Pennstar Bank offers a wide range of financing options. Click on any of the items listed below to learn more.
Purchase
Pennstar Bank offers a wide variety of purchase financing options to suit your needs. One to four unit residential property, camp loans, manufactured homes (such as modulars, and single- ,double-, and triple wides) and almost everything else in between.
We offer financing up to 30 years.
Refinance
Refinancing is the process of obtaining a new mortgage loan on a property already owned. This process often replaces existing loans on the property.
Pennstar Bank provides many options allowing you flexibility when it comes to refinancing your home. We offer you the ability to refinance your Primary, Secondary or Investment properties.
In addition, you have the ability to apply to pay off the First, Second and/or Third mortgage(s) (home equity loans) on your home, rolling it into one monthly payment.
Regular Refinance
Pennstar Bank may lend up to 95% of the final appraised value on a one- unit Primary residence, and 80% on a second home or two- to four- unit Primary Residence.
Cash-Out Refinance
You also have the ability to apply for cash-out. A Cash-Out Refinance is the refinancing of a residential property where the borrower either receives cash at closing, or pays off any other debt other than a residential mortgage on the subject property (such as credit cards, or other liabilities). Cash-Out refinances may be subject to additional fees due to the additional risk a cash-out refinance mortgage presents.
Pennstar Bank may lend up to 80% of the final appraised value on a one- unit Primary residence, and 75% on a second home or two- to four-unit Primary Residence with a cash-out refinance mortgage.
For Investment properties, see below.
General Contractor Construction
If you’re planning on building a new single-family, primary residence home, whether it be a stick-built, modular or manufactured home, you’ve come to the right place. Here at Pennstar Bank, we specialize in making construction loans by offering flexibility in the mortgage process. Just have your plans, complete estimates, survey, construction agreement and building permit in hand, and you’re ready to apply.
Construction:
For Adjustable Rate Mortgages, the rate of the mortgage loan will be the rates published by the Residential Mortgage Lending Department Rate Sheet PLUS:
• 0.50% add-on to rate PLUS 1.00 point for a 6 month construction period, OR
• 0.75% add-on to rate PLUS 1.00 point for a 10 month contruction period
For Fixed Rate Mortgages, the rate of the morgage loan will be as follows:
• 0.75% add-on rate PLUS 1.00 point for a 6 month construction period ONLY
Construction Lending Disclosure
* Delivery Fees are a percentage of the mortgaged loan amount and are payable at closing.
Investment and Rental Property*
Pennstar Bank offers loan programs for residential investment property up to 4 units.
Purchase Investment:
1 Units: You may borrow a maximum of 80% of the value of the property.
2-4 Units: You may borrow a maximum of 75% of the value of the property.
No-Cash-Out Refinance Investment:
1-4 Units: You may borrow a maximum of 75% of the value of the property.
Cash-Out Refinance Investment:
1 Units: You may borrow a maximum of 75% of the value of the property.
2-4 Units: You may borrow a maximum of 70% of the value of the property.
* Delivery Fees apply to investment, multifamily homes as well as to cash-out refinance loans.
USDA Rural Development
USDA Rural Housing Loans provide a number of homeownership opportunities to rural Americans, as well as programs for home renovation and repair. The Single Family Housing Program provides funding to low and moderate-income rural Americans to purchase homes for their permanent residence. These loans are made at a fixed rate of interest. The lender may loan up to 100% of the appraised value; closing costs and repairs can often be included in the loans. Private mortgage insurance is not required, but a small one-time guarantee fee is required at closing. For more information, please visit the USDA Rural Hosing Program web site at: http://www.usda.gov
Home Possible mortgages make home buying a reality for low and moderate-income borrowers. These mortgages offer borrower education, and fixed rate terms. Refinance options are also available. Please contact one of our Mortgage Originators to find out more!
Jumbo loans are mortgages that exceed the maximum purchase/refinance limitation of the secondary market. Loans that exceed $417,000 for a 1 unit; $533,850 for a 2 unit; $645,300 for a 3 unit; and $801,950 for a 4-unit Primary. Jumbo loans require special attention. If you require a mortgage in excess of these limitations, please contact one of our Mortgage Originators to find out more!
Discount fees (otherwise known as delivery fees) are secondary market fees associated with the risks a mortgage transaction presents. Factors such as the type of property, the amount borrowed against the value of the property, credit history, debt-to-income ratios and other similar items create a certain level of risk with each mortgage. These fees are finance charges and are incorporated in the Annual Percentage Rate. Discount (Delivery) Fees are payable at closing.
Camps / Seasonal Homes / Homes with Excessive Acreage
Pennstar Bank, unlike many lenders, offers financing for residential properties such as Camps, Seasonal Homes, Mixed Use and Excess Acreage properties. These types of mortgages require special attention, and discussion, and may include additional pricing and fees. If you seek financing for property that falls into this category, please contact one of our Mortgage Originators to find out more!
You have the option to buy down your initial interest rate by paying points. Each point represents 1% of the mortgage loan amount and will reduce the current advertised zero-point interest rate an average of 0.25% (or one-fourth of a percent) up to a maximum of 0.75% (or three fourths of a percent). †
For example: 1 point (1.00%) of a $50,000.00 mortgage (equivalent to $500.00) may buy down an interest rate of 6.25% to 6.00% for the fixed term of the loan.
A biweekly payment option is available on most of our mortgage products. Some of the advantages to making biweekly payments include automatic payments made directly from your Pennstar Bank checking or money market account. Also, biweekly payments work out to one extra monthly payment made each year, which results in a reduced mortgage term and total amount of interest paid over the life of the loan. You will be given the opportunity to request a biweekly option at the time of application only.
Please note that biweekly payments are not available on Adjustable Rate Mortgages. Construction Mortgages are not available until the construction phase has been fully completed and the home has been reassessed by the proper taxing authority.
By establishing a checking or money market account at Pennstar Bank, your mortgage payments can be made automatically on a monthly or biweekly basis. This allows you the convenience of not having to write a check, and mail or drop off your payments.
A fixed rate Second Mortgage is a great option for those looking to purchase a home. The benefit to this type of mortgage is a reduced down payment and/or the reduction or elimination of private mortgage insurance.
Second mortgages are available in conjunction with Pennstar purchase money mortgages for a term of 5-20 years, up to a maximum of $100,000.00. Title insurance is not required on this type of loan. The borrower is responsible for any applicable recording fees, mortgage tax, transfer tax, and delivery fees.
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