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The PenFed Foundation will be ending the Dream Makers grant program in December 2021. The Dream Makers program stopped taking new application on August 15, 2021. Applicants who have received conditional grant approval, should proceed to turn in the documents for final grant approval and should continue through the grant process. We expect to honor our commitments to current grantees who close by December 30, 2021.

Military Heroes Fund

Dream Makers

What We Support

Dream Makers provides matching grants for down payment and closing cost assistance. For most applicants a down payment is required to be eligible for a Dream Makers grant. Please carefully read the eligibility requirements for both the applicant and the mortgage to determine if you are eligible to use the grant just for closing costs or if a down payment will be required.  No cash back can be received by the borrower at closing including earnest money deposit funds. Conditional approval is not a guarantee of funding.

The amount of the grant is determined by a 2-to-1 match of the borrower’s contribution to their mortgage in earnest deposit and cash brought at closing with a maximum grant of $5,000. For example, if a borrower lists in their application that they are contributing $1,000 the grant will be $2,000. The smallest grant size is $1,000. Click here to view the Dream Makers Contribution Charts.

Grant approvals are contingent upon available funding. You don’t have to be a Pentagon Federal Credit Union member to benefit from the Dream Makers program, and you can apply the grant to a mortgage from any financial institution (please read mortgage requirements below).

The grant process takes at least three weeks.  If your closing date is less than three weeks away there will not be enough time to complete the grant process before closing.  Applications that include a closing date less than three weeks from the application submission date will be declined

What You’ll Need

  • A pre-approval or pre-qualification letter from your lender.
  • Additional documents will be requested if Conditional Approval is received.

Eligibility Requirements

  • Active Duty, Reserve, National Guard or Veteran
  • First-time home buyer, or you have not owned a home for the last three years, or you have lost your home through divorce or disaster
  • Gross annual income of all applicants used to qualify for mortgage is no more than 80% of area median income, adjusted for household size. Click here to determine the income limit based on the household size for the state and county in which you’re planning to purchase. BAH and VA Disability Income are not counted towards the limit. Include your spouse’s income if it is being used to qualify for the mortgage.
  • Received mortgage pre-qualification or pre-approval letter from any lender.
  • All approved applications are valid for 90 days after being submitted. Any applicant that has not closed on their home within the 90 day period must reapply. Grants will not be awarded after closing.
  • Maximum home price for the program is $575,000.

Mortgage requirements:

  • Types of mortgages accepted include VA, FHA, Conventional or USDA
  • All loans must have a 25 or 30-year repayment term and a fixed rate
  • Mortgage can be received from any Lender
  • A pre-qualification or pre-approval letter from the Lender must be uploaded as part of the application
  • Maximum Loan to Values apply (Loan to value is the percentage of your home price you are financing. Learn more about Loan to Value ratios here): Applicants must be using a loan with a 97% LTV or less unless applicants qualify for one of the program exceptions below:
    • If applicants have a VA Rating of 100% (or are being paid at the 100% rate) and their income is limited to VA Disability payments and Social Security Disability Income or Social Security, the mortgage can have a loan to value of 100%.  Applicants are limited to $10,000 in employment income to be eligible under this exception .
    • For Applicants whose loans are originated with PenFed Credit Union, VA loans can go up to but not exceed 100% LTV

If you have already received conditional or final approval for a grant please click here to access your application:

If you have questions about the Dream Makers program please email