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 – $500,000 |
| Repayment terms | Draw: 10 years / Repayment: 20 years |
| Min. credit score | 680 |
| Max. LTV | 85% in most states |
| Fees | $99 annual fee, $500-$8,500 closing cost (credit available), $550-$850 appraisal fee |
| Customer ratings | 3.7/5 Trustpilot |
Table of Contents
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.
| Requirement | Details |
| Membership | Open an account and deposit $5 |
| Eligible properties | House, condo, and properties with fewer than four units |
| State of residence | Available in all 50 states |
| Min. credit score | 680 |
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
| Source | Rating | Number of reviews |
| Trustpilot | 3.7/5 | 1,960 |
| Better Business Bureau (BBB) | 1.18/5 | 201 |
| 4.6/5 | 8,359 |
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
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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.
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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.
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Fixed rate options
You can lock in a fixed APR during the draw period for extra stability during repayment.
Cons
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$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.
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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.
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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.
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.
About our contributors
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Written by Taylor Milam-SamuelTaylor 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.
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Edited by Amanda HankelAmanda 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.