PenFed Credit Union: 2026 Home Equity Review

How Bankrate scored PenFed Credit Union

Affordability: 5 stars

PenFed scores a perfect five stars for affordability because of its low APR and out-of-pocket closing costs.

• APR: PenFed’s HELOC rate is significantly lower than Bankrate’s national average.
• Fees: The company covers most closing costs, but you will be responsible for some fees, including the cost of the appraisal. If the property is in one of seven states — Florida, Louisiana, Maryland, Minnesota, New York, Tennessee or Virginia — you may also have to pay city, county or state taxes. Aside from closing costs, be prepared to pay a $99 annual fee beginning on your loan’s first anniversary.  

Availability: 4.4 stars

PenFed scores 4.4 out of 5 stars for its national reach and ability to take fixed-rate draws. 

• Licensing: PenFed is licensed in all 50 states and Washington, D.C.
• Credit score: PenFed requires a credit score of 680 or above to qualify for a home equity line of credit — about average for home equity lenders.
• Loan minimum: PenFed’s HELOC loan minimum is $25,000, which is slightly higher than some competitors.   
• Draw requirement: None, except for Texas properties, where a minimum draw of $4,000 is required.
• Loan products: HELOCs are PenFed’s only home equity product. However, the company offers a fixed-rate HELOC conversion option, allowing borrowers to lock up to three separate fixed-rate advances at any one time.

Borrower experience: 4.3 stars

PenFed scores 4.3 out of 5 stars for its transparent rates, responsive support and fast processing times. 

• Rate transparency: PenFed visibly advertises the lowest available rate and maximum APR on its website. However, you’ll need to contact the lender for a personalized rate.
• Customer service: You can schedule a call by filling out a form on PenFed’s help center. The company also has a chat function operated by a digital assistant, with the option to connect with a live representative who promptly responds to general inquiries. You can speak to a home loan expert on the phone at 1-800-970-7766 on Monday through Friday, from 8 a.m. to 8 p.m. ET and on Saturday from 9 a.m. to 5 p.m. ET.
• Convenience: PenFed closes loans in as little as 15 days, which is a bit faster than some other home equity lenders.

PenFed Credit Union’s reputation

As of this writing, PenFed gets an A+ rating from the Better Business Bureau, but it isn’t accredited. Based on more than 200 reviews, the lender averages little more than one star. Common complaints included long application processes and misleading advertising. On Trustpilot, PenFed fares better. Out of more than 1,900 reviews, the company has a 3.8 star rating. Most reviewers reported a positive experience with PenFed, though some mentioned issues with the loan process and payments.  

• Methodology

  To determine a home equity 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%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 35%; convenience - 35%; customer service - 20%; fixed-rate options - 10%

  Learn more about our methodology.