Will navy Federal finance a rebuilt title?

Will Navy Federal Finance a Rebuilt Title?

As one of the largest credit unions in the United States, Navy Federal Credit Union is known for its competitive loan rates and flexible financing options. But when it comes to financing a vehicle with a rebuilt title, things can get a bit more complicated. In this article, we’ll dive into the details and answer the question: Will Navy Federal finance a rebuilt title?

What is a Rebuilt Title?

Before we get into the specifics of Navy Federal’s policies, let’s quickly define what a rebuilt title is. A rebuilt title is a vehicle that has been previously salvaged or declared a total loss due to damage or theft. The vehicle is then repaired and restored to its original condition, and the title is updated to reflect the repairs. However, the rebuilt title is often seen as a riskier investment by lenders, as the vehicle’s history is not as clean as a vehicle with a clean title.

Navy Federal’s Policy on Rebuilt Titles

According to Navy Federal’s website, they do finance vehicles with rebuilt titles, but with some caveats. Here are the key points to consider:

• Rebuilt title vehicles are only eligible for financing if they are 10 years old or newer. This means that if the vehicle is older than 10 years, Navy Federal will not consider it for financing.
• The vehicle must have a valid inspection report. Navy Federal requires an inspection report from a licensed mechanic to verify the vehicle’s condition and ensure it meets their lending standards.
• The loan-to-value (LTV) ratio is typically lower for rebuilt title vehicles. This means that Navy Federal may require a higher down payment or a lower loan amount to account for the increased risk associated with a rebuilt title.
• Rebuilt title vehicles may be subject to additional fees. Navy Federal may charge additional fees for financing a rebuilt title vehicle, such as a higher interest rate or a processing fee.

Eligibility Criteria

To be eligible for financing a rebuilt title vehicle with Navy Federal, you’ll need to meet the following criteria:

• Credit score: Navy Federal typically requires a minimum credit score of 600 to 650 for rebuilt title financing.
• Income: You’ll need to demonstrate a stable income and a good debt-to-income ratio.
• Loan purpose: The loan must be for a primary residence or a vehicle that is used for personal or business purposes.
• Vehicle value: The vehicle must be valued at a minimum of $5,000.

Alternative Options

If Navy Federal is not willing to finance your rebuilt title vehicle, there are alternative options to consider:

• Other credit unions: Some credit unions may have more lenient policies when it comes to financing rebuilt title vehicles.
• Online lenders: Online lenders like LendingTree or Capital One may offer financing options for rebuilt title vehicles, although the interest rates and fees may be higher.
• Private lenders: You may be able to find private lenders or individuals who are willing to finance a rebuilt title vehicle, although the terms and conditions may be less favorable.

Conclusion

In conclusion, Navy Federal will finance a rebuilt title vehicle, but with certain conditions and restrictions. If you’re considering financing a rebuilt title vehicle with Navy Federal, make sure you meet the eligibility criteria and are aware of the potential fees and interest rates associated with the loan. It’s also important to shop around and explore alternative options to ensure you’re getting the best deal possible.

Table: Navy Federal’s Rebuilt Title Financing Requirements

Additional Resources

• Navy Federal Credit Union website: www.navyfederal.org
• Rebuilt title financing requirements: www.navyfederal.org/loans/vehicle-loans/rebuilt-title-vehicles
• Alternative financing options: www.lendingtree.com, www.capitalone.com