Navy Federal Credit Union vs. PenFed Credit Union HELOC
Navy Federal Credit Union and PenFed Credit Union compared on rates, fees, borrowing limits and fixed-rate options, from each lender's published terms.
Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated
Disclosure: Shawn Way is a loan officer at West Capital Lending, Inc., which competes with these lenders. HELOCHQ isn't paid by any lender for reviews, and every fact below comes from the lender's own published terms.
If you're eligible for Navy Federal, it usually fits better: it lends up to 95% of your home's equity, pays closing costs and lists no annual fee, with a 20-year draw period. PenFed is open to anyone, but charges a $99 annual fee and caps borrowing at 85%.
On this page
Side by side
| Navy Federal Credit Union | PenFed Credit Union | |
|---|---|---|
| Type | Credit union (military) | Credit union |
| Rate | Variable, prime-based; as low as 7.250% APR, 8.250% interest-only (750 FICO, 70% loan-to-value) | Variable, prime plus a margin; as low as 7.000% APR shown, with prime at 7.000% |
| Credit score | Not published by Navy Federal Credit Union as of October 23, 2026; ask the lender. Best rate assumes 750 | Not published by PenFed Credit Union as of October 26, 2026; ask the lender |
| Max borrowing | Up to 95% of home equity, per the lender | Up to 85% (80% in Texas and on condos) |
| Line size | $10,000–$500,000 | $25,000–$500,000 |
| Terms | 20-year draw, 20-year repayment | 10-year draw, 20-year repayment |
| Fees | Navy Federal pays closing costs; no annual, application, origination or inactivity fees listed | PenFed pays most closing costs; $99 annual fee; appraisal for lines over $400,000 (about $550–$850); some state taxes paid by the member |
| Fixed-rate option | Not published by Navy Federal Credit Union as of October 23, 2026; ask the lender | Lock up to three advances of $10,000 or more at a fixed rate for 240 months |
Sources: Navy Federal Credit Union (checked October 23, 2026) and PenFed Credit Union (checked October 26, 2026). Terms change; confirm with each lender.
Use a free calculator, or get your HELOC rate from Shawn.
The difference that matters
Both are large national credit unions with prime-based variable rates and closing costs mostly paid. Navy Federal's 20-year draw and high loan-to-value are unusual; PenFed's fixed-rate advance locks and express closing in as few as 15 days are its strengths.
Choose Navy Federal Credit Union if
- You or a family member have military or Defense Department ties that make you eligible
- You need to borrow against more of your equity
- You want a long 20-year draw period
Choose PenFed Credit Union if
- You aren't eligible for Navy Federal
- You want to lock advances at a fixed rate
- Your line is between $25,000 and $500,000 and you want a quick express close
If neither fits
Different lenders draw the line in different places on credit score, loan-to-value, property type and state. A broker can price several lenders with one application. Get your HELOC rate, or if you already have an offer from either lender, see how it compares with HELOCs closed this year.
Full reviews
Shawn Way is a loan officer at West Capital Lending, Inc., which may compete with the lenders reviewed here and may also arrange loans through some of them as a mortgage broker. Facts come from each lender's own website on the date shown and can change; confirm current terms with the lender.
Sources
Official sources behind this guide.
- What is the difference between a home equity loan and a HELOC? · Consumer Financial Protection Bureau
- What you should know about home equity lines of credit (booklet, PDF) · Consumer Financial Protection Bureau
- Bank Prime Loan Rate (DPRIME) · Federal Reserve Bank of St. Louis, FRED
- Regulation Z §1026.40: Requirements for home equity plans · Consumer Financial Protection Bureau