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Mortgages

PenFed Mortgage Review 2025: Credit Union Rates, Requirements, and Programs

Our take: PenFed stands out for competitive rates, fast closings, and strong options for both homebuyers and refinancers—especially veterans. While membership is required and loan types are somewhat limited, it’s a solid choice if you want straightforward financing from a trusted credit union.

Purchase Mortgages
  • Offers conventional, FHA, VA, and jumbo purchase mortgage options
  • Affordable mortgage rates
  • Very Important Buyer program
  • Househappy concierge service
  • Also a full-service bank
  • Credit union membership open to anyone
  • Products available to help you buy a home, access home equity, and sell your home
  • Low ratings on review websites
  • Doesn’t offer USDA loans or construction loans
  • Must join the credit union to receive an approved loan
  • Adjustable-rate option not available for VA and FHA loans
Rates (APR)Starting from 5.939%
Loan amounts$50,000 to $806,500 (up to $1,209,750 in high-cost-of-living areas, depending on local FHFA loan limits)
Repayment terms10, 15, 20, or 30 years
Rates and terms based on conventional mortgage as of Oct. 2025
Refinance mortgages
  • Fast closing times for conventional refis
  • Competitive rates for both VA and conventional loans
  • Streamlined process with strong online and mobile support
  • Option to refinance up to $3 million for VA loans
  • Limited refinance selection (no FHA, USDA, or adjustable-rate refis)
  • Membership required before funding
  • Few details about lender fees and closing costs online
Rates (APR)Starting from 5.939%
Term lengths10, 15, 20, or 30 years
Loan amountsN/A
Rates and terms based on conventional refi
Table of Contents

About PenFed Credit Union mortgages

PenFed Credit Union is one of the nation’s largest credit unions, offering competitive conventional, FHA, VA, and jumbo mortgage options through an easy online process. Its member benefits—like closing cost credits and the HappyHouse concierge service—add extra value for homeowners.

PenFed also offers a home equity line of credit (HELOC), giving borrowers a flexible way to access their home’s equity for projects, debt payoff, or other major expenses.

PenFed Credit Union mortgage types

Conventional loan


Rates (APR)Starting from 5.939%
Term lengths10, 15, 20, or 30 years
Loan amounts$50,000 – $806,500 (up to $1,209,750 in high-cost-of-living areas, depending on local FHFA loan limits)
Rates as of Oct. 2025

What to know

PenFed allows buyers to make a down payment of as little as 3% on conventional mortgages, but be aware you’ll owe private mortgage insurance (PMI) if you put less than 20% down. Choose from fixed or adjustable rates.

Read more about top-rated mortgage lenders according to our research.

FHA loan


Rates (APR)Starting from 6.124%
Term lengths15 or 30 years
Loan amounts$524,225 – $1,209,750, depending on local FHA loan limits
Rates as of Oct. 2025

What to know

If you’re not able to qualify for a conventional loan, PenFed also offers fixed-rate FHA loans.

Check out our resources on FHA loans: guide, loan requirements, and best lenders.

VA loan


Rates (APR)Starting from 5.53%
Term lengths15 or 30 years
Loan amounts$50,000 – $3,000,000 (higher rates for loans over $806,500)
Rates as of Oct. 2025

What to know

During the 2024 fiscal year, PenFed issued 1,524 VA loans to buy a home, according to public data from the Department of Veterans Affairs. That’s nearly 130 loans per month. Currently, PenFed only offers VA loans in a fixed-rate option.

Read about the best VA loan lenders

Jumbo loan


Rates (APR)Starting from 6.121%
Term lengths10, 15, 20, or 30 years
Loan amounts$806,501 – $3,000,000
Rates as of Oct. 2025

What to know

If you’re buying a more expensive home, PenFed has you covered—but you’ll need to bring a larger down payment to the table: at least 10.01%. That’s at least $80,730.75 for a minimum down payment on the smallest jumbo loan.

Read out jumbo loan guide and more about the best jumbo loan lenders.

PenFed mortgage refinancing

Mortgage refinance loan


Rates (APR)Starting from 5.939%
Term lengths10, 15, 20, or 30 years
Loan amountsN/A
Rates as of Oct. 2025

What to know

PenFed offers quick closing for its mortgage refis; up to a week earlier, according to the lender.

VA refinance loan


Rates (APR)Starting from 5.683%
Term lengths15 or 30 years
Loan amountsUp to $3 million
Rates as of Oct. 2025

What to know

PenFed does a smaller volume of VA loan refinances. During the 2024 fiscal year, it underwrote a total of 174 VA cash-out refis and 108 VA Interest Rate Reduction Refinance Loans (IRRRLS), also known as streamlined VA refi loans. 

