Navy Federal Mortgage
Pros
- Offers specialized loan options tailored to military borrowers, including the unique Military Choice loan, which serves as an alternative to VA loans.
- Provides 24/7 customer service support for borrowers stationed overseas.
- Offers home equity loans and lines of credit.
Cons
- Borrowers are required to become credit union members before applying for a mortgage.
- The lender does not offer renovation or construction loans.
- Customer service wait times can occasionally exceed 10 minutes before connecting with a representative who can address inquiries.
Navy Federal Credit Union, the third-largest lender for VA loan originations per federal data, is known for its robust offerings in the mortgage market. While it excels as a VA loan lender, it sets itself apart by providing a range of mortgage options, including exclusive loan types and conventional mortgages.
One distinctive offering is the Military Choice loan, designed for borrowers who would typically seek a VA loan but no longer qualify due to exhausting their loan benefit. This loan mirrors a standard VA loan by not requiring a down payment or private mortgage insurance (PMI). Furthermore, Military Choice loans are available as jumbo loans. It's important to note that, at the time of our review, the sample rate for the Military Choice loan was nearly 2.3 percentage points higher than that of the sample VA loan rate.
Navy Federal extends another proprietary loan option called Homebuyers Choice, tailored for nonmilitary borrowers who are eligible for credit union membership (including civilian employees of the Department of Defense). The primary distinction between this loan and the Military Choice loan is a slightly higher interest rate. Similar to the Military Choice loan, the Homebuyers Choice loan doesn't necessitate a down payment or PMI.
In addition to these unique loans, Navy Federal Credit Union offers conventional mortgages, including jumbo loans, and adjustable-rate mortgages (ARMs). However, renovation or construction loans are not part of their offerings.
Navy Federal Credit Union HELOC and home equity loan
Navy Federal also provides options for accessing home equity through a home equity line of credit (HELOC) and home equity loan. These second mortgages enable homeowners to tap into their existing home equity without refinancing or selling their property. The funds acquired from a second mortgage can be utilized for various purposes, such as home improvements, education expenses, or debt consolidation.
The Navy Federal Credit Union HELOC is noteworthy for its extended 20-year draw period, which is twice as long as the standard HELOC draw period. This means borrowers have the flexibility to access their equity over 20 years before they must start repaying the principal balance.
For those interested in a home equity loan from Navy Federal, a wide range of term options is available, spanning five, ten, fifteen, or twenty years. This diverse selection of terms allows borrowers to tailor their loan to their specific needs and financial goals.