Pennymac Mortgage Review 2026
Pennymac is a good option for anyone seeking a convenient way to secure and manage home loans online. The lender offers a wide range of loan types and refinance options.
See how we reached our verdict below.
- Wide range of loan types
- Convenient online services
- Largely transparent rates and terms
- No home equity lines of credit (HELOCs)
- Limited number of in-person locations and services
- Total loan costs and origination fees aren’t published
Pennymac mortgage overview
Pennymac is a large national mortgage lender that operates primarily online.
- Areas of service: Pennymac is licensed to serve all 50 states and Washington, D.C., as well as Guam, Puerto Rico and the U.S. Virgin Islands.
- Digital service: Pennymac specializes in digital mortgages.
- Headquarters: 3043 Townsgate Road, Suite 200, Westlake Village, CA 91361
- Website: Pennymac.com
Pennymac rates and fees
Rates
Pennymac is transparent about most of its fees and provides personal quotes based on an applicant’s specific details.
Based on Home Mortgage Disclosure Act (HMDA) data, the average rate for a Pennymac loan in 2024 was 6.80%. This is slightly higher than the average of 6.70% that year. Pennymac’s average rate spread that year was 0.81, which is the difference between the average prime offer rate (APOR) and the average annual percentage rate (APR) Pennymac offered to mortgage customers in that year. (The higher the rate spread, the more expensive the loan). This is higher than many other institutions’ rate spreads, many of which are below .50.
Both numbers are down this year, compared to Pennymac’s interest rate of 7.01% and rate spread of 0.97 in 2023.
Fees
Pennymac publishes some of its fees online, though total loan costs and origination fees aren’t listed. Based on HMDA data, however, we know the average Pennymac origination charge in 2024 was $4,216, and the average total loan cost was $8,002—both of which are higher than many similar lenders.
Pennymac offers several discounts for mortgages that meet specific qualifications, including:
- 1% off your rate for the first 12 months of your mortgage
- $2,000 if you refinance your new mortgage within three years
- A $1,000 pre-approval bonus when you close
What types of mortgage loans does Pennymac offer?
Pennymac offers a variety of home loans including:
Pennymac offers conventional home loans—both fixed-rate and adjustable-rate. The lender also offers conventional refinance, conventional cash-out refinance and FHA-to-conventional refinance loans.
Conventional loan qualification requirements
- Credit score of 620 or higher
- Minimum 3% down payment
- Proof of income
- Cash reserves of at least two months
- Debt-to-income ratio no more than 45% (50% in some cases)
Pennymac offers FHA loans backed by the Federal Housing Administration (FHA), as well as FHA streamline refinance and FHA cash-out refinance loans.
FHA loan qualification requirements
- 3.5% minimum down payment
- Must live in property purchased
- Debt-to-income ratio no higher than 50-55% (depending on credit history)
Pennymac offers VA loans to eligible servicemembers, veterans and some surviving spouses. These mortgages, backed by the U.S. Department of Veterans Affairs (VA), come with rates that are typically lower than those of traditional loans. Pennymac also offers VA streamline interest rate reduction refinance loans (IRRRLs) and VA cash-out refinance loans.
VA loan qualification requirements
- 181 days of service during peacetime (active duty)
- 90 days of service during wartime (active duty)
- Six years of service in the Reserves or National Guard
- Some surviving spouses (spouse passed away due to service-related complications)
Pennymac doesn’t offer USDA purchase loans, however, it does offer USDA streamlined assist refinance loans, which have more relaxed eligibility guidelines and lower fees than traditional loans. USDA loans are guaranteed by the U.S. Department of Agriculture (USDA).
USDA loan qualification requirements
- The property must be your primary residence
- The loan you’re refinancing must be a USDA loan that’s at least one year old
- On-time payments for your loan for the past six months
- Debt-to-income ratio and income approval (no set minimums)
- Credit approval
Pennymac offers jumbo loans up to $3 million, which can be used to buy homes that are above the conforming loan limit ($806,500 for most of the U.S. in 2025), traditionally accepted by Fannie Mae and Freddie Mac. The lender also offers jumbo refinance and jumbo cash-out refinance options.
Jumbo loan qualification requirements
- Minimum 700 credit score
- Minimum 10.01% down payment
- Cash reserves (9-12 months depending on the price of the home)
- Debt-to-income ratio of 43% or less
- Proof of income
Pennymac offers home equity loans to homeowners who want to tap into their home’s equity to secure cash. Pennymac doesn’t offer HELOCs.
