Navy Federal VA Loan: What Are the Interest Rates?

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Navy Federal Credit Union offers several home loan products for military members and their families. If you’ve earned any VA loan benefits, you use them to take advantage and make homeownership a reality.

VA loans from Navy Federal are a great option for borrowers who want competitive rates, 0% down payment, and no private mortgage insurance (PMI). However, it’s important to know the current Navy Federal VA loan rates and the rates offered by other lenders to make an informed decision.

This guide provides an overview of the 2025 rates offered by Navy Federal for VA loans and other mortgage products, along with how these rates compare to other lenders.

What Are VA Loans?

A VA loan is a home loan available through the U.S. Department of Veterans Affairs for veterans, service members, and surviving spouses. VA loan offer a 0% down payment, no private mortgage insurance (PMI), flexible lending requirements, and lower interest rates compared to conventional mortgages. However, there’s a funding fee you’ll have to pay, which adds to the loan’s overall cost.

For military members and their families, these loans can be a better fit because of the benefits they offer. While it can be a great way to save money and get lower mortgage payments, finding a lender with the best loan rates can be challenging.

Navy Federal offers VA loans at competitive rates and consistently ranks as one of the top VA lenders in the country. So, it may be a good choice if you’re a member of the credit union.

VA loans can only be used to purchase a primary residence. If you’re interested in buying investment properties or a second home, you may want to consider other loan types from Navy Federal.

Who Is Eligible for a Navy Federal Credit Union VA Loan?

Navy Federal home loans and mortgage refinance loans are only available for existing members of the credit union. You may qualify for membership if you’re in the armed forces, a retired service member, a veteran, Department of Defense personnel, or an eligible family member.

To qualify for a VA loan, service members must meet at least one of the following requirements:

• 90 consecutive days of active service during wartime
• 181 days of active duty during peacetime
• Over six years with the National Guard or Reserves

If you don’t meet these requirements, you may still qualify as a surviving spouse of a military member who lost their lives in the line of duty or due to a service-related disability. You’ll need to provide a certificate of eligibility to the loan officer to demonstrate service eligibility.

Navy Federal doesn’t list minimum credit scores or income requirements on its website for its loan options. The VA also doesn’t set a minimum credit score for VA loans at their program level.

For these kinds of loans, the VA instead relies on the actual lenders (i.e., private banks and mortgage companies) to review each borrower's financial situation. Lenders must ensure that VA loan borrowers have adequate income and a sufficient credit history to meet their monthly payments. Usually, that means a FICO score of about 580 or above to purchase a new home with a VA loan.  

You’ll most likely need a score of about 620 (or higher) to do a VA-backed cash-out refinance loan or purchase a home worth $1 million or more. While many lenders will approve you with a lower score, you will want to make sure your credit profile is as healthy as possible when you go to apply.

Navy Federal VA Loan Interest Rates for 2025

If you're planning to buy a home or refinance in 2025, it's smart to compare rates from different lenders. Navy Federal offers several mortgage options, each with its own starting interest rate and benefits.

The rates shown below are accurate as of April 2025. Keep in mind that rates can change based on market conditions and your personal qualifications, so be sure to check for the latest rates and adjustments.

VA Loans

The Navy Federal VA loan rates are currently as low as 5.893% APR on a 30-year loan. In comparison, the national average for 30-year VA loans from all lenders is 6.62% APR.  You may find that Navy Federal VA loan rates are oftentimes comparatively lower than most other lenders, which could help you save a considerable amount of money over the life of the loan.

Military Choice

If you don’t qualify for VA home loans, Military Choice loans offer similar benefits, including no down payment or private mortgage insurance (PMI). However, rates for these loans are higher than VA loans, with APRs around 6.821%.

Conventional Fixed-Rate Mortgage

Another option is to get a conventional fixed-rate loan. You’ll need at least 5% up-front as a down payment. But with a fixed interest rate, you’ll have stability and peace of mind knowing your installment will remain the same. Navy Federal’s conventional fixed-rate mortgage rates start at 5.317% APR.

Homebuyers Choice

Designed for first-time buyers, this loan lets you finance 100% of your home’s cost. Rates are higher at 6.948% APR, but you may be able to save money since the loan doesn't require a down payment and PMI. Plus, sellers can contribute up to 6% toward your closing costs.

Adjustable-Rate Mortgage

With adjustable-rate mortgage (ARM) loans, you'll start with a fixed rate that adjusts after the initial loan term. If you only plan to live in the home for less than five years, ARMs may be a better choice to keep your monthly installments lower. Navy Federal's ARM rates start at 5.970% APR.

VA Loan Rates: Navy Federal vs Other Lenders

Before you choose a lender for your loan, it’s important to compare Navy Federal VA loan rates with other lenders to see how they stack up. Here’s a rundown of Navy Federal VA loan rates with other top lenders to help you make an informed decision:

Two of these lenders are credit unions, which typically offer lower rates than traditional lenders, especially compared to Navy Federal’s VA loan rates.  PenFed Credit Union is the only other lender offering an APR competitive with Navy Federal’s.

The rate you qualify for will depend on several factors, like your credit history, income, employment, debt-to-income ratio (DTI), and more. It's best to try to get pre-approval with a few lenders to find the lowest interest rate you qualify for.

Steps To Take Before Applying for a VA Loan

Brad Reichert, financial expert and managing director of Reichert Asset Management LLC, recommends the following steps for consumers ready to pursue a VA home loan:

1. Make sure you qualify by obtaining your Certificate of Eligibility (COE).
2. Know your credit score, and take steps to improve it as best you can before you look to get pre-qualified.
3. Make sure you have enough money saved to pay any costs, fees, or last-minute expenses that come up after closing, in addition to any money you’ll need to upgrade or furnish your new home.
4. Pay the VA loan’s one-time funding fee (3.3% of loan amount) upfront in cash, if possible, to reduce your mortgage payment. While it can be rolled into the loan balance, paying it upfront saves you more in the long run.
5. Shop for a VA lender, like Navy Federal, and get pre-approved.
6. Find and use a realtor who’s experienced with closing on VA loans and is an expert in VA loans in general.
7. Shop for and settle on a property that’s VA-approved (meaning it’s safe, sanitary, and structurally sound).
8. Set a closing date that’s ideally no more than 60-90 days before you plan to move into your new home.

Is Navy Federal Good for VA loans?

Navy Federal offers competitive VA loan rates. Additionally, you can lock in your rates with the Freedom Lock Program, which provides added stability in a fluctuating market.

Additionally, Navy Federal offers a Rate Match Guarantee and cash back when you use RealtyPlus to hire a real estate agent. These advantages make Navy Federal an appealing choice for borrowers and homeowners looking to refinance their current mortgage. It also has a high customer satisfaction ranking on Trustpilot.

In addition to their VA loans, Navy Federal also offers other mortgage options for borrowers with different needs and allows members to save $3,500 on average. To save the most money, compare the rates and loan amounts you qualify for through other mortgage lenders and ensure the monthly payment is affordable before you make a final decision.