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This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.

Pennymac Review

Steven Walters Steven Walters Last update:
NMLS#
35953
Min Credit Score
620
Repayment Terms
15/20/30 Year terms

Overview

Pennymac was founded in 2008 in California by a team of mortgage lending professionals with a vision to become the most trusted company in the lending space. Since its inception Pennymac has become the seventh largest loan servicer in the U.S. and the sixth largest VA lender. Offering both purchase and refinance mortgages, Pennymac also has a physical presence in 7 U.S. states, including California, Texas, and Florida. As a company, Pennymac is guided by the core values of being accountable, reliable and ethical with an unwavering commitment to creating long-term relationships with borrowers, partners and stakeholders.

Pennymac is a nationwide lender offering a number of home loans, including:

  • Adjustable-rate mortgages
  • Fixed-rate mortgages
  • Conventional mortgages
  • FHA mortgages
  • Mortgage refinancing
  • USDA mortgages
  • VA mortgages

Potential borrowers can find sample rate quotes on Pennymac’s website. It is also possible to apply and prequalify for a loan from the website through the lender’s Mortgage Access Center. If you run into questions during the application process there’s also a MAC team that can be contacted via phone to help you through the process. Pennymac does require a 3% down payment for conventional loans. Typically, Pennymac charges a $1,200 origination fee on both conventional and FHA loans. However, the lender has offered promotions that waive this fee. Pennymac has also offered discounts on closing costs and/or loan principal amounts worth 0.5% of the principal. In many cases, customers looking to refinance their mortgages will be able to close in 30 to 45 days, according to the lender.

Mortgage Type Purchase

Refinance

Jumbo

Fixed

Adjustable

FHA

USDA

VA

Mortgage Amount Up to $2 million
Mortgage Repayment Term 15 / 20 / 30 Year terms
APR – Fixed Rate Conventional 20 Year Fixed – 6.875%

Conventional 30 Year Fixed – 6.999%

FHA 20 Year Fixed – 6.625%

FHA 30 Year Fixed – 6.625%

Jumbo 30 Year – 6.500%

VA 20 Year Fixed – 6.625%

VA 30 Year Fixed – 6.625%

These home loan rates are based on certain assumptions that may differ from your specific financial needs. Rates valid on: Wednesday, Oct. 26, 2022, 7:01am PDT and are subject to change without notice. Your actual rate may change dependent on a variety of financial factors.

APR – Variable Rate (ARM) Not disclosed on site
Min. Credit Score 580 – FHA

620 – Conventional

Origination Fee $1,200
Prepayment Fee None
Underwriting Fee None
Other Fees $25 returned check or payment fee

Variable late payment fee depending on loan type and state laws.

Soft Credit Pull (for prequalification) Yes
Funding Time Same day or next day depending on the borrower’s state.
Lender Type Direct lender
NMLS NMLS ID # 35953

Mortgage Refinance:

Refinance – Fixed APR Conventional 20 Year Fixed – 7.125%

Conventional 30 Year Fixed – 7.375%

7.510%

FHA Streamline 30 Year Fixed – 6.375%

Jumbo 30 Year Fixed –  6.750%

VA IRRRL 20 Year Fixed – 6.125%

VA IRRRL 30 Year Fixed –  6.125%

These home loan rates are based on certain assumptions that may differ from your specific financial needs. Rates valid on: Wednesday, Oct. 26, 2022, 7:01am PDT and are subject to change without notice. Your actual rate may change dependent on a variety of financial factors.

Refinance – Variable APR Not disclosed on site
Amount Up to $2 million
Time to Funding 5-6 business days

Best For

This company is best for people who are looking for a government-backed mortgage loan.

Pros & Cons (Mortgage Purchase)

Pros

  • Offers a wide variety of loan products.
  • Custom rate quotes based on home value, down payment or equity, ZIP code and credit score range.
  • “Lock & Shop” lets you secure a rate for up to 60 days.

Cons

  • Origination fees are on the higher end.
  • Doesn’t offer home equity products.
  • Doesn’t offer renovation loans.

Pros & Cons (Mortgage Refinance)

Pros

  • Flexible terms on refinance loans.
  • Offers online and phone customer service.
  • Can connect you with concierge real estate services.

Cons

  • Limited number of physical locations.
  • Not available in New York.
  • Unable to get ARM rates from the website.

Mortgage Loans Terms & Requirements

Pennymac is a direct mortgage lender offering a number of different loan types and specializing in VA loans. In addition to purchase loans they also write refinance loans, and have terms of 15/20/30 years on their fixed rate mortgage loans. Borrowers can choose between fixed rate loans and ARMs, with a number of initial rate terms lasting from 5-10 years. The terms offered are standard for the industry, plus Pennymac offers some waived and discounted fees at times to make their loans more attractive.

How to Apply

Even though Pennymac has physical locations you can only apply on the telephone or online. We went through the online application process and found it to be swift and straightforward.

The process begins on the Pennymac website, where potential borrowers can click the yellow button titled “Get an Instant Quote”.

Next you’ll be asked if you’re looking to purchase a home or refinance an existing home mortgage. We went on by choosing to purchase a home.

