This nationwide credit union offers home equity lines of credit from $25,000 up to $1 million with generally low APRs. They also help cover the majority of your closing costs, but watch out for fees and early closing penalties.
660
Minimum credit score
Available in all states
State availability
| Loan products offered | HELOC |
|---|---|
| Minimum credit score | 660 |
| APR range | 0.99% intro rate for six months, then 3.75% to 8%; up to 18% for fixed-rate |
| Repayment terms | Draw: 10 years Repayment: 20 years |
| Loan limits | $25,000 to $1 million |
| State availability | Available in all states |
PenFed requires a membership to use its products — but requirements are loose and its HELOC could be worth the extra step.
The PenFed HELOC offers competitive interest rates and a wide range of borrowing limits reaching up to $1 million. This sets up a nice product for customers looking to borrow a lot of money. But if you want to avoid added costs, an appraisal fee and the potential for annual fees, you may want to look into other options.
Other than stating you may need a minimum credit score of 660, PenFed doesn’t list its eligibility requirements. This is a common practice for many banks and credit unions. Note that you have to be a member of PenFed to apply for any of its products.
The site also mentions having a favorable debt-to-income ratio (DTI) and a combined loan-to-value ratio (CLTV) of 90% or below on owner-occupied properties, or 80% in Texas.
PenFed’s services and benefits are only available to its members, but there aren’t any special requirements to join.
PenFed members receive a variety of benefits and discounts, including:
PenFed covers the majority of closing costs, but you could be on the hook for a $99 annual fee if you haven’t already paid that amount in interest in the past 12 months. And if you pay off your HELOC within 36 months, you’re required to reimburse PenFed for the full amount of the closing costs.
PenFed charges these fees for its HELOC:
| BBB rating | A+ |
|---|---|
| Trustpilot rating | Excellent |
| Customer reviews verified as of | 05 May 2022 |
And that’s standard for a large credit union.
PenFed isn’t accredited by the Better Business Bureau (BBB), but it has an A+ BBB rating. The BBB recorded 455 closed customer complaints in the past three years and customers rate PenFed with 1.18 out of 5 stars — though not all reviews are referencing home equity products.
Over at TrustPilot, PenFed has a 4.6 out of 5 “excellent” rating with over 800 reviews. Customers are generally happy with the services provided, though some relate hit or miss customer service experiences.
PenFed doesn’t offer an online application for its HELOC. But you’re able to start the application process by submitting a call-back request online with some of your personal information. PenFed will then call you to discuss the process and requirements.
Reach PenFed at 800-970-7766 if you’d rather skip straight to the phone call. Availability is weekdays from 9 a.m. to 9 p.m. ET.
Have these documents and information ready when applying for a PenFed HELOC:
PenFed also offers these additional loan options:
Finder's pick for fast HELOC funding
Speedy prequalification, minimal fees and a wide range of terms with this HELOC lender.
Use our tool to get personalized estimated rates from top lenders based on your location and financial details. Select whether you’re looking for a Home Equity Loan, HELOC or Cash-Out Refinance.
If you selected a home equity loan or HELOC, enter your ZIP code, credit score and information about your current home to see your personalized rates.
In the Cash-Out Refinance tab, select Refinance and enter your ZIP code, credit score and other property details to see what you might qualify for.
PenFed Credit Union is not currently available on Finder
Have you considered Figure?
Speedy prequalification, minimal fees and a wide range of loans and terms with this HELOC lender.