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PenFed Credit Union Mortgage Review 2023

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At a glance

PenFed Credit Union
NMLS: 401822
Editor's take

PenFed Credit Union is good for borrowers who want to avoid lender fees and want to join a credit union, especially for borrowers with VA loans who want to refinance.

Bankrate Score
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4.2
Rating: 4.2 stars out of 5
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Customer Rating
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This lender has 0 reviews.
Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity line of credit (HELOC)

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

Available in all U.S. states

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Min. down payment

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

At a glance

PenFed Credit Union

NMLS: 401822

4.2

Rating: 4.2 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity line of credit (HELOC)

Location

Nationwide Availability

Available in 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 has been around since 1935. Today, the credit union is the second-largest in the U.S. and serves 2.8 million members worldwide. If you’re a member of the credit union and qualify for a mortgage, you can get preapproved online and won’t have to pay any lender fees. PenFed also offers lender credits up to $2,500, depending on the size of the loan. For first-time homebuyers, PenFed offers a few notable options, including low-down payment loans and the First Time Home Buyer Advantage program, which rewards borrowers with $500 when they make their 60th on-time loan payment.

Pros and cons of PenFed Credit Union

Pros
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    Doesn’t charge lender fees

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    Offers lender credits up to $2,500

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    Covers closing costs (including funding fee) on VA IRRRLs

Cons
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    No USDA loans

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    Must complete a form with your information to get a rate estimate online

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    Higher minimum credit score requirements

Our Editor’s Take on PenFed Credit Union

PenFed Credit Union is good for borrowers who want to avoid lender fees and want to join a credit union, especially for borrowers with VA loans who want to refinance.

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.

  • Borrower experience: If you’re in need of assistance with a mortgage (or any other product the credit union offers), PenFed has a wide range of business hours seven days a week.

Affordability: 3/5

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. Notably, the credit union doesn’t charge any lender fees.

Availability: 4.5/5

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: 5/5

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 you can 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.

Refinancing with PenFed Credit Union

You can refinance your mortgage with PenFed Credit Union, but the credit union doesn’t post refi rates online. 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).

PenFed Credit Union customer ratings and reviews

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NMLS: 401822

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