We receive advertising fees from the brands we review that affect the ranking and scoring of such brands.
Advertiser Disclosure

Pennymac Reviews


bestfor-icon Good for government backed mortgage loan

Written by Bob Phillips

About Pennymac | Read More


LS Score







Visit Site
Opening Hours Opening Hours drop-down-btn
Mon-Fri 6AM-7PM PST
Sat 7AM-11PM PST
Contact Information Contact Information drop-down-btn
  • 866-549-3583
  • Headquarters: 3043 Townsgate Rd, Suite 200 Moorpark, CA 91361
Social Media Social Media drop-down-btn

Pennymac Mortgages Review


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

Pennymac Mortgages Highlight


Min Credit Score

Max $2M

Mortgage Amount

15, 20, 30 year terms

Repayment terms


Soft Credit Pull


Lender Type


Underwriting Fee


Other Fees


Origination Fee


Prepayment Fee

5 Days

Funding Time



Mortgage Refinance

Min 6.125%

APR. Fixed Rate

Max $2M

Mortgage Amount

Pros & Cons

  • con-icon Offers a wide variety of loan products
  • con-icon Custom rate quotes based on home value, down payment or equity, ZIP code and credit score range
  • con-icon “Lock & Shop” lets you secure a rate for up to 60 days
  • con-icon Origination fees are on the higher end
  • con-icon Doesn't offer home equity products
  • con-icon Doesn't offer renovation loans

Mortgage Type

  • Mortgage Purchase
  • Mortgage Refinance
  • Fixed
  • Adjustable
  • FHA
  • USDA
  • VA
  • Jumbo

Pennymac Mortgages Terms & Requirements

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.




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.

Refinance – Fixed APR

Conventional 20-Year Fixed – 7.125%

Conventional 30-Year Fixed – 7.375%

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.

Other Fees

$25 returned check or payment fee

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

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.


What is it good for?

Pennymac Mortgage is a great option for people who are looking for a government-backed mortgage loan. They offer a variety of government-backed loan products, such as FHA loans, VA loans, and USDA loans. These loans offer a number of benefits, such as lower down payment requirements, no private mortgage insurance (PMI), and competitive interest rates.

Pennymac Mortgage also has a number of features that are specifically designed for government-backed loans, such as:

  • Fast approval process: Pennymac Mortgage can approve government-backed loans in as little as 24 hours, so you can get the money you need quickly.
  • Flexible repayment terms: Pennymac Mortgage offers various repayment terms, so you can choose a repayment schedule that fits your needs.
  • Competitive interest rates: Pennymac Mortgage offers competitive interest rates on government-backed loans, so you can save money on your monthly payments.

Overall, Pennymac Mortgage is a great option for people who are looking for a government-backed mortgage loan. Their “Good For Government Backed Mortgage Loan” highlight comes into practice through their fast approval process, flexible repayment terms, no prepayment penalty, and competitive interest rates.

Here are some specific examples of how Pennymac Mortgage’s features are designed for government-backed loans:

  • The fast approval process means people can get the money they need quickly, so they can move forward with their home purchase.
  • The flexible repayment terms mean people can choose a repayment schedule that fits their needs and stay on budget.
  • The competitive interest rates mean people can save money on their monthly payments and afford a more expensive home.

If you’re looking for a government-backed mortgage loan, Pennymac Mortgage might be a great option for you. Their features are designed to make getting the money you need to buy a home easy.

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.

State Availability

Available - Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming,

Not Available - New York,

Written by Bob Phillips linkedin-icon twitter-icon

Having spent over fifteen years helping people plan their lives financially, Bob has a vast amount of knowledge concerning personal finance. During his career, Bob mastered many different financial products to help people achieve their financial goals, including life insurance, disability insurance, mutual funds, and stocks and bonds. He earned the Chartered Life Underwriter (CLU) designation and held numerous securities licenses. Bob is an internationally published poet and is now a freelance writer living in North Texas with his wife and Doberman puppy.



Is Pennymac a reputable lender?

Pennymac has a 3.6 out of 5 star rating on Trustpilot and an A+ rating from the Better Business Bureau

What’s the minimum credit score required by Pennymac?

The lender recommends a minimum score of 620 for most loans, although they say borrowers should aim for a 680 score for better rates. FHA borrowers can apply with a credit score of 580

How much money does Pennymac require for down payments?

A 3% down payment is the minimum requirement at Pennymac

Customer Support

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.

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;
    Operate, provide, improve, and maintain our sites and services and offer tailored content.

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.

Brand Disclaimer

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 guarantees 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.