FHA announced it will institute risk-based premiums for Mortgage Insurance. All Delaware FHA Loans require the borrower to pay an upfront mortgage insurance premium plus a monthly mortgage insurance premium. For the first time in history, credit scores will be used by FHA to determine your premiums. The changes will go into effect on July 14, 2008.

Let’s take a closer look at the ten primary changes to the Delaware FHA guidelines:

1. Borrowers with either no score or at least 500 may get an LTV >90%.
2. Borrowers with a score of less than 500 get a maximum LTV of 90%.
3. Borrowers without scores will require manual underwriting.
4. Upfront Mortgage Insurance Premiums will range from 1.25% to 2.25%, depending on the score.
5. The Monthly Mortgage Insurance will range from .50% to .55% depending on the score.
6. The premium is based on the borrower with the lowest score.
7. If one of the borrowers has no score, then the Non-Traditional credit grade is used.
8. Credit rescoring is allowed to improve a borrower’s credit grade.9. All FHA Secure refinances >95% LTV with delinquencies have a 2.25% UFMIP and .55% MMI.
10. These changes apply to cash-out, rate & term, and non-delinquent FHA Secure refinances. Here is the link to the mortgage letter explaining the changes from FHA http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/08-16ml.doc

If you would like to apply for a Delaware FHA Loan or have questions on FHA loans, please feel free to contact me (John Thomas) at 302-368-7132 or send me an e-mail to DelawareMortgages@yahoo.com. FHA Loans can be used for bad credit mortgages.

We can help you with a home loan in all of Delaware, Wilmington, Delaware – Newark, Delaware – Hockessin, Delaware – Bear, Delaware – New Castle, Delaware – Claymont, Delaware – Middletown, Delaware – Smyrna, Delaware – Rehobeth, Delaware – Lewes, Delaware – Dover, Delaware

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713