Navy Federal Credit Union: 2026 Mortgage Loans Review

Best for Military Members

4.2 _/5

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Our take: Navy Federal Credit Union is a strong mortgage provider for military, veterans, and their families. Qualifying members enjoy competitive rates, flexible refinance options, and highly rated customer support.

Mortgages

• No prepayment penalties
• Competitive rates
• Rate match guarantee

• Restricted membership
• Imperfect communication
• No FHA or USDA loans

Rates (APR)	Starting from 4.940%
Term lengths	15 or 30 years
Loan amounts	Up to $1 million for Military Choice, $2 million for Jumbo loans

Mortgage Refinance

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• Multiple refinance plans
• High loan-to-value (LTV) options
• Attractive rates

• Rates may be higher for lower credit
• Limited info on some plans

Rates (APR)	Starting from 5.191%
Term lengths	15 or 30 years
Loan amounts	Up to $1 million

Table of Contents

1. Mortgage types
   1. Fixed-rate mortgages
   2. Adjustable-rate mortgages (ARM)
   3. VA loans
   4. Jumbo loans
2. Mortgage refinancing
   1. VA refinance loans
   2. VA Streamline (IRRRL)
   3. Conventional fixed mortgage refinance
   4. Adjustable-rate refinance
3. Mortgage highlights
   1. Homebuyers Choice
   2. Military Choice
   3. No-Refi Rate Drop
4. Eligibility
5. Customer reviews
6. Alternatives
   1. PenFed
   2. Service Credit Union
   3. Veterans United
7. Recap
8. How we rated Navy Federal Credit Union mortgages

Navy Federal Credit Union offers a range of home loan options to U.S. military members, veterans, and eligible family members. Its mortgage products include fixed-rate and adjustable-rate mortgages, VA loans, jumbo loans, and various refinance plans. The credit union serves over 15 million members and boasts excellent client ratings.

Mortgage types

Fixed-rate mortgages

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What to know

Navy Federal’s fixed-rate mortgages come with 15- or 30-year terms, both for regular and Jumbo options. This home loan path gives borrowers a stable, locked-in rate and predictable payments.

• 5% to 20% down payment
• No private mortgage insurance (PMI) needed
• Advertised rates assume a 720 FICO score

APR	5.191% for 15-year, 5.740% for 30-year mortgage
Term lengths	15 or 30 years
Loan amounts	Up to $832,750 in most states (higher amounts are Jumbo loans)

Adjustable-rate mortgages (ARM)

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What to know

Adjustable-rate (ARM) mortgages start with a fixed (usually lower) interest rate, which then adjusts based on the market index. For example, a 3/5 ARM will have a fixed interest rate for the first three years, after which the rate adjusts once in five years.

Navy Federal advertises this mortgage choice as a good option for buyers who only plan to stay in their home short-term.

• No PMI
• Borrowers may choose between a 1.00% loan origination fee and a 0.25% increase in the interest rate
• Zero down payment options for primary residencies

APR	5.661% for 5/5, 5.637% for 3/5 ARM
Term lengths	30 years
Loan amounts	Up to $832,750 for standard conforming ARM loans

VA loans

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What to know

VA loans by Navy Federal are available only to veterans, active-duty military personnel, and their spouses. These flexible loans, which get their backing from the Department of Veterans Affairs, come with substantial benefits like low rates and low to no down payments.

• Seller may contribute up to 4% of the purchase price
• Eligible borrowers with less-than-ideal credit may still qualify
• Requires a Certificate of Eligibility

APR	5.431% (15 years) or 5.125% (30 years)
Term lengths	15 or 30 years
Loan amounts	N/A

Jumbo loans

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What to know

Jumbo loans are any loans that exceed the Federal Housing Finance Agency (FHFA) conforming loan limits (for 2026, that’s $832,750 in most states, $1,249,125 in Alaska and Hawaii). Navy Federal offers both fixed- and adjustable-rate jumbo loans. VA loans can also be jumbo loans.

• These loans may require better credit scores and larger down payments
• APR for fixed-rate jumbo loans by Navy Federal is higher than for fixed-rate conventional loans
• In adjustable-rate mortgages, APR is the same for conforming and jumbo loans

APR	From 5.443% (15 years) or 5.740% (30 years)
Term lengths	15 or 30 years
Loan amounts	From $832,750 – $2,000,000

Mortgage refinancing

VA refinance loans

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What to know

Like VA loans, VA refinance is available only to qualifying service members, veterans, and eligible surviving spouses. Refinancing can help borrowers access better rates.

• Borrow up to 100% of your home’s equity
• Cash-out refinance options available
• Refinance loans can be conforming or jumbo

APR	5.645% for 15-year and 5.789% for 30-year loan
Term lengths	15 or 30 years
Loan amounts	N/A

VA Streamline (IRRRL)

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What to know

Interest Rate Reduction Refinance Loans (IRRRL) allow eligible members with existing VA home loans to refinance at a lower interest rate and reduce their monthly payments.

