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PMG Funding

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(717) 735-2203

  • Home
  • Team
    • David Wolfe
    • Jessica Vieland
    • Josiah Groff
    • Joy Nottoli
  • Purchase
    • Adjustable Rate Mortgages
    • FHA Mortgages
    • No Closing Cost Mortgages
    • Fixed-Rate Loans
    • USDA Home Loans
    • VA Home Loans
    • Portfolio Loans
  • Education
    • Mortgage Glossary
    • Closing Costs
    • Credit Reports
    • Loan Application Document Checklist
    • Mortgage Insurance
    • Avoid Private Mortgage Insurance
    • Settlement-Closing Your Loan
  • Refinance
  • Private Money

Purchase

We offer many different types of loans. The same loan program is not right for everyone. Call us at (717) 735-2203 for immediate personal assistance.

Please refer to our Mortgage Glossary for mortgage terminology and definitions.

Conventional Loan

A loan not backed by a government agency.  Typical conventional loans are backed by Fannie Mae and Freddie Mac, and are designed to provide liquidity in the residential real estate for loans that are less than $548,250 (the limit in 2021).

Benefits

  • Fixed rates offered for the term
  • Easy to close (30 – 40 days)
  • Potential for appraisal waivers
  • Up to 97% financing (3% down) (PMI required over 80%)
  • Down payment can be a gift
  • Fixed rate mortgage for investment properties

Disadvantages

  • Maximum loan amount of $548,000
  • Must be livable (not used for rehabilitation projects)
  • Deed must be held in personal names (No LLC’s or entities)
  • Multi-units require more money down

FHA Loan

Federal Housing Administration (FHA) is a mortgage insured by the Housing Administration and is designed for low to moderate income borrowers.

Benefits

  • Up to 96.5% financing (3.5% down)
  • Down payment can be a gift
  • Allows credit rating to 580 (our minimum is 640)
  • 96.5% financing on 1 – 4 units (must live in 1 unit)
  • Allows 6% seller help
  • Allows higher DTI
  • Lower MI for lower credit borrowers ( .85 vs. 1.25+)
  • Flexibility on newly self-employed of 1-2 years
  • Shorter bankruptcy and foreclosure waiting periods
  • Softer rules on collections/judgments

Disadvantages

  • Sellers perception
  • Amount of paperwork required
  • FHA has extensive rules & regulations
  • No chipped paint allowed
  • Primary residences only
  • Can only have 1 FHA loan (exceptions apply)
  • Funding fee financed over 30 years (1.75% of loan amount)
  • Monthly MI for the life of the loan
  • Max loan by county ($356,000 in Lancaster, PA) https://entp.hud.gov/idapp/html/hicostlook.cfm
  • Higher MI for good credit borrowers (< .45 vs .85)
  • Appraisal required
  • Repairs must be completed prior to settlement

USDA Loan

The United States Department of Agriculture and the Rural Development Department offer a mortgage to help develop rural areas with homeownership.   

Benefits

  • 100% financing
  • Low monthly MI (.35) and declines annually
  • Low funding fee (1%)
  • Seller can pay all closing costs (6% +)
  • Gift funds allowed
  • Assumable (valuable when rates rise)

Disadvantages

  • Income limits    https://www.rd.usda.gov/files/RD-GRHLimitMap.pdf
  • Property must be rural https://www.rd.usda.gov/files/RD-GRHLimitMap.pdf
  • Monthly MI for the life of the loan (decreases annually based on balance)
  • Amount of paperwork required
  • Seller perception
  • Requires two approvals (bank and USDA)
  • Tight DTI requirements
  • Must meet suitable housing requirement (can own only one house)
  • Appraisal required
  • Repairs must be completed prior to settlement

VA Loan

A mortgage loan guaranteed by the United States Department of Veterans Affairs designed to assist veterans with homeownership.

Benefits

  • 100% financing
  • No monthly MI
  • Allows high DTI
  • Lower credit allowed (600+)
  • Seller can cover closing costs
  • No maximum loan limits
  • Waived funding fee for Veterans with disability pay
  • Assumable (veterans only) (valuable when rates rise)

Disadvantages

  • High funding fee https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/#va-funding-fee-rate-charts
  • Must be veteran, active service or National Guard
  • Appraisal by VA approved appraisers only
  • Appraisal required
  • Repairs must be completed prior to settlement

Jumbo Loan

A mortgage held on the books of the bank/institution and exceeds the conforming limit of Fannie Mae and Freddie Mac.

Benefits

  • 30-year fixed 
  • No MI up to 85% financing 
  • Allows 90% financing (10% down)
  • Loan amounts to $1,000,000
  • Second homes allowed

Disadvantages

  • Rate .125% – .25% above conventional   
  • Does not allow for investment properties

Portfolio Loan

A mortgage held on the books of the bank/institution that doesn’t fit into the conforming box.

Benefits

  • 30-year fixed      
  • Allows for flexibility on income calculations 
  • Allows for flexibility on property type

Disadvantages

  • .375% higher than conventional loans
  • Limited by Dodd Frank and Ability to Repay regulations


Physician Loan

A mortgage designed specifically for medical professionals.

Benefits

  • 100% financing
  • No MI
  • Flexibility on student loans

Disadvantages

  • Restricted to physicians/residents with MD, DO, OD, DDS, DMD or DPM 


Construction Perm Loan

A mortgage that combines land with a construction project into one loan.

Benefits

  • 30-year fixed
  • One close   
  • 95% financing
  • Interest-only on draws as built
  • Potential savings on transfer tax

Disadvantages

  • Requires plans, specs and a builder
  • .125% – .25% higher than a conventional loan
  • Can take 60 days to close

Condo Loan

A conventional or portfolio mortgage specifically used for condominiums.

Benefits

  • Warrantable or non-warrantable   
  • 30-year fixed
  • 95% LTV (warrantable) 
  • 80% LTV (non-warrantable)

Disadvantages

  • Price hit at high LTV’s
  • Rate increase for non-warrantable

Private Money Loan

AKA “Hard Money” – a mortgage used for investment purposes and is typically backed by an individual.

Benefits

  • No appraisal  
  • Up to 100% financing
  • Financed rehab
  • No underwriting
  • Quick closings
  • See also Private Money

Disadvantages

  • Higher rates/points

No PMI Loan

High loan-to-value mortgages paired with single pay or lender paid MI to avoid monthly mortgage insurance premiums.

Benefits

  • Up to 95% financing

Disadvantages

  • .25% higher interest rate or 1 – 2.5% increased points

Second Home

A mortgage backed by a second home typically in a vacation area.

Benefits

  • Up to 90% LTV    
  • 30-year fixed 

Disadvantages

  • Must be 50 miles from primary home



Investment Loan

Benefits

  • 30-year fixed 
  • Purchase to 85% 

Disadvantages

  • Fees over 75% add up
  • Hits for multi-unit
  • No LLC’s allowed

Copyright © 2023 PMG Funding


1525 Oregon pike suite 2001, Lancaster PA 17601
717-735-2203
dwolfe@pmg-funding.com


Licensed by the PA Department of Banking. NMLS #100063


An Equal Housing Lender