Pennymac Loan Services has emerged as the nation's largest FHA lender by loan volume, according to recent government data. The company operates primarily through correspondent lending, facilitating loans for banks, credit unions, and independent mortgage brokers across the country.
Borrowers can access Pennymac's services directly online. The lender offers a mortgage rate buydown that reduces interest rates by 1% for one year. Those who obtain a Pennymac mortgage preapproval receive a $1,000 credit toward closing costs.
Using a Pennymac-affiliated real estate agent results in cash back ranging from $350 to $9,500 after closing. The company also provides a $2,000 credit toward closing costs for refinancing within three years if rates decrease after loan origination.
Pennymac charges relatively low mortgage rates but reported above-median fees in 2024 based on government data. The lender maintains helpful online resources including blog posts about home-buying and multiple calculators.
The company offers numerous home loan products including conventional loans, FHA loans, VA mortgages, USDA loans, purchase loans, refinance loans, cash-out refinancing, fixed-rate mortgages, adjustable-rate mortgages, jumbo loans, second home loans, investment property loans, buydown loans, and home equity loans.
Pennymac does not offer interest-only mortgages, lot loans, construction loans, guest house loans, non-qualified mortgages, energy-efficient mortgages, renovation loans, 1% down mortgages, bridge loans, manufactured home loans, piggy-back loans, ITIN mortgages, medical professional loans, or HELOCs.
For FHA mortgage home buyers, Pennymac provides the highest volume of FHA loans in America. These government-sponsored loans offer credit history flexibility but require mortgage insurance premiums that continue throughout the loan term.
The company is also a high-volume VA loan originator and services hundreds of thousands of VA-backed mortgages. Pennymac offers VA purchase loans requiring no down payment, VA Streamline Refinance options, and VA cash-out refinancing.
As a recommended lender for first-time home buyers, Pennymac provides a First-time Homebuyer Guide and multiple loan options. For home equity lending, the company offers fixed-rate home equity loans to owners with at least 15% equity but does not currently provide HELOCs.
Pennymac displays sample mortgage interest rates only after users enter extensive information including property value, down payment, ZIP code, credit score range, property use, payment preferences, and military affiliation. Applicants must then provide full name, email address, phone number, and property state.
According to Yahoo Finance's scoring system using 2024 Home Mortgage Disclosure Act data, Pennymac received 4 out of 5 stars for mortgage rates but only 1 out of 5 stars for total loan costs. The company offered a lower-than-median mortgage rate of 6.15% but a higher-than-median total loan cost of $8,030.41 in 2024.
The online application system allows document uploads and photo submissions. After application submission, a loan representative contacts applicants to guide them through preapproval. The website features multiple calculators and hundreds of educational articles.
Pennymac earned a 4-star score for affordability due to its wide range of loan options and a 5-star score for online learning resources. The company maintains an A+ rating with the Better Business Bureau and has operated for 19 years.
Pennymac Financial Services, Inc. is headquartered in Westlake Village, California, and trades on the Nasdaq exchange under PFSI. CEO and Chairman David A. Spector leads the company, which employs over 5,000 people.
For mortgage application assistance, applicants can call (844) 917-3669. Existing borrowers with payment questions can contact (866) 545-9070. The company offers assistance programs for borrowers struggling with payments.