Commonly known as PenFed, this Virginia-based credit union serves military personnel, government employees, and their families. While PenFed offers competitive mortgage rates, borrowers should still verify whether processing or origination fees apply to their loans.
See today’s mortgage interest rates on TrueRate.
How PenFed Credit Union compares to other mortgage lenders
| Headquarters | McLean, Virginia |
| Website | penfed.org |
What customers are saying
Customer reviews of PenFed Credit Union’s mortgage services, as seen on platforms like Trustpilot, BBB, and LendingTree, are largely positive with some mixed feedback.
Borrowers frequently praise PenFed for competitive rates, transparent fee structures, and streamlined processes. Features like the Power Buyer certification (a fully underwritten preapproval with a 60-day rate lock) are highly valued for helping buyers stand out in competitive markets. Customers also appreciate the wide range of loan options, including VA loans, jumbo loans, and fixed-rate mortgages
Complaints include occasional delays in processing and rigid qualification requirements, such as higher credit score thresholds for FHA loans compared to other lenders. Some borrowers noted challenges with communication or resolving disputes related to billing errors.
How to compare mortgage lenders
Interest rates. Comparing rates between lenders isn’t always straightforward. Many promote low headline rates that require paying “points” upfront to buy down the interest rate. To make a true comparison, focus on the par rate (0 points) and the APR, which reflects both the interest rate and any lender fees. Even small differences can translate into significant savings over the life of the loan.
Lender fees or loan origination fees. Many lenders charge fees that add thousands to the cost of a loan. It’s important to look at both the rate and the fees together to understand the true cost of borrowing. For a $400,000 mortgage, avoiding even a $1,000 fee could contribute to meaningful savings in the first year and over the long term.
On-time close rate. Most lenders do not publicly share their on-time close rates. However, it’s a critical factor—especially if your home contract has tight deadlines. Asking about their process for meeting close dates, including underwriting and document review timelines, can give you more confidence when choosing a lender.
Pre-approval and offer letters. Some lenders offer fast pre-qualifications that may not be fully underwritten, which can weaken your offer in competitive markets. It’s important to ask whether a lender’s pre-approvals are fully underwritten and how credible their letters are when presented with an offer.
Customer satisfaction. If detailed customer review data isn’t readily available, check third-party review sites or ask the lender for references. It’s important to understand how they handle communication, responsiveness, and issue resolution throughout the loan process.
Employee reviews. Company culture often influences how clients are treated. A lender with strong employee satisfaction typically delivers better service, more organized processing, and a smoother overall experience for borrowers.
To better understand how we compare mortgage rates fairly, see our TrueRate Methodology.
If you’re ready to start your journey to homeownership, get pre-approved with Tomo Mortgage today.