Delaware Mortgage Bond Program No longer can use USDA Loan – October 1, 2011
Delaware Mortgage Bond Program is the State of Delaware’s first time home buyer program that offers below-market interest rates to qualified first time home buyers. The program has traditionally been used for Conventional mortgages, FHA mortgages, VA mortgages, and USDA rural housing loans. The loan program is administered by the Delaware State Housing Authority (DSHA) and the servicing of the loans is currently done by Bank of America. Bank of America announced today that they will not be servicing any more USDA loans that do not have a loan commitment from Rural Development by October 1, 2011.
Since Bank of America is the only servicer of the DSHA mortgage bond loan that means there is no longer an option to use the USDA rural housing loan with this program. This means that if you don’t get your commitment from Rural Development by October 1, 2011, then you will have to switch your mortgage program from the DSHA first time home buyer mortgage bond program to a regular USDA loan that is funded and serviced by a bank other than Bank of America.
If you find yourself in this situation call us at 302-703-0727 and we can explore your options so that you can still purchase your first home in Delaware. You can apply online for a mortgage at APPLY ONLINE.
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