Construction Loan Disclosure

For construction-permanent mortgage products, a borrower is responsible for interest payments while the property is under construction. Once construction is complete, the financing permanent terms take effect. For construction financing, we currently offer a variety of fixed and variable-rate products for permanent financing phase. Contact a Mortgage Loan Officer for details.

Construction to Permanent Product not available in Guam, Puerto Rico, New York, or on Veteran’s Administration (VA) loans.

Only available on primary residences and second/vacation homes. Second/Vacation homes are homes occupied by the borrower for some portion of the year (at least 14 days out of the year). Any rental income received while property is not occupied may not be used for qualifying purposes. Not available on investment properties.

Construction to Permanent Loans require that construction cannot start until after the loan has closed.

NOTE: Construction to Permanent Loans are offered at different rates than non-construction to permanent products and may carry a 1% origination fee depending on the product selected for the permanent phase. Contact 800-970-7766 to speak to a Mortgage Loan Officer for more information.

The application of additional loan level pricing adjustments will be determined by various loan attributes to include but not limited to the loan-to-value (LTV) ratio, credit score, transaction type, property type, product type, occupancy, and subordinate financing.

The applicant is responsible for the following fees and costs at the time of closing: Origination fee, if any, Appraisal fee, tax service fee, application fee or CLO access fee, if applicable, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment. Other costs may be included due to program specific circumstances. This is not intended to be an all-inclusive list.

The maximum LTV for Construction to Permanent Loans is 80%.

For Purchase transactions (when the property lot is not already owned), please submit a copy of your fully signed ratified purchase agreement to in a timely manner to ensure PenFed can meet your closing date.

Escrows for property taxes and hazard insurance may be waived if LTV is 80% or less.

Additional reserve requirements may apply.

If you withdraw an application that was locked and reapply within 30 days, the new application is subject to worst-case pricing.

All rates and offers are in effect as of , offered for a limited time and subject to change without notice. Other restrictions may apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. To receive any advertised product you must become a member of PenFed by opening a share (savings) account. Federally insured by the NCUA.

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