Mortgage Loans

Mortgage Loans

Delaware Real Estate Transfer Tax Going to 4% [August 1 2017]

John Thomas July 6, 2017 Tags:
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Delaware Real Estate Transfer Tax Going to 4% Effective August 1, 2017

Delaware Real Estate Transfer Tax is going up from 3% to 4% effective on all contracts dated August 1, 2017 or after.  The Delaware legislature decided to balance the budget at the last minute with no public comment by increasing the state transfer tax from 3% to 4%.  Delaware is currently number 2 in the United States for Real Estate Foreclosures and the real estate market has lagged the country in appreciation but Delaware legislators decided it would be best to balance the budget on the backs on home buyers and home sellers.
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Understanding Seller Paid Closing Costs

John Thomas May 27, 2017 Tags:
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Understanding Seller Paid Closing Costs

Seller Paid Closing Costs are negotiated between a home buyer and home seller during the initial offer process and are written into the sales agreement.  Seller Paid Closing Costs are also called Seller’s Assistance.  If the Seller Paid Closing Costs are not written into the contract then they don’t exist and will not be credited to the buyer at the settlement.  Call 302-703-0727 to get pre-approved today and find out how much seller paid closing costs you will need or APPLY ONLINE

It is very important to understand that when you ask for the seller to pay money toward your closing costs that the seller is taking this money off the purchase price to give to the buyer at closing.  For Example if you offer the seller $200,000 for their home and ask for $10,000 in seller paid closing costs, you are really only offering the seller $190,000 for their home. Keep Reading...

FHA Mortgage Insurance Premium Reduced January 27, 2017

John Thomas January 9, 2017 Tags: ,
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FHA Mortgage Insurance Premium

FHA Mortgage Insurance Premium Reduced January 27, 2017

FHA Mortgage Insurance Premium reduced January 27, 2017 by 0.25% on new FHA Loans.  Monday January 9, 2017 HUD secretary Julian Castro announced FHA will reduce the annual mortgage insurance premium most borrower’s pay by 0.25% for new FHA loans originated on/or after January 27, 2017.  Call 302-703-0727 to apply for a FHA Loan or APPLY ONLINE

2016 marked the fourth consecutive year that the FHA Mutual Mortgage insurance fund has grown and now has sufficient reserves with the capital ratio at 2.32 percent of all insurance in force which is above the 2% requirement.  The drop in mortgage insurance premium comes at a time when consumers are facing higher credit costs as mortgage rates are increasing. Keep Reading...

FHA Loan Limits for 2016

John Thomas December 19, 2015 Tags:
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FHA Loan Limits 2016

Federal Housing Administration released FHA Loan Limits for 2016 on December 9, 2015 with the release of Mortgagee Letter 2015-30.  The minimum maximum FHA Loan limit remained at $271,050 and the maximum FHA Loan limit in high cost area remained at $625,500.  The maximum loan limit for a FHA Loan is set by the median house price in the county in which the property is located.  The FHA loan limits for 2016 are for FHA Loans with case numbers assigned on or after January 1, 2016.

FHA increased loan limits in 188 counties across the country and didn’t decrease loan limits in any counties.  The FHA Loan limits remained the same in Delaware, Maryland, and Pennsylvania.  Search the FHA Loan limit in any county in the United States at HUD’s website at FHA Loan Limit Search Keep Reading...

Delaware First Time Home Buyer Seminar May 30 2015

John Thomas May 2, 2015 Tags: , , ,
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Delaware Home-Buyer Seminar

There will be a First Time Home Buyer Seminar on Saturday May 30, 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. Keep Reading...

FHA Mortgage Insurance Premium Dropping January 26, 2015

John Thomas January 10, 2015 Tags: , , ,
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FHA Mortgage Insurance Premium Dropping January 26, 2015

FHA Mortgage Insurance Premium being lowered on all new FHA Case Numbers assigned on or after January 26, 2015 as announced by HUD Secretary Julian Castro on January 8, 2015 per executive order by President Obama.  FHA will reduce the annual mortgage insurance that borrowers will pay by 0.5%.  FHA made this official with the publication of the Mortgagee Letter 2015-01. Call 302-703-0727 to Apply for a FHA Loan or APPLY ONLINE

Below is a table that shows the changes to the annual mortgage insurance premiums for FHA Loans: Keep Reading...

Mortgage Insurance Tax Deductible for 2014

John Thomas December 26, 2014 Tags: ,
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Mortgage Insurance Tax Deductible for 2014 for all homeowners who make less than $109,000 effective with the passage of the Tax Increase Prevention Act of 2014 on December 16, 2014 by the U.S. Senate.  The House of Representatives passed the bill on December 3, 2014.

The passage of this bill means homeowners can claim the MI Tax Deduction retroactive to January 1, 2014 allowing eligible borrowers with adjusted gross income of less than $109,000 to deduct the eligible amount of their 2014 mortgage insurance premiums when they file their 2014 Federal Tax Returns.  We recommend that you consult a tax adviser to determine if you are eligible to claim the mortgage insurance deduction. Keep Reading...

Mortgage Debt Forgiveness Act of 2014 Passed

John Thomas December 23, 2014 Tags: , ,
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Mortgage Debt Forgiveness Act  of 2014 was passed by the U.S. Congress in a last minute session as part of a larger bill called the Tax Increase Prevention Act of 2014 which was House Bill H.R. 5771 which passed the U.S. Senate on December 16, 2014 by a vote of 76-16.  The bill had already passed the House of Representatives on December 3, 2014.  The bill was sent to President Obama for signature into law after the Senate passed the bill.

The Bill provides Mortgage Debt forgiveness for people that s0ld their home in 2014 as a short sale or for people that were foreclosed on in 2014.  Without the passage of this bill, the difference between what was owed by the borrower and what was paid to the lender would be counted as income on their Federal Income Taxes for 2014.  This is termed “forgiveness” of debt by the creditor and the IRS views this as income.  This extension of the mortgage debt forgiveness act allows tax payers to exclude the forgiven debt from their federal tax returns. Keep Reading...