PenFed Credit Union Mortgage Review 2024

How Bankrate scored PenFed Credit Union

• Affordability: PenFed Credit Union doesn’t charge fees on mortgages, which saves you some money at closing. You won’t learn what rate you qualify for until you connect with the credit union directly, however.
• Availability: You’ll need to be a member of the credit union to apply for a mortgage, and some of its loan products have more stringent requirements compared to those of other lenders. The good news: Anyone can join through a simple online application.
• Borrower experience: If you’re in need of assistance with a mortgage (or any other product the credit union offers), PenFed representatives are available during a wide range of business hours seven days a week.

Affordability: 9.8/10

PenFed Credit Union doesn’t display daily rates online for new purchases or refinances; you’ll need to fill out a form with your personal information to get a customized rate quote. For HELOCs, however, the credit union does share variable rates based on loan-to-value (LTV) ratio and amount borrowed. One big perk: The credit union doesn’t charge any lender fees.

Availability: 9.8/10

PenFed Credit Union operates across the U.S., but you’ll need to become a member to take advantage of its products or services. These include conventional mortgages (both conforming and non-conforming), FHA loans and VA loans. To become a member, you’ll need to establish a savings account with at least a $5 balance.

Borrower experience: 8.7/10

PenFed Credit Union has served its members for decades. It isn’t accredited by the Better Business Bureau, but has received an A+ rating from the organization, albeit along with some negative feedback on the BBB website. On Trustpilot, though, PenFed has received high marks. When evaluating mortgage lenders and testimonials, take into account both the positive and negative experiences. You can apply for preapproval with PenFed Credit Union online, or submit a call-back request to talk to a loan officer. Additionally, you can share more information for a customized rate quote. The PenFed website includes a few calculators to help borrowers estimate monthly payments, along with a knowledge center of educational content for homebuyers.

How to apply for a mortgage with PenFed Credit Union

You can apply for a mortgage with PenFed Credit Union in person at a branch location, online or by phone at 800-970-7766. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with PenFed Credit Union

PenFed Credit Union offers both rate-and-term and cash-out refinancing options. The credit union can be an especially good option for military service members, veterans and eligible spouses, since it covers all closing costs on VA Interest Rate Reduction Refinance Loans (IRRRLs).

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability. Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%

  • Availability. Loan products - 50%; licensing - 40%; credit score - 10%

  • Borrower experience. Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.