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Bottom Line Up Front

  • A VA loan is a type of mortgage for eligible servicemembers and veterans that offers 100% financing, no down payment and low interest rates. 
  • If you already exhausted your VA loan benefit, a Navy Federal Military Choice Loan may be a good option.
  • When looking at mortgage options, consider interest rates, mortgage insurance, down payment and eligibility requirements.

Time to Read

2 minutes

July 20, 2022

Buying a home is a large and emotional investment, and military families face unique challenges when reaching this milestone. Navy Federal can help you explore your financing options so you can make the best decision for you and your family. As a top 5 VA lender, we offer military home loans to servicemembers and veterans that come with exclusive benefits.

What are VA Loans?

Available to eligible servicemembers and veterans, this mortgage option offers many benefits. VA loans are unique because they offer 100% financing, meaning down payments aren’t required. Likely, the best option will be VA-guaranteed fixed interest rate loans because they have the lowest interest rates around. For most mortgages, private mortgage insurance (PMI) is required if you’re not making a down payment of 20%. For a VA loan, PMI isn’t required, which saves you money up-front.

What is a Military Choice Loan?1

If you’ve previously borrowed using a VA loan or aren’t eligible, Navy Federal Credit Union offers the Military Choice Loan. This loan option offers many benefits similar to a VA loan. For starters, no down payment or PMI is required.2 In addition, with a fixed interest rate, your monthly payment will stay the same for the life of the loan. 

Not sure which loan is best for you? Your loan officer or financial institution can help you understand your eligibility.

Picking the Best Loan for Your Family

When looking at conventional (non-government) loan products, it’s important to look at interest rates, mortgage insurance, down payment and eligibility requirements. Some loans are only for Active Duty personnel and veterans, while other loans can benefit family members as well.

Regardless of your current situation, always research all your options before picking the right mortgage loan to fit your unique needs. Whether you’re currently serving or have served, from all of us at Navy Federal, we salute you!

Next Steps Next Steps

  1. If you’re looking to buy a home, and you’re wondering if you’re eligible for a VA Home Loan, check your eligibility at
  2. Figure out what kind of mortgage works best for you and your family by using our interactive mortgage match video.


1All Choice loans require a 1.00% 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.


2Product features subject to approval. Available for purchase loans only. Loans are subject to an additional funding fee, which may be financed up the max loan amount.

This content is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.