Types of home loans
PNC Bank offers a remarkably diverse selection of mortgage loan programs. Both traditional mortgages and mortgages backed by the federal government are available (FHA, VA, and USDA).
Mortgage applicants with low-to-moderate incomes can take advantage of two of PNC's unique initiatives designed just for them.
- Conventional Mortgages
The maximum loan amount for this program is $647,200, which is in line with the maximum loan amount authorized by Fannie Mae and Freddie Mac.
A 3% down payment may be all that is required to get approved for a standard mortgage. - PNC Community Loan
Getting a loan with a small down payment and no PMI is possible with a conventional loan from the PNC Bank National Association.
A borrower can qualify for this sort of mortgage with as little as a $500 down payment. The remaining 3% can come from a variety of sources, including a down payment aid program, gifts from friends and family, and more. - Medical Professional Mortgage
PNC offers doctors and other medical professionals a mortgage without private mortgage insurance.
The medical mortgage loan has an amount of up to $1 million. The mortgage is available for medical residents, interns, and doctors who completed their residencies within the past five years. As a part of a down payment, the borrowers can use gift money. - Fixed-rate mortgages
Many borrowers prefer fixed-rate mortgage loan options (FRMs) because they guarantee payment consistency for the loan's entire life of the loan.
PNC Bank has home lending offers for 10, 15, 20, and 30 years. The borrowers need only a 3% down payment, and there are no prepayment penalties. - Adjustable-rate mortgages
One can lock in an ARM's interest rate for a set period, often between one and ten years. For the rest loan term, the interest rate will depend on the Prime Rate.
The loan options have 10, 15, 20, and 30 years terms. - Jumbo loans
For those who require financing in excess of what is considered a "conforming loan". If you meet PNC's requirements, you can borrow up to $5 million. Select a loan period between 15 and 30 years and an FRM or ARM. - FHA loans
These loans are insured by the Federal Housing Administration and allow for lower down payments - 3.5% vs. the standard 5% - and more lenient credit standards. - VA loans
Qualifying service personnel and veterans can apply for VA-backed loans with no down payment required. - USDA loans
Low- and middle-income homebuyers in rural and suburban locations might benefit from affordable "Rural Housing" loans that need no initial payment.
Pros and cons of PNC home loans
Pros
- Low-income first-time purchasers can apply for one of many grants totaling up to $5,000.
- Some mortgage options have adjustable rates and allow for interest-only payments.
- There are unique mortgages for doctors and wealthy families.
- Obtaining a mortgage with a minimal down payment presents potential opportunities to forego private mortgage insurance.
Cons
- No loans are available for the acquisition of home improvement materials.
- As of right now, HELOCs are only available in a handful of states but are anticipated by year-end.
- No home equity loans are available.
- Not all digital yet in the mortgage process.
- Standard cash-out refinancing limits apply (80% loan-to-value).
Requirements for applicants
PNC did not provide a minimum credit score requirement for any loan products. To qualify for a 3.5% down payment on an FHA loan, the borrowers' credit scores must be at least 580, while those for conventional loans must be at least 620.
The minimum required for a down payment with PNC loans varies. A traditional loan may just require a 3% down payment.
The veterans with a VA loan or those with a USDA loan may be eligible for 100% financing.
PNC's maximum DTI ratio varies by loan type and borrower circumstance. The typical maximum DTI offered by lenders is between 36% and 50%. Common loan types adhere to certain industry norms (conventional conforming loans).
You can try a preliminary preapproval with PNC before starting the home-buying process. This way, you can find the right loan for your needs and financial situation. The preapproval may hurt your credit, so make sure to send the application within 14 days to all the lenders you choose.
The bank may additionally ask for homeowners insurance for you to qualify for the mortgage. Schedule an appointment with a mortgage loan officer to receive a consultation on the loan terms and conditions.
Once you apply, the bank will get in touch with you in five to seven business days to state the decision. If you are preapproved, and some offers meet your needs, you can get started with the actual application for the mortgage and provide additional details.
How to pay off a home loan?
PNC Bank allows its customers to use the following options to make payments:
PNC Online Banking
- You can make a payment towards a mortgage using PNC Online Banking. These can be one-time or recurring mortgage payments.
- To make a mortgage payment, select your PNC mortgage account, click the "Make a Payment" button and schedule a payment.
Automated payments
- You will need to enroll in the Automated Payment Program to have your monthly mortgage payments automatically deducted from your PNC deposit account.
- To enable the tool, download the Automated Payment Authorization form, complete it and return it.
Bi-weekly automated payments
- You can halve your monthly mortgage payments and enable automatic deductions from your deposit account every two weeks.
- For that, you need to download the Bi-Weekly Automated Payment Authorization form, complete and return it to the address, fax number, or a local PNC branch.
Pay by phone or Voice Banking
- You can make a one-time or same-day monthly mortgage payment via Voice Banking tool.
- Call the bank over the phone to enable the deposit account withdrawal. If you use a non-PNC deposit account, provide your account number and routing number.
In-branch payment
- Visit the PNC Bank branch to make your monthly payment. You do not need to schedule an appointment. Come to the branch at working hours. It may take up to two days for the payment to be reflected on your PNC mortgage account.
Mail payment
- You can make monthly payments to your mortgage account by mail.
- Send the check along with the payment slip reflected at the bottom of your billing statement. If you do not have a monthly statement, write your PNC account number on the check. The payment addresses differ depending on the state you live in.
You can try qualifying for the Private Mortgage Insurance removal. The PMI deletion can be requested if the loan-to-value (LTV) ratio is 80% and above. The cancellation is applied automatically.
If you cannot make a payment on time or cannot pay at all, PNC Bank can help you. If you are unemployed, have had a reduction in income, or had illness or injury, divorce, or other unexpected life events, contact PNC for assistance. The bank has Financial Hardship Assistance and Hardship Service and Support.
