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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. While customers are largely in favor of the lender, its customer service seems inconsistent across the board.
Minimum credit score
Minimum down payment (Conventional)
Not available in: NY
|Loan products offered||Conventional, FHA, VA, USDA, Refinance|
|Minimum credit score||Conventional: 620|
|Minimum down payment (Conventional)||3%|
|State availability||Not available in: NY|
Cassidy Horton is a freelance copywriter and journalist, specializing in personal finance. Her writing and analysis has been featured in Forbes Advisor, Money, The Balance, Money Under 30, Insure.com and other top digital publishers. She holds a BS in public relations and an MBA from Georgia Southern University.
PennyMac is probably best suited for homebuyers looking for government-backed or conventional home loans. The lenders offer homebuyers a quick and easy application process and several types of mortgages to choose from. But if you’re looking for a home equity product, your only choice is a cash-out refinance.
PennyMac is not currently available on Finder
Have you considered First Horizon?
Multiple mortgage programs available in 12 states with no pre-payment fee.
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 in addition to whatever lender fees PennyMac charges, you’re responsible for paying any third-party fees associated with the purchase of a home, including title fees, taxes, insurance and appraisal fees.
Get preapproved for a mortgage or apply online through PennyMac’s Mortgage Access Center in four steps:
PennyMac offers a wide range of mortgage products that can be used for refinance with the following two main options:
This lender doesn’t offer either home equity loans or HELOCs, but they do offer Investment Property Loans. These loans are designed for a single-family, townhome, condo or multi-unit property intended for use as an investment.
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.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
PennyMac earns 3.3 out of 5 stars on Trustpilot based on more than 1,500 reviews as of July 2022, which is a pretty high star rating for a mortgage lender. At the Better Business Bureau (BBB), PennyMac is rated even higher, earning 4.47 out of 5 stars from 2,189 customer reviews. The company’s had BBB accreditation since 2014 and has answered 753 complaints in the past three years.
Negative 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 deserve your consideration.
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.”
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