Minimum Credit Score
No established minimum score
What Navy Federal Offers
As a lending service dedicated to servicemembers, Navy Federal offers a wide collection of mortgage loan options to meet the dynamic needs of veterans and military members currently serving the country. From conventional fixed and adjustable-rate mortgages to custom-tailored plans, Navy Federal has something for everyone.
Though they haven’t mentioned the minimum credit score required, sources say that the minimum is 640, however, there is no set minimum score for members. Down payments go as low as 0.00% or may stretch higher than 20% depending on your prospective property, credit score, and other personal details. Advantageously, Navy Federal offers flexible repayment terms to accompany its array of different mortgage loan options.
If you want to apply for a mortgage, you have to be a member of the Navy Federal Credit Union (NFCU). To be eligible for membership, you must meet one or more of the following criteria:
- Active-duty member
- Department of Defense (DoD) contractor/civilian
- US Government employee assigned to the DoD
- An immediate family member of a military service member
Once you’re accepted, you can visit the official website, select the preferred mortgage, and submit the application.
Navy Federal offers traditional and niche home loan options customized for members of the US Armed Forces. The official website lists everything from rates and eligibility criteria to hosting calculators and FAQs that can help borrowers easily understand the differences between the available home loans. You can also receive pre-approval quickly on their website to uncover better real-estate deals.
This is a more conventional 10 to 30-year mortgage at fixed interest rates. In some cases, borrowers are eligible for loans without needing private mortgage insurance. Down payments for this option start as low as 5.00%.
Aside from conventional fixed-interest rate loans, Navy Federal also offers ARMs that start with a fixed interest rate for a certain time, then switch to adjusted rates based on market rates. Borrowers can choose from 1/1, 2/1, 3/1, 5/1, 7/1 ARM plans.
Veterans Affairs (VA) Loan
NFCU offers 100% financing options for eligible members. As an eligible serviceman or servicewomen, you can enjoy fixed rates, flexible repayment terms, zero mortgage insurance, and more. This loan is backed by the Federal Government.
This loan type requires a minimum down payment of 3.50% and allows borrowers to choose from 10 to 30-year repayment terms. You will also need to pay for private mortgage insurance (PMI). However, the seller also contributes a percentage of the closing fees and costs.
This mortgage requires a minimum down payment of 20.00%. You are charged interest for the first ten years of your repayment plan, then it increases as the principal amount also gets added to payments.
With zero down payment, this loan type represents one of the best choices for military members. It has special pricing on origination fees and mortgage interest rates. Borrowers can also avoid the funding fee by agreeing to a bit higher mortgage rate.
Similar to the Military choice loan, but with an added incentive of zero PMI. This is a fixed-rate mortgage with repayment terms ranging from 10 to 30 years.
How Navy Federal Works
As we already mentioned, to be able to apply for a mortgage, you must be approved as a member of the credit union first (see criteria above). Once approved, you can apply online, via phone, live chat, or in-person. Moreover, they also host an online platform called HomeSquad which allows you to receive pre-approval almost instantly.
Borrowers can read through the detailed descriptions, FAQs, and use calculators and other tools before starting an application online. Once ready, start by filling in the required information. The entire process is broken down into multiple parts.
Depending on the mortgage type, you will need to submit a lot of documentation. After validation, a loan officer will be in touch to help you gather the next set of requirements. You can always track the status of your application from the official website.
Documentation – You’ll be asked to upload key documents on the website. Arrange them beforehand for a faster approval process. Upon successful validation, you might need to get a real estate appraisal.
Appraisal, Title Search & Insurance – A licensed real estate appraiser will share the net value of the property based on location, features, and more. Once the appraisal is set, you might need to pay a fee before the lender starts the final process. In selective cases, the lender may also recommend the borrower get owner’s title insurance or they will issue a lender’s title insurance.
Closing – After everything has been processed and approved, you will need to meet the underwriter, pay the upfront fee involved, sign the HUD-1 Settlement Statement, and close on the mortgage.