- Conventional mortgages
- FHA, VA and USDA loans
- Jumbo loans
- Adjustable-rate loans
- Investment property loans
PennyMac loan fees include origination fees, rate-lock fees and closing costs. These expenses vary by loan type and applicant. According to PennyMac’s website, borrowers should talk to their loan officers about fees to minimize upfront costs.
Closing costs include things like title fees, recording fees, appraisal fees, credit report fees, pest inspection, attorney’s fees, taxes and surveying fees.
PennyMac offers a “better rate promise” program which asserts that their pricing is better than other lenders. They back this promise with a $250 gift card for borrowers who find cheaper lenders.
“The closing cost of a loan will vary depending on your geographic location and the requirements of the loan product,” according to PennyMac.
Minimum borrower requirements
PennyMac adheres to the conforming loan requirements for mortgages approved by government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, as well as those backed by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).
For conventional loans, key requirements include good credit (typically a FICO score of 620 or higher) and a minimum down payment of 3 percent. However, anything less than 20 percent down will trigger the private mortgage insurance (PMI) requirement. Borrowers must also have a minimum of two months cash reserves to cover the closing costs; proof of employment or income; and, in most cases, a debt to income ratio (DTI) of 45 percent or less.
Keep in mind, you might be able to submit alternative credit data to improve your chances of getting a lower interest rate or just getting approved for a loan. Alternative credit data includes rental history and car payments.
For FHA, VA and USDA loans, those requirements are set by the government. You can find them here:
FHA loan requirements
VA loan requirements
Refinancing options include home equity loans, HELOCs and streamline refinancing.