We just (this past Wednesday) applied for a purchase mortage from PenFed. I spoke with the telephone rep a few times, and applied on-line. Took less than an hour.

The particulars are: 5/5 ARM, with starting rate of 4.75% (90 day rate lock when you submit the application IF you already have a purchase agreement in place). No points and No fees, except title insurance (seller is paying most of that by terms of our PA). Penfed requires and is paying for two appraisals, since the loan amount is over $750K. You can borrow up to $2M on this 5/5 ARM deal, with (at least) 25% down. We are putting 40% down, but not required to.

It adjusts every five years, but no more than 2%, so “worst case scenario” is 6.75% rate for years 6-10. I don’t know what minimum credit score required.

I should mention this is for a second home; does not have to be a primary residence, but does need to be “owner occupied” – no rental or investment properties.

They claim they are giving purchase money loans priority over refiances (they are apparently swamped with refinance applications), and that we can expect to close by 30 days.

If you care to know, I will keep you posted on how it goes.