PenFed Mortgage review: how does it work and is it good?

PenFed Mortgage offers some of the best interest rates in the market. Find out if it's the right choice for you with our comprehensive review!


by Suzana Brito

Published on 02/10/2023

PenFed Mortgage: Qualify for up to $2,5K closing-cost credit!

PenFed Mortgage logo
PenFed Mortgage review! Source: The Mad Capitalist

Do you want to purchase or refinance a home? Then this PenFed Mortgage review might be what you’re looking for!

PenFed Mortgage logo

Learn to apply easily for the PenFed Mortgage

How to apply for PenFed mortgages? Follow these 5 steps! Choose from a variety of loan products! Enjoy closing-cost credits!

PenFed has different types of mortgages to choose from, from VA to conventional loans. So keep reading to understand terms, rates, fees, and down payments!

Credit Score620;
Loans OfferedVA loan, Conventional loan, FHA, Jumbo, HELOC, Fixed, Adjustable, Purchase, and Finance;
Minimum Down PaymentAs low as 3%;
APRStarting at 5.259% variable ( depending on loan type and creditworthiness);
TermsUp to 30 years.

What is the PenFed Mortgage?

PenFed, or Pentagon Federal Credit Union, is a financial institution with many financial products, such as mortgages, available to all 50 states.

Also, borrowers can access their website 24/7 and start their mortgage application there or by phone.

In addition, they offer many types of mortgages, each with its own rates and terms. Have a look!

1. Conventional loans

Good for: People with good credit scores and a low debt-income ratio.

Also, for those looking for a low down payment and the flexibility of locked or adjustable rates.

Also, PenFed has conventional fixed and adjustable rate mortgages.

  • Minimum down payment: 3%;
  • Credit score: At least 650.

2. FHA loans

Good for: First-home buyers with low cash.

  • Minimum down payment: At least 3.5%;
  • Higher debt-to-income ratio;
  • Credit score: Below 650.

3. VA loans

Happy couple making their home budget while going through financ
Learn the main details of PenFed Mortgage. Source: Freepik

Good for: Veterans, members of the military, and their spouses.

  • Minimum down payment: 0%;
  • No prepayment penalty.

Multiple personalized loan offers up to $100K

Applying won't hurt your credit score

You will be redirected to another website

4. Jumbo Loans

Good for: Borrowers who want loans of high amounts exceeding regular mortgages.

  • Credit score: Good to excellent;
  • Higher down payment.

Fees and rates

PenFed does not provide rates online, but you can fill out the information about a mortgage to receive rate information from them via email or phone call.

Is the PenFed Mortgage good?

In fact, PenFed Mortgage is good for customers that want to buy their home by accessing different mortgage options in one place.

But how to know if PenFed fits your standards? Further, analyze the advantages and disadvantages of their mortgages as follows!


  • Extensive home loan products to choose from, including government-backed and Jumbo loans;
  • Competitive rates;
  • Low down payment;
  • Qualify for a lender credit of up to $2,500 to put toward closing costs;
  • Available in all 50 states.


  • High credit score for conventional and FHA loans;
  • Lack of information on their website.

Does the PenFed Mortgage check credit scores?

PenFed will review your credit report to determine if you have sufficient funds to make regular loan payments, whether you’re refinancing or purchasing a mortgage.

Thus, you’ll need a minimum score of 650 to qualify for a conventional mortgage with this lender!

Want to apply for PenFed Mortgage? We will help you!

Now that you’ve read this post, you know exactly what PenFed Mortgages are like. Are you ready to apply for your mortgage? So read our post below!

PenFed Mortgage logo

Learn to apply easily for the PenFed Mortgage

How to apply for PenFed mortgages? Follow these 5 steps! Choose from a variety of loan products! Enjoy closing-cost credits!

About the author

Suzana Brito

I'm a Language Studies graduate and have always been interested in writing and sharing knowledge. By creating content about finances and related products, I believe in contributing to people achieving financial freedom and their goals in life.

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