Purchasing

money in your house

What is the right mortgage for me?

Whether you're a first time homebuyer or looking to purchase your next home, PennyMac Loan Services will work with you every step of the way to help you find the right home mortgage that meets your specific financial goals.

Found your dream home? Here are some great reasons to work with PennyMac:

*Not all applications will be pre-approved.
  • Low, everyday rates
  • FHA, VA, Jumbo and flex-term options available
  • A top 11 lender in the U.S.
  • A publicly traded, national lender with more than 3,000 employees (NYSE:PFSI)

Mortgage Loan Options

It’s important to have the right partner when you’re ready to buy a new home and PennyMac offers a wide range of financing options to suit a variety of needs. Whether you’re looking for a loan for a primary residence, second/vacation home or investment property, we will work through your complete financial picture to find the right option for you. Which one of these products sounds like the best fit for you:

Mortgage Type
Key Benefits
Worth Considering If You…
Mortgage Type
Conventional Fixed-Rate Mortgages

A low rate that never changes.

Rates & More Info
Key Benefits
  • Best rates for qualified borrowers
  • One rate for the life of your loan
  • No mortgage insurance
Worth Considering If You…
  • Plan to stay in your home for a longer period of time
  • Have built a credit history
  • Already have the funds for a down payment of 5% or more
Mortgage Type
Adjustable-Rate Mortgages (ARMs)

Pay the lowest rate initially and then transition to an annually adjusting rate.

Rates & More Info
Key Benefits
  • The lowest short-term rates
  • Keeps your monthly payments low for the initial period
  • Select an initial rate period of 3-10 years based on your plans for the home
Worth Considering If You…
  • Plan on moving or selling your home in a few years
  • Have built a credit history
  • Already have the funds for a down payment of 5% or more
Mortgage Type
Jumbo Mortgages

A larger loan for high credit score borrowers with healthy reserves.

Rates & More Info
Key Benefits
  • Loan amounts up to $2 million
  • Eliminates the need for secondary financing
  • Allows buyers to finance more expensive properties in counties with lower conforming loan limits
  • No prepayment penalties (even on ARMs)
Worth Considering If You…
  • Plan to put 20% down
  • Have good credit
  • Possess the required reserve funds
  • Want to avoid multiple mortgages
Mortgage Type
FHA Mortgages

Government-backed loans with more flexible lending guidelines.

Rates & More Info
Key Benefits
  • Low down payments
  • Flexible qualification guidelines
  • Fixed-rate and ARM options are available
Worth Considering If You…
  • Fixed-rate and ARM options are available
  • Lack a credit history or have some credit problems in the past
Mortgage Type
VA Mortgages

Government-backed loans for eligible military members and their spouses.

Rates & More Info
Key Benefits
  • Lower or zero downpayment required
  • Mortgage insurance is not required
  • Flexible qualification guidelines
  • Fixed-rate and ARM options are available
Worth Considering If You…
  • Are an active military member or veteran
  • Are the surviving spouse of a service member who has not remarried

Why should I choose PennyMac?

We service the loans we originate — While other lenders may be looking to sell your loan as soon as you sign the dotted line, PennyMac is dedicated to being a lender you can trust far beyond your closing date. When you originate a loan with PennyMac, we'll service your loan because we value your trust and decision to choose us.

No expensive brick-and-mortar retail offices — We believe in passing on the savings to our customers with some of the lowest, most competitive rates and fees available today. Home loans are the primary focus of our business, not upselling you and adding services you don’t need.

We're committed to being your partner in homeownership — Being a PennyMac customer means having a partner that never stops looking for ways to save you money and help fulfill your dream of homeownership.

Resources & Tools

Get a Customized Rate Quote

Tell us the type of loan you’re looking for and we’ll quote you a rate and estimate your monthly payments. When you like what you see, get pre-approved with PennyMac’s BuyerAdvantage Pre-Approval or apply online using our Mortgage Access Center (m.a.c).

Purchase Loan Calculators

Use today's rates to get a better understanding of the true cost of different mortgage products before chatting with one of our licensed loan officers.

Mortgage Learning Center

We’re always adding new articles and resources to our Learning Center to help provide you with unbiased, useful mortgage information on a wide range of topics.

Home Value Estimator

Get a report on the estimated value of your home that provides two estimated market values from leading providers.

