We never have put PMI on the construction, but am currently wishing we did! We don't because we do the draws and the dollar amount is constantly changing and it is hard to tell a customer they have to pay on the whole loan amount. Now that we have a construction going bad at 95% LTV I wish I had found a way. I don't know how you could disclose on a short term note, because the amortization information would not make sense...I hope that someone knows the answer though so that I can present it to my officers and let them know that we can indeed place PMI on construction financing.
Going to church doesn't make you a christian any more that standing in your garage makes you a car.