You’ve served—and now it’s time to claim one of the most powerful financial benefits available to you: the VA home loan. But picking a lender? That’s where things can get tricky. Many veterans turn to the Navy Federal Credit Union first. It feels like a safe choice. Military-owned, familiar, and trusted. But here’s the real question: Are Navy Federal’s VA loan rates the best deal?

Let’s sort through the noise. In this guide, we’ll break down how Navy Federal compares to other VA-approved lenders, reveal real borrower experiences, and help you shop smart—so you don’t leave thousands on the table.

Key Takeaways:

• Navy Federal offers VA loans with competitive perks like $0 down and no PMI.
• Their rates aren’t always the lowest—comparison shopping is essential.
• VA borrowers can benefit by comparing Navy Federal with brokers and commission-free home-buying platforms.
• Understanding the VA loan funding fee and lender fees is critical.
• Always check APR, not just interest rate, when comparing quotes.

Navy Federal VA Loan Rates (as of April 11, 2025)

Note: Rates include a 1.00% loan origination fee, which may be waived for a 0.25% increase in the interest rate. Rates are subject to change and vary based on creditworthiness, loan-to-value (LTV), occupancy, property type, and loan purpose.

What Makes Navy Federal VA Loans Appealing?

Here’s what Navy Federal does well:

• $0 down payment (100% financing)
• No private mortgage insurance (PMI)
• No lender fees in many cases
• In-house underwriting (fewer delays)
• Veteran-focused service

It’s easy to see the appeal, especially for first-time buyers. But while the terms sound great on paper, are they giving you the best rate?

Rate Reality: The Truth About Navy Federal's Offers

Despite strong perks, Navy Federal isn’t always the lowest-cost option:

• Their rates can be 0.25% to 0.50% higher than top VA lenders or brokers.
• Because they’re a credit union, you don’t get access to rate comparisons or lender competition.

Pro Tip: Always get at least two other quotes. Try:

• A direct VA lender (e.g., Freedom Mortgage, Veterans United)
• A VA-savvy mortgage broker. Talk to a VA loan specialist at Be My Neighbour—they’ll help you unlock your full entitlement and show you options most lenders miss.

How to Compare VA Loan Rates the Smart Way?

Don’t worry—VA loans are easier to compare than you think. Use this quick guide:

Step-by-Step:

1. Get 2–3 Loan Estimates (LEs)

2. Compare:

1. Interest rate
2. APR (total loan cost including fees)
3. Monthly Payment
4. Total closing costs
   

3. Ask if fees can be rolled into the loan

4. Confirm how the VA funding fee is handled (some lenders roll it in by default)

Remember: Navy Federal doesn’t waive the VA funding fee—it’s a VA decision. Disabled veterans (10%+) may qualify for a waiver directly from the VA.

Should You Stay Loyal to Navy Federal?

We get it—there’s a sense of loyalty to Navy Federal. But loyalty shouldn’t cost you thousands. Your service earned you a powerful benefit. That includes the freedom to choose the best deal.

• If you prioritize familiarity and no lender fees—Navy Federal might be a fit.
• If you want the lowest rate—you owe it to yourself to shop.

RealAlpha & Be My Neighbor: Helping You Maximize Your VA Loan

You don’t have to navigate this alone. Be My Neighbor works with top-tier VA-approved lenders who understand the ins and outs of VA loan entitlement.

We don’t just quote rates—we build strategy.

And once you’re ready to shop, reAlpha is your no-commission homebuying platform. Their AI-powered home search assistant Claire helps you:

• Find listings that fit your VA loan scope
• Submit competitive offers fast
• Skip the traditional agent commission

Together, we make your home search, financing, and closing seamless.

FAQs

Does Navy Federal waive the VA funding fee?

No, only the VA can waive it. If you’re 10%+ disabled, apply for the exemption.

Are their VA loan rates the lowest?

Not always. You may find better rates through brokers or marketplaces.

Can I use a VA loan with them for a second home?

Yes, if you have remaining entitlement and meet eligibility.

Is it bad to shop around for VA loans?

Not at all. It’s smart—and can save you thousands over the life of the loan.

Do they offer VA streamlined refinances (IRRRL)?

Yes, but always compare rates before committing.

Final Thoughts: Honor Your Service by Shopping Smart

You’ve earned the right to own a home with powerful VA loan benefits. Navy Federal may be a solid choice, but it’s not the only one—and often not the best deal.

If you’re looking for:

• Lower rates
• No commission fees
• Military-first guidance
  
  

...then reAlpha and Be My Neighbor are worth a serious look.

You don’t have to guess. Compare rates now, talk to a lender who speaks your language, and buy smarter.

Disclosures:

• Loan approval is subject to credit, income, and VA eligibility.
• Not a commitment to lend.
• Be My Neighbor Mortgage, LLC | NMLS #1743790 | Equal Housing Lender.
• In partnership with reAlpha, a commission-free real estate platform.
• Rates are subject to change without notice. Always verify current APRs at https://www.va.gov/housing-assistance/home-loans/.

This blog is intended for educational purposes and should not be construed as financial or legal advice.