Delaware Mortgage Loans

Delaware Mortgage Loans

Delaware Home-Buyer Education

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Home-Buyer Education Seminars

Classes last about 2 hours and you’ll receive your FICO® Credit Report and Home-Buyers Handbook free for attending. Your free home-buyer education class will cover all of the basics of buying your dream home. We also give you insider tips and advice gleaned from more than a decade of mortgage industry success.

All participants will get a free consultation with a Certified Mortgage Planner designed to put a pre-approval letter in your hand quick!

You will also learn the following at the seminar:

  • Valuable Tips on How to Improve Your Credit Score
  • How to Establish Credit if You have None
  • How to Budget to Afford a New Home
  • How to Calculate How Much Your Qualify for
  • How to Get Pre-Approved for a Mortgage
  • Learn what Mortgage Programs are available for First Time Home Buyers
  • Learn what programs are available to help with down payment and closing costs
  • Learn what your mortgage lender should be doing for you
  • Learn what your Real Estate Attorney should be doing for you
  • Learn what your Real Estate Agent should be doing for you
  • Learn what your Home Inspector should be doing for you
  • How to find the right Realtor to help you find your new home
  • How to shop for your new home
  • How to make the offer and negotiate the best price and terms
  • and much more!

We have educated more than 2500 Delaware and Maryland home-buyers over the past few years and the word is spreading. Our home-buyer seminars fill up fast so locking your spot in early is strongly advised and encouraged.

We look forward to meeting you in person!

Delaware Mortgage Rates Update for December 15, 2014

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Delaware Mortgage Rates weekly mortgage market update for the Week of Dec. 15, 2014 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. John Thomas is the Branch Manager and the author of the best selling book, Your Guide to Buying Your First Home in Delaware.

Call 302-703-0727 to get a mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan

Delaware Mortgage Rates were able to recover last and move back to all time lows for the year.  If you look at the mortgage bond chart below you can bonds were able to bounce off support last Monday and rally higher to end the week.  Mortgage Bonds are once again sitting at the highs for the year and could move either direction from here.

I recommend LOCKING in your Delaware Mortgage Rate if closing in the next 30 days or if you can’t risk rates moving higher.  If you are closing in 45 days or longer you can risk FLOATING to see if mortgage bonds can rally enough support to break through the ceiling of resistance and move interest rates even lower.

mortgage Bond Chart 12-12-2014

In Economic News, the Producer Price Index (PPI) was released on Friday and came in at 0.2% lower.  The PPI measures inflation at the wholesale level so a drop in the PPI shows inflation remains very tame and the headline PPI is 1.5% year to date.  Consumer Sentiment for December 2014 surged higher to 93.8 which is the highest level since January 2007.  In line with higher Consumer Sentiment, we saw Retail Sales for November 2014 jump higher by 0.7% from October which was above expectations of only 0.4%.

Thursday we saw the release of the Weekly Initial Jobless Claims by the Labor Department which came in at 294,000 which is down 3,000 claims from the previous week.  This was another good report with claims below 300,000.

Retail Sales November 2014weekly initial jobless claims-12-11-14

In other economic news, Oil hit at $56 a barrel last week which is really helping consumers save money at the gas pump but longer term effect could be negative on the economy and some fear that OPEC might want Oil price to stay low.  Why?

If the price of Oil stays low then it isn’t feasible to keep drilling for new oil as the cost now out ways the profit so Oil exploration and production will shut down.  OPEC hopes that low price of Oil will shut down production in the U.S. of Oil production using the fracking method.

We have already seen lays by Oil Companies because the price of oil is dropping and we have seen oil rigs shut down.

 

In Housing News, Fannie Mae announced that they are bringing back 97% LTV financing for qualified first time home buyers and some home owners to refinance to 97% LTV if don’t qualify for HARP.

This will allow potential first time home buyers to put only 3% down versus the current 5% down on conventional loans through Fannie Mae.  This will provide qualified home buyers options for low down payment loans outside of using FHA Loans.  For more information on the qualifications for 97% LTV financing, please visit Fannie Mae 97% LTV Conventional Loan

The next Delaware First Time Home Buyer Seminar is Saturday January 17, 2015 in Newark, Delaware.

There is a Dover Delaware First Time Home Buyer Seminar Saturday January 10, 2015 in Dover, Delaware.  Register by calling 302-703-0727 or Register online at http://www.DelawareHomeBuyerSeminar.com

Then next Maryland First Time Home Buyer Seminar is Saturday December 20, 2014 in Towson, Maryland  Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com.

