Processing times are currently estimated to take 45 to 55 calendar days to close on a new home equity loan or home equity line of credit (HELOC) once we receive your application. Processing times may vary if an appraisal or additional documentation is needed.
Compare the different types of home equity loans, including HELOCs, and select the one that's right for you. This is also a good time to review the offers and benefits associated with our loans.
Apply for a home equity loan or HELOC online or by giving us a call at 1-888-842-6328. A Processor will be assigned to review your application and will contact you to discuss the details within 3 business days.
After you submit your home equity loan or HELOC application, your Processor will send you instructions on how to sign and return important loan documents.
Once your initial documents are signed and received, we'll begin the home equity loan or HELOC approval process. This involves 4 steps:
We’ll review your credit history and income. You may be asked to send additional documents to help us verify the information provided on your application. Your Processor will notify you once a credit decision has been reached.
There are several property valuation methods available, and your Processor will explain the benefits and costs associated with each. Once the value of your home has been determined, your Processor will send you a copy of the home valuation report. Your Processor will use your home’s value to calculate the loan-to-value ratio (LTV) and combined loan-to-value ratio (CLTV), which may impact your interest rate.
Your Processor will perform final verifications, communicate when your application is approved and schedule your loan closing.
Some states require closings with an attorney. Your home equity loan or HELOC will be funded shortly.
Once the home equity loan or HELOC process is complete, Navy Federal provides servicing for the life of your loan. Our stateside member reps are available to answer your questions.
Have questions? Call our Mortgage and Equity Line at 1-888-842-6328 (Monday to Saturday, 7 am to midnight EST, and Sunday, 9 am to midnight EST).
In a home equity loan, the homeowner borrows against the equity in their home—which is the value of the home minus any amounts still owed on mortgages on the home. The funds are dispersed in a single lump sum, which is paid back over time through fixed monthly installments.
Navy Federal allows homeowners to borrow up to 100% of their home’s equity, though this amount may vary depending on the amount of equity in the home and other factors. These factors include the homeowner’s credit history and income, and the property’s loan-to-value (LTV) ratio—the total amount of mortgages or other liens on the property divided by its market value.
Home equity loans may also be called a second mortgage, equity loan or home equity installment loan. Footnote 1
In a HELOC, the homeowner borrows against the equity in their home—which is the value of the home minus any amounts still owed on mortgages on the home. The homeowner borrows money as they need it up to a maximum credit limit. The funds are paid back over time in monthly installments.
Technically, there are no stipulations for what a home equity loan or HELOC may be used for. Many homeowners use the funds for home renovations, large purchases, education or medical expenses.
Processing times are currently estimated to take 45 to 55 calendar days to close on a new home equity loan or HELOC once we receive your application. Processing times may vary if an appraisal or additional documentation is needed.