Navy Federal Credit Union HELOC and Loan Review: Rates, Features and More
Written by
Sarah Sharkey
Edited by
Elizabeth Constantineau
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Navy Federal Credit Union offers home equity loans and home equity lines of credit. Both lending solutions allow you to tap into the hard-earned equity you’ve built in your home. Read on to learn all about Navy Federal Credit Union’s HELOC and home equity loan options.
Quick Summary: Is Navy Federal Credit Union Right for You?
Ideal For:
- Existing NFCU members or interested borrowers with a qualifying military connection.
- Homeowners interested in a 20-year draw period for a HELOC.
Not Ideal For:
- Homeowners without a qualifying military connection to join NFCU.
- Homeowners seeking to borrow less than $10,000.
Pros and Cons of Navy Federal Credit Union Home Equity Products
The Navy Federal Credit Union HELOC has lots to offer, but it also has some drawbacks when compared with its competitors. Here’s a look at the pros and cons:
| Pros | Cons |
|---|---|
| No origination, application, annual or closing fees | Payback period is only 20 years |
| Long draw-down period of 20 years | High minimum credit line of $10,000 |
| High LTV of 95% |
What Types of Home Equity Products Does Navy Federal Offer?
Navy Federal Credit Union offers both home equity loans and home equity lines of credit. Below is a closer look at each.
Home Equity Line of Credit
A home equity line of credit lets you borrow from your line of credit on an as-needed basis during the draw period. After the draw period, borrowers must make payments to pay down the balance.
| Feature | Details |
|---|---|
| Interest Rate | As low as 7.750%; variable |
| Closing Costs | $0 |
| Minimum Loan Amount | $10,000 |
| Maximum Loan Amount | $500,000 |
| Application Fee | $0 |
| Origination Fee | $0 |
| Annual Fee | $0 |
| Inactivity Fee | $0 |
| Terms | 20 year draw period, 20 year repayment period |
| Borrowing Options | Borrow up to 95% of your home’s equity |
Home Equity Loan
A home equity loan involves receiving a lump sum upfront, then making fixed monthly payments.
| Feature | Details |
|---|---|
| Interest Rate | As low as 7.340%; fixed |
| Closing Costs | $0 |
| Minimum Loan Amount | $10,000 |
| Maximum Loan Amount | $500,000 |
| Application Fee | $0 |
| Origination Fee | $0 |
| Annual Fee | $0 |
| Inactivity Fee | $0 |
| Terms | 5, 10, 15 or 20 years |
| Borrowing Options | Borrow up to 100% of your home’s equity |
What Rates and Discounts Can You Get?
The variable interest rate for the HELOC currently starts at 7.750% APR. For home equity loans, the fixed interest rate starts at 7.340% APR.
As of writing, Navy Federal doesn’t offer any rate discount opportunities.
Are There Fees or Closing Costs?
Navy Federal pays the closing costs on all home equity loans. With that, homeowners won’t face an out-of-pocket cost at closing.
The Navy Federal Credit Union HELOC doesn’t include any:
- Application fees
- Origination fees
- Annual fees
- Inactivity fees
- Prepayment fees
The home equity loan doesn’t include any:
- Application fees
- Origination fees
- Prepayment fees
Who Qualifies for a Home Equity Product?
If you plan to apply for a home equity loan product through Navy Federal, you’ll need to meet the following requirements:
- Credit union membership:
- Homeowners must be members of NFCU in order to apply for a home equity product. Luckily, it’s easy to join if you have a qualifying military connection. Generally, active-duty military members, veterans and their immediate family members can join.
- Equity requirements:
- You’ll need at least 15% to 20% in home equity in order to apply for a home equity-based loan.
- Income requirements:
- You’ll need an income that supports the new debt payments. Typically, you’ll provide proof of income through a W-2 or your tax returns.
- Debt-to-income ratio:
- Typically, you’ll need a DTI below 50% to qualify for a home equity product.
- Credit score:
- Generally, you’ll need a credit score of at least 650 to qualify for a home equity product.
