Editorial Disclosure: Sarah Mitchell, NMLS #1293847, has 10+ years of experience specializing in government-backed loans. This review uses publicly available data and real borrower experiences from 2025-2026. We may earn a commission from partner links — this never influences our ratings.
UWM and PennyMac are both mortgage giants — but they operate in fundamentally different ways. Understanding this difference is the key to choosing the right one for your situation.
United Wholesale Mortgage (UWM) is the #1 wholesale lender in America, originating $140+ billion annually. You can't apply directly — you must go through an independent mortgage broker. PennyMac is the #2 overall mortgage lender, offering both direct-to-consumer and correspondent channels. You can apply online, by phone, or through a broker.
Company Snapshot
| Category | UWM | PennyMac |
|---|---|---|
| Founded | 1986 | 2008 |
| Headquarters | Pontiac, MI | Westlake Village, CA |
| Annual Volume | $140B+ | $120B+ |
| Channel | Wholesale Only | Direct + Correspondent |
| Apply Directly? | No (broker required) | Yes |
| Min Credit Score | 620 Conv / 580 FHA | 620 Conv / 580 FHA |
| Avg Close Time | 17-25 days | 30-45 days |
| J.D. Power Rating | N/A (wholesale) | Above Average |
Rate Comparison: February 2026
Here's where it gets interesting. Because UWM is wholesale-only, their rates are typically lower than PennyMac's retail rates. But you need a broker to access them. To see today's rates from both lenders, use our comparison tool.
UWM (via Broker)
PennyMac (Direct)
*Rates as of February 2026 for 740+ credit, 20% down, $400K purchase. UWM rates reflect wholesale pricing through a broker. PennyMac rates are direct retail. Your rates will vary.
Rate Advantage: UWM
UWM's wholesale rates are 0.25% lower on average across all loan types. On a $400K 30-year mortgage, that 0.25% difference saves you $58/month and $20,880 over the life of the loan. The catch: you need a broker, which adds a broker fee (typically 0.5%-1%).
Loan Products Available
Both Offer
Conventional (Fannie/Freddie), FHA, VA, USDA, Jumbo, Fixed-rate, ARM, Refinance (rate-and-term + cash-out), IRRRL/Streamline
UWM Exclusive Products
DSCR loans (investment property), Bank statement loans (self-employed), Asset depletion loans, Foreign national loans, 1% down conventional (with 2% lender credit)
PennyMac Exclusive Products
Power Buyer program (cash-like offers), Home equity loans, HELOCs, Renovation loans (203k), Construction-to-permanent
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UWM Strengths
- ✓ Fastest closing times in the industry (17-25 days)
- ✓ Broker advocates for you personally
- ✓ Lowest wholesale rates available
- ✓ Widest range of non-QM products
- ✓ BOLT technology for instant closings
PennyMac Strengths
- ✓ Apply directly online (no broker needed)
- ✓ Power Buyer program for competitive offers
- ✓ Home equity products (HELOC + HEL)
- ✓ Strong servicing reputation
- ✓ Renovation loan options (203k)
Real Borrower Scenario: $500K Purchase
James, a veteran in San Diego, was buying a $500K home with a VA loan. Here's what each lender offered:
UWM (via Broker)
- VA Rate: 5.50% (30-yr fixed)
- Monthly P&I: $2,839
- Origination: $0 (lender-paid)
- Broker fee: $2,500 (0.5%)
- Total closing costs: $5,200
- Lifetime interest: $522,040
PennyMac (Direct)
- VA Rate: 5.75% (30-yr fixed)
- Monthly P&I: $2,918
- Origination: $5,000 (1%)
- Broker fee: N/A
- Total closing costs: $8,400
- Lifetime interest: $550,480
Result
James saved $3,200 in closing costs and $79/month by going with UWM through a broker — totaling $31,640 over 30 years. The broker handled everything, and UWM closed in 22 days. If you're a veteran, check your VA loan eligibility here.
The Verdict
Choose UWM if:
You want the lowest possible rate, are comfortable working with a broker, have a complex loan scenario (self-employed, investment property, non-QM), or need a fast closing.
Choose PennyMac if:
You prefer applying directly online, need home equity products (HELOC/HEL), want a renovation loan, or value a single point of contact from application to servicing.
Frequently Asked Questions
Is UWM better than PennyMac for a mortgage?
It depends. UWM typically offers lower rates through brokers, while PennyMac offers more convenience with direct applications. For the lowest cost, UWM usually wins.
Can I apply directly with UWM?
No. UWM is exclusively wholesale — you must work with an independent mortgage broker. This is actually an advantage since brokers negotiate on your behalf.
What credit score do I need for PennyMac?
PennyMac requires 620 for conventional and 580 for FHA/VA. For the best rates, aim for 740+.
Which lender has lower closing costs?
UWM through a broker averages $5,800-$7,200 vs. PennyMac's $7,000-$9,500 for direct applications on a $400K loan.
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