PenFed, legally Pentagon Federal Credit Union, is a credit union. Membership is required to borrow, and PenFed does not say on the pages we read who is eligible to join. That is worth knowing before anything else here is useful to you, and it is a different situation from a credit union that publishes its eligibility rule plainly.
It offers one home equity product, a line of credit, with a 10-year draw period followed by 20 years of repayment.
Its most interesting feature is how it publishes its borrowing limit. There is no single PenFed maximum. Instead there are four sentences: 85% combined loan-to-value in most states on an owner-occupied home or second home, 80% in Texas on an owner-occupied home, 80% on a condominium, and then the one that governs all of them, “The maximum CLTV available is dependent on credit qualification.” We have recorded each condition separately rather than picking one number, because picking one would misdescribe three of the four cases.
The advertised rate is 6.75% APR, and two things about it matter. It is a floor: PenFed publishes it as “Rates as low as”, not as the rate you would get. And it is dated. PenFed states that its Prime Rate figure was current as of 12 December 2025, which was more than eight months before we read the page. We record the lender’s own date rather than the date we looked, so the figure appears below as a dated reading rather than as today’s rate. Confirm the current rate with PenFed.
There is a $99 annual fee with no published waiver, and PenFed says it pays most closing costs, listing what most covers. In Texas there is a $4,000 minimum draw that applies nowhere else. PenFed also publishes a list of property it will not lend on at all, including mobile homes, co-ops, time-shares, land, properties with more than four units, and homes currently listed for sale.
PenFed home equity products at a glance
Last checked: August 26, 2026
PenFed Home Equity Line of Credit
HELOC
A variable-rate line of credit priced against the Prime Rate, with a 10-year draw period followed by a 20-year repayment period. PenFed advertises it from 6.75% APR, which is a floor rather than a rate. The figure carries PenFed's own date of 12 December 2025, so it is shown here as a dated reading rather than as today's rate. The maximum combined loan-to-value depends on where you are and what kind of property it is: 85% in most states on an owner-occupied home or second home, 80% in Texas on an owner-occupied home, and 80% on a condominium, with PenFed adding that the maximum available depends on credit qualification. There is a $99 annual fee. PenFed says it pays most closing costs. Membership is required and PenFed does not publish who may join.
- Fixed or variable rate Variable
- Maximum CLTV 85%
- Draw period 10 years (120 months)
- Repayment period 20 years (240 months)
- Borrowing range from $25,000
- Annual fee $99 Charged every year the account is open. PenFed publishes no waiver for it.
The lender also states: PenFed publishes its maximum combined loan-to-value as a set of conditions rather than one number: "In all other states, the maximum CLTV is 85% on owner occupied properties and second homes", "In Texas, the maximum CLTV available is 80% on owner occupied properties", and "Property type of Condo has a maximum CLTV of 80%." It then qualifies all of them: "The maximum CLTV available is dependent on credit qualification." So 85% is a ceiling for a category of borrower, not an entitlement. PenFed publishes the index with its own date: "Prime Rate is 6.750% as of December 12, 2025." Elsewhere on the same page it says "Rates displayed are updated daily." The dated sentence is the one recorded, so the figure is judged against 12 December 2025 rather than the day we read the page. It also states "Home equity lines of credit (HELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan on monthly basis" and "Rates vary depending on owner occupancy and CLTV and other loan criteria." On repayment: "If only minimum payments are made during the draw period, the loan balance will not decrease." PenFed publishes a list of what it will not lend on: "Mobile homes", "Co-ops or time-shares", "Properties that are currently listed on the market for sale", "Commercial property or property used for commercial purposes, even if a residence is part of the property", "Undeveloped property (land only)", "Properties with more than 4 units". It adds that a property under major construction or renovation "must be fully livable" and that "Additional limitations may apply." Membership is required. PenFed states: "To receive any advertised product, you must become a member of PenFed Credit Union." The pages read do not say who may join, so unlike some credit unions PenFed does not publish its eligibility rule where its products are advertised. Ask PenFed directly whether you qualify before assuming these terms are available to you.
The lender also states, where the property is in Texas: "In Texas, the maximum CLTV available is 80% on owner occupied properties. Additional restrictions apply." PenFed names only owner occupied properties in the Texas sentence, where the sentence for other states names owner occupied properties and second homes. It also states: "For Properties Located in TX, minimum $4,000 draw amount is required." That is a condition of drawing, not a charge. And covering every case: "The maximum CLTV available is dependent on credit qualification." Membership is required. PenFed states: "To receive any advertised product, you must become a member of PenFed Credit Union." The pages read do not say who may join, so unlike some credit unions PenFed does not publish its eligibility rule where its products are advertised. Ask PenFed directly whether you qualify before assuming these terms are available to you. PenFed states this rule for owner occupied properties. It does not say what maximum applies to a second home in Texas, and nothing is assumed here.
