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Pennymac Home Equity Loan Review 2026
Last updated on May 8, 2026
Written by
Lead Writer & Content StrategistCo-written by
Contributing EditorWritten by
Lead Writer & Content StrategistCo-written by
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Our Take
4.5
Home equity loans
NerdWallet rating
The Nerdy headline:
Pennymac stands out for being one of the largest home equity loan lenders by volume. You can start an application online, but you'll have to speak with a loan officer in order to finish it. Sample rates aren’t posted online.
Jump to:Full Review
Pennymac: NMLS#35953
Great for: Flexible loan terms
Min. credit score
680
Max LTV
85%
Loan types and products
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, Home Equity
Pros
- Among the top home equity loan lenders by volume.
- Home equity loans are available for second homes.
- No prepayment penalties.
Cons
- Doesn’t post home equity loan rates online.
- Borrowers must speak with a loan officer to apply.
- Borrowers will have to pay closing costs and may have to get an appraisal.
Lender | Max. loan amount | Max LTV | Min. credit score | |
|---|---|---|---|---|
 Visit Lenderat Figure at Figure | $750,000 | 85% | 600 | Visit Lenderat Figure at Figure |
 Visit Lenderat Achieve at Achieve | $500,000 | 85% | 600 | Visit Lenderat Achieve at Achieve |
 Visit Lenderat New American Funding at New American Funding | $750,000 | 90% | 600 | Visit Lenderat New American Funding at New American Funding |
 Visit Lenderat NBKC at NBKC | $250,000 | 85% | 720 | Visit Lenderat NBKC at NBKC |
 Visit Lenderat Better at Better | $750,000 | 90% | 620 | Visit Lenderat Better at Better |
Full Review
💲Pennymac home equity loan rates
Home equity loan rates tend to move with the federal funds rate, which is set by the Federal Reserve. In addition to market factors, your home equity loan rate offers will be determined by your financial profile, including your credit score and income.
Pennymac does not post sample home equity loan rates online.
👍 Reasons to get a Pennymac home equity loan
If you’re looking for a lender with deep experience in home equity lending, Pennymac was the second-largest home equity loan originator last year among all lenders surveyed by NerdWallet.
Borrowers can access up to 85% of their home equity with a Pennymac home equity loan, a typical borrowing limit.
Pennymac offers flexible repayment term options: 5, 10, 15, 20 and 30 years. Home equity loans are also available for second homes.
» MORE: Best home equity loan lenders
🤔 Reasons why Pennymac home equity loan gives us pause
The minimum loan amount is $25,000; prospective borrowers who want a smaller loan will have to shop with other lenders.
Borrowers have to speak with an agent over the phone in order to finish an application. They’ll also pay closing costs (which are standard, though not required with every lender) and may need to get an appraisal.
📎 Ways to apply for a Pennymac home equity loan
How to Apply | Availability |
Online 🧑💻 | ✅ |
Over the phone 📞 | ✅ |
Mobile app 📶 | 🚫 |
In person 🏦 | 🚫 |
While Pennymac earned marks for offering an online application, you’ll need to speak with a representative over the phone to access it.
You can contact customer service over the phone.
🛒 Alternatives to a Pennymac home equity loan
Wondering if another lender or product might be a better fit? It’s worth it to shop around to learn more about your options.
Borrowers looking to access a lot of their home equity should consider Newrez, which has a max CLTV of 95%. If you’re more concerned with choosing a lender with a lot of experience in home equity lending, Rocket Mortgage was the largest home equity loan lender of 2025.
Finally, borrowers who are just looking for an overall solid home equity loan lender should look at Better.
A home equity loan isn’t your only option
You can also explore products outside of home equity loans. Alternatives to home equity loans include a HELOC, which you can draw from as needed, or a cash-out refinance, which replaces your existing mortgage with a larger loan.
Among these options, Pennymac offers cash-out refinancing.
Borrow from your home’s equity
Methodology
NerdWallet rates home equity loan lenders based on what matters most to borrowers: home equity loan rates and fees, how much of a lender’s business is dedicated to home equity loans, home equity loan market share, product accessibility, loan terms, borrowing limits, closing costs, customer experience and rate transparency.
We review more than 40 lenders and score home equity loan lenders using a weighted system that prioritizes affordability, flexibility and a smooth borrowing experience. Lenders earn higher scores for offering lower borrowing costs, higher combined loan-to-value (CLTV) limits, manageable closing costs, flexible repayment terms, faster closing times and clear, accessible rate information, along with strong customer support throughout the process.
We use a mix of lender-provided information, publicly available data and our own analysis to evaluate each lender. Recent regulatory actions may affect a lender’s score.