 

Fannie Mae 97% Conventional Mortgage Loan is Back

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Fannie Mae 97% Conventional Mortgage Loan is back for qualified first time home buyers as announced by Fannie Mae on December 8, 2014. The this new loan option for qualified first time homebuyers that will allow for a down payment as low as three percent or for limited cash out refinance of home owners who currently have a Fannie Mae loan.  The lower down payment is to help qualified borrowers to access credit that may not have the resources fro a larger down payment.

These 97% Conventional loans do require mortgage insurance as the borrower is financing more than 80% of the value of the home.  The mortgage insurance can be paid on a monthly basis or paid as a one time single premium at closing.

The 97% mortgage loan program is available through the My Community Mortgage Product from Fannie Mae and for a standard non-MCM Conventional Loan Product.  The highlights of the program for both programs are as follows:

  • Maximum loan to value (LTV), Combined Loan to Value (CLTV), and High or Home Equity Combined Loan to Value (HCLTV) is 97%.
  • DU Underwriting required
  • 1 Unit Principle Residence Only (Including Condos & PUDs)
  • Manufactured Homes are Not Eligible for 97% LTV Loans
  • Must be a Fixed Rate Mortgage (No ARMS)
  • Gifts may be used for down payment and for Reserves

97_purchase_options

A First Time Home Buyer is defined by Fannie Mae as a person who has NOT owned ANY residential property in the last 3 years which includes primary residence, second home, and or investment properties.

In order to be eligible to Refinance using the 97% LTV mortgage loan program the current mortgage being refinanced must be owned by Fannie.

So commonly asked questions about the Fannie Mae 97% Conventional Mortgage Loan are as follows:

What are the down payment requirements on a 97% Conventional Loan?

The down payment requirement is 3% of the purchase price.  For example, if purchasing a home for $200,000, then the 3% down payment from the borrower is $6,000.  Compared to previous 5% down program at $10,000,  this is a much cheaper option for potential first time home buyers.

What is the maximum loan size for  Fannie Mae 97% Conventional Loan?

The maximum loan amount for Delaware is $417,000 for a 97% Conventional Mortgage Loan.  This would mean that the maximum purchase price at 3% down is $430,000.

If you would like to apply for a 97% Conventional Mortgage Loan to purchase or refinance a home in Delaware, please call 302-703-0727 or APPLY ONLINE

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage, Inc.
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 DE Office
410-412-3319 MD Office
610-906-3109 PA Office

www.PrimaryResidentialMortgage.info

Dover Delaware Home Buyer Seminar January 10, 2015

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Delaware First Time Home Buyer Seminar on Saturday January 10, 2015 at 10 AM in Dover, Delaware. The seminar will last about 2 hours and each participate will be able to receive a copy of their tri-merge credit report. The seminar will cover all of the basics of buying a new home in Delaware.

The seminar will cover  FHA loans, Delaware VA loans, Delaware USDA Rural Housing Loans, First Time Home Buyer Loan Programs and the FHA 203k Rehab loans. You will be able to get pre-approved at the seminar by a Delaware Mortgage Company.

Each participate will receive a Credit Scoring Handbook, Homebuying Handbook, and an opportunity to meet with a mortgage planner to be pre-approved to buy a home at the seminar. You will also learn importance of credit in buying a home and learn valuable tips on how to improve your credit score. Learn what programs are available to help with down payment and closing costs.
The new loan limits for conventional and FHA will be covered as well as changes to borrowing 100% financing. Your presenter is the author of the new book, Your Guide to Buying Your First Home in Delaware. The Seminar is being held at:dover holiday inn FTHB Seminar
The Dover Holiday Inn
561 North Dupont Highway
Dover, DE 19901
Seminar is from 10 AM till Noon. To register for the seminar, please call 302-703-0727. You can also e-mail me at DelawareMortgages@yahoo.com or you can register online at www.delawarehomebuyerseminar.com For a Complete list of seminars visit www.DelawareMortgageLoans.net/seminars
John R. Thomas
Certified Mortgage Planner – NMLS # 38783
Primary Residential Mortgage, Inc.
302-703-0727 DE Office

Delaware First Time Home Buyer Seminar January 17, 2015

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Delaware Home-Buyer Seminar

There will be a First Time Home Buyer Seminar on Saturday January 17, 2015 at 10:00 AM till Noon. The seminar will last about 2 hours and each participate will be able to receive a copy of their credit report. The seminar will cover all of the basics of buying a home in Delaware. The seminar will cover FHA loans, VA loans, USDA Rural Housing Loans, First Time Home Buyer Loan Programs and the FHA 203k Rehab loans.

