Navy Federal Offers Members Solid 100% Financing Mortgage Product
VIENNA, Va., April 22, 2013
Credit Union among few lenders nationwide offering no money down option.
VIENNA, Va., April 22, 2013 /PRNewswire-USNewswire/ --Navy Federal Credit
Union is putting members in homes with its proprietary Home Buyers Choice
mortgage—a one hundred percent financed, no private mortgage insurance
required, 30-year, fixed rate, conventional loan—and says the program can
enhance the beginnings of mortgage industry's turnaround.
It's early, but trends show market improvement, as builders such as Ryland
Group, Inc. report increased stock value over 2012. ^ 1 All indications point
to continued growth for the industry in 2013. Navy Federal Credit Union points
to its own indicators in determining the future success of their mortgage
programs, including their no-money-down option.
"HomeBuyers Choice has been consistent for us, well before and during the
downed market, and is primed for the upswing," says Jack Gaffney, executive
vice president of lending. "The partnership we have with our members is vital
in fitting them into a product that helps get them safely, securely, and
affordably into their home." Currently, fifty-three percent of the credit
union's purchase volume are first-time homebuyers who generally don't have the
cash reserves to make large down payments.
Despite the scrutiny received by no-money-down mortgages, Navy Federal asserts
its program to be both attractive in its security of fixed rates and solid in
its performance. The credit union experienced tremendous growth in 2012—a $10
billion closing year. "Overall, our default rate is lower than the national
average," says Gaffney. The credit union affirms they are highly disciplined
in all of their lending practices and always ensures the member is in a
position to perform well on the loan.
Navy Federal continues to report gains, even in its recent dip in mortgage
volumes, due to a shift towards a purchase market. By the end of the first
quarter, the credit union closed at $3.2 billion, almost doubling its number
from 2012. March originations alone stood at $1.2 billion—the highest month in
the credit union's history.
In addition to HomeBuyers Choice, VA and other conventional loans are part of
the portfolio. Navy Federal also makes $2,500 available to members to help
with closing costs, and the loans allow up to six percent of the purchase
price to come from the seller.
About Navy Federal Credit Union
Navy Federal Credit Union is the world's largest credit union, with $54
billion in assets, 4 million members, 229 branches, and a workforce of over
10,000 employees worldwide. The credit union serves all Department of Defense
and Coast Guard active duty, civilian and contractor personnel, and their
families. For additional information about Navy Federal, visit
CONTACT: Michele Townes
Phone: (703) 206-3828
SOURCE Navy Federal Credit Union
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