PenFed Mortgage Rating | The climb

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Top perks

Value of the cash offer

PenFed offers a mortgage program called Power Buyer Loans. It is a fully signed pre-approval that results in a 60-day loan approval, provided that your details do not change materially before closing. There is also a sales component to help you free up assets so that you don’t have to make offers that are dependent on your current home being sold. PenFed allows you to tap equity to make a cash offer on the home you want to buy. The power buyer loan has a 60-day interest freeze. The tariff block can be extended for a further 30 days for a fee.

Home loan with low down payment

PenFed offers several ways to get a mortgage with little or no down payment. Those who qualify for a VA loan do not have to pay a down payment at all. Low- and middle-income borrowers can get a 3% discount mortgage. Other borrowers can take out a mortgage with a 5% discount.

VA loan professionals

PenFed has decades of experience serving the global military community.

Membership benefits

As a member of the PenFed Credit Union, you can take advantage of all the benefits they offer. Here are just a few examples:

  • Car purchase service with free Carfax and TrueCar reports
  • Discounts on car insurance
  • Rental car discounts
  • Car maintenance discounts
  • Tax preparation software discounts
  • Discounts on home insurance
  • Cellular service discounts

Price quotation tool and very low prices

PenFed is an industry leader when it comes to low mortgage rates. When you’re ready to enter your email address, PenFed’s handy tariff tool can help you find out what tariff you might be eligible for based on the information you provided. You can use this tool to play around with your creditworthiness and down payment amount to see how those details could affect your eligibility. This can help you decide whether it is worth waiting a few months while trying to improve those numbers before applying.

Price lock

PenFed’s pre-approval comes with a 60-day installment ban. If you need more time, you can extend the tariff lock once (for a fee) for 30 days.

Financial grants

For borrowers getting a home loan purchase, PenFed offers $ 500 to $ 2,500 in loans, depending on the size of the loan. Not all loans are eligible, so inquire about them before applying.

When we checked, PenFed also offered all new refinance applicants a final loan of $ 500. This offer may expire, but other bonus offers will appear from time to time.

What could be improved

Just for members

You must be a PenFed member to take out a mortgage there. This means that you must at least have a savings account with the credit union. This could be inconvenient if you don’t want to open a new bank account. On the positive side, however, the minimum opening balance is only $ 5 and there is no monthly maintenance fee.

No downward float

The PenFed’s interest rate lock is not floating down. If interest rates go down before you finalize your loan, you will have to pay a fee to get the lower interest rate.


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