union of the Navy: Loans and Products
Navy Federal Credit Union loans are for military personnel, veterans, and certain government employees. In fact, the Federal Navy has committed more than $ 11.6 billion in Department of Veterans Affairs mortgages (VA credits) only in 2020, which made him the sixth largest lender in terms of volume of this type of mortgage. But it also offers other types of home loans, including:
One of the specialized loans of the US Navy is Home Buyer Choice Programwhich focuses on first-time home buyers… The loan does not require a down payment or private mortgage insurance, and borrowers may have the option to include or waive the financing fee on the mortgage in exchange for a higher interest rate.
Another product, the Military Choice program, offers special rates on mortgage interest rates and no down payment on current and veteran borrowers… The standard loan disbursement fee of 1% and the financing fee of 1.75% can be included in the loan or canceled in exchange for a higher interest rate.
The Navy also offers a free service called RealtyPlusthat matches members with real estate agents and provides a close money refund when a property is bought or sold through a named agent. Depending on the purchase price of the home, the return can range from $ 400 to $ 8,000. Program is not available in Iowa and residents certain states may receive a MasterCard gift card or discount on closing fees instead of direct refunds. Borrowers in Arkansas, Louisiana and Oklahoma are not eligible for a refund, but can still receive personalized service from a RealtyPlus coordinator and agent approval.
If you decide to get an adjustable rate mortgage (HAND), you can choose from conditions 5/5 and 3/5. With ARM, your interest rate stays fixed for a certain number of years – in this case, five or three years – then it can go up or down until the end of the loan term.
Navy Federal Credit Union Transparency
The Navy Federal website is easy to use and offers many guides explaining the home buying process and the different types of mortgages, as well as calculators to help you figure it out. how much house can you afford, and a blog dedicated to other home-related topics.
The lender lists the types of mortgages he offers but does not advertise minimum credit rating and debt-to-income ratio requirements. It lists minimum down payments that range from 0% to 15% depending on the type of mortgage you are getting. Keep in mind: you may still have to pay a funding fee and a creation fee.
To obtain a mortgage, you can apply online, by phone or in person at one of 344 branches around the world, including 26 international locations and 184 branches at or near military installations.
Before you go on a trip from home, consider purchasing pre-approval of a mortgage… This letter tells you how much you can borrow based on data such as your income, credit history, and monthly debt payments. Pre-approval can help you shop for homes within your budget – and show sellers that you are serious about your offer because you have been vetted by a lender.
The U.S. Navy has also streamlined the online process with a digital app platform called the main… Applicants can create a personal portal where they can get preliminary approval, upload documents, connect their bank accounts to verify assets, get notified when they reach milestones, work with a personal home loan advisor, and check the status of their loan.
Federal Credit Union of the Navy: Rates and Fees
The Navy Federal Credit Union advertises daily refinancing and purchase rates for every type of loan it offers for 15 and 30 year terms, although you won’t find individual rates based on credit score or other factors before applying. These rates are subject to change on a daily basis and may include discount points, which is an additional commission that you can pay in exchange for a lower interest rate.
While the website does not list a minimum credit rating for borrowers, a spokesperson said the lender checks the applicant’s entire financial profile when underwriting a loan.
Navy Federal does not charge prepayment penalties and borrowers may not pay the down payment and private mortgage insurance. But the lender may charge a clearance fee and financing fees which can be included in the principal amount of the loan. Be careful here. While incorporating commissions into your mortgage can minimize your upfront costs, it can be more costly in the long run as you end up paying interest on those commissions.
Borrowers will pay closing costs which vary by location and usually range from 2% to 4% of the purchase price of the home. Some of these may include appraisal fees, property taxes, mortgage insurance, and property rights fees.
Borrowers can freeze the interest rate and then re-block it twice if rates improve – provided that your loan is closed within 60 days of the initial blocking.
Refinancing with the help of the Federal Credit Union of the Navy
Homeowners with an existing mortgage can be refinanced into a new loan, and Navy Federal offers the following options:
- Refinancing rate and term, in which you get a new mortgage with a new interest rate, a different loan term, or both.
- Refinancing when cashing out, which allows you to get a mortgage in excess of your current debt and use the extra cash for whatever you need.
- VA Downward refinancing loan (IRRRL)which allows VA borrowers to lower their interest rate or switch from a regulated rate to a fixed rate.
Federal Credit Union IMF Compared to Other Mortgage Lenders
|Federal Credit Union of the Navy||Fairway Independent Mortgage Corporation||New American funding|
|Minimum credit rating||Not provided||620 for conditional loans; 660 for large loans; 600 for FHA loans; 600 for VA credits||580|
|Minimum down payment||0%||0% to 5%||From 0% to 5%, depending on the mortgage program|
|Where does the lender work?||All 50 states and the District of Columbia||All 50 states and the District of Columbia||Washington DC and all states except New York and Hawaii.|
|Main types of loans||Regular, Large, VA, Adjustable Rate, Fixed Rate, Refinancing, Cash Refinancing, Second Home Financing, Investment Property Loans||Regular, Large, VA, FHA, USDA, Miscellaneous Renovation Loans, Fixed Rate, Refinancing, Fixed Rate Refinancing, Reverse Mortgages, Real Estate Loans, Lines of Credit||Regular, Large, VA, FHA, USDA, Home Improvement Loans, Adjustable Rate, Fixed Rate, Refinancing, Refinancing with Cash Out, Reverse Mortgage, Home Equity Lines|
How to shop around to get the best mortgage rate
Collecting multiple mortgage offers is the best way to compare offers and find the best home loan at the lowest cost.
Begin with comparison of the best mortgage lendersby applying for mortgages with at least three companies and requesting Loan valuation… These apps can be very demanding, but credit rating companies know that consumers love to shop. FICO says its credit ratings will treat all mortgage applications as one request if submitted within 15-45 days. Thus, buying a mortgage in a short time frame can minimize the impact on your credit.
Once you get your loan estimate, compare the closing costs, interest rate, and any fees you will need to pay.
Choosing a loan with a lower rate – even with a small difference – can save hundreds or thousands of dollars over the life of the loan. For example, on a 30-year $ 200,000 mortgage, a 0.25% reduction in interest rate saves the borrower $ 7,920 over the life of the loan. An online mortgage calculator can help you calculate your monthly savings.
With its excellent customer service experience, expertise in the military community and inexpensive mortgage options, Navy Federal Credit Union is a good option for eligible borrowers. To apply for a home loan from this lender, you (or a family member) must be affiliated with the military, the Department of Defense, or the National Guard. If you are not eligible for a membership or are looking for an FHA loan, USDA loan, or home equity product, it is best to look elsewhere. As with any financial product, it is always a good idea to compare offers when you are looking for a home loan.