PenFed operates in all 50 states and in Washington, DC as well as Guam, Puerto Rico and Okinawa. While PenFed was originally intended for the US military, anyone can join the credit union simply by opening and funding a savings account with $5, which acts as your member-owner share.
Note that PenFed interest rates on mortgages are above the national average. However, a slightly higher rate might be worth it if you’re looking to work with a nonprofit credit union, want to save money on lender fees, or get up to $2 credit from the lender. $500 (depending on your loan amount) on a mortgage purchase. .
Also keep in mind that while you don’t need to be a PenFed member to apply for a mortgage, you will need to join the credit union if you are approved and want to take the loan.
Types of loan
PenFed offers a variety of mortgage products, including options for first-time home buyers as well as borrowers with less than stellar credit. Here are the types of fixed rate loans available through PenFed:
PenFed also offers variable rate options including:
Although FHA and VA loans are available through PenFed, borrowers interested in loans backed by the United States Department of Agriculture (USDA) should consider other lenders. Also, while PenFed offers refinance for VA loans, it does not offer it for FHA loans.
PenFed loans start at $50,000 for first mortgages, which is useful if you’re looking for a small mortgage to buy a cheaper home. The minimum line of credit for a PenFed HELOC is $25,000.
You can borrow up to $5 million with a jumbo loan. Although this is a relatively high limit, other lenders provide larger loans.
Unlike some lenders, PenFed manages its own mortgages. This means that you will make your payments and can address your questions directly to PenFed.