Mortgage ARM Loans

PenFed Offers Adjustable-Rate Mortgages (ARMs) to Suit Your Needs

What is an Adjustable-Rate Mortgage (ARM)?

An Adjustable-Rate Mortgage typically starts with a fixed rate for a set period of time and then adjusts at set intervals. Typically, ARMs come in different options in which the fixed rate is set for three, five, seven or ten years. After this initial fixed period, the rate can adjust in 6 month intervals depending on market conditions.

Mortgage Knowledge Center

What is an Adjustable Rate Mortgage?

What are the Different Types of Mortgages?

Benefits of PenFed

Purchasing a home is one of the largest loans you may ever take. PenFed takes the confusion out of the process and makes it simple for you and your family to get into the home you want. PenFed ARMs offer: 

Up to $2,500 in lender credits assisting you with closing costs1(only applies to purchase loans)

No lender fees2

Lower initial interest rates compared to a fixed-rate loan.

How Do I Get an ARM?

You'll need the following to qualify for an ARM loan for all borrowers:

  • Credit score of 620 or higher
  • Down payment (or equity if refinancing)
  • Proof of income - typically 1 - 2 months of paystubs
  • At least 1 year of W2s

Possible additional financial verification like:

  • Self-employment income (2 years of tax returns)
  • Current debts information (auto, alimony, credit card, etc.)

Mortgage Knowledge Center

Five Reasons to Get an Adjustable Rate Mortgage
VA Fixed-Rate vs. VA Adjustable-Rate Mortgage


Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Disclosures Print Icon Print

1For eligible fixed rate, ARM, and VA loans PenFed offers to all members who submit a completed home purchase mortgage application on or after March 1, 2020. Members can receive the lender credit upon closing with PenFed, subject to qualification and approval. For loans $0-$199,999 the lender credit will be: $500. For loans $200,000-$699,999 the lender credit will be: $1,000. For loans $700,000 and up the lender credit will be: $2,500. Pre-Approvals and refinance applications are not eligible for the lender credit. The seller and/or other credits must be reduced if the loan has reached the maximum allowable credit limit per the loan product. Please contact your PenFed Mortgage Loan Officer for more details. The lender credit is available for all funded purchase mortgages in all states, including District of Columbia, Puerto Rico and Guam.

2Other fees may apply, such as discount points to buy down your rate.

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