Accreditations and Certifications
PennyMac Trustpilot Reviews PennyMac Loan Services Reviews PennyMac Loan Services NerdWallet scores PennyMac Loan Services BBB Reviews

Frequently Asked Purchasing Questions

Should I buy a house?

Whether or not to buy a home is one of the most important financial decisions an individual or family is faced with. The decision has more to do with your financial planning than it does with constantly fluctuating market conditions. The first step towards determining if it is a good time to buy a home is to speak with a licensed loan officer and learn more about all your options. Once you know what kind of house you can afford and what kind of commitment is required, you can compare it against other options, like renting, and make the decision that makes most sense for you. Check out this article for a deeper look at the pros and cons of buying a home versus renting.

How much house can I afford?

Before determining what list price to target in a new home, you first must understand how much you're comfortable spending on housing per month. A common rule of thumb is to earmark 28% of your post-tax income for house payments, including your homeowners insurance and property tax. For example, if your annual income after taxes is $60,000, 28% of that is $16,800, or $1,400 per month. However, every situation is different. It's important to look at all your current and future financial obligations and make the right decision for your unique situation.

We've made doing the math a lot easier for you. Check out our helpful Home Affordability Calculator to assess your debt-to-income ratio, down payment, loan amount and your mortgage payment — all at once! Then, use our Mortgage Payment Calculator to see current mortgage rates and your estimated monthly payment.

Will I be turned down for a loan if I've had credit problems?

Not necessarily. Your credit score is only one of the factors taken into consideration when you apply for a home loan. We also review your employment history, income, debt and cash reserves. There are also different kinds of loan products that have varying requirements for your credit history.

How long does the home loan process take?

Every home loan situation is different, so it's difficult to accurately estimate how long your home mortgage process will take. Some of the factors that affect the timeline include the type of loan, the specific term you're requesting, the amount of required documentation and the time it takes to provide your lender with those documents. Luckily, you're never alone in the process with PennyMac. Our loan officers and processing specialists will work with you every step of the way to ensure that your application is processed as efficiently as possible.

What documents will I need to apply for a mortgage?

Traditional loans usually require documents that verify your employment, income and assets, and may include:

  • Your Social Security number
  • Pay stubs for the last two months
  • W-2 forms for the past two years
  • Bank statements for the past two or three months
  • One to two years of federal tax returns
  • A signed contract of sale (if you've already chosen your new home)
  • Information on current debt, including car loans, student loans and credit cards

When can I lock my interest rate, and what will it cost me to do so?

There is no way to know how interest rates will fluctuate so it's generally a good idea to lock a rate when you find a loan product that is in line with your financial goals. To prevent getting a higher rate, you can lock the rate, and even the points, for a specified period. Fees may apply, but not always. If rates go down, you still have options but locking a rate will at least protect you from rising rates.

What are closing costs?

Mortgage closing costs are fees charged for services that must be performed to process and close your loan application and they may vary depending on a variety of factors. Examples of mortgage closing costs include title fees, recording fees, appraisal fees, credit report fees, pest inspection, attorney's fees, taxes and surveying fees. The closing cost of a loan will vary depending on your geographic location and the requirements of the loan product.

Lenders are required by law to provide you with your Loan Estimate and the Closing Disclosure to outline your closing costs and help you avoid surprises at the closing table. Your loan officer can answer any questions you have about the different closing costs associated with PennyMac's mortgage products and what options you may have for minimizing your up-front costs.

Does the loan have any prepayment penalties?

Prepayment penalties are rare in today’s mortgages. If you manage to pay off a 30-year fixed rate mortgage in only 15 years, you come out ahead financially because you’ve reduced the amount of interest paid on the loan. Get more info on Early Payoff Options.

What is the minimum down payment required for a home purchase loan?

While 20% may be the most common down payment requirement for most conventional loans, some products, like FHA loans, require down payments as low as 3.5%. Be sure to weigh all your costs though since loans with lower down payments can often cost more over the life of the loan.

Do I have to pay for mortgage insurance, and how much will this cost?

Often loans that require less than 20% down on your purchase requires paying mortgage insurance until your loan-to-value, or LTV, ratio falls below 80%. Mortgage insurance premiums can vary some costing up to $100 per month for every $100,000 borrowed.