VIENNA, Va. — Navy Federal Credit Union said it has enhanced its Homebuyers Choice Loan program to expand access to affordable homeownership, particularly for first-time buyers and members with limited savings or lower credit scores.
According to the $197-billion Navy Federal Credit Union, the updated loan offers increased flexibility aimed at addressing barriers many borrowers face when entering the housing market.
“Nearly half of our mortgage borrowers are first-time homebuyers,” Fred Quick, senior vice president of mortgage lending at Navy Federal Credit Union, said in a statement. “We understand the unique challenges of entering the market for the first time. Our goal is to extend homeownership opportunities to members and give them confidence in their homebuying journey.”
Key Features
Navy Federal Credit Union said key features of the Homebuyers Choice Loan include:
- Competitive interest rates for first-time homebuyers and borrowers with lower credit scores
- Flexible down payment options, including no down payment for eligible loans
- A waived funding fee for borrowers making a 3% down payment
- No requirement for private mortgage insurance (PMI)
The credit union added that the loan includes a “No-Refi Rate Drop” option, allowing eligible members to reduce their interest rate without refinancing. For a $250 fee, borrowers who have made at least six consecutive on-time payments can qualify if market rates fall at least 0.25 percentage points below their current rate.
Additional Enhancements
“These features give options to members who previously may have felt like homeownership wasn’t accessible to them,” Quick said.
In addition to the loan enhancements, Navy Federal Credit Union said it connects members with real estate agents through its RealtyPlus program and provides online educational resources, including mortgage calculators, to support borrowers throughout the homebuying process.
