Delaware Mortgage Bond Program Update – October 2011 – Bank of America exiting servicing
Delaware Morgage Bond Program administered by the Delaware State Housing Authority (DSHA) is below market interest rate loans for first time home buyers that are sold to Bank of America to service. Bank of America announced on October 3, 2011, to all of the lenders that make DSHA loans that it is exiting the business of servicing these loans and all loans must be delivered by December 14, 2011, or they will not buy them.
What does this mean for you? You must close your DSHA loan by November 7th for almost all lenders so that they have time to sell the loan to Bank of America by December 14, 2011. DSHA has not announced that it has anyone else that has agreed to service these Mortgage Bond loans so if no one is found by November 7th there will be a lapse in the ability of a borrower to get these loans. If you are using the program for the SMAL loan for down payment assistance then you may have other options from New Castle County or City of Wilmington or City of Newark. If you are just using the first mortgage program then you can just switch to a regular FHA loan but the interest rate will be slightly higher.
If you have questions call us at 302-703-0727 and we can help you figure out what your best options are to deal with this challenge. You can APPLY ONLINE for a Delaware first time home buyer loan now.
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