• Can stabilize monthly payments by switching from a variable to a fixed mortgage
• To qualify, the borrower must live, or show that they used to live in the loan-covered home
• Advertised as a plan with “minimal out-of-pocket costs”

APR	5.645% for 15-year and 5.789% for 30-year loan
Term lengths	15 or 30 years
Loan amounts	N/A

Conventional fixed mortgage refinance

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What to know

Navy Federal offers two fixed-rate mortgage refinance choices: cash-out and limited cash-out. Limited cash-out refinance is a flexible option for borrowers who want to cover expenses or consolidate debt, but don’t need a full cash-out refinance.

• Requires a LTV of at least 95%
• Suitable for borrowers with little home equity
• Jumbo refinance is available at a higher APR

APR	5.191% – 5.992%
Term lengths	15 or 30 years
Loan amounts	N/A

Adjustable-rate refinance

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What to know

As with fixed-rate mortgage refinance, Navy Federal allows both cash-out and limited cash-out up to 95% LTV.

However, the fine print on the site says, “Advertised rate assumes a 70% loan-to-value up to the conforming loan limit.” The rate will likely be higher for homeowners who hold the minimum acceptable equity.

• Homeowners who plan to sell soon can benefit from the initial low rate
• Conforming and jumbo ARM refinance options available with 3-year or 5-year fixed-rate terms

APR	From 5.684%
Term lengths	30 years
Loan amounts	N/A

Mortgage highlights

Homebuyers Choice

Homebuyers Choice is a 30-year home loan program for first-time homebuyers by Navy Federal. Available to civilian members, it offers:

• 100% financing
• No down payment or PMI
• Lower interest rates with an optional 3% down payment

Military Choice

This 30-year fixed mortgage for active-duty military, reservists, and veterans is very similar to Homebuyers Choice, but with lower rates. Eligible borrowers can tap into this option even if they’ve already used their VA loan benefit.

This program’s perks include:

• No PMI requirement
• A zero down payment option for primary residences
• Lower interest rate and waived funding fee with a 3% down payment

Both Homebuyers Choice and Military Choice are also available as refinancing options.

No-Refi Rate Drop

Navy Federal’s No-Refi Rate Drop gives buyers the confidence to purchase a home now without worrying about potential rate declines.

If the mortgage rates fall within six months of closing, eligible members can pay a one-time $250 fee and lock in that more favorable rate without refinancing. The offer applies to Homebuyers Choice, Military Choice, and jumbo fixed-rate home loans.

Eligibility

Only active-duty military personnel, reservists, veterans, and their family members can become Navy Federal Credit Union members. “Family members” applies to spouses, children, and grandchildren, but some plans are for military, veterans, and surviving spouses only.

Additionally, like any loan provider, the credit union will consider both credit score and banking history when approving mortgages.

Customer reviews

Navy Federal boasts excellent reviews. Its TrustPilot score is 4.5 based on over 46,000 ratings. Many clients describe a smooth application process and helpful service, as in this review, which states, “Our experience with refinancing our construction loan into a mortgage was seamless.”

Our take on customer service

We reached out to the credit union to clarify a few details that their site doesn’t fully cover, such as:

• The maximum loan amounts for VA loans and refinancing
• The absolute minimum acceptable credit score
• Whether sellers can contribute up to 7% closing costs with the Military Choice loan, as some sources state

The company representative we talked to stated that they were “limited in what they can discuss regarding mortgages online” and directed us to the call center instead. We feel this creates a communication barrier, since it makes it more difficult for potential borrowers to get the full picture when considering loan products.

Alternatives

Navy Federal Credit Union has earned a place on our list of recommended mortgage lenders. Compare it to other military-affiliated credit unions and lenders to check which provider offers the most attractive overall deal.

PenFed

Unlike Navy Federal, which is a military-focused credit union, PenFed serves the general public. It offers various conventional, jumbo, FHA, and VA loans at competitive rates.

PenFed’s jumbo loan ceiling is $3 million, compared to Navy Federal’s $2 million, which can be critical for those looking to buy an expensive property.

Overall, Navy Federal is a great choice for military-affiliated borrowers who want flexible VA or ARM loans. PenFed wins for broader access and bigger loan options.

Service Credit Union

Service Credit Union membership is open to active duty military, veterans, DoD employees, and their family members. It also serves specific groups, like members of the American Consumer Council. It’s a much smaller credit union than Navy Federal, with just over 350,000 members.

The credit union offers conventional home loans, jumbo loans, VA loans with no to low down payments, and several mortgage assistance programs, including down payment and closing cost assistance. However, it appears that Navy Federal offers more home loan options.

Veterans United

Veterans United, the largest VA lender in the U.S., serves military-affiliated borrowers. It focuses primarily on VA home loans and refinances, including jumbo loans, cash-out refinance, and VA Streamline (IRRRL). Veterans United usually requires a minimum credit score of 620.

Navy Federal offers a wider range of products, like home equity loans, lines of credit, and banking services. Veterans United is a specialist with deep expertise in VA home loans and a reputation for outstanding customer service.

Recap

Navy Federal Credit Union is a trusted choice for military, veterans, and eligible family members looking for a home loan. Its competitive rates, no-down-payment options, and flexible refinancing plans place it firmly among the top VA loan providers in the U.S.

How we rated Navy Federal Credit Union mortgages

We designed LendEDU’s editorial rating system to help readers find companies that offer the best mortgages. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared Navy Federal Credit Union to several mortgage lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating and best-for designation, recapped below.