Home equity loan qualification requirements
- Have at least 15% equity in your home
Pennymac mortgage qualifications
| Credit score minimum | 580 to 620 |
| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum | Conventional: 45% (50% in some cases) FHA: 50% to 55% VA: N/A USDA: N/A Jumbo: 43% |
| Down payment minimum | Conventional: 3% FHA: 3.5% VA: 0% USDA: N/A Jumbo: 10.01% |
Don’t know your credit score? Get your free score on LendingTree Spring today.
There are no hard-and-fast rules to securing a loan with Pennymac. There are, however, a number of factors that will help, including reducing your debt-to-loan ratio and increasing your credit score if it doesn’t meet Pennymac’s limits.
According to HMDA data, the average loan-to-value ratio in 2024 was 96.8, and 63.2% of approved applicants had DTIs lower than 40%. Pennymac’s approval rate for all loans was 92.3% in 2024, leaving about 8% denied. That’s a lower denial rate than the average 11.27% denial rate across all mortgage applicants in 2024.
How to apply for a Pennymac mortgage
1. Choose your loan type
To review the type of loans Pennymac offers, select “Loan Options” from the menu at the top of the Pennymac homepage. You can then navigate to separate landing pages for home purchase loans, home refinance loans and home equity loans, or to a page that allows you to compare loan options.
2. Get prequalified
To get an estimate of the size of mortgage you’re likely to qualify for, you should secure prequalification approval.
3. Submit a loan application
To submit a Pennymac loan application, start by registering for a Pennymac account. Once your loan is preapproved (a step further than prequalification), you can lock in the mortgage rate.
Find out more about how to apply for a home loan.
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Is it safe to get prequalified with Pennymac?
Yes, it’s safe to get prequalified and preapproved with Pennymac. Preapproval does involve a hard credit inquiry, but your credit score won’t be affected much, and it will generally bounce back within a few months.
Pennymac’s customer service experience
You can contact a Pennymac representative by telephone Monday through Friday from 5 a.m. to 6 p.m. PT and Saturday from 7 a.m. to 1 p.m. PT at 888-870-6229. You can also apply for a loan online anytime.
Those with questions about existing or in-progress Pennymac loans can reach the team Monday through Friday from 5 a.m. to 6 p.m. PT at 844-917-3669.
How does Pennymac compare to other lenders?
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| LendingTree’s rating |
Expert review from LendingTree.
Read Our Review
Back to our Pennymac summary. |
Expert review from LendingTree.
Read Our Review
Read our Pennymac vs. AmeriSave comparison |
Expert review from LendingTree.
Read Our Review
Read our Pennymac vs. PenFed comparison |
| Minimum credit score | 580 to 620 | 500 | 620 to 650 |
| Minimum down payment | 0% to 3.5% | 0% to 3.5% | 0% to 3.5% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 0.81% | 2.63% | 0.72% |
| Loan products and programs |
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| Better for: | Buyers looking for an easy way to secure and manage traditional or government-backed loans. | Buyers looking for a home equity line of credit. | Borrowers who aren’t interested in applying online. |
Pennymac vs. AmeriSave
Pennymac and AmeriSave are both online lenders that offer a variety of mortgage products. However, AmeriSave offers HELOCs, while Pennymac does not.
AmeriSave’s minimum credit score is lower for some loans than Pennymac’s, while Pennymac’s rate spread is significantly lower than AmeriSave’s (0.81% versus 2.63%, respectively), making Pennymac loans more affordable on average.
Read more in our full AmeriSave mortgage review.
Pennymac vs. PenFed
Pennymac is an online lender, while PenFed only operates in brick-and-mortar locations. PenFed caters primarily to federal employees, though anyone can open an account with PenFed.
Pennymac’s rate spread is a bit higher than PenFed’s (0.81% versus 0.72%, respectively), making PenFed’s loans more affordable.
Read more in our full PenFed mortgage review.
How LendingTree rated Pennymac Mortgage
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Pennymac’s scorecard:
- Publishes rates online
- Offers standard mortgage products
- Includes detailed product info online
- Shares resources about mortgage lending
- Provides an online application
Frequently asked questions
You can view Pennymac’s rates for various loans and apply for them online. You can also manage your loan online once you’ve secured it.
Yes, Pennymac is a legitimate company. It has an A-plus rating from the Better Business Bureau and has been in business since 2008.
You can view more info about Pennymac’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
Preapproval for a Pennymac loan does involve a hard credit inquiry. However, your credit score won’t be significantly affected, and it will generally bounce back within a few months.
Pennymac has just 2.8 stars out of 5 on TrustPilot, earning it an “average” rating based on more than 1,600 customer reviews. However, 55% of reviewers gave the company a 5-star review.
The primary complaints are about poor communication and poor customer support. Those who gave Pennymac 5-star reviews note the seamless process and excellent interactions with staff.
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