Pentagon Federal Credit Union, known as PenFed, has been serving members since 1935. The institution holds approximately $29 billion in assets and serves 2.8 million members.
PenFed offers various mortgage types, including VA loans, conventional loans, and a Power Buyer option. It also provides home equity lines of credit. The credit union caps its VA loan processing fee at $995.
Membership at PenFed is open to anyone without qualification criteria, which is unique among credit unions. The institution offers 24/7 customer service with the ability to schedule specific call times.
VA loans are available for both purchase and refinancing, potentially with lower costs than conventional loans. These loans come with a flat $995 mortgage origination fee but are not available for second or investment properties.
PenFed provides educational resources including an eBook titled "Everything You Need to Know About VA Loans." The website also features a video called "10 Reasons to Consider a VA Home Loan" and various articles on the topic.
For home equity lines of credit, PenFed offers lines ranging from $25,000 to $500,000. These HELOCs have a $99 annual fee if the line of credit remains open.
According to 2024 Home Mortgage Disclosure Act data from nearly 5,000 mortgage companies, PenFed received a score of 4 out of 5 stars for mortgage rates. The credit union offered a lower-than-median mortgage rate of 6.125% to borrowers in 2024.
However, PenFed received a score of 1 out of 5 stars for total loan costs. The institution charged a much-higher-than-median total loan cost of $7,379.35 to borrowers in 2024.
The website makes mortgage application accessible to both members and non-members. Non-members can complete a basic screening questionnaire, after which PenFed contacts them.
PenFed offers various home-buyer tools including affordability calculators, mortgage payment calculators, and educational eBooks. The institution maintains a mortgage-related article library searchable by topic and product type.
When compared to Navy Federal Credit Union, PenFed's flat $995 VA loan origination fee may be advantageous for loans above $99,500. Navy Federal charges a 1% origination fee.
Navy Federal offers additional benefits including more cash back for buying through approved real estate agents and a rate match guarantee. Navy Federal also provides rate protection that allows borrowers to secure lower rates after six months for a $250 fee.
Compared to Veterans United Home Loans, PenFed offers fixed-rate VA loans and VA IRRRL loans for refinancing. Veterans United offers more VA loan options, including loans for energy-efficient home updates.