FHA One-Time Close Construction Loan

Is a FHA One Time Close Construction Loan right for you?

Two isn’t always better than one. Let me explain.

If you’re building your house from the ground up, you’ll most likely take a construction loan followed by a permanent loan. This scenario will require you to have 2 loans, which means you’ll have 2 start dates and 2 closing dates—which means you’ll pay for 2 separate closing costs!

An FHA one-time close construction loan, however, will allow you to have your home built and financed just under one loan. It’s simpler and more cost-efficient and you end up with a FHA Loan with a 30 year fixed rate when all is said and done. Got Questions or want to get started today, call John Thomas Team with Primary Residential Mortgage at 302-703-0727 or APPLY ONLINE. Keep Reading...

Delaware FHA Loan Limits for 2019

John Thomas December 22, 2018 Tags: Delaware FHA Loans, FHA Loan Limits

Delaware FHA Loan Limits for 2019

Delaware FHA Loan Limits for 2019 were raised in all three counties of Delaware effective January 1, 2019. The Federal Housing Administration increased its mortgage loan limits by almost 7% for the new year, mirroring the increase in conventional loans. The new base loan limit maximum was increased from $294,515 to $314,827 for a single unit home. In some high-cost areas of the country, the maximum loan limit was increased to $726,525. The department of Housing and Urban Development (HUD) released Mortgagee Letter 2018-11 on December 14, 2018 which increased the loan limits for 2019 nationwide for all Forward Mortgage loans insured by FHA. Call 302-703-0727 to apply for a Delaware FHA Loan or get started online at http://www.PRMILoanApplication.com

The FHA national low-cost area mortgage loan limits are set at 65 percent of the national conforming limit of $484,350 for a one unit property. The new loan limits nationally are as follows:

One Unit – $314,827

Two Unit – $403,125

Three Unit – $487,250

Four Unit – $605,525

What determines the FHA Loan Limits for each County?

The Federal Housing Administration (FHA) calculates the mortgage loan limits based on the median home prices in accordance with the National Housing Act. FHA’s single family mortgage loan limits for forward mortgages are set using Metropolitan Statistical Areas (MSA) and county areas. FHA publishes updated limits effective for each calendar year. FHA sets the maximum FHA Loan limits at or between the low-cost area and high-cost area limits based on the median home prices for the area.

What are the New Delaware FHA Loan Limits for 2019?

Delaware has three counties: New Castle County, Kent County, and Sussex County. The maximum Delaware FHA loan limit is different in all three counties. Below is chart showing the maximum loan limit in each county:

Single Family FHA Loan Limits for 2019:

New Castle County Delaware has a maximum FHA Loan limit of $402,500

Kent County Delaware has a maximum FHA loan limit of $314,827

Sussex County Delaware has a maximum FHA loan limit of $336,950

The FHA Loan limits are the same for a standard Delaware FHA Loan as well as a Delaware FHA 203k Loan. The FHA Reverse Mortgage Loan limits are different that than the forward mortgage limits.

What are the FHA Loan Limits for High Cost Areas?

The FHA High Cost Area Loan Limits are set at 150 percent of the national conforming loan limit of $484,350 for a one unit property. Below are the limits for properties with 1-4 units:

FHA Loan limit One Unit – $726,525

FHA loan limit Two Unit – $930,300

FHA Loan limit Three Unit – $1,124,475

FHA Loan limit Four Unit – $1,397,400

How Do You Apply for a Delaware FHA Loan?

You can apply for a Delaware FHA Loan by calling 302-703-0727 or you can APPLY ONLINE with the John Thomas Team with Primary Residential Mortgage.

John Thomas Ranked #1 Delaware FHA Lender in 2018

John Thomas July 13, 2018 Tags: Delaware FHA Lender, Delaware FHA Loans

John Thomas has ranked #1 Delaware FHA Lender on Ask a Lender’s annual list

Ask a Lender put John Thomas at #1 Delaware FHA Lender and at #1 Newark, Delaware FHA Lender for 2018. Visit our Delaware FHA Loan page for more information on how we can get you into your dream home today or Call 302-703-0727 to get started today. GET STARTED ONLINE. Ask a Lender surveyed all of the Delaware Loan Officers that originated FHA loans through data provided to the Scotsman Guide and determined that John Thomas was the Number 1 Delaware FHA Loan originator because of his affordable FHA mortgage loans and award-winning client service.

