The most important advantages
Equivalent to cash offer
PenFed offers a mortgage program called the Power Buyer Loan. It’s a fully written pre-approval that results in a 60-day commitment to lend, provided none of your details have been materially altered prior to closing. There is also a selling component that helps you free up assets so you don’t have to bid based on the sale of your existing home. PenFed allows you to take advantage of stocks to make a cash offer on the home you want to buy. The Power Buyer loan comes with a 60-day rate lock. The rate lock can be extended for an additional 30 days for a fee.
Low repayment home loan options
PenFed offers several ways to get a mortgage with a low or no down payment. Those who qualify for a VA loan do not need to make a down payment at all. Low and middle income borrowers can get a mortgage at a maximum rate of 3%. Other borrowers can get a mortgage at 5% discount.
VA loan experts
PenFed has decades of experience serving the global military community.
As a member of PenFed Credit Union, you will be able to take advantage of all the benefits that they offer. Here are just a few examples:
- Car purchase service with free Carfax and TrueCar reports
- Car Insurance Discounts
- Car Rental Discounts
- car maintenance discounts
- Tax preparation software discounts
- home insurance discounts
- Mobile service discounts
Rate quote tool and extremely low rates
PenFed is an industry leader when it comes to low mortgage rates. If you’re willing to enter your email address, you can use PenFed’s Convenient Rates tool to see what price you may be eligible for based on the information you provide. You can use this tool to manipulate your credit score and down payment amount to see how these details might affect your eligibility. This can help you decide if it’s worth waiting a few months while trying to improve on these numbers before applying.
PenFed pre-approval comes with a 60-day rate lock. If you need more time, you can extend the price lock for 30 days at once (for a fee).
For borrowers taking out a home loan, PenFed offers $500 to $2,500, depending on the size of the loan, in lender credits. Not all loans qualify, so be sure to ask about this before applying.
At the time we checked in, PenFed was also offering a $500 closing credit to all new refinancing applicants. This offer may expire, but other bonus offers will appear from time to time.
What can be improved
You must be a member of PenFed to get a mortgage there. This means that you will have to at least maintain a savings account with the credit union. This can be inconvenient if you are not looking to open a new bank account. However, on the plus side, the minimum opening balance is only $5, and there are no monthly maintenance fees.
No free float down
PenFed rate lock does not float. If rates drop before your loan closes, you’ll need to pay a fee to get a lower rate.