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finder.com’s rating: 3.8 / 5.0
★★★★★
PennyMac is among the nation’s largest digital mortgage lenders, offering several types of home loans and a speedy, online application process. It caters to most homebuyers, and through December 31, 2021, it’s running a promotion that can help you save some money. While customers are largely in favor of the lender, its customer service seems inconsistent across the board.
Loan products offered | Conventional, FHA, VA, USDA, Refinance |
---|---|
Minimum credit score | Conventional: 620 |
Minimum down payment (Conventional) | 3% |
State availability | Not available in: NY |
NMLS # | 35953 |
Eligible homebuyers need a credit score of 620 or higher and a down payment of at least 3% of the home’s cost.
PennyMac asks for your personal, financial and employment information while applying, including:
Fees depend on the loan type, but PennyMac is waiving its $1,100 origination fee through December 31, 2021 for homebuyers who purchase a conventional or FHA loan.
As is usually the case, you’re still responsible for paying any third-party fees that come with the purchase of a home, including closing costs and appraisal fees.
Get preapproved for a mortgage or apply online through PennyMac’s Mortgage Access Center in four steps:
Though PennyMac offers a 0.5% lender credit, a quick application process and a current promotion waiving the $1,100 origination fee on conventional and FHA loans, it won’t be the right fit for everyone.
For starters, if you’re a New York resident and want a similar offering of mortgage products, consider a nationwide lender like Rocket Mortgage. Rocket Mortgage also provides a convenient application process and similar requirements, but it doesn’t waive its origination fee. This can be 0.5% to 1% of your loan.
If you’re set on working with a digital lender but want to avoid having to pay lender fees altogether, you might want to consider a lender like Better. Better offers conventional, FHA and jumbo home loans with no lender fees. But like PennyMac, it isn’t available in every state.
You can also compare lenders and lender marketplaces by the type of home loan you’re searching for, state availability and minimum credit score (for a conventional loan). Select See rates to provide the company with basic property and financial details for personalized rates.
PennyMac earns 3.8 out of 5 stars on Trustpilot based on more than 1,420 reviews as of August 2021, putting it on par with other mortgage lenders – maybe even slightly above. At the Better Business Bureau (BBB) website, PennyMac earns 4.36 out of 5 stars based on almost 1,400 customer reviews. The company’s had BBB accreditation since 2014.
Most customer reviews warn of poor customer service, citing difficulty in getting reps to answer or return phone calls. Other reviewers report contradictory information from customer service representatives, misplaced monthly payments and damaged credit scores due to faulty reporting to the bureaus. Those that praised the company spoke mostly about its quick and easy mortgage process.
This digital lender offers a fully online application process that includes preapproval and status updates through your online account, among other benefits. But there are some downsides with choosing PennyMac that you should consider too.
PennyMac is a digital mortgage lender that boasts servicing some $449 billion in mortgage loans to nearly 2 million customers since its founding in 2008. From its California headquarters, it offers competitive conventional, FHA, VA, USDA and investment property home loans to a range of customers through a fully online system and help throughout the process.
PennyMac caters to a wide group of customers, and it claims to focus its efforts on “restoring trust and quality in the home loan experience.”
Review by
Cassidy Horton is a writer for Finder, specializing in banking and kids’ debit cards. She’s been featured on Legal Zoom, MSN, and Consolidated Credit and has a Bachelor of Science in Public Relations and a Master of Business Administration from Georgia Southern University. When not writing, you can find her exploring the Pacific Northwest and watching endless reruns of The Office.
Given its current promotion of waiving the $1,100 origination fee on conventional and FHA mortgages, PennyMac is probably best suited for homebuyers looking for either of these specific types of home loans. In any case, PennyMac offers homebuyers a quick and easy application process and several types of mortgages to choose from. But if you’re applying for anything other than a conventional and FHA loan, you might be on the hook for lender fees.