John and his team pride themselves on helping Delaware First Time Home Buyers achieve the dream of home ownership and in most cases the FHA loan is the best option with the following benefits:

Low Down Payment of only 3.5%

Credit Scores down to 500 FICO

Can have Less than perfect credit and credit challenges

Can have High Debt to Income Ratios

Can have a non-occupying Co-borrower to help you qualify

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FHA Loan Limits for 2018

John Thomas December 8, 2017 Tags: FHA Loan Limits

FHA Loan Limits for 2018

The Federal Housing Administration announced FHA Loan Limits for 2018 effective with FHA case numbers assigned on or after January 1, 2018. The Minimum maximum FHA loan limit is increasing from $275,665 to $294,515 which is a 6.8% increase in the floor loan limit for FHA loans. Do you need to get approved for a FHA Loan? Call 302-703-0727 or APPLY ONLINE

Consistent with the Federal Housing Finance Agency (FHFA) increases to their conventional loan limits for 2018, FHA increased the ceiling in high cost areas of the county to $679,650 from $636,150.

The National mortgage loan limit for a Reverse Mortgage which is a Home Equity Conversion Mortgage (HECM) will increase to $679,650. This is for the whole county as FHA’s current regulations do not allow loan limits for reverse mortgages to vary by county or MSA.

HUD stated that most areas in the country will see an increase in the loan limits in the coming year, which is more than 3,000 counties across the country. The announcement from HUD can be read here: https://www.hud.gov/press/press_releases_media_advisories/2017/HUDNo_17-110

How are FHA Loan Limits Set by HUD?

The National Housing Act requires FHA to set Single Family forward FHA loan limits at 115 percent of the median house price, subject to a floor (minimum) and a ceiling (maximum) on the limits. FHA uses Metropolitan Statistical Area and counties to calculate the forward mortgage limits. For Example below are the new loan limits set for each county in Delaware:

County Maximum FHA Loan Limit 1 Unit

New Castle County $385,250

Kent County $294,515

Sussex County $316,250

The FHA Floor loan limit which is the minimum National loan limit is set at 65% of the national conventional loan limit of $453,100 for 2018. This Floor loan limit applies to areas where 115 percent of the median home price is less than the floor limit. For example Kent County Delaware 115% of the median home price is below the floor so the maximum FHA loan limit is set to $294,515.

How do you look up the FHA Loan limit for 2018?

You can look up the FHA Loan limit for 2018 by state, county, or Metropolitan Statistical ARea (MSA) at the HUD website – FHA Loan Limit Look Up

How do you Apply for a FHA Loan?

You can apply for a FHA Loan for the purchase or refinance of a home by calling 302-703-0727 or you can get started online at the following link: APPLY ONLINE

FHA Mortgage Insurance Premium Reduced January 27, 2017

John Thomas January 9, 2017 Tags: FHA Mortgage Insurance, FHA Mortgage Insurance Premium

FHA Mortgage Insurance Premium Reduced January 27, 2017

FHA Mortgage Insurance Premium reduced January 27, 2017 by 0.25% on new FHA Loans. Monday January 9, 2017 HUD secretary Julian Castro announced FHA will reduce the annual mortgage insurance premium most borrower’s pay by 0.25% for new FHA loans originated on/or after January 27, 2017. Call 302-703-0727 to apply for a FHA Loan or APPLY ONLINE

2016 marked the fourth consecutive year that the FHA Mutual Mortgage insurance fund has grown and now has sufficient reserves with the capital ratio at 2.32 percent of all insurance in force which is above the 2% requirement. The drop in mortgage insurance premium comes at a time when consumers are facing higher credit costs as mortgage rates are increasing.

FHA Mortgage Insurance Premium Mortgagee Letter

Mortgagee Letter 2017-01 released January 9, 2017 states the new lower FHA annual mortgage insurance premium will be effective on FHA loans that close and/or disburse on or after January 27, 2017. This means that if you are already in the process of purchasing a home and have a FHA case number, you will receive the new lower premium if closing or disbursing on or after January 27, 2017. FHA is also eliminating the premium difference on loan amounts for High Balance FHA loans, they will now have the same MIP as the lower loan amounts which is shown in the mortgage insurance table below.

FHA Mortgage Insurance Premium Tables

Below is table comparing old annual mortgage insurance premium versus new annual mortgage insurance premium.