The lender also states, where the property is a Condominium: "Property type of Condo has a maximum CLTV of 80%." PenFed states this without reference to any state, so it reads as a property type rule rather than a regional one. Where both this and the Texas rule would apply, PenFed does not say which governs; both happen to state 80%. And covering every case: "The maximum CLTV available is dependent on credit qualification." Membership is required. PenFed states: "To receive any advertised product, you must become a member of PenFed Credit Union." The pages read do not say who may join, so unlike some credit unions PenFed does not publish its eligibility rule where its products are advertised. Ask PenFed directly whether you qualify before assuming these terms are available to you.
Sources checked: August 26, 2026
Reviewed by Michael Yanda
Last reviewed: August 26, 2026
How we produce these figures: methodology and data standards
Detailed terms
Standard terms the lender states these figures applied from December 12, 2025. We checked its page on August 26, 2026.
- Occupancy requirements
- Primary Residence, Second Home
- Minimum borrowing amount
- $25,000
- APR or rate
- as low as 6.75% a dated reading, not shown as current
- Fixed or variable rate
- Variable
- Maximum CLTV
- 85%
- Draw period
- 10 years (120 months)
- Repayment period
- 20 years (240 months)
Applies when: the property is in Texas
- Minimum borrowing amount
- $25,000
- APR or rate
- as low as 6.75% a dated reading, not shown as current
- Fixed or variable rate
- Variable
- Maximum CLTV
- 80%
- Draw period
- 10 years (120 months)
- Repayment period
- 20 years (240 months)
Applies when: the property is a Condominium
- Eligible property types
- Condominium
- APR or rate
- as low as 6.75% a dated reading, not shown as current
- Fixed or variable rate
- Variable
- Maximum CLTV
- 80%
- Draw period
- 10 years (120 months)
- Repayment period
- 20 years (240 months)
Fees
- Annual fee
- $99 Charged every year the account is open. PenFed publishes no waiver for it.
- Closing costs paid to a third party
- None PenFed says it pays most of them, and names what "most" covers. Its wording is "PenFed will pay most closing costs associated with a home equity line of credit (HELOC), which includes credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, property search, and quick close." Most is not all, and PenFed does not publish what falls outside the list, so a borrower should ask. Separately, property insurance is required, and PenFed states it will attempt to establish the property value by an independent method before requiring an appraisal.
Information we could not verify publicly 7
We could not confirm the following in the lender's published materials. That does not mean no requirement exists, so ask the lender directly if you need one of these figures.
- State availability
- Maximum borrowing amount
- Introductory or promotional APR
- Maximum LTV
- Minimum credit score
- Maximum debt to income
- Appraisal or valuation
Source & evidence source: lender · checked August 26, 2026 · researched by Chris, our AI research agent · reviewed by Michael Yanda
PenFed HELOC, states other than Texas
The advertised figure is published as "Rates as low as 6.75%" beside the product, and the rate table on the same page shows an Interest Rate of 6.750 and an APR of 6.750. PenFed's mortgage rates page independently repeats "HELOCs: Prime Rate is 6.750% as of December 12, 2025." The term is stated twice: "This Account has a Draw Period of 10 years, followed by a repayment period of 20 years" and, in plain language elsewhere, "Access funds for 10 years, then repay over 20 years." The minimum amount is from "For an owner-occupied property or second home the minimum loan amount is $25,000". Occupancy is recorded from the CLTV sentence, which names owner occupied properties and second homes.
PenFed HELOC, Texas
"In Texas, the maximum CLTV available is 80% on owner occupied properties." and "For Properties Located in TX, minimum $4,000 draw amount is required." Both read from the disclosures on PenFed's own HELOC page.
PenFed HELOC, condominiums
"Property type of Condo has a maximum CLTV of 80%." Read from the disclosures on PenFed's own HELOC page.
What these terms mean
- CLTV, combined loan to value
- Everything secured against the property, added together, divided by the property value. A maximum CLTV of 85% on a $500,000 home means the first mortgage plus the new borrowing cannot exceed $425,000.
- LTV, loan to value
- The same idea for a single loan rather than the combined total.
- Draw period and repayment period
- The draw period is when you can take money out. When it ends, the repayment period begins, you can no longer draw, and payments are often significantly higher.
- Our interpretation
- A figure we worked out from what the lender published, rather than a number the lender states outright.
Our guide to how a HELOC works explains these in more depth.
About this information
Financial data is based on information published by the lender. Important conditions that affect a rate, limit, or other figure are shown with that information. We identify values we have interpreted or calculated rather than treating them as directly published by the lender.
We are not a bank, a lender or a broker, we have no relationship with the lenders listed here, and this is not a recommendation. Terms change. Always confirm directly with the lender before applying.