PenFed Credit Union Mortgage Review 2026

PenFed Credit Union overview

Founded in 1935, PenFed Credit Union is one of the largest credit unions in the U.S. with 2.9 million members worldwide. It has branch locations throughout the country and a few internationally, near U.S. military installations.  

Pros and cons of PenFed Credit Union

How Bankrate scored PenFed Credit Union

Affordability: 5 stars

PenFed Credit Union gets a perfect score for affordability thanks to lower rates and a transparent fee structure.

• Interest rates: PenFed Credit Union’s mortgage rates were lower than Bankrate’s averages at the time of writing.
• Down payment: PenFed low- or no-down-payment government-backed loans, as well as a 3-percent-down loan for first-time buyers with no income limit.
• Closing costs: PenFed charges a 1 percent origination fee for most of its loan types, with a maximum charge of $1995. 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. If you become a member of PenFed’s Very Important Buyer program, you could save an average of $2,300 in closing costs, according to the lender.

Availability: 5 stars

PenFed Credit Union earned high marks for availability thanks to its wide reach. Becoming a member is relatively easy, too — simply open an account and deposit a minimum of $5.

• Home loans offered: PenFed Credit Union offers conventional and FHA loans, as well as jumbo loans — but it’s noted as a VA lender. It also offers VA refinancing options that can be tough to find elsewhere.
• Footprint: PenFed lends nationwide.
• Where to find: You can apply for a mortgage with PenFed Credit Union online or by phone. Though the lender has branch locations, you can’t apply for a mortgage at one. 

Borrower experience: 4.5 stars

PenFed offers a fairly streamlined preapproval and application process and it tends to rate highly for customer service. It gets high marks 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 shares sample rates on its website, but you have to contact the lender for a personalized quote. Some lenders offer this option on their websites.
• Customer service: You can reach PenFed’s customer service team at 833-360-1305 Monday through Friday from 8 a.m. to 8 p.m. ET and 9 a.m. to 5 p.m. ET on Saturday.

PenFed Credit Union reputation

PenFed Credit Union has a “great” rating on Trustpilot at the time of this review and an A+ rating from the Better Business Bureau,

• 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.