Pennymac Mortgage Review 2025
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- 50+ mortgage lenders reviewed and rated by our team of experts.
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Our Take
4.5
Pennymac, known for government loans, has some of the lowest average mortgage rates we’ve seen, plus money-saving perks like a rate buydown. Its online rate tool provides plenty of detail. However, fees run a little high, and HELOCs and renovation loans aren’t available. Best for VA or FHA borrowers looking for low rates and an efficient digital experience.
Pros
- Online rate tool is user-friendly and informative.
- Perks include a 1% interest rate buydown and “refinance later” cash bonus.
- Experienced in VA and FHA mortgages.
Cons
- Average origination fee is on the higher side, according to the latest federal data.
- Home equity loans, but no HELOCs.
- No construction or renovation loans.
Lender | Min. credit score | Min. down payment | |
|---|---|---|---|
 Visit Lenderat NBKC at NBKC | 620 | 3% | Visit Lenderat NBKC at NBKC |
 Visit Lenderat New American Funding at New American Funding | 580 | N/A | Visit Lenderat New American Funding at New American Funding |
 Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC | 580 | 3.5% | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
 4.0 Visit Lenderat GO Mortgage at GO Mortgage | 620 | 3% | Visit Lenderat GO Mortgage at GO Mortgage |
 Visit Lenderat Veterans United at Veterans United | 620 | 0% | Visit Lenderat Veterans United at Veterans United |
Full Review
At a glance: Pennymac mortgage options
Pennymac is a nonbank lender based in Westlake Village, California. Loans are available nationwide.
🏠 Common mortgages • Fixed- or adjustable-rate • Conventional • FHA • VA • USDA (refinance only) • Jumbo • Rate-and-term refinance
🔑 Specialty loans • Investment property loans
💵 Home equity • Home equity loans • Cash-out refinance
» MORE: How to choose a mortgage lender
Pennymac special offers and discounts
Pennymac offers some competitive perks and bonuses to reduce the cost of getting a mortgage. These include:
A lender-paid temporary buydown program, which reduces your mortgage rate by 1% for the first 12 months after your home purchase. (Some mortgages are not eligible, including VA, jumbo and refinance loans.)
A $1,000 credit at closing for customers who get preapproved through Pennymac.
A $2,000 cash bonus for Pennymac purchase mortgage customers who refinance with Pennymac within three years.
Pennymac Home Connect, which pays a bonus of $350 to $9,500 for those who buy and/or sell through a preferred network of real estate agents.
A close-on-time guarantee, which provides a $2,500 credit at closing if your loan doesn’t close as described in the timing of your purchase contract. (Restrictions apply.)
What does Pennymac specialize in?
A lender’s experience with your loan type can make a big difference. We looked at the latest federal data to find the types of mortgages Pennymac handles most often.
The lender dedicates a large portion of its business to government-backed VA loans — at 46%, it’s one of the highest percentages of VA loans among lenders we review. Pennymac handles a good amount of FHA loans, too.
How we score Pennymac home loans
Each year, NerdWallet writers and editors dig into the latest data and independent research on mortgage lending. Then, we rate lenders based on categories that matter most to mortgage borrowers.
Pennymac has a NerdWallet home loans rating of 4.5 stars overall. Here’s a breakdown of this year’s score.
Category | Star rating |
|---|---|
Average mortgage rates and fees | |
Mortgage rate transparency | |
Variety of loan types | |
Customer experience | |
Overall star rating |
Ah, so you’re the “read the fine print” type? We got you. Here’s how our scoring rubric works.
Average mortgage rates and fees (30%)
We review federal data (as reported by the lenders) and analyze mortgage lenders’ average fees and interest rates across all loan types. Lenders with the lowest average costs get the highest star ratings. Keep in mind: Loans that are easier to qualify for, like FHA loans, usually have higher rates and fees because lenders see them as a higher risk. Pro tip: Paying some fees upfront can sometimes lower your interest rate.
Mortgage rate transparency (25%)
We look at how easy it is to compare mortgage rates online. Lenders get higher transparency ratings if they show sample rates on their website. (Not all lenders do!) The best ratings go to lenders that offer interactive tools that let you customize a rate quote on your own.
Variety of loan types (25%)
There’s no one-size-fits-all mortgage. Lenders earn top ratings in this category when they offer a large variety of mortgage types. The more variety, the higher their score. A lender earns points for purchase and refinance; fixed and adjustable rates; FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.
Customer experience (20%)
How easy is it to work with this lender? Top-rated lenders offer helpful features like online applications, multiple ways to get support, a user-friendly mobile app and clear updates about the loan closing timeline.
Pennymac mortgage reputation and customer experience
NerdWallet’s star ratings look at objective factors like rates, fees and loan options. To give you a sense of what the borrower experience is really like, we pulled the latest customer satisfaction scores from J.D. Power and Zillow and we contacted the lender’s customer support.
2024 J.D. Power U.S. Mortgage Origination Satisfaction Study
652
out of 1,000
Below-average satisfaction score: average = 727.
Mortgage origination covers the application through closing.
2025 J.D. Power U.S. Mortgage Servicing Satisfaction Study
607
out of 1,000
Above-average satisfaction score: average = 596.
A mortgage servicer handles loan payments.
Zillow Mortgage Lender Customer Rating
4.29
out of 5
Below-average rating as of the date of publication. Rating reflects more than 330 customer reviews.
Pennymac mortgage customer service options
Here’s how you can get in touch with Pennymac.
Ways to reach Pennymac
Physical branches . . . . . . ✅ Phone support . . . . . . . . . ✅ Mobile app . . . . . . . . . . . . ✅ Online chat (bot) . . . . . . . ✅ Online chat (human) . . . . ✅
🤓 Our Nerds say... top-rated digital tools
Abby Badach Doyle, lead writer, mortgages
Pennymac checks all our boxes for a self-service digital experience: Online preapproval, a fully online mortgage application and an exceptionally detailed rate quote tool. Pennymac does offer online chat, but only when you’re logged in, so you have to create an account first to use it. Its mobile app earns high ratings on the App Store and Google Play store, too.
» MORE: How to apply for a mortgage
Alternatives to a Pennymac mortgage
Our biggest tip: Get offers from at least three different mortgage lenders. Comparison shopping can save you thousands of dollars. You can get rate quotes yourself, or work with a mortgage broker to shop around on your behalf.
Veterans United offers lots of detail in its online rate quotes and specializes in VA lending. Rate, another nonbank lender, scores highly in rate transparency and provides a fully online application.
» MORE: Best online mortgage lenders
More from NerdWallet
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: average mortgage rates and origination fees, rate transparency to consumers, variety of loan types (purchase, refinance, fixed and adjustable, for example) and customer experience. Among the factors we consider in these categories are: options to apply for home loans online, typical time to close, mobile app experience, level of detail about mortgage rates on lender websites, and NerdWallet’s own analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These and other items inform detailed rubrics, which generate ratings from 1 star (poor) to 5 stars (excellent). Read more about how we rate mortgage lenders here.