FHA 30 Year Mortgage Insurance Premium & FHA 15 Year Mortgage Insurance Premium Table

FHA Streamline Refinances for Loans prior to June 1, 2009

FHA Upfront Mortgage Insurance Premium

The Upfront FHA Mortgage insurance premium is remaining the same at 1.75% of the base loan amount. The upfront mortgage insurance may be financed into the total FHA loan amount. For example if you are purchasing a home for $100,000, FHA will allow you to finance up to 96.5% of the purchase price which would be $96,500. The upfront mortgage insurance premium is $1,688 so the total amount of the FHA loan is $98,188.

How Much Will I Save from Mortgage Insurance Reduction?

The best way to illustrate how much you will save from the FHA MI premium reduction is with an example. If you are currently applying for a FHA Loan for a purchase price of $200,000 we will show the difference in payment between the current MI premium of 0.85% and the new MI premium of 0.60% on a 3.5% down payment.

Current FHA Mortgage Insurance Premium Keep Reading...

FHA Loan Limits for 2016

John Thomas December 19, 2015 Tags: FHA Loan Limits 2016

FHA Loan Limits 2016

Federal Housing Administration released FHA Loan Limits for 2016 on December 9, 2015 with the release of Mortgagee Letter 2015-30. The minimum maximum FHA Loan limit remained at $271,050 and the maximum FHA Loan limit in high cost area remained at $625,500. The maximum loan limit for a FHA Loan is set by the median house price in the county in which the property is located. The FHA loan limits for 2016 are for FHA Loans with case numbers assigned on or after January 1, 2016.

FHA increased loan limits in 188 counties across the country and didn’t decrease loan limits in any counties. The FHA Loan limits remained the same in Delaware, Maryland, and Pennsylvania. Search the FHA Loan limit in any county in the United States at HUD’s website at FHA Loan Limit Search

Delaware FHA Loan Limits 2016

New Castle County Delaware – $379,500 (1 Unit Property)

Kent County Delaware – $271,050 (1 Unit Property)

Sussex County Delaware – $316,250 (1 Unit Property)

Maryland FHA Loan Limits 2016

Allegany County Maryland – $271,050 (1 Unit Property)

Anne Arundel County Maryland – $517,500 (1 Unit Property)

Baltimore County Maryland – $517,500 (1 Unit Property)

Baltimore City Maryland – $517,500 (1 Unit Property)

Calvert County Maryland – $625,500 (1 Unit Property)

Caroline County Maryland – $625,500 (1 Unit Property)

Carroll County Maryland – $517,500 (1 Unit Property)

Cecil County Maryland – $379,500 (1 Unit Property)

Charles County Maryland – $625,500 (1 Unit Property)

Dorchester County Maryland – $271,50 (1 Unit Property)

Frederick County Maryland – $625,500 (1 Unit Property)

Garrett County Maryland – $271,50 (1 Unit Property)

Harford County Maryland – $517,500 (1 Unit Property)

Howard County Maryland – $517,500 (1 Unit Property)

Kent County Maryland – $290,950 (1 Unit Property)

Montgomery County Maryland – $625,500 (1 Unit Property)

Prince George’s County Maryland – $625,500 (1 Unit Property)

Queen Anne’s County Maryland – $517,500 (1 Unit Property)

Somerset County Maryland – $316,250 (1 Unit Property)

St. Mary’s County Maryland – $347,300 (1 Unit Property)

Talbot County Maryland – $382,950 (1 Unit Property)

Washington County Maryland – $271,050 (1 Unit Property)

Wicomico County Maryland – $316,250 (1 Unit Property)

Worcester County Maryland – $316,250 (1 Unit Property)

If you have questions about FHA Loans or would like to inquiry about how to qualify for a FHA Loan for the purchase or refinance of a home, please call 302-703-0727 or get APPLY ONLINE

FHA Mortgage Insurance Premium Dropping January 26, 2015

John Thomas January 10, 2015 Tags: Delaware FHA Loans, FHA Loans, FHA MIP, FHA Mortgage Insurance

FHA Mortgage Insurance Premium Dropping January 26, 2015

FHA Mortgage Insurance Premium being lowered on all new FHA Case Numbers assigned on or after January 26, 2015, as announced by HUD Secretary Julian Castro on January 8, 2015, per an executive order by President Obama. FHA will reduce the annual mortgage insurance that borrowers will pay by 0.5%. FHA made this official with the publication of the Mortgagee Letter 2015-01. Call 302-703-0727 to Apply for an FHA Loan or APPLY ONLINE