Good To Know
If you are self-employed, it’s possible to qualify. But expect to submit extra documents to verify your income.
What’s the Application Process Like?
- How to apply: Online or by calling 1-888-842-6328.
- Funding time: Usually 30 to 40 days.
- Documents needed: Proof of income, property tax info, mortgage statement, tax returns, original purchase price and more.
Before applying, you’ll need to be a Navy Federal Credit Union member. Here are a few ways to qualify for membership:
- Active duty, retired and veterans of any branch of the Armed Forces, including Space Force and the Coast Guard.
- Civilian workers at the Department of Defense, along with DoD officer candidates/ROTC, reservists, and those in the Delayed Entry Program.
- Family members of any eligible members.
How To Apply for a HELOC: Step-by-Step Guide
Once you’re a member, you can apply for a HELOC. These are the steps that you’ll need to take:
- Plan in advance:
- It can take NFCU between 30 to 40 calendar days to make its decision. This could be extended if additional documentation or an appraisal is needed.
- Provide necessary information:
- Expect to provide the estimated value and details of your property, your NFCU checking and/or savings account number, your gross monthly income, insurance details, tax information and details on outstanding liens that you plan to pay off with your HELOC proceeds.
- Complete the application:
- You can complete the NFCU HELOC application online, or you can call 888-842-6328. Once your application is complete, a processor will review it and contact you within three business days to discuss the details.
- Sign and submit necessary documents:
- Your processor will request certain hard-copy documents that you must sign and return to NFCU.Â
- Await approval:
- The processor will review all of the information in your file and provide you with the results of your application.
- Attend closing:
- In-person closing: Sign physical documents.
- RON eClosing: Allows you to sign all documents remotely.
- Hybrid eClosing: Sign most documents electronically but then meet with a notary for final approval.
How Does Navy Federal Credit Union Compare to Other Lenders?
NFCU is an industry leader when it comes to HELOC fees. They charge no application, origination or annual fees. The credit union also covers all closing costs. The 20-year draw period for the NFCU HELOC is also above average, as many of its competitors only offer a 10-year draw period.
Below is a look at how the HELOC stacks up against the competition:
| Bank | Starting APR | Closing costs | Draw period |
|---|---|---|---|
| Navy Federal Credit Union | As low as 7.750%; variable | $0 | 20 years |
| Four Leaf Federal Credit Union | As low as 7.50%; variable | $0 | 10 years |
| Fifth Third Bank | As low as 7.50%; variable | $0 | 10 years |
Final Verdict: Should You Choose Navy Federal Credit Union?
Navy Federal Credit Union offers a worthwhile option for members with qualifying financial situations. The extended draw period and relatively low interest rates and fees make the credit union’s home equity products a solid choice. But for homeowners without a qualifying reason to join NFCU, you’ll need to find a different home equity lending solution.
Key Takeaways
- Navy Federal Credit Union HELOCs and home equity loans come with competitive rates and $0 fees for most users.
- Minimum credit score: 650
- Most users will qualify if they have 15% or more home equity and a solid income.
- Best for: Homeowners with a qualifying reason to join Navy Federal and a solid financial situation.
FAQ
Here are the answers to some frequently asked questions about Navy Federal Credit Union HELOCs and loans.- Does Navy Federal Credit Union offer fixed-rate HELOCs?
- No, Navy Federal Credit Union only offers variable-rate HELOCs. For homeowners seeking a fixed-rate product, consider the fixed-rate home equity loan option through NFCU.
- What happens if I pay off my loan early?
- If you pay your loan off early, you won't face any prepayment penalties through NFCU.
- Is the interest tax-deductible?
- If you use the funds from a home equity loan or HELOC to buy, build or substantially improve your home, the interest might be tax-deductible. But if you use the funds for other reasons, the interest isn't tax-deductible.
- Do I need to be a customer to apply?
- Yes, you must be a NFCU member to apply to the home equity lending products. But if you have a qualifying military connection, you can join NFCU quickly.
John Csiszar contributed to the reporting for this article.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Data is accurate as of April 24, 2025, and is subject to change.
