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PenFed Credit Union Mortgage Review 2024

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At a glance

PenFed Credit Union
NMLS: 401822
Editor's take

Don’t let the term “credit union” deter you: Anyone can join PenFed Credit Union and take advantage of its banking and lending products and services, including mortgages. PenFed is especially worth considering if you’re looking for a new VA loan or to refinance your current VA loan.

Bankrate Score
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4.7
Rating: 4.7 stars out of 5
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Customer Rating
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5.0
Rating: 5 stars out of 5

1 ratings

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, refinancing and more

Credit Good

Min. credit score required

650 for conventional loans, 700 for jumbo loans, 620 for FHA loans, 620 for ARMs, 660 for HELOCs

Location

Nationwide availability

All U.S. states

Dollar Coin

Min. down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans

At a glance

PenFed Credit Union

NMLS: 401822

4.7

Rating: 4.7 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, refinancing and more

Location

Nationwide Availability

All U.S. states

Credit Good

Min. credit score required

650 for conventional loans, 700 for jumbo loans, 620 for FHA loans, 620 for ARMs, 660 for HELOCs

PenFed Credit Union overview

PenFed Credit Union is the second-largest credit union in the U.S. and works with 2.9 million members worldwide. If you’re a member of the credit union and qualify for a mortgage, you can get preapproved online. Notably, you won’t have to pay any lender fees. (PenFed also offers lender credits up to $2,500, depending on the size of the loan.) If you’re a first-time homebuyer, you might qualify for a low-down payment loan or the First Time Home Buyer Advantage program, which rewards you with $500 when you make your 60th on-time loan payment.

Pros and cons of PenFed Credit Union

Pros
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    No lender fees

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    Offers lender credits up to $2,500

Cons
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    Higher minimum credit score requirements

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    No USDA loans

Our Editor’s Take on PenFed Credit Union

Don’t let the term “credit union” deter you: Anyone can join PenFed Credit Union and take advantage of its banking and lending products and services, including mortgages. PenFed is especially worth considering if you’re looking for a new VA loan or to refinance your current VA loan.

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).

Compare PenFed Credit Union to other lenders

PenFed Credit Union
Rating: 4.7 stars out of 5
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4.7

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Old National Bank
Rating: 4.6 stars out of 5
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4.6

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Read full review
Veterans United Home Loans
Rating: 4.9 stars out of 5
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4.9

Bankrate Score
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Read full review

Loans offered

Conventional, jumbo, FHA, VA, refinancing and more

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing

Min. credit score required

650 for conventional loans, 700 for jumbo loans, 620 for FHA loans, 620 for ARMs, 660 for HELOCs

Min. credit score required

620 for conventional loans, 640 for FHA loans, 680 for VA loans

Min. credit score required

620 for conventional loans, 620 for VA loans

Down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans

Down payment

Undisclosed

Down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans

Nationwide availability

All U.S. states

Nationwide availability

All U.S. states

Nationwide availability

All U.S. states

PenFed Credit Union customer ratings and reviews

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NMLS: 401822

5.0

Rating: 5 stars out of 5

1 ratings

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This lender has 0 recent reviews.

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Level of service
Rating: 5 stars out of 5
Professionalism
Rating: 5 stars out of 5
Responsiveness
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100% of customers would recommend this lender.