Home Equity HELOCs PenFed Home Equity Review 2026: Solid Credit Union HELOC Option With Low Fees 2 people contribute to this content Written by Taylor Milam-Samuel Written by Taylor Milam-Samuel Expertise: Student loans, debt, budgeting, tax relief, home equity, personal loans, auto loans Taylor Milam-Samuel is a personal finance writer and credentialed educator who is passionate about helping people take control of their finances and create a life they love. When she's not researching financial terms and conditions, she can be found in the classroom teaching. Learn more about Taylor Milam-Samuel Edited by Amanda Hankel Edited by Amanda Hankel Expertise: Writing, editing, digital publishing 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. Learn more about Amanda Hankel Written by Taylor Milam-Samuel Written by Taylor Milam-Samuel Expertise: Student loans, debt, budgeting, tax relief, home equity, personal loans, auto loans Taylor Milam-Samuel is a personal finance writer and credentialed educator who is passionate about helping people take control of their finances and create a life they love. When she's not researching financial terms and conditions, she can be found in the classroom teaching. Learn more about Taylor Milam-Samuel Edited by Amanda Hankel Edited by Amanda Hankel Expertise: Writing, editing, digital publishing 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. Learn more about Amanda Hankel show more Jan 15, 2026 3.8 /5 View Rates Our take: PenFed Credit Union is one of the best credit unions for HELOCs. The process is fast, rates are competitive, and PenFed’s generous closing cost credit keeps fees low. But you need a credit score of at least 680 to qualify, and customer reviews are hit-or-miss. Our PenFed home equity review can help you decide if it’s the right fit. Home Equity Line of Credit Closing cost credit for $0 fees Express program with 15-day closing Fixed-rate options $99 annual fee Mixed customer reviews Limited repayment terms Variable rates (APR)6.625%Funding amounts$25,000 – $500,000Repayment termsDraw: 10 years / Repayment: 20 yearsMin. credit score680Max. LTV85% in most statesFees$99 annual fee, $500-$8,500 closing cost (credit available), $550-$850 appraisal feeCustomer ratings3.7/5 Trustpilot Table of Contents How do PenFed HELOCs work? PenFed HELOC features Closing in as few as 15 days Low rates Free eBook Fixed rate advance lock-in PenFed HELOC eligibility requirements PenFed Mortgage Refi Rate-and-Term Refinance Cash-Out Refinance VA Refinance Is PenFed home equity legit? Customer reviews and ratings PenFed vs. Figure How we rated PenFed How do PenFed HELOCs work? PenFed home equity lines of credit are available for members with solid credit scores. You can borrow up to $500,000 with a 10-year draw period and a 20-year repayment period. Even though you can’t choose the repayment term, PenFed’s home equity line of credit offers other types of flexibility, including fixed-rate advance lock-in and no closing fees. Tip: PenFed home equity loans aren’t an option. Check out our top picks for home equity loans if you’re looking for a loan instead of a HELOC. PenFed HELOC features Here’s a look at the unique features you can expect with a PenFed home equity line of credit. Closing in as few as 15 days You can access your line of credit even faster with PenFed’s HELOC Express Program. When you provide income, credit, and property documents within three business days, you can close in 15 days. Low rates Current rates start at 6.875%. You need a high credit score to qualify, but it’s one of the best rates if you can get it. PenFed’s APR is comparable to current mortgage rates, which is rare for other types of loans. Free eBook PenFed offers a free eBook to help you learn more about HELOCs. You can download it directly from the credit union’s HELOC webpage without providing any contact information. It’s easy to read and takes only a few minutes. Fixed rate advance lock-in You can lock in a fixed-rate APR during the draw period for up to 3 fixed-rate advances at a time. It’s helpful to have the option, especially if you prefer consistent monthly payments that don’t change. PenFed HELOC eligibility requirements You must meet the following eligibility requirements to qualify for a HELOC from PenFed. RequirementDetailsMembershipOpen an account and deposit $5 Eligible propertiesHouse, condo, and properties with fewer than four unitsState of residence Available in all 50 statesMin. credit score680 PenFed Mortgage Refi PenFed home equity loans aren’t available, but you can refinance an existing mortgage with the credit union. Tip: If you’re shopping