VIENNA, Va. Navy FCU, which has emerged as the Washington-area’s leading mortgage lender, said this morning it is offering members 100% financing on home loans.
The credit union’s Home Buyers Choice mortgage offers 100% financing, a 30-year, fixed rate, conventional loan, and requires no private mortgage insurance.
"Home Buyers Choice has been consistent for us, well before and during the downed market, and is primed for the upswing," said Jack Gaffney , executive vice president of lending for the $55 billion credit union.
Despite the scrutiny received by no-money-down mortgages, Navy Federal says its program to be both attractive in its security of fixed rates and solid in its performance. "Overall, our default rate is lower than the national average," said Gaffney.
Currently, 53% the credit union's mortgage borrowers are first-time homebuyers who generally don't have the cash reserves to make large down payments.
The credit union experienced tremendous growth in 2012—a $10 billion closing year. In the first quarter of 2013, Navy Federal closed on $3.2 billion of new mortgages, almost double the amount for the same quarter in 2012. March originations alone stood at $1.2 billion—the highest month in the credit union's history.
