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Navy Federal Credit Union (NFCU) is a military-focused lender with a variety of loan products, including Navy Federal personal loans, auto loans, and home loans. If you’re a credit union member, you may qualify for some Navy Federal home loans and refinancing options with no down payment.

Navy Federal also offers conventional, Homebuyers Choice, and Military Choice loans. These loans offer a flexible alternative for members who've already used their VA loan benefits.

Find out what makes Navy Federal home loans a smart choice for military members and their families, from competitive rates to exclusive perks and flexible mortgage solutions.

Members can choose from five different Navy Federal Credit Union home loans if they’re eligible. The rates and eligibility criteria differ for each type of home loan.

Rates and Terms

As of April 11, 2025, the national average interest rate for 30-year fixed mortgages is 6.80%. Navy Federal’s mortgage rates start as low as 5.875%, which could help members save more compared to the national average. Your exact rate will still depend on factors like your loan type, eligibility, and current market conditions.

Navy Federal offers both adjustable-rate and fixed-rate mortgage options, including home loans with no down payment required. However, borrowers still need to budget for additional expenses, including origination fees and closing costs.

Eligibility Criteria

While there are many loans for veterans and current military members available, it’s important to check which option you may be eligible for.

To qualify for any Navy Federal home loan, you must be a member of the credit union before you may apply. Membership is available exclusively to those who are current or retired members of the U.S. armed forces, U.S. Military veterans, Department of Defense personnel, as well as their immediate family members.

Navy Federal doesn’t disclose detailed financial or credit score requirements for all its home loans. However, VA loans typically have no minimum credit score, while conventional loans may follow Fannie Mae’s guidelines.

Most lenders have the following standard minimum qualification requirements:

As a Navy Federal member, you can apply for VA home loans and conventional mortgages to purchase a home or refinance your existing mortgage. The credit union also offers home equity loans and loans for investment properties and second homes.

Some of the biggest perks of Navy Federal home loans include:

  • No down payment or Private Mortgage Insurance (PMI) required on many loan options
  • Flexible mortgage solutions even for borrowers who've maxed out their VA loan benefits
  • Up to $9,000 cash back when working with a RealtyPlus real estate agent
  • $1,000 rate match guarantee if Navy Federal can't match a competitor's mortgage rate
  • Opportunity to lower your interest rate twice before closing if market rates drop, potentially saving up to 0.50%

Navy Federal offers various home loans with flexible down payment requirements. The credit union also offers jumbo loans for larger loan amounts. You can also contact a Navy Federal mortgage specialist online or by phone to explore the best loan option for your needs.

VA Loans

If you have a VA loan entitlement, you may qualify for this option. VA loans have no PMI or down payment, but you’ll need to pay a funding fee, which is oftentimes the only significant cost of securing a VA mortgage loan.

Typically, this is the best mortgage option for those who qualify. A VA loan pre-approval is a good way to check the rates and terms you qualify for, before you go about finding your new home.

Military Choice

If you don’t have VA loan benefits, you may be able to get the same perks as a VA loan with a Military Choice home loan. You won’t have to pay PMI or a down payment, but the loan comes with a higher average interest rate compared to conventional or VA loans.

Conventional Fixed-Rate Mortgage

A conventional fixed-rate mortgage is a traditional home loan with fixed monthly installments. PMI may be optional, and you can get a loan with as little as a 5% down payment. If you prefer stability for your budget, this may be a viable option.

Homebuyers Choice

The Homebuyers Choice loan offers 100% financing, so you won’t need to put any amount down. Sellers may contribute up to 6% of the home’s value towards the closing costs. The interest rate is fixed, so your monthly payments will remain the same. The loan also doesn’t require PMI, so it’s a solid option for first-time homebuyers.

Adjustable-Rate Mortgage

Adjustable-rate mortgages start with a fixed rate and then adjust to the current market adjustable interest rate, after the initial term. This adjustable rate can then change every year, on the loan’s anniversary date, based on some common index like the LIBOR rate or the current market yield on the one-year U.S. Treasury Bill.  

ARMs are a better option for borrowers who don’t anticipate owning the home for the long term and want to keep their installments lower. However, interest rates in the future may be higher on adjustable-rate mortgages than fixed-rate mortgages.

Here’s a detailed look at the mortgage rates and loan terms you can expect in 2025 for each loan type:

Loan TypeInterest RateDown PaymentTerm
VA LoansStarting at 5.375%0%15 to 30 years
Conventional Fixed MortgageStarting at 5.625%5%15 to 30 years
Homebuyers ChoiceStarting at 7.250%0%30 years
Adjustable-Rate MortgageStarting at 5.500%0-10%10 to 30 years
Military ChoiceStarting at 7.125%0%30 years

Please note that these rates are subject to change and can vary based on factors like creditworthiness, loan-to-value ratio, and property type. It's always a good idea to check Navy Federal's official website or contact a mortgage specialist for the most current information.​

You can use the HomeSquad tool to apply for a Navy Federal home loan online and track your application status. Once approved, the tool becomes your mortgage hub, where you can access your payment history and manage your bills.

Here’s a step-by-step look at how the Navy Federal home loan process works:

  1. Determine the loan type: Decide on the loan type you’d like to apply for, or speak to a loan officer for guidance.
  2. Check your credit and affordability: Review your credit score and assess the monthly mortgage payments you can afford.
  3. Get pre-approved: Apply for pre-approval through HomeSquad or visit a nearby branch. The pre-approval letter is valid for 30 to 90 days.
  4. Gather necessary documents: Collect key information and documents required for your mortgage application.
  5. Sign a purchase agreement: Once you find the right home, upload the signed purchase agreement.
  6. Upload verification documents: Submit the required documents for verification.
  7. Underwriting approval: Your loan application will go through underwriting for final approval.
  8. Closing: After final approval from underwriting, you’ll move to closing.

Before you take out a loan, it’s important to consider how much of your monthly income will go toward your mortgage payments. 

“Most lenders and financial advisors recommend that you keep your total housing payment each month (including your principal, interest, property taxes, and insurance) to 28% of your gross monthly income, or less,” Brad Reichert, a financial expert and the founder and managing director of Reichert Asset Management LLC shares. 

“Another way to calculate this is to limit your total housing payment to no more than 45% of your net, after-tax ‘take home’ pay,” Reichert adds. “This means that if your take-home pay is $5,000 per month, your total housing payment, including your mortgage loan, property tax, and home insurance, should ideally be no more than $2,250 per month to ensure your chances of maintaining on-time payments on your mortgage loan over the long-term,” he explains.

Navy Federal home loans are an excellent option for former or current military members and their family members, due to their many flexible money-saving membership benefits. If you’re looking for a loan option with no down payment, Military Choice and VA loans are both solid picks to consider.

You can enjoy the same perks with the Homebuyers Choice loan if you don’t qualify for either of those options. However, it's crucial that you evaluate your budget and compare loan options and mortgage rates from other lenders before you decide. 

Buying a home is a major financial decision, and it is important to pick the right mortgage. It is best to do some research before you apply.