Navy Federal Credit Union HELOC Review 2024
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Our Take
5.0
Navy Federal Credit Union’s HELOC stands out for its long draw period of 20 years and lack of fees, but qualifications to join the credit union are narrow: eligibility is limited to current or former members of the armed forces, Department of Defense, or National Guard and their families.
Pros
- Unusually long draw period of 20 years.
- Borrowing limit of up to 95% CLTV is among the highest of lenders we review.
- No application, origination, or annual fees.
Cons
- Potential borrowers must qualify for credit union membership.
- Only one repayment term option, which is 20 years.
Lender | Max. loan amount | Max LTV | Min. credit score | |
|---|---|---|---|---|
$400,000 | 85% | 640 | Visit Lenderat Figure at Figure | |
$750,000 | 80% | 580 | Visit Lenderat New American Funding at New American Funding | |
$1,000,000 | 85% | 670 | Visit Lenderat Bethpage Federal Credit Union at Bethpage Federal Credit Union |
Full Review
Navy Federal Credit Union HELOC rates
Most home equity line of credit, or HELOC, interest rates are indexed to a base rate called the prime rate. The annual percentage rate, or APR, that you’re offered will include a margin the lender has added to the prime rate. These margins depend largely on factors like your credit score, your existing debt and the amount you wish to borrow, but they will vary by lender.
Current prime rate | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high |
|---|---|---|---|
7.75% | 8% | 7.75% | 8.50% |
On the day we checked, Navy Federal’s lowest advertised HELOC rate was Prime + 0.25 percentage point. Rates are not customizable online, but the lender does post minimum rates for different scenarios: a standard HELOC, an interest-only HELOC, or a HELOC for an investment property.
According to the lender, borrowers also have the option to lock their interest rate.
Applying for a Navy Federal Credit Union HELOC
Borrowers can apply online or within Navy Federal’s mobile app. Closing takes an average of 45 to 55 days. Be prepared to provide personal information like your identification and social security number, as well as financial documentation such as bank statements, pay stubs, W-2s and mortgage documents.
Customer support is available 24/7 over the phone, or during business hours at a local branch. The lender also has a number of overseas branches to support customers stationed in Bahrain, Cuba, Greece, Guam, Korea, Italy, Japan, Singapore and Spain.
When we called, we briefly navigated a phone tree before being connected with a mortgage specialist who was able to answer all of our HELOC questions.
Opening and using a Navy Federal Credit Union HELOC
Customers can borrow a maximum of 95% of the value of their home, minus any remaining mortgage balance. Navy Federal Credit Union does not charge any application, origination, or annual fees.
All HELOC borrowers have a 20-year draw period, followed by a 20-year repayment period.
There is no minimum draw requirement.
Borrowers can access their HELOC via card or by transferring funds from the account.
» MORE: Best HELOC lenders
Alternatives to a Navy Federal Credit Union HELOC
Homeowners interested in getting a HELOC from a lender experienced in working with military borrowers might consider PenFed.
Borrowers who need their HELOC to have a high borrowing limit may be a fit for PNC, which has a maximum CLTV of nearly 90%.
HELOCs offer a flexible way to access home equity over a period of time and pay interest only on the funds you withdraw. However, rising interest rates can bump up your monthly payment, and, as with credit cards, it takes discipline to avoid overspending.
Alternatives to home equity lines of credit include a home equity loan, which offers a lump sum with a fixed rate or a cash-out refinance, which replaces your existing mortgage with a larger loan.
Navy Federal Credit Union also offers both a home equity loan and cash-out refinancing.
NerdWallet’s HELOC star ratings are awarded by the editorial team based on the following evaluated factors: HELOC volume, combined loan-to-value ratio, whether a fixed-rate option is available, lender fees, initial draw requirements, flexibility of draw and repayment terms, digital application availability, customer support options and transparency to consumers on key factors. A recent regulatory action against a lender may affect its HELOC star rating.