The Seminar is sponsored by The Neighborhood House so each participant will receive home buyer counseling credit toward the required HUD approved home buyer counseling required for Delaware First Time Home Buyer Programs.

 

Each participate will receive a Credit Scoring Handbook, Home Buying Handbook, A Household Budget Calculator Worksheet and an opportunity to meet with a certified mortgage planner to be Pre-Approved to buy a home at the seminar. You will also learn importance of credit in buying a home and learn valuable tips on how to improve your credit score.

Learn what programs are available to help with down payment and closing costs. The new loan limits for conventional and FHA will be covered as well as changes options for borrowing 100% financing to purchase a home in Delaware.

The seminar is based on the best selling book, Your Guide to Buying Your First Home in Delaware written by John R. Thomas.

Book Cover - FTHB - 2011

The Seminar is being held at The Christiana Hilton Hotel at 100 Continental Drive, Newark, DE 19713 from 10:00 AM till 12:00 PM on January 17, 2015.

To register for the seminar, please call 302-703-0727. You can also e-mail me at jthomas@primeres.com. You can register online by clicking the registration link below:

For a complete list of seminars visit Delaware Real Estate Seminars.

APPLY ONLINE today to be pre-approved for a mortgage to buy your first home in Delaware. Primary Residential Mortgage is an approved lender for the Delaware Bond Program through DSHA.

John R. Thomas | NMLS 38783

302-703-0727 DE Office

FHA Property Flipping Waiver Expires December 31, 2014

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FHA Property Flipping Temporary Waiver on the 90 Day Rule will expire on December 31, 2014 and will not be extended as announced by the Federal Housing Authority on December 11, 2014.  This is important news for investors and home buyers to be aware of starting January 1, 2015 as investors will need to wait 91 days before they can executed a sales contract on a flip for a buyer using FHA financing to purchase the property.

If you have questions or would like to apply for a FHA Loan to purchase or refinance a home in Delaware, please call 302-703-0727 or you can APPLY ONLINE

The waiver applies to all sales contracts executed on or after February 1, 2010, until 11:59 PM, December 31, 2014. FHA deems a sales contract to be executed when all parties to the contract have signed the contract, and the contract is enforceable under the law of the state the property is located. Mortgages that are made on properties in which sales contracts have been executed after 11:59 PM, December 31, 2014, are not eligible for a waiver of the regulation prohibiting property flipping.  FHA stated they will not extend the waiver beyond December 31, 2014.

FHA_pull_plug_on_90_day_waiver

On June 7, 2006, HUD published a final rule in the Federal Register prohibiting property flipping on the FHA Mortgage Loan Program. The property flipping rule and became effective for mortgages endorsed for FHA insurance on or after July 7, 2006.  A waiver to this rule was issued on February 1, 2010 which allowed individuals to sell homes within 90 days of purchasing in order to help the weak housing market that was being hampered by the glut of foreclosures.

Property Flipping is described by HUD as a practice whereby a property is resold a short period of time after it is purchased by the seller for a considerable profit with an artificially inflated value, often abetted by a lender’s collusion with the appraiser. FHA’s policy prohibiting property flipping eliminates the most egregious examples of predatory flips of properties within the FHA mortgage insurance programs.  FHA prohibits properties being sold within the first 90 days of purchase

Overview of FHA’s Property Flipping Policy that becomes Effective Again January 1, 2015

FHA requires that:

a) only owners of record may sell properties that will be financed using FHA-insured mortgages

b) any resale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing

c) that for resales that occur between 91 and 180 days where the new sales price exceeds the previous sales price by 100 percent or more, FHA will require additional documentation validating the property’s value. FHA also has flexibility to examine and require additional evidence of appraised value when properties are re-sold within 12 months.

FHA has made Exceptions to the 90 Day Flipping Rule for the following:

  • Sales by HUD of its Real Estate Owned
  • Sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies.
  • Sales of properties by nonprofits approved to purchase HUD-owned single-family properties at a discount with resale restrictions.
  • Sales of properties that are acquired by the sellers by inheritance.
  • Sales of properties purchased by employers or relocation agencies in connection with relocations of employees.
  • Sales of properties by state and federally charted financial institutions and Government Sponsored Enterprises.
  • Sales of properties by local and state government agencies.
  • Upon FHA’s announcement of eligibility in a notice (i.e., ML), sales of properties located in areas designated by the President as federal disaster areas, will be exempt from the restrictions of the property-flipping rule. The notice will specify how long the exception will be in effect and the specific disaster area affected.

This Rule DOES NOT apply to New Construction Homes being sold by home builders in Delaware.

