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  1. Step 1

    Understand Your Timeline

    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.

  2. Step 2

    Choose a Loan Type

    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.

  3. Step 3

    Gather Your Information

    Here's what you'll need to apply for a home equity loan or HELOC:

    • Estimated value of the property
    • Navy Federal savings and/or checking account number
    • Gross (before taxes and other deductions) monthly income
    • Current tax, homeowners association or condominium dues, insurance and lien information (balance, monthly payment and mortgage company/lien holder name) for all real estate owned
    • Original purchase price and purchase date of property
    • Date home was built
    • Information on any liens you wish to pay off (company/lien holder name, balance, monthly payment)

  4. Step 4

    Complete and Submit Your Home Equity Loan or HELOC Application

    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.

  5. Step 5

    Send Your Documents

    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.

  6. Step 6

    Get Approved

    Once your initial documents are signed and received, we'll begin the home equity loan or HELOC approval process. This involves 4 steps:

    Initial Credit Approval

    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.

    Home Valuation

    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.

    Title Approval

    Your Processor will order a title report to document the ownership of your property.

    Final Approval

    Your Processor will perform final verifications, communicate when your application is approved and schedule your loan closing.

  7. Step 7

    Close on Your Loan

    You'll have 3 convenient closing options:

    • Traditional in-person closing with paper documents that you sign in ink
    • RON eClosing where you electronically sign all your documents
    • Hybrid eClosing where you electronically sign most of your documents on your closing date, then meet with your Notary to complete the process

    Some states require closings with an attorney. Your home equity loan or HELOC will be funded shortly.

  8. Step 8

    Enjoy Support

    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).

Frequently Asked Questions

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.

Pros:

  • Access to funds after a 3-business-day waiting period on a primary residence
  • No restrictions on how the funds may be used
  • Longer terms compared with unsecured personal loans

Cons:

  • Second mortgage that will need to be paid off in addition to current mortgage
  • Risk of foreclosure should the homeowner default on the loan

Disclosures

1

Product features subject to approval, which is based on an evaluation of credit history, CLTV (combined loan-to-value) ratio, loan amount, line amount, and occupancy.

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