Looking to put down roots and take out a mortgage for the first time ever? Or do you want to save on interest by refinancing your student debt? Whatever your financing needs may be, PenFed could help. This credit union has been serving the military community for over 80 years with a long list of loan solutions under its belt. And don’t worry, even if you’re not affiliated with the military, you may still be able to join.
PenFed has an extensive loan availability that stretches beyond just home and auto loans.
Personal and bill consolidation loans are available through PenFed. Both have amounts that range from $600 to $50,000 to $600 to $50,000, no origination fees and APRs from 8.99% to 17.99%.
The biggest difference is that a bill consolidation loan is specifically for combining multiple open balances under one loan, while a personal loan is a general-purpose loan that can be used for any legitimate purpose.
Read PenFed personal loan review
PenFed has partnered with Sallie Mae to offer:
Fixed and variable rates are available for student loan refinancing through PenFed. Spouse loan refinancing is available to couples looking to consolidate their debts, as well as parent loan refinancing for both private and Parent PLUS loans. Parents may be cosigners on their child’s loan when refinancing.
PenFed’s auto loan amounts range from $500 to $150,000.
PenFed is offering a $350 cash bonus when you purchase through the PenFed Car Buying Service with a PenFed auto loan, available until April 30, 2023. The rebate of $350 applies to new and used purchase loan applications with a qualifying vehicle purchase. But dealer-originated loans and refinance loans are ineligible.
Read PenFed car loan reviewA solid 22 different mortgage offerings are available through PenFed. On the low end, you can take out a traditional 30-year fixed conforming mortgage for amounts ranging from $25,000 to $453,100 in most states. High-limit mortgages are also among those presented, with amounts ranging from $453,100 to $2 million.
Of the 22 options, 10 have fixed rates and two are specific to veterans. Both veteran options are fixed-rate mortgages. Terms are available for 10, 15, 20 or 30 years, and the lowest starting APR is 4.202% for a 15-year fixed conforming mortgage.
Whether you rent or live in the house you’d like to borrow from, you’re limited to borrowing between $10,000 and $400,000. For owner-occupied homes, you can borrow up to 90% of your home’s value, but the maximum amount you can borrow drops to $250,000 if you’re borrowing between 85.01% and 90%. Meanwhile, you can only borrow up to 80% of your non-owner occupied home’s value.
PenFed offers three different home equity lines of credit that all have variable rates: a basic home equity line, a 5/5 home equity line and an interest-only home equity line. The basic home equity and interest-only lines offer amounts ranging from $10,000 to $400,000, while the 5/5 line offers between $25,000 and $400,000.
A straightforward list of all of the service fees you might incur with PenFed is available on its site by scrolling down to the bottom of the homepage and clicking Service Fees. Some of the most common ones include:
Aside from these service fees, some loans may have origination fees. Fixed personal loans and debt consolidation loans don’t require an origination fee.
Though not accredited with the Better Business Bureau (BBB), PenFed holds an A+ rating with a composite score of 3.81 out of 5 stars as of August 2018. It’s had 120 complaints filed against it with the BBB. One customer was upset to learn that their charitable donation and $5 deposit to become a member was non-refundable, though in all fairness, PenFed states this on its site. Another found that the credit union didn’t inform them of all the fees associated with their car loan. To avoid this, carefully read the terms and conditions before accepting a loan from PenFed.
Generally, yes — though no online lender is 100% secure from hackers. To protect borrowers, PenFed uses Secure Sockets Layer (SSL) and Transport Layer Security (TLS) encryption on its site. Moreover, the site’s navigation is clean and easy to use with a full, well-organized site map available from a link at the bottom of almost any page. The mobile app — available for iOS and Android devices — is just as sleek, with easy-to-understand menus.
You must be a PenFed member to apply for a loan. Members must have at least one savings account open with a minimum deposit of $5.
To apply for a loan, follow these steps:
Once you start your application, you’ll need to fill out requested information as you’re prompted. You can check the status of your application at any time via the online portal. Once you’re logged in, simply click Apply Now from the main menu page and then select Recent Applications.
To be eligible for membership, you must fit one of the following categories:
You can also become eligible by joining a civilian-friendly military group. The National Military Family Association and Voices for America’s Troops are the two that PenFed lists on its site. It also provides the option to join either organization directly from its online membership application page.
PenFed was established in 1935 and has historically served the US military and federal employee communities. Over 1.6 million members make up PenFed, making it the second-largest federal credit union in the US. As a credit union, PenFed members are owners and have equal vote when electing the board of directors — regardless of the amount of cash you have or products you use.
As of August 2018, PenFed has partnered with Sallie Mae to help its members finance their college education through undergraduate, graduate and parent student loans, as well as a scholarship search tool.
With the wide array of products available from PenFed, you may be able to find a loan that fits your needs — whether you’re looking to buy a home, refinance your car loan or just go on vacation. Its financial hardship programs and exclusive membership benefits help to set it apart from the competition.
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