PennyMac Mortgage Review | Find the Best Loan for You

Founded in 2008, PennyMac is a national mortgage lender with more than $388 billion in loans serviced. PennyMac offers a range of home loans, including conventional, Federal Housing Administration, Veterans Affairs investment property mortgages.

Best Features

  • Accepts a 50% debt-to-income ratio for conventional loans, which is more lenient than the average.
  • Range of online capabilities includes a 24/7 access center with mortgage status updates.
  • PennyMac’s Better Rate Promise gives prospective borrowers of eligible loans a $250 gift card if pricing is not better than a competitor’s.
  • Close on Time Promise gives borrowers of eligible loans a $500 gift card if an unexpected event prevents on-time closing.
  • Origination fee of $1,100 is waived for home purchase loans locked in before Dec. 31, 2020.


  • PennyMac does not offer jumbo loans.
  • Home equity lines of credit are not available.

Which Mortgage Products Does PennyMac Offer?

PennyMac has a variety of home loans, including:

  • Adjustable-rate mortgages
  • Conventional
  • FHA
  • First-time homebuyer
  • Refinancing
  • U.S. Department of Agriculture
  • VA

How Can You Qualify for a PennyMac Home Loan?

PennyMac will accept a FICO score of at least 620 for conventional loans, though the lender suggests a 680 or higher score for the best rates. The lender will consider borrowers with a FICO score as low as 500 if borrowers are seeking an FHA loan.

What Mortgage Fees Does PennyMac Charge?

Typically, PennyMac charges a $1,100 origination fee. However, the lender may offer a limited-time promotion that waives this fee.

Does PennyMac Offer Good Customer Service?

PennyMac has an A+ rating with the Better Business Bureau, with accolades from customers for its responsive communication for walking borrowers through the loan process.

The Consumer Financial Protection Bureau received 291 complaints about PennyMac in 2019, primarily related to trouble during the payment process, struggling to pay a mortgage, or applying for a mortgage or refinance.

Does PennyMac Offer Online Features?

PennyMac’s wide range of online capabilities gives borrowers the flexibility to prequalify, apply manage the mortgage-lending process digitally. The Instant Custom Rate Quotes Tool prompts applicants to input basic information like loan preference explores different mortgage options, including rates potential monthly payments. A Home Value Estimator pulls reports from real estate sources like Zillow to deliver estimated home market values.

Another feature PennyMac offers online is a discount points calculator for figuring out if buying extra points to reduce the interest rate makes financial sense from a down payment monthly payment perspective.

PennyMac has a mobile app that allows borrowers to access mortgage information, make payments view statements.

PennyMac Mortgages Are Best for:

  • Veterans or service members who want a VA loan.
  • Buyers looking for the most competitive loan rates.
  • Borrowers who want online tools to work through the loan process virtually.

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