Other mortgage features

PenFed Power Buyer

Although PenFed markets its “Power Buyer” program as a unique feature, it’s really an umbrella term for a suite of basic services that mortgage lenders offer: preapproval for a loan, and a rate lock to keep your rate from rising if they go up while you find a home. 

Your preapproval and rate lock expire after 60 days, which is fairly typical among lenders. That said, you’ll need to find a home within 30 days in order to close before the rate lock expires. You can contact PenFed mortgage customer service to extend it by 30 more days if that doesn’t happen—for a fee, of course. 

PenFed Home/Very Important Buyer Program

If you’re comfortable limiting yourself to a real estate agent through one of PenFed’s partner companies, you could qualify for a few handy benefits. First, PenFed may provide a credit toward your closing costs, typically around $2,300. If you refinance within three years, PenFed may also waive those closing costs. 

Some homeowners may also qualify for special benefits when selling their home, although PenFed doesn’t describe this program quite as well. PenFed could help arrange a faster offer on your home, for example, or arrange a lease-back option if you’re looking to move in the future. 

HappyHouse concierge service

PenFed’s HappyHouse concierge service, powered by Househappy, gives credit union members a personal home-maintenance assistant right inside the PenFed app.

It connects users with vetted contractors for repairs, renovations, and seasonal upkeep while helping them track service history and store home details like paint colors and appliance info. The goal is to simplify homeownership by providing trusted help and ongoing maintenance reminders, whether or not your mortgage is with PenFed.

Eligibility requirements

PenFed has fairly typical requirements compared to other mortgage lenders:

RequirementDetails
Minimum credit score620
Maximum debt-to-income ratio50%
Credit union membershipRequired for approved loans
Minimum down paymentVA loans: 0%
Conventional loans: 3%
FHA loans: 3.5%
Jumbo loans: 10.01%

If you’re fairly confident that you can meet PenFed’s mortgage requirements, we’d recommend reaching out to get preapproved. You’ll work with a mortgage lender through the PenFed mortgage portal online to complete your loan application.

Customer reviews and ratings

PenFed doesn’t have the greatest all-around ratings on independent review platforms. It’s also received 60 mortgage-related complaints in the past year filed with the Consumer Financial Protection Bureau.

Its mobile app is received quite well by customers, though—an especially important point for a digital-first bank.

PlatformRatingNumber of reviews
Yelp1.7/5297
TrustPilot3.8/51,887
Better Business Bureau (BBB)1.18/5205
App Store4.8/534,800
Google Play4.5/532,100
Data collected Oct. 24, 2025

PenFed vs. other mortgage lenders

PenFed offers a robust mortgage program, but it’s important to shop around—especially when it comes to your home loan. Just a few percentage points in your interest rate can make a huge difference when it comes to how much house you can afford.

Best Close-on-Time Guarantee
Loan types
Conventional, jumbo, FHA, VA, Refi
Repayment terms
10-, 15-, 20-, 30-year fixed
4.8
Best Mortgage Options
Loan types
Conventional options, FHA, VA, adjustable, jumbo, refinance
Repayment terms
Up to 30 years
4.6
Best for Military Members
Loan types
VA, Military Choice, fixed, Homebuyers Choice, adjustable, jumbo, refinance
Repayment terms
10 – 30 years
4.2

PenFed vs. SoFi

SoFi is a strong competitor with PenFed’s mortgage program, offering a $10,000 guarantee to close on time and up to $9,500 cash back for using its partner real estate agent network. It’s not as open as PenFed about the rates it charges, however. 

PenFed vs. Rocket Mortgage

Rocket Mortgage charges higher rates than PenFed, but it offers more loan types, too. Choose from adjustable-rate options for its VA or FHA loans, or a mortgage for first-time homebuyers with as little as 1% down.

PenFed vs. Navy Federal Credit Union

Navy Federal is only open to people associated with the military. It currently charges less than PenFed’s mortgage rates, and it was voted as one of the top mortgage originators in last year’s J.D. Power lender survey.   

Recap of PenFed mortgages and refinance

Company Mortgage types
Conventional, FHA, VA, and jumbo purchase mortgage
Mortgage and VA refinancing
Article sources

At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.

About our contributors

  • Lindsay VanSomeren
    Written by Lindsay VanSomeren

    Lindsay VanSomeren is a personal finance writer living in Suquamish, Washington. She's passionate about helping people manage their money better so that they can live the life they want. In her spare time, she enjoys outdoor adventures, reading, and learning new languages and hobbies.

  • Amanda Hankel
    Edited by Amanda Hankel

    Amanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.