Navy Federal Credit Union Review | Loans Like Navy Federal Credit Union | Credit Raters us-lenders
Last updated: 27th Feb 2020

Navy Federal Credit Union Review

Due to state limitations, you’ll find that most of the online lenders are restricted from offering loans to borrowers in the military and their immediate relatives. However, if you’re in the military and looking for a reliable credit union with a wide variety of banking options, then NFCU is the ideal option for you. 

The Navy Federal Credit Union was launched in 1933 with an aim to provide a variety of credit facilities, including mortgage options with relatively low rates. Currently, NFCU has more than 8 million members and it stands to be the most trusted and preferred financial institution to members of the military and their families. 

To find out whether NFCU is the ideal banking institution for you and your family, here is a comprehensive guide of what you need to know about its services. 

Costs

Borrowers who qualify to join the NFCU will enjoy vast access of credit facilities with very low-interest rates. Here is a summary of the types of loans and rates that you will enjoy with this union;

  • NFCU Choice Loans 

This loan option comes with very friendly qualifications and special rates. With this option, no PMI or down payment required.  The interest rates start at 5.625 % with APRs below 6%. This loan is aimed at supporting the financial needs of military households. 

  • NFCU – Interest Only Loans 

If you’re looking for a primary residence mortgage or a second home, then this option is ideal for you. The loan type can either be fixed or adjustable-rate. This loan requires a down payment of 20% and a 30-year repayment term. 

  • NFCU – 100% financing Homebuyers Choice

If you are looking to buy your first home, then this option is right for you. No down payment is required and comes with very low-interest rates of 5.25%. The repayment term is fixed and ranges from 10 to 30 years. 

  • NFCUVA loans 

This option is designed for eligible service members. The interest rates are very low, from 4%, and the APRs start at 4.53%. Absolutely no down payment is required and the repayment terms range from 10 to 30 years. 

  • NFCU – Conventional Fixed Rate Loans 

With these loans, you have access to both jumbo and refinance loan options. They have no PMI and the interest rates are as low as 4.494%. However, you’ll pay a 5% down payment on the home. 

  • NFCU – FHA Loans 

This loan option is designed for 1st time home buyers and it’s backed by the Federal Housing Administration. It features a 10 to 30 year fixed term or a 30 year ARM term. The minimum down payment is 3.5% and comes with very low-interest rates of 3.875‰. 

  • NFCU – Adjustable-Rate Mortgage Loans 

This type of loan option features an initial interest rate of 2.375% with an Annual Percentage Rates of below 5%. Initially, the loan is structured with a fixed rate repayment period, after which the rates can either increase or decrease based on the market. 

Key features 

As long as you’re a member of the armed forces or you have a family member in armed forces, you have a place with NFCU. However, if you don’t meet the above qualifications, then it won’t be possible to be a member. 

As well, unlike other credit unions that require you to make a donation or join certain organizations to qualify for membership, NFCU doesn’t work like that.

Pros 

  • Very competitive interest rates 
  • A wide variety of banking options 
  • Favorable repayment terms 
  • 30,000+ fee-free ATMs 
  • No origination fee 

Cons

  • Must be a member of Navy or have a relative in the navy 
  • Few numbers of branches 

FAQs 

Which members of my family are eligible to join? 

Family members of current Navy Federal members are considered to join the union. They include your parents, spouses, grandparents, siblings, children (including step or adopted children), and grandchildren. 

Can I apply online? 

Yes, you can apply for NFCU membership online. It only takes about 10 minutes to complete. However, you may be requested to upload proof of your information. You can also visit their office branches to apply. 

What’s the minimum credit score? 

NFCU has not specified any minimum credit score on their website. The primary requirement is that you must be a member of the military or have a family member in the military. 

Eligibility Criteria

Individuals who are qualified include 

  • Active duty members 
  • Veterans 
  • Former military members
  • Retired DoD employees
  • Department of Defense officers,
  • Contractors of U.S government installations,
  • Military reservists, and 
  • Members of delayed entry military program. 
  • Air and Army National Guard personnel
  • Marine Corps 

As well, members of their families can qualify. Unlike most unions who only allow membership to immediate relatives, with NFCU, even your extended family members like your grandparents or grandchildren can qualify. 

State Availability

NFCU offers its services to all members of the military in the United States. 

Customer support

The NFCU customer support team is attentive and dedicated to offering you the best services. However, due to many requests that are channeled to them, it may take time for them to respond to your inquiries. You can give them a call at 1-888-842-6328 or visit one of their branches. 

Application process

If you qualify to join, the online application process is simple and takes about 10 minutes. As well you can visit one of their branch offices to apply. You will be required to provide the following details;

  • Social security number 
  • Driver’s license 
  • Government ID
  • Current Home Address 
  • Bank account or credit card 
  • Bank account routing number 
  • Phone number and email address 

If a relative or household mate sponsor you, you will be required to provide sponsors;

  • Last name 
  • Access Number 
  • Affiliation 
  • Social Security Number 
  • Date of Birth 

Conclusion

NFCU focuses on making sure that you and your family’s financial needs are well catered for. Besides offering you a wide variety of loan options, NFCU has other banking facilities such as a savings account. As well, you get to enjoy numerous special rates and discounts that you can’t find with most online lenders.

If you are eligible for membership, then go ahead and take your spot!