PenFed Credit Union Mortgage Review 2025

PenFed Credit Union overview

PenFed Credit Union is the third-largest credit union in the U.S., with 2.9 million members worldwide. On the mortgage front, PenFed offers several savings opportunities for homebuyers, including the 3 percent First Time Home Buyer Advantage loan with no income limits; and up to $1,500 in closing cost credits through its affiliate real estate agent program.

Pros and cons of PenFed Credit Union

How Bankrate scored PenFed Credit Union

Affordability: 5/5

PenFed Credit Union scores the full 5 out of 5 stars for affordability thanks to lower rates and a transparent fee structure.

• Interest rates: PenFed Credit Union displays promotional mortgage rates on its website. As with other credit unions, these rates tend to be competitive against Bankrate’s averages.
• Down payment: PenFed offers 3 percent conventional loans, 3.5 percent FHA loans and no-down payment VA loans. 
• Closing costs: PenFed charges a 1 percent origination fee for most of its loan types, with the fee capped at $5,000. VA loans come with a flat origination fee of $995. Generally, you’ll also be responsible for closing costs like an appraisal, recording and title services fees.

Availability: 4.9/5

We scored PenFed Credit Union 4.9 out of 5 stars for availability. The credit union operates across the U.S., and becoming a member is relatively easy — simply open an account and deposit a minimum of $5.

• Home loans offered: PenFed Credit Union offers conventional, FHA and VA loans, as well as jumbo loans and refinancing. 
• Footprint: PenFed operates nationwide, with branch locations primarily concentrated around Washington, D.C.
• Where to find: You can apply for a mortgage with PenFed Credit Union online, by phone or in person at a branch location.

Borrower experience: 4.6/5

PenFed offers a fairly streamlined preapproval and application process and it tends to rate highly for customer service. We scored the credit union 4.6 out of 5 stars for borrower experience.

• Preapproval and application process: If you’re eligible, you can obtain a mortgage preapproval from PenFed online, including the option for a Power Buyer certification, a 60-day preapproval that can help your offer stand out against cash buyers. You don’t need to become a member of the credit union to start evaluating your options, however: PenFed allows guests to apply. If you go far enough in the process, you’ll eventually join as a member. If you’re already a member, PenFed auto-fills your information into an online application.
• Transparency: PenFed showcases some interest rates and fees on its website, but you won’t know your specific estimated costs until you get a personalized quote.
• Customer service: You can reach PenFed’s customer service team at 724-473-6333 Monday through Saturday from 8 a.m. to 8 p.m. ET.

PenFed Credit Union reputation

PenFed Credit Union has a “great” rating on Trustpilot (at the time of this review). The credit union has lower marks on the Better Business Bureau, however.

PenFed Credit Union special offers

Lock While You Shop program

The Lock While You Shop program allows you to lock in your interest rate with PenFed for up to 60 days, with the ability to extend an additional 30 days. Note that this is only an option if you’re also obtaining the Power Buyer certification.

PenFed Homes program

The PenFed Homes program can connect you with a partner real estate agent to either help you buy or sell a home. If you’re buying, you might be eligible for up to $1,500 in closing cost credits, as well.

Refinancing with PenFed Credit Union

PenFed Credit Union offers rate-and-term and cash-out refinancing options, allowing you to lower your rate, change your loan length or tap your equity.  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).

How to apply for a mortgage with PenFed Credit Union

You can apply for a mortgage with PenFed Credit Union online, by phone at 855-494-3736 or in person at a branch location.

• 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 - 35%; customer service - 35%; convenience - 20%; rate locks - 10%; reputation (if applicable)

  Learn more about our methodology.