Waive $1,100 in Origination Fees


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Types of Loans Offered

Conforming, FHA, VA

Types of Loans Offered

Conforming, FHA, VA


  • Origination fee is waived on conventional and FHA purchase mortgages
  • Instant rate quote tool makes it easy to get customized rates


  • Doesn’t accept alternative credit data
  • Requires a minimum score of 620 for its FHA mortgages
  • Repeat buyers need to put 5% down

More Information

  • Available in all states except New York
  • Charges a $1,100 origination fee that may be waived on some purchase transactions or FHA streamline refinance
  • Minimum credit score and down payment displayed is for conforming mortgages. Only first-time homebuyers are eligible to put down 3%; others must put down at least 5%

Overall lender rating

Pros and cons

Pennymac mortgage interest rates and fees

Pennymac makes it convenient to compare mortgage rates. If you click on “Rates” at the top left of the Pennymac website, you can view today’s sample rates or use the instant quote tool to get rates customized to your situation. These customized rates are based on the price and location of the property you’re purchasing, the size of your down payment, and your credit score.

Pennymac charges a $1,100 origination fee on its conforming and FHA mortgages. However, if you’re purchasing a home rather than refinancing, or if you’re getting an FHA streamline refinance, it may waive this fee for you.

Pennymac’s VA mortgages come with an origination fee equal to 0.95% of the loan amount. If you’re using a VA mortgage to purchase a home, it will reduce this fee by $1,100. 

Pennymac vs. Rocket Mortgage

To get personalized rates from Rocket Mortgage, you’ll need to start an application. Pennymac, on the other hand, lets you easily explore rates without having to apply or create an account first.

Rocket Mortgage ranked No. 2 in J.D. Power’s 2021 Primary Mortgage Origination Satisfaction Study, while Pennymac ranked below the industry average. If customer service is important to you, Rocket Mortgage might be a better choice. 

Pennymac vs. LoanDepot

LoanDepot doesn’t list any rates online, making it difficult to compare this lender to others if you aren’t ready to apply for preapproval. By contrast, Pennymac’s rate quote tool makes it easy to get an idea of what your rate might look like.

If you’re a first-time homebuyer, you may also be able to put down less with Pennymac than with LoanDepot, which requires a down payment of at least 5%. Pennymac lets first-time homebuyers put down as little as 3%.

How Pennymac works

Pennymac is an online lender that originates mortgages in all states except New York. It offers conforming, FHA, and VA mortgages.

If you’re a first-time homebuyer, you may be able to put just 3% down on a conforming mortgage with Pennymac. Other borrowers will need to put down at least 5%.

If you plan on getting an FHA mortgage, you’ll need a credit score of at least 620 to qualify with this lender. This is higher than what many other lenders require on their FHA mortgages — typically, the minimum credit score is 580.

Pennymac doesn’t consider alternative credit data (such as proof of rent or utility payments) on any of its mortgages. If you want to apply with this lender, you’ll need a decent credit score.

If you’re refinancing with Pennymac, you’ll pay an origination fee of $1,100. If you’re getting a VA mortgage refinance, the origination fee is equal to 0.95% of the loan amount. The origination fee is waived on conforming and FHA purchase mortgages and FHA streamline refinances, and is reduced by $1,100 on VA purchase mortgages. 

If you want to apply for a mortgage, you can do so online. You can also get started over the phone Monday through Friday from 6 a.m. to 7 p.m. PT, and Saturday from 6 a.m. to 5 p.m. PT. 

Is Pennymac trustworthy?

Pennymac has an A+ rating from the Better Business Bureau. BBB ratings are based on a company’s response to customer complaints, honesty in advertising, and transparency about its business practices.

In J.D. Power’s 2021 customer satisfaction study, Pennymac ranked below the industry average. However, the lender has good reviews on its Zillow profile.

Pennymac FAQ

What is Pennymac?

Pennymac is a private mortgage lender offering both conventional and government-backed mortgages. 

What are Pennymac’s rates?

You can see sample rates from Pennymac on its website, or you can use its instant rate quote tool to get a customized rate. 

Does Pennymac offer home equity loans?

No, Pennymac does not currently offer home equity loans or home equity lines of credit (HELOCs).