for a first mortgage, you might want to consider a PenFed mortgage. The credit union offers straightforward financing with low rates. Rate-and-Term Refinance You can change your rate and term with this refinance option. PenFed’s current refinance rates start at 5.68% APR. Cash-Out Refinance PenFed’s cash-out refinance lets you expedite closing and finalize the loan up to a week faster with the Fast Pass program. VA Refinance PenFed offers the VA Streamline Refinance and the VA Cash-Out Refinance. Both offer low rates and other money-saving perks, like no fees. Is PenFed home equity legit? Customer reviews and ratings SourceRatingNumber of reviewsTrustpilot3.7/51,960Better Business Bureau (BBB)1.18/5201Google4.6/58,359Data collected Jan. 25, 2026 Here’s the bottom line What it does well: Most customer reviews mention that PenFed has helpful representatives and competitive rates. Borrowers are also happy with other money-saving perks, such as no closing costs. Where to be cautious: Some customers report that PenFed has excessive document requirements for loans, and that it takes too long to upload everything. Borrowers also say appraisals aren’t always accurate, which impacts loan amounts. The biggest takeaway is that you might want to skip the drive-by appraisal option and pay for a full appraisal instead. PenFed home equity pros and cons Pros Closing cost credit for $0 fees Members don’t have to pay any closing costs, helping you save up to $8,500. Borrowers in a handful of states are responsible for city, county, and state taxes. Express program with 15-day closing You can close within 15 days if you opt for PenFed’s Express Program. It’s much quicker than the typical HELOC timeline of two to six weeks. Fixed rate options You can lock in a fixed APR during the draw period for extra stability during repayment. Cons $99 annual fee PenFed charges a $99 annual fee. You’re also responsible for the appraisal fee if the credit union can’t appraise your house through an independent method. Mixed customer reviews PenFed has hit-or-miss reviews from borrowers. Most people appreciate the low rates, but many reviewers mention that the documentation requirements are over the top. Limited repayment terms PenFed offers a 10-year draw and a 20-year repayment term. It’s the only option. How PenFed home equity compares to other lenders If PenFed isn’t the right option, take a look at the best HELOC lenders. Best Overall 4.9 View Rates View Rates Rates (APR) 6.70% – 14.65% Loan Amounts $20K – $400K Terms 5 yr. draw / 5, 10, 15, or 20 yr. repayment Min. Credit Score 640 4.9 View Rates Best Customer Reviews 4.8 View Rates View Rates Rates (APR) 6.99% – 15.49% Loan Amounts $5K – $250K Terms 5 yr. draw / 5, 10, 15, or 30 yr repayment Min. Credit Score 640 4.8 View Rates Best for Fast Funding + No Minimum Draw 4.4 View Rates View Rates Rates (APR) 5.99% – 14.24% Loan Amounts $10K – $100K Terms 25 yr. draw / 30 yr. loan Min. Credit Score 640 4.4 View Rates PenFed vs. Figure PenFed’s closing timeline is faster than average, but Figure’s is even shorter. Once you apply, the lending decision takes only a few minutes, and you can get the funds in as little as five days. Rates are low and fixed. It’s a winning combination that makes it our top pick. PenFed vs. Aven Aven stands out with a Lowest Rate Guarantee, fixed rates, and fast approval. You won’t pay closing costs or origination fees, but you’re responsible for a hefty 4.90% first-time draw fee. PenFed doesn’t charge a similar fee, making it a cheaper option for most borrowers. PenFed vs. Trovy Trovy is a HELOC, but it recreates the user experience of a credit card, making it an excellent option for first-time borrowers. However, Trovy’s borrowing limit of $100,000 is much lower than PenFed’s maximum of $500,000. How we rated PenFed We designed LendEDU’s editorial rating system to help readers find companies that offer the best home equity products. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms. We compared PenFed to several home equity lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating, recapped below. 3.8 View Rates View Rates Rates (APR) 6.625% Funding Amounts $25K – $500K Terms Draw: 10 years / Repayment: 20 years Min. Credit Score 680 3.8 View Rates About our contributors Written by Taylor Milam-Samuel Taylor Milam-Samuel is a personal finance writer and credentialed educator who is passionate about helping people take control of their finances and create a life they love. When she's not researching financial terms and conditions, she can be found in the classroom teaching. 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.