In Qualified Mortgage Landscape, 100 Percent Financing is Still Viable for Navy Federal
Leading credit union affirms all of its products fall into the ability-to-repay requirements
VIENNA, Va., Nov. 20, 2013 /PRNewswire-USNewswire/ -- Navy Federal Credit Union continues to offer qualified mortgages and no-money-down products meeting all regulation guidelines and the needs of its membership. The credit union, serving the U.S. Armed Forces, Coast Guard and Department of Defense employees and their families, is one of the few lenders who can safely offer specialized products, such as a 100 percent financing option, even during a time of evolving regulations.
"Navy Federal follows the ability-to-repay requirements," said Katie Miller, vice president of mortgage products at Navy Federal. "We are here to serve our members and create products that are right for them. Our mission is for the members, and the CFPB's mission is for the consumer—so our goals have always been in line."
Approximately 65 percent of members in the credit union's 100 percent financing product, known as 'HomeBuyer's Choice', are first-time homebuyers who may have limited options among first-time programs offered by the government. "Our goal is to match members to products and services that fit their needs and budget—be it a mortgage or anything else we provide. We ensure that members are poised to perform well in ours loans—and they have," continued Miller. The credit union touts that its 100 percent financing options have less than one percent default rate—considerably lower than the industry average.
Navy Federal has a history of conservative and safe lending practices. Applicants must qualify based on creditworthiness, and the credit union takes into consideration an overall composite of members' financial situations.
"The housing market is slowly improving and consumers are becoming more confident in the economy and their finances," said Alan MacEachin, corporate economist at Navy Federal. "However, despite a strengthening job market, income growth remains stagnant. As interest rates and home prices trend higher, there may be added difficulty for many households, especially first-time homebuyers, to make the cash down payment most lenders require."
In addition to HomeBuyer's Choice, VA and other conventional loans are part of the portfolio. Navy Federal also pays $2,500 toward closing costs on purchase loans and allows 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, 236 branches, and a workforce of over 11,000 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 www.navyfederal.org.
Contact: Michele Townes
SOURCE Navy Federal Credit Union