Below is a table that shows the changes to the annual mortgage insurance premiums for FHA Loans:

The Highlights of the New Rule are as follows:

• The annual premium is Reduced by 50 basis points (0.5%) on both purchase and refinance transactions.
• Applies to all FHA loans w/ terms greater than 15 years
• There is no change in premium on 15 years or shorter terms
• All loan types are affected except streamline refinances that are refinancing existing FHA loans endorsed before May 31, 2009
• Hawaiian homelands (Section 247) are also excluded.
• There is no change to the upfront premium (1.75%) or the life of loan requirement

FHA Streamline Refinance with New Lower Mortgage Insurance

Anybody that has gotten an FHA Loan since 2012 could probably save hundreds of dollars per month by refinancing their FHA loan with an FHA Streamline Refinance to lower the rate and lower their monthly mortgage insurance by taking advantage of this new rule.

This change to the annual mortgage insurance premium will be seen by a borrower in a lower monthly mortgage insurance premium on their mortgage payment. This could be a savings of $80 to $100 per month for borrowers using an FHA loan to purchase a home.

If you would like to apply for an FHA Loan to purchase or refinance a home in Delaware, Maryland, or Pennsylvania please call the John Thomas Team with Primary Residential Mortgage at 302-703-0727 or you can 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

FHA Property Flipping Waiver Expires December 31, 2014

John Thomas December 11, 2014 Tags: Delaware FHA Loans, FHA Property Flipping waiver

FHA Property Flipping Temporary Waiver on the 90 Day Rule will expire on December 31, 2014, and will not be extended as announced by the Federal Housing Authority on December 11, 2014. This is important news for investors and home buyers to be aware of starting January 1, 2015, as investors will need to wait 91 days before they can execute a sales contract on a flip for a buyer using FHA financing to purchase the property.

If you have questions or would like to apply for an FHA Loan to purchase or refinance a home in Delaware, please call 302-703-0727 or you can APPLY ONLINE

The waiver applies to all sales contracts executed on or after February 1, 2010, until 11:59 PM, December 31, 2014. FHA deems a sales contract to be executed when all parties to the contract have signed the contract, and the contract is enforceable under the law of the state the property is located. Mortgages that are made on properties in which sales contracts have been executed after 11:59 PM, December 31, 2014, are not eligible for a waiver of the regulation prohibiting property flipping. FHA stated they will not extend the waiver beyond December 31, 2014.

On June 7, 2006, HUD published a final rule in the Federal Register prohibiting property flipping on the FHA Mortgage Loan Program. The property flipping rule and became effective for mortgages endorsed for FHA insurance on or after July 7, 2006. A waiver to this rule was issued on February 1, 2010, which allowed individuals to sell homes within 90 days of purchasing in order to help the weak housing market that was being hampered by the glut of foreclosures.

Property Flipping is described by HUD as a practice whereby property is resold a short period of time after it is purchased by the seller for a considerable profit with an artificially inflated value, often abetted by a lender’s collusion with the appraiser. FHA’s policy prohibiting property flipping eliminates the most egregious examples of predatory flips of properties within the FHA mortgage insurance programs. FHA prohibits properties being sold within the first 90 days of purchase

Overview of FHA’s Property Flipping Policy that becomes Effective Again January 1, 2015

FHA requires that:

a) only owners of record may sell properties that will be financed using FHA-insured mortgages

b) any resale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing

c) that for resales that occur between 91 and 180 days where the new sales price exceeds the previous sales price by 100 percent or more, FHA will require additional documentation validating the property’s value. FHA also has the flexibility to examine and require additional evidence of appraised value when properties are re-sold within 12 months.

FHA has made Exceptions to the 90 Day Flipping Rule for the following:

Sales by HUD of its Real Estate Owned

Sales by other United States Government agencies of single-family properties pursuant to programs operated by these agencies.

Sales of properties by nonprofits approved to purchase HUD-owned single-family properties at a discount with resale restrictions.

Sales of properties that are acquired by the sellers by inheritance.

Sales of properties purchased by employers or relocation agencies in connection with relocations of employees.

Sales of properties by state and federally charted financial institutions and Government Sponsored Enterprises.

Sales of properties by local and state government agencies.

Upon FHA’s announcement of eligibility in a notice (i.e., ML), sales of properties located in areas designated by the President as federal disaster areas, will be exempt from the restrictions of the property-flipping rule. The notice will specify how long the exception will be in effect and the specific disaster area affected.

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