If you would like to apply for a FHA Loan to purchase or refinance a home in Delaware, please call 302-703-0727 or APPLY ONLINE

 

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage, Inc.
302-703-0727 DE Office

Delaware Mortgage Rates Weekly Update for December 8, 2014

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Mortgage Rate Update – December 8

Mortgage Rates weekly mortgage market update for the Week of December 8, 2014 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. John Thomas is the Newark, Delaware Branch Manager and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 to get a mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan

Delaware Mortgage Rates moved higher last week after the November Jobs Report was released by the Labor Department.  If you look at the mortgage bond chart below you can see that the trend had been for mortgage bonds to move higher until last week.  Mortgage bonds sold off most the week then dropped even more after the jobs report.

Bonds were able to bounce off resistance on Friday and recover some of the losses so we are recommending FLOATING your Delaware Mortgage Rate to start the week to see if bonds can hold above resistance.

bondchart12-5-2014

In Economic News, the U.S. Labor Department released the November 2014 Jobs Report on Friday and it showed 321,000 jobs were created which was well above the 230,000 expected.  November marked the 10th straight month of 200,000 plus jobs being created each month.

This is the longest streak since 1994.  We also saw September and October Jobs increased by a total of 44,000 jobs.  The report showed a very robust labor market and is a very good sign for the economy.

Jobs_report_november_2014

We also saw the Unemployment Rate remain the same at 5.8%.  The Labor Force Participation Rate (LFPR) also remained steady at 62.8%.  The U6, which measures total unemployment dropped from 11.5% to 11.4% which is much better than last year when the U6 was 13.2%.

Thursday saw the release of the Weekly Initial Jobless Claims which came in at 297,000 claims, a drop of 17,000 claims from the previous week.  This was a good report as it brought weekly claims back below 300,000 claims.

In Housing News, CoreLogic Released their National Foreclosure Report for October 2014 which showed that the foreclosure pictured continued to improve.  Foreclosures were down from 924,000 in 2013 to only 605,000 for October 2014.  This is an improvement of almost 35% year over year.  The foreclosure inventory also dropped from 2.3% last year to only 1.6% of all homes with mortgages for 2014.

CoreLogic also reported their Home Price Index for October 2014 showed home prices increased by 6.1% year over year for October 2014 which is up from only 5.6% for September 2014.  This report shows that the seven month housing slow down has stopped.

Corelogic home price index October 2014

In Other Housing News, FHA released their Delaware FHA Loan Limits for 2015 that go into effect for FHA Case numbers assigned on or after January 1, 2015.  The income limits are by county so the 2015 loan limits are as follows:

New Castle County – $379,500

Kent County – $271,050

Sussex County – $316,750

The next Delaware First Time Home Buyer Seminar is Saturday December 13, 2014 in Newark, Delaware. There is a First Time Home Buyer Seminar Saturday December 6, 2014 in Dover, Delaware.  Register by calling 302-703-0727 or Register online at http://www.DelawareHomeBuyerSeminar.com

Then next Maryland First Time Home Buyer Seminar is Saturday December 20, 2014 in Towson, Maryland  Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com.

John R. Thomas

Certified Mortgage Planner

Delaware FHA Loan Limits for 2015

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Delaware FHA Loan Limits for 2015 Announced by Federal Housing Administration on December 5, 2014 in the mortgage letter 2014-25.  The mortgage loan limits published in this mortgage letter go into effect for FHA case numbers assigned on or after January 1, 2015 and will remain in effect through December 31, 2015.

The FHA Loan Limits are based on which county the property is located.  The maximum mortgage loan limit per county in Delaware for 2015 is as follows:

New Castle County                 $379,500

Kent County                            $271,050

Sussex County                         $316,750

The FHA Loan Limit is calculated by taking 115% of the median home price in that county as calculated by HUD.  The “floor” still remains at $271,050 so if 115% of median home price is below the floor then the loan limit is set at $271,050 such as in Kent County, Delaware.

FHA also left the maximum FHA Loan Limit in high price areas at $625,500.

If you would like to apply for a FHA Loan to purchase or refinance a home in Delaware, call the John Thomas Team at 302-703-0727 or you can apply online at FHA Loan Application

The new loan limits apply to all FHA Loans including FHA 230k Rehab Loans and FHA Streamline Refinance Loans as well FHA Reverse mortgage loans.

#Delawaremortgagerates

#Delawaremortgages

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage, Inc.
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 DE Office
410-412-3319 MD Office
610-906-3109 PA Office

www.PrimaryResidentialMortgage.info