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No-Down-Payment Option Military Choice Home Loan for Servicemembers

As a way of giving back to servicemembers, veterans and reservists for serving our country, Navy Federal provides military home loans that offer exclusive benefits. If you’ve already exhausted your VA Loan benefit, a Navy Federal Military Choice Loan1 is a good option for you.

Loan Features

  • Fixed Rates & Consistent Payments

    With a fixed interest rate, your monthly payment to principal and interest will remain the same for the life of your loan.

  • Options With No Down Payment

    Some lenders require a down payment of up to 20% but because these loans don’t require money down, you can buy a house now without waiting years to save.2

  • No Private Mortgage Insurance Required

    Most lenders require the borrower to purchase PMI unless they're able to make a down payment of 20%. Our Military Choice Home Loans don’t require PMI, saving you money each month.

  • Seller Contribution of Up to 6%

    The seller is allowed to contribute up to 6% of the value of the home toward your closing costs, saving you money.

Rates3 1

Payment Examples4

Term Interest Rates As Low As Discount Points APR As Low As
30 Year 6.625% 0.500 6.948%
30 Year Jumbo 7.000% 0.500 7.331%

Rates as of Feb 01, 2023 ET.

Discount Points: The interest rate above shows the option of purchasing discount points to lower a Military Choice Home Loan’s interest rate and monthly payment. One point amounts to 1% of the loan amount and is paid at closing. Points don’t always have to be round numbers. Purchasing 1.5 points would cost $4,500 on a $300,000 mortgage.

Rates displayed are the "as low as" rates for purchase loans and refinances.

Jumbo Loans: Loans over a certain amount are called jumbo loans. In most states, mortgage loans greater than $726,200 are jumbo loans. 

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To be eligible for a Military Choice Home Loan, at least one borrower must be Active Duty, reservist or a veteran.

Why Choose Navy Federal?

Great loans. Expert guidance. Best-in-class loan service. As a Navy Federal member, you get access to additional benefits to help save you time and money. Get your loan, real estate agent, title services and loan servicing all through us.

Learn More about mortgages with Navy Federal

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Find a Real Estate Agent

Finding the right home starts with finding the right real estate agent. Use RealtyPlus® to connect with a top-performing real estate agent in your area. Plus, you can earn cash back. Exclusively for Navy Federal members.5

Learn More about RealtyPlus.

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Homeowner Resources

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Military Choice Loan FAQs1      

To be eligible for a Military Choice Home Loan, at least one borrower must be one of the following:

  • Active Duty
  • Reservist
  • Veteran (honorably discharged)

To confirm eligibility, Active Duty and Reservist members will need their most recent paystub. Veteran members will need their DD214 discharge documents.

  • The interest rate is fixed for the life of the loan.
  • There's no down payment required if it's for a primary residence.
  • Jumbo and refinance options are available.
  • It's a great option if the member is currently using their VA loan benefit elsewhere.
  • The co-borrower isn't required to be a spouse or a veteran.
  • Members have the option to provide a 3% down payment, which waives the funding fee and decreases their interest rate.



All Choice loans require a 1.00% loan origination fee. The origination fee may be waived for a 0.25% increase in the interest rate. All Choice loans are subject to a funding fee of 1.75% of the loan amount. This funding fee can be financed into the loan up to a maximum of 101.75% LTV, or the fee can be waived for a 0.375% increase in the interest rate. Purchase loans require no down payment. LTV restrictions apply to refinance loans. Note: To be eligible for Military Choice, at least one borrower must be Active Duty or a veteran.


Product features subject to approval. Available for purchase loans only. Loans are subject to an additional funding fee, which may be financed up to the maximum loan amount. 


These rate offers are effective 02/01/2023 and subject to change. Rates displayed are the "as low as" rates for purchase loans and refinances. Rates are based on creditworthiness, loan-to-value (LTV), occupancy and loan purpose, so your rate and terms may differ. All loans subject to credit approval. Rates quoted require a loan origination fee of 1.00%, which may be waived for a 0.25% increase in the interest rate. Many of these programs carry discount points, which may impact your rate.


A Military Choice loan of $300,000 for 30 years at 6.625% interest and 6.948% APR will have a monthly payment of $1,920. Taxes and insurance not included; therefore, the actual payment obligation will be greater. All loans subject to credit approval.
Jumbo Loans: Loan amounts greater than $726,200. The Jumbo rates quoted above are for loan amounts above $726,200 up to $1,000,000.


The cash-back bonus is offered in most states and is available for individual sales and purchases of property; offer limited to one cash-back bonus per property with no limit on the amount of times you may use the program. In some states, a gift card or commission credit at closing may be provided in lieu of the cash-back bonus. The program is not available in IA or outside the U.S. Cash-back bonus is not available in AK or OK. In KS and TN, a gift card with preloaded points that are ready for spending at specified retail establishments after closing will be issued. State regulations in KS limit the dollar amounts and the type of incentive. In MS, NJ, and OR, a commission reduction may be available at closing. Please check with the program coordinator for details. This is not a solicitation if you are already represented by a real estate broker. The cash-back bonus is only available with the purchase or sale of your home through the use of a program-referred and -approved real estate agent. The size of your cash-back award depends on the value of the property you are buying or selling. Obtaining the full $9,000 cash-back award requires transacting in a property valued at $3 million or greater. To calculate the size of your potential cash back, please visit the RealtyPlus website: All real estate transactions are negotiable. Contact RealtyPlus for terms and conditions. Standard listing fees apply. The program award is not available in certain transactions with restricted agent commissions (including many new construction, For Sale by Owner, or For Sale by iBuyer transactions). Your assigned agent can help you identify any transactions where the award would not be available. This program is offered, in part, by Realogy Lead Management Services, Inc. d/b/a Realogy Leads Group (RLG). RLG may receive a co-operative brokerage fee as a result of a referral to the real estate companies listed above. Program terms and conditions are subject to change at any time without notice. Additional terms, conditions, and restrictions apply.