You’ll be asked to estimate the value of the home you want to purchase and then the amount of your down payment. Conveniently the website prefills the down payment field with 20% of the amount you entered in the home value screen.

Next, to personalize your mortgage quote you’ll be asked for the zip code where the home is located. You’ll also be asked if you or your spouse have ever served in the military as there are special mortgage loan offers for veterans.

Further customization of the quote is provided by asking if you would prefer a low down payment or a low monthly payment. We chose the low monthly payment option.

Next you’ll be asked to estimate your credit score, after which you’ll be presented with several loan options to consider.

Overall the process takes just a couple minutes, and you’re under no obligation. Pennymac doesn’t even ask for an email address or phone number during this quote process. Clicking “Select” on one of the mortgage loan options brings you to a new page that gives instructions on how to proceed with the pre-approval or application process.

Qualification Requirements

As with any type of loan there are certain requirements to meet to be approved for a mortgage loan through Pennymac. These include:

  • Minimum credit score (conventional) – 620
  • Minimum credit score (FHA) – 580
  • Minimum debt-to-income ratio – 45%, excluding mortgage
  • Min. annual income Min. required
  • Minimum age of borrower – 18
  • Minimum down payment – 3% for conventional loans

Required Information

In order to initiate the prequalification process, one has to provide certain information or

documents. While Pennymac does have physical locations, it is only possible to complete the application and prequalification process either online or by telephone.

Here are the minimum required documents:

  • Social Security number
  • Pay stubs for the last two months
  • W-2 forms for the past two years
  • Bank statements for the past two or three months
  • One to two years of federal tax returns
  • A signed contract of sale (if you’ve already chosen your new home)
  • Information on current debt, including car loans, student loans and credit cards

Application Steps & Time Frames

The application, closing, and funding process at Pennymac is comparable with the mortgage lending industry averages. The application process can be completed in minutes, however closing the loan can take 45-60 days. Once the loan is closed funding occurs the same day or next day. In the case of a refinance mortgage funding can take up to 6 days in some cases.

Privacy & Security

Pennymac collects, uses, and shares information from or about you in accordance with the Pennymac Consumer Privacy Notice, which provides you with choices regarding the use and sharing of your information. If you are a California Resident, you have additional rights that can be viewed on Pennymac’s Privacy Policy. Pennymac may collect personal information you provide via applications, forms, surveys, or other online fields including name, address, account number, social security number, email address, and telephone number. They may also collect and store other non-personal information about your use of their sites and services, such as your IP address, web browser name and version, operating system, computer location, date and time of visit, and the web pages visited. Such information may be collected about how and when you use these Sites.

Pennymac may use your information in accordance with applicable laws, such as:

  • Providing customer support, processing transactions, and responding to your inquiries;
  • Sending you important information and updates regarding sites, products and services;
  • Delivering marketing communications that may be of interest to you, including, advertisements or offers tailored to you;
  • For business purposes, including data analysis, audits, developing and improving products and services, enhancing the site, identifying usage trends and determining the effectiveness of promotional campaigns;
  • For risk control, fraud detection and prevention, compliance with laws and regulations, and accordance with other legal process and law enforcement requirements;
  • For any other purposes they may specifically disclose at the time you provide or they collect your information; and
  • Operate, provide, improve, and maintain our sites and services and offer tailored content.

Customer Support

Customer support is quite important when you’re dealing with mortgage loans that can total hundreds of thousands of dollars. With that being the case we chose to reach out to Pennymac support to see how well they handled our questions. We already knew that they have a good reputation online, but wanted to see how they stack up live on the phone. We contacted the sales team, as contacts to the servicing team requires an active loan and loan number with Pennymac.

We were able to get connected with a live sales rep within minutes, and they were friendly, helpful, and professional. They were able to quickly somel our questions regarding loan terms, and were not overly pushy or sales-y in our opinion. However, they did seem to be more interested in getting us to agree to talk to a loan specialist. We found out it is also possible to request a call-back if the wait times are long. You can even request a call right from their website.

Phone Support 866-549-3583

Days and hours of operation:

Mon: 06:00 – 19:00 PST

Tue: 06:00 – 19:00 PST

Wed: 06:00 – 19:00 PST

Thur: 06:00 – 19:00 PST

Fri: 06:00 – 19:00 PST

Sat: 07:00 – 11:00 PST

Sun: Closed

Email Support No
Live Chat No
Social Media YouTube

Facebook

Twitter

LinkedIn

Instagram

Headquarters 3043 Townsgate Rd, Suite 200

Moorpark, CA 91361

State Availability

Pennymac loan products are available in 49 U.S. states. They do not operate in New York.

In Conclusion

Pennymac has built up a solid mortgage lending business and a good reputation over the 14 years it’s been in business. Borrowers can take advantage of a streamlined application process that can occur completely online. Generous terms and a wide variety of loan types means Pennymac can help most home buyers and refinancing. The lender is particularly good for VA and FHA borrowers.

Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.
Steven Walters Steven Walters
Steve has been writing in the financial products space for over a decade, with interests ranging from personal loans to investing. He is also deeply into the blockchain space. In his free time, you can find him in the kitchen preparing delicious meals, or outside hiking and biking.
This review is based on the writer's personal opinion.