USDA Rural Housing Loans will be increasing the monthly mortgage insurance premium that is charged beginning on Guarantee Commitments assigned on or after October 1, 2014 as announced by Rural Development.Â The monthly premium charged is currently based on an annual premium of 0.4% of the principle balance of the outstanding loan.Â The annual premium is increasing to 0.5% effective with commitments issued on or after October 1, 2014.Â It doesn’t matter if the loan application or the sales contract was dated prior to October 1, 2014.
Delaware USDA Rural Housing Loan Income Limits for 2014 remained the same as 2013 for each county in Delaware.Â The income limits are based on the household income for the total number of people living in the home.Â If you have questions about USDA Loans for the purchase or refinance of a home, please call 302-703-0727 or you can APPLY ONLINE.
The income limits for New Castle County, Kent County, and Sussex County are displayed below:
New Castle CountyÂ Delaware Income Limits for USDA Rural Housing Loans for 2014:
Delaware USDA Rural Housing Loans Eligible Property Areas are Changing October 1, 2014
The eligible property areas for Delaware 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:
Delaware USDA Rural Housing Loans are now subject to a lapse in funding as Rural Development is only issuing â€œContingent Conditional Commitments,â€ subject to the â€œavailability of commitment authority” as there are currently no more funds available for guaranting loans as of October 1, 2011. Therefore most lenders have ceased funding USDA Rural Housing Loans.
Primary Residential Mortgage is still originating and funding these loans with the contingent commitment and will do so until funding is restored. If you received a commitment from Rural Development prior to October 1st then you will be fine if not you will need to check to see if your lender will still fund the loan and won’t have any delays. If you cannot get your loan funded, please call us at 302-703-0727 and we can get your loan closed for you.Â You can also APPLY ONLINE for a Delaware Mortgage.
Delaware USDA Rural Housing Loans How Much Can You Borrower?
Delaware USDA Rural Housing Loans can be used to purchase a home and allow you to borrower up to 101% of the appraised value. This is a big difference from Delaware conventional loans and other government loans such as Delaware FHA Loan or Delaware VA Loans. Every other loan bases the maximum amount you can borrower off the LOWER of the purchase price or appraised value.
USDA Rural Development Loans will let you borrower up to 101% of the appraised value no matter what the purchase price. So lets say you are buying a house for $210,000 and it appraises for $220,000. You could borrower up to 101% of $220,000 which would be $222,200. Now you can’t get paid to buy a house so you can only borrower above the purchase price to cover your closing costs. So if you can’t negotiate for the seller to pay your closing costs, you could finance them into your USDA loan if home appraises higher than the purchase price. See Example Below: