topic Navy Federal Credit Union minimum FICO score for mortgage in Mortgage Loans

Navy Federal Credit Union minimum FICO score for mortgage

ScottsdaleDad — Tue, 28 Feb 2012 06:19:35 GMT

Does anyone know what the minimum FICO score is for the Navy 100% mortgage program? I have a mid score of 602, but I just paid my revolving debt down from almost 100% total util to 40% (1 is 55% and the remaining 6 are 0%). I'm hoping my scores will improve 40-60 points, but I don't know if that will be enough.

I've asked Navy the minimum and they won't tell me. I would especially be interested in hearing from anyone who has been approved recently for this program with a similar score. What debt to income ratios and rates did you get?

Thanks for your help.

Re: Navy Federal Credit Union minimum FICO score for mortgage

Anonymous — Tue, 28 Feb 2012 21:21:50 GMT

Just applied for that program with a mid-score of 666 and was declined. Advised by rep that this was on of the most difficlut loans to be approved for

Re: Navy Federal Credit Union minimum FICO score for mortgage

esme — Thu, 01 Mar 2012 00:45:57 GMT

I am also considering this program vs. FHA.

My friends (who are also buying a house this year) and I both called NFCU's mortgage department, and every time, we each get conflicting information. But compiling all of the information that we have gathered over the past 6 weeks, here are the minimum requirements:

Minimum middle credit scores of 680 (required of both applicants if applying with a spouse)
Minimum middle credit scores of 720-750 to avoid 0.5% interest rate bump. (I say 720-750 because we were told different things depending on the day we called and who we talked to), I assume this will depend largely on whether your underwriter at closing wants to be generous that day.
No reserves required if purchasing a home < $417K
Six months of reserves required (P+I+T+I+HOA fees) if using their 100% Jumbo HomeBuyers Choice loan, basically any loans above $417K
They will count 60% of the value of any 401(k) in the applicants' names
Maximum 6% seller contribution towards closing costs
Maximum 3% gift contribution (by family, close relatives, etc.)
1.75% funding fee - cannot be rolled into mortgage
1.00% loan origination fee
0.75% discount points

I think that's it. Like I said, we keep getting conflicting information depending on who we talk to. My friends are actually planning on going through a formal application through NFCU this week, so I might know more in a few days/weeks. But I think that the reason why these minimum requirements aren't documented anywhere on some sort of brochure is because NFCU reviews everything on a case-by-case basis, so they will make special considerations if they think the customer is good for it. Hope this helps.

Re: Navy Federal Credit Union minimum FICO score for mortgage

ScottsdaleDad — Thu, 01 Mar 2012 02:28:49 GMT

Thanks. This is great information, and much more than I've been able to get. I think both of our mid scores will be above 680 once the CRA's report our debt payoffs. I'll apply once everything updates.

Re: Navy Federal Credit Union minimum FICO score for mortgage

esme — Thu, 01 Mar 2012 02:40:06 GMT

Good luck and please update us with the requirements you had to meet when you go through the application process. If I get any updated information from my friends' app I will update as well.

Re: Navy Federal Credit Union minimum FICO score for mortgage

ScottsdaleDad — Thu, 01 Mar 2012 02:41:32 GMT

I definitely will.

Re: Navy Federal Credit Union minimum FICO score for mortgage

olivia3636 — Mon, 22 Oct 2012 19:54:05 GMT

What ever happened with your application, I am thinking about applying with mid-score being 695, and I am just wondering if it is worth it?

Re: Navy Federal Credit Union minimum FICO score for mortgage

K_J — Mon, 22 Oct 2012 20:41:59 GMT

Just curious, What are the goods of this program over USDA or FHA?

Re: Navy Federal Credit Union minimum FICO score for mortgage

Anonymous — Mon, 22 Oct 2012 21:30:14 GMT

We looked at this mortgage option recently too. The LO at our branch in San Diego didn't give out much info without actually submitting an application, but she did say maximum DTI was 45% or lower, they want to see 6 months of PITI in reserves and above the low 700's for both mid Ficos.

My mother is refinanced with Navy Fed and their underwriting process is a bear. We've decided to abandon this loan option and just go with a mortgage broker because of the difficulites she had with a simple refinance.

Re: Navy Federal Credit Union minimum FICO score for mortgage

Anonymous — Mon, 02 Dec 2013 04:27:53 GMT

We are trying to work toward getting a home loan through this program as well. Does anyone know whether or not there have been any changes to the requirements previously listed?

Re: Navy Federal Credit Union minimum FICO score for mortgage

Anonymous — Sun, 08 Dec 2013 10:45:49 GMT

@esme wrote:

1.75% funding fee - cannot be rolled into mortgage

Their policy on this has changed. According to their website, the funding fee may now be financed into the loan up to a maximum of 101.75% LTV.

1.00% loan origination fee

Per their website, the origination fee may be waived for a 0.25% increase in the interest rate.

I got the information from: https://www.navyfederal.org/assets/rates/view-all.php