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†Closing Cost Credit: PenFed will pay most closing costs associated with an equity line of credit (ELOC) which includes: credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, property search, and quick close. Member is responsible for any city, county and/or state taxes if the subject property is located in FL, KS, MD, MN, NY, TN or VA. If an appraisal is required, the cost will be paid by the member, who is responsible for the fee whether or not the loan closes. The member is responsible for notary fees. Should this loan be paid off or closed within 24 months from the anniversary date of the loan closing, the member will be obligated to reimburse the full amount of the PenFed paid closing costs for the loan.Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

Home equity lines of credit (ELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan. Closing costs range between $500 and $8,500 for credit lines of $400,000. Contact a representative for additional details.

Appraisals: An appraisal is required for all applications with a CLTV over 80%. For applications with a CLTV of 80% or less, PenFed will attempt to establish value via an independent method. If that method is unsuccessful, an appraisal will be required regardless of CLTV. An appraisal is required in the following circumstances:

  • For any loan amount if the loan to value ratio (CLTV) is greater than 80%; or
  • For all equity loans with a loan amount greater than $250,000.

If an appraisal is required it must be ordered by PenFed. You will be contacted for authorization and payment prior to ordering. Appraisal fees average $350 to $525 (some run higher).

Property Insurance: Property insurance is required.

PenFed Mortgage Aggregate: If the total combined PenFed indebtedness for real estate loans against the collateral property exceeds $750,000 then the maximum CLTV is 80%. This total indebtedness includes a PenFed 1st mortgage, the new requested loan amount and any outstanding PenFed equity loan products.

Multiple Loans:Multiple equity loans and ELOCs are available as long as the member and collateral qualify (except Texas). The total PenFed indebtedness cannot exceed $400,000 for all equity and ELOCs combined.

PenFed does not lend on:

  • Mobile homes
  • Co-ops or time-shares
  • Properties that are currently listed on the market for sale
  • Commercial property or property used for commercial purposes, even if a residence is part of the property
  • Undeveloped property (land only)
  • Properties with more than 4 units.

Properties that are currently under major construction/renovations: Property must be fully livable, with no safety issues. (Examples: no missing rails from stairs/decks, no open walls with wires showing, missing kitchen appliances/counters, missing bath fixtures or unfinished pool).

Traditional Home Equity Line of Credit:

  • In Texas, the maximum CLTV available is 80% on owner occupied properties and 75% on non-owner occupied properties. Additional restrictions apply in Texas, so please ask a representative for details.
  • In all other states, the maximum CLTV is 90% on owner occupied properties and 80% on non-owner occupied properties.
  • The maximum CLTV for condominiums is 80% in all states.
  • Rates vary depending on owner occupancy and CLTV.

Other terms and conditions apply; call 1-800-970-7766, extension 6400 to speak with a representative for details. All rates and offers are as of and subject to change without notice. To receive advertised product you must become a member of PenFed by opening a share (savings) account.

We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.