loan types Articles
The Pennymac Mortgage Blog is where you'll find unbiased, useful info to help save you money, time and peace of mind during the mortgage process. If you have a mortgage or are about to get one, we think you'll find info here you can't always get elsewhere.
A conventional loan is a type of mortgage that is not part of a specific government program, such as Federal Housing Administration (FHA), Department of Agriculture (USDA) or the Department of Veterans’ Affairs (VA) loan programs. However, conventional loans are commonly interchangeable with "conforming loans", since they are required to conform to Fannie Mae and Freddie Mac’s underwriting requirements and loan limits.
A 30-year mortgage has long been the industry norm, and for good reason: It allows the homebuyer to spread the loan out over a long period to keep payments as low as possible. But now that interest rates have dropped to near-record lows, 15-year mortgages are becoming more popular. Is a 15-year mortgage right for you?
A Jumbo loan exceeds the limits set by the Federal Housing Finance Agency to help you finance a home in a higher price range. Is it right for you?
When you are buying a new home or refinancing your existing home loan, it’s likely you’ll be introduced to a wide variety of mortgage types. While it may seem logical for some to select a mortgage based on what friends or family have chosen, it’s actually most important to weigh whether or not a mortgage fits your individual lifestyle and future housing plans.
Like many American homeowners, your first mortgage may have been a loan with the Federal Housing Administration (FHA). Loans backed by the FHA are attractive to first-time homebuyers because FHA loans make it easier to obtain financing, requiring only minimal down payments and fair-to-good credit scores.
VA loans offer amazing advantages and benefits beyond down payments — learn how they can help you buy or refinance your home easily, with great savings.
So you have your eye on a new home, but the loan you need is bigger than the conforming loan limit—what are your options?
When you’re evaluating home loan categories, it’s easy to get confused by the terms “conventional” and “conforming.” As similar as these two terms may sound, their definitions are different so it’s important to understand the distinctions. We’re here to clear the air.