At a glance: Navy Federal mortgage options

Navy Federal Credit Union is a credit union based in Vienna, Virginia. Loans are available nationwide to members with a connection to the armed forces, although requirements are fairly inclusive.

Specializing in working with military borrowers, it's no surprise that Navy Federal offers a full suite of VA options. You won't find FHA loans, though, or more niche borrowing options like construction loans.

» MORE: How to choose a mortgage lender

Navy Federal special offers and discounts

Navy Federal offers two types of loans that boast VA-style benefits without being VA loans. Military Choice is for veterans or servicemembers who have exhausted their VA loan benefit; nonmilitary borrowers who qualify for credit union membership can use Homeowners Choice.

• Like a standard VA loan, Choice mortgages don't require a down payment or private mortgage insurance (PMI). 

• Choice loans require a 1% origination fee and a 1.75% funding fee. If you make a down payment of at least 3%, you can avoid the funding fee. 

• Military Choice loans are available as jumbo loans and for refinances as well as purchases; Homeowners Choice allows for jumbo loan amounts but can only be used for purchase loans.

• Navy Federal offers borrowers using Choice loans or fixed-rate jumbo loans a rate drop for $250. If Navy Federal's interest rate for your loan type falls at least 25 basis points below your current mortgage rate, you can request a rate drop if you’ve had your loan for at least six months and are current on your mortgage. And it's not a one-time program — you could theoretically use this as often as every six months, paying the $250 fee each time. Since it's not a refinance, it doesn't lengthen the loan's term.

Navy Federal members who buy or sell a home using a real estate agent affiliated with the Navy Federal RealtyPlus network can earn between $400 and $9,000 in cash back depending on the home's price.

What does Navy Federal specialize in?

A lender’s experience with your loan type can make a big difference. We looked at the latest federal data to find the types of mortgages Navy Federal handles most often.

Though Navy Federal has a strong commitment to serving active and veteran military borrowers, last year fully half of the home loans it originated were conventional loans.

How we score Navy Federal home lending

Each year, NerdWallet writers and editors dig into the latest data and independent research on mortgage lending. Then, we rate lenders based on categories that matter most to mortgage borrowers.

Navy Federal has a NerdWallet home loans rating of 5 stars overall. Here’s a breakdown of this year’s score.

• The Nerdy details: Our rating system, explainedThe Nerdy details: Our rating system, explained

  Ah, so you’re the “read the fine print” type? We got you. Here’s how our scoring rubric works.

  Average mortgage rates and fees (30%)

  We review federal data (as reported by the lenders) and analyze mortgage lenders’ average fees and interest rates across all loan types. Lenders with the lowest average costs get the highest star ratings. Keep in mind: Loans that are easier to qualify for, like FHA loans, usually have higher rates and fees because lenders see them as a higher risk. Pro tip: Paying some fees upfront can sometimes lower your interest rate.

  Mortgage rate transparency (25%)

  We look at how easy it is to compare mortgage rates online. Lenders get higher transparency ratings if they show sample rates on their website. (Not all lenders do!) The best ratings go to lenders that offer interactive tools that let you customize a rate quote on your own.

  Variety of loan types (25%)

  There’s no one-size-fits-all mortgage. Lenders earn top ratings in this category when they offer a large variety of mortgage types. The more variety, the higher their score. A lender earns points for purchase and refinance; fixed and adjustable rates; FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.

  Customer experience (20%)

  How easy is it to work with this lender? Top-rated lenders offer helpful features like online applications, multiple ways to get support, a user-friendly mobile app and clear updates about the loan closing timeline.

» MORE: How to get the best mortgage rate

Navy Federal mortgage reputation and customer experience

NerdWallet’s star ratings look at objective factors like rates, fees and loan options. To give you a sense of what the borrower experience is really like, we pulled the latest customer satisfaction scores from J.D. Power and Zillow, and we contacted the lender’s customer support.

Navy Federal customer service options

Here’s how you can get in touch with Navy Federal. Phone support is 24/7 to accommodate credit union members currently serving overseas, but the extended hours are convenient if you're stateside, too.

Alternatives to a Navy Federal mortgage

Our biggest tip: Get offers from at least three different mortgage lenders. Comparison shopping can save you thousands of dollars. You can get rate quotes yourself, or work with a mortgage broker to shop around on your behalf.

If you know you want a VA loan, you might consider Veterans United, which is the nation's largest VA lender by loan volume. Want to weigh your loan options? Like Navy Federal, USAA also offers conventional loans, including a low-down-payment option.

» MORE: NerdWallet's best VA lenders

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