Mortgage Loans

Mortgage Loans

Delaware VA Loan Limits for 2014 for Delaware Veterans

John Thomas January 1, 2014 Tags: , ,
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Delaware VA Loan Limits for 2014 were released by the Veterans Administration for all three counties of Delaware.  Please be advised that effective on or after January 1, 2014, the VA’s county loan limits of $417,000 must be used to calculate the VA’s maximum guaranty amount for the following counties in Delaware:

County:                      County Loan Limit:

Kent County                         $417,000

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Delaware FHA Loan Limits for 2014

John Thomas December 10, 2013 Tags: , ,
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Delaware FHA Loan Limits for 2014 will be going Lower for FHA case numbers assigned on or after January 1, 2014.  FHA mortgage maximum loan amounts vary by states and by regions based on the median home price in that region.  Currently FHA loan limits range from $271,050 up to $729,750.

Effect January 1, 2014, FHA is reducing the maximum loan amount from $729,750 to $625,500 and reducing maximum loan limits in most regions.  The lowest maximum loan limit will remain at $271,050.  The FHA loan limits in Delaware are being reduced in all three counties of Delaware as follows:

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Delaware Talent Cooperative DSHA Home Buyer Program for Teachers

John Thomas November 19, 2013 Tags: , , ,
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Delaware Talent Cooperative DSHA Home Buyer Program for Teachers provides eligible Delaware teachers below market interest rate home loans for the purchase of a primary residence in Delaware.  Call 302-703-0727 to apply for the program with Primary Residential Mortgage or APPLY ONLINE.


DSHA proudly announces a new partnership with the Delaware Department of Education to retain the outstanding educators of the Delaware Talent Cooperative here in the First State by offering reduced interest rate mortgages!

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Primary Residential Mortgage Will Waive Tax Transcript Requirement During Government Shutdown to Avoid Closing Delays

John Thomas October 4, 2013 Tags: ,
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IRS Tax Transcript

Primary Residential Mortgage, Inc. will waive the Tax Transcript Requirements during the Government Shutdown to avoid delays in closing loans.

In response to the possibility of a prolonged government shutdown because of the budget impasse in Washington, D.C., the Primary Residential Mortgage Executive Team has made the following decision, effective immediately, in regards to helping our customers:

  • The requirement having two years’ validated tax transcripts in the loan file prior to closing will be waived. However, the file must include two years’ federal tax returns signed and dated by all borrowers prior to closing, and the 4506T must be completed in full and signed and dated by all borrowers
  • Underwriters must review these documents and will add condition #19 that states:
    • Due to the government shutdown we are unable to obtain the required 4506T transcripts. The following is in the file:
    1. Two years’ federal tax returns signed and dated by all borrowers.
    2. 4506T signed and dated by all borrowers.
    3. It is acceptable to close the loan without the transcripts during the government shutdown.

    If have questions or concerns about qualifying for a mortgage to purchase or refinance a home, please call me or my team at 302-703-0727 or you can apply online

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US Government Shutdown Will Cause Delays for Loan Closings

John Thomas October 1, 2013 Tags:
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US Government shut down midnight September 30, 2013 as the Democrats and Republicans couldn’t make any progress towards a compromise or agreement. Throughout history, government shutdowns have been more common than many may think.  Today marks the 18th occurrence since 1976, with the shortest being one day and the longest being 21 days.  The median shutdown is approximately 14 days.

Regardless of what type of financing your buyer is doing, a government shutdown will cause delays in the processing of the loan.   There are a few areas of concern that will have an immediate impact on your daily business.

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HUD Delays Ban on Dual Agency for Short Sales on FHA Loans

John Thomas September 29, 2013 Tags: , , , ,
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HUD Delays the Ban on Dual Agency for Short Sales on Properties with FHA Loan being sold short.  The rule was to go into effect on October 1, 2013 as outlined in mortgagee letter 2013-23 released in July 2013.  The rule stated that brokers and their agents may only represent the buyer or the seller, but not both parties.  This is commonly called dual agency so the rule thus makes it illegal for an agent that works for the brokerage of the listing agent to represent a buyer in the purchase of a short sale.

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Fannie Mae New Rules for Delaware Home Buyers January 2014

John Thomas September 8, 2013 Tags: , , , ,
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Fannie Mae New Rules for Delaware Home Buyers Effective January 2014

Fannie Mae released an update to its Selling Guide SEL-2013-06 which will be effective January 10, 2014 with the update to automated underwriting system DU version 9.1.  The update makes the following changes to conventional mortgage loans sold to Fannie Mae:

  • No longer accept mortgages with terms greater than 30 years (So no more 40 year mortgages)
  • No longer accept mortgages with an interest only option
  • Adjustable Rate Mortgages (ARMs) that are 7 year fixed or 10 year fixed will need to be qualified at higher of note rate or fully indexed rate which ever is higher
  • No longer allow Loan-to-Value (LTV) over 95% (So no more 97% LTV Loans!!!)
  • Will force Lenders to purchase back loans that can be proved to fail the ATR (Ability to Repay) test

The 97% Loan that is no longer eligible includes the My Community Mortgage programs and the HFA programs.  The ATR test is the biggest change that most people will not directly see as it will effect how lenders underwrite loans after January 10, 2014.  The new rule says that if a loan defaults at anytime during the 30 year term of the loan, Fannie Mae can review the loan and if determines the lender failed to adequately document the borrower’s ability to repay then the lender must indemnify Fannie Mae for the complete loss.  The big problem is Fannie Mae has not clearly defined what a lender is suppose to do in order to document the borrower’s Ability to Repay a loan.  This means Fannie Mae can subjectively decide if a lender passes the ATR test when a loan goes bad.

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Delaware USDA Rural Housing Loan Eligible Property Areas Changing October 1, 2014

John Thomas August 28, 2013 Tags: , , ,
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Delaware USDA Rural Housing Loans Eligible Property Areas are Changing October 1, 2014

The eligible property areas for USDA rural housing loans in Delaware were suppose to change on October 1, 2014 when Rural Development was switching from using the 2000 US census date to determine eligibility based on population density to using the 2010 US Census.  The current areas that are eligible which were no longer going to be eligible are Middletown, Delaware and Smyrna, Delaware.  THE CHANGE WAS DELAYED UNTIL 2021!!

The USDA Rural Housing Loan offers 100% financing for borrowers looking to purchase homes in eligible areas that fall under the household income limit.  The income limit is based on the number of people in the household and on which county the property is located in Delaware, Delaware USDA Loan 2013 Income Limits.  The New Eligible Property Areas Map effective October 1, 2013 by county are displayed below:

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