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.
There are many loan types available to homeowners, and each loan has its advantages and disadvantages. One loan you may have heard of is a bridge loan. We’ll walk you through the ins and outs of bridge loans, how they work, the pros and cons, and who should consider this type of loan.
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.
Read more about Conforming vs. Non-conforming Loans: Which Is Best for You?
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.
Buying your first home can be a very exciting time. You’re finally going to have your own space, and you’re ready to start a new chapter in your life as a homeowner. However, purchasing a property can be quite the process. We’ll walk you through the loan qualification requirements, various first-time homebuyer programs, and loan options available.
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?
Read more about Big Possibilities: The Homebuyer’s Guide to Jumbo Loans
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?
Buying your own home has many benefits: you can gain equity, have access to potential tax savings, and on top of it all, gain a sense of security and freedom that comes from homeownership. Owning a single-family home also comes with responsibilities that you would occasionally need to set time aside for, such as landscaping and home repair projects. However, if you are looking for the benefits of homeownership in a lower-maintenance package, then buying a condo might be the right choice for you.
Read more about Guide to Getting a Condo Mortgage: What You Need to Know
If you are 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 are easier to obtain financing for and require only minimal down payments and fair-to-good credit scores.
With low down payments, low closing costs, and more flexible credit score requirements, it’s no wonder that nearly one in every five home purchases are made using an FHA Loan.
Read more about FHA Loans – Credit Score Requirements and More