HUD Delays Ban on Dual Agency for Short Sales on FHA Loans

John Thomas September 29, 2013 Tags: Delaware FHA Loans, FHA Ban on Dual Agency, FHA Short Sale Rule, FHA Update, Mortgagee letter 2013-23

HUD Delays the Ban on Dual Agency for Short Sales on Properties with FHA Loan being sold short. The rule was to go into effect on October 1, 2013, as outlined in mortgagee letter 2013-23 released in July 2013. The rule stated that brokers and their agents may only represent the buyer or the seller, but not both parties. This is commonly called dual agency so the rule thus makes it illegal for an agent that works for the brokerage of the listing agent to represent a buyer in the purchase of a short sale.

The intent of the rule is not to limit real estate agents but was to limit the risk of fraud and to ensure “arms-length” transactions on short sales and deed in lieu of foreclosure. There has been rampant fraud being performed with some agents listing homes for short sale and selling them to other agents below the market price by not taking any other offers to the bank. The same thing has been happening on REO properties that have been sold by agents that sell them to a partner at below market value by not taking any other offers to the bank that is selling the property. Keep Reading...

FHA Back to Work Program Delaware FHA Loan Update

John Thomas August 21, 2013 Tags: Delaware FHA Loans, FHA Back to Work Program, FHA Update, Mortgagee Letter 2013-26

FHA Back to Work Program

Delaware FHA Loan Update Effect August 15, 2013

FHA Back to Work Loan Program – HUD released a new Mortgagee Letter 2013-26 and made it effective August 15, 2013, which was title FHA Back to Work – Extenuating Circumstances. The new guidelines allow borrowers who have experienced an Economic Event that resulted in a severe reduction in income that lead to a short sale, foreclosure, and/or bankruptcy to shorten the required wait time to a minimum of 12 months. The normal wait times are from 2 to 3 years from the derogatory event. If you would like to apply for the Back to Work Program you can call 302-703-0727 or apply online at Delaware FHA Mortgage Application Keep Reading...

Delaware FHA Good Neighbor Next Door Loan Program

John Thomas July 25, 2013 Tags: Delaware FHA Loan, FHA Firefighter Next Door Program, FHA Teacher Next Door Program, Good Neighbor Next Door Program, Officer Next Door Program

Delaware FHA Good Neighbor Next Door (GNND) is the new name for an old FHA Loan Program. Most of you may know it as the Delaware Teacher Next Door Program or Delaware Officer Next Door Program. In 2005 HUD changed the program to include firefighters and emergency medical technicians (EMTs).

If you would like to apply for the Good Neighbor Next Door Program, please give us a call at 302-703-0727 or apply online

Highlights of the Delaware Good Neighbor Next Door Program:

Specifically for designated HUD homes in revitalization areas
$100 down
50% discount (provided by HUD as a silent second mortgage)
Silent second mortgage released after buyer occupies as a primary residence for 36 months
Active Duty Military Deployment is not considered an occupancy violation
All equity/profit is a buyer’s after an initial 36-month period (Silent Second Mortgage Forgiven!)
HUD doesn’t pay closing costs, prepaids, or selling agent commission; however, ALL can be rolled into new FHA loan
Bid MUST be submitted by registered HUD Real Estate Agent

Eligible borrowers are:

Law enforcement officers with arrest powers not limited to geographic area (Example: Military police with arrest powers limited to a military base are not eligible.)
Pre-K through 12th-grade teachers
Firefighters and/or EMTs

Additional borrower criteria: Keep Reading...

FHA Update – FHA Announces Increase in MI Effective April 1, 2013

John Thomas February 2, 2013 Tags: Delaware FHA Loans, FHA Loans, FHA MIP, MIP

In Mortgage Letter dated 01/31/2013, HUD announced that the Federal Housing Administration (FHA) will increase its annual mortgage insurance premium for most new mortgages by 10 basis points or by 0.10%, and FHA will increase premiums on jumbo mortgages ($625,000 or larger) by 5 basis points or 0.05%. It will also change the MIP from canceling at 78% LTV to being for the life of the loan on most FHA loans as of June 3, 2013. You can read the letter at http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf Keep Reading...

FHA Extends Property Flipping Waiver till December 31 2014

John Thomas December 12, 2012 Tags: Delaware FHA Loans, FHA Guidelines, FHA Property Flipping waiver

Update to Property Flipping Waiver – FHA Extends the Waiver till December 31, 2014

In 2006, HUD published a final rule in the Federal Register amending regulations at 24 CFR 203.37a, prohibiting property flipping in the HUD/FHA single-family mortgage insurance programs by providing additional exceptions to the time restrictions on sales. The rule and Mortgagee Letter 06-14 became effective for mortgages endorsed for insurance on or after July 7, 2006.

For properties that do not meet the property flipping exception criteria, the property flipping waiver was recently extended through 12/31/14 Keep Reading...

FHA Update – Provisions for Condo Project Approval Process

John Thomas September 18, 2012 Tags: Delaware FHA Loans, Delaware mortgages, FHA Condo, FHA Loans

In order to address current housing market conditions, HUD has published Mortgagee Letter 2012-18, which highlights important changes to the current condominium guides.

Here are the 7 things you need to know about these changes
1. These changes are in effect from September 13, 2012, until August 31, 2014, unless extended.

2. Under construction is defined as (1) a new development in which construction has been started but is not yet completed or in which units are completed but are less than 1 year old (existing < 12 months old); or (2) gut rehabilitation conversions. The definition of “under construction” applies to legally phased developments. Keep Reading...

Delaware FHA Streamline Refinance Guidelines 2012

John Thomas August 13, 2012 Tags: Delaware FHA Loans, Delaware Home Loans, Delaware mortgages, Delaware Refinance, FHA Streamline Refinance, mortgage loans

Delaware FHA Streamline Refinance Guidelines 2012

If you currently have an FHA Loan then you are eligible to refinance your existing Delaware FHA loan using the streamline refinance guidelines. The guidelines are different depending on when your current FHA loan was delivered by your lender to FHA after it was originated. If your loan was delivered to FHA before June 1, 2009, then you can take advantage of the new refinance guidelines put into place by President Obama that took effect on June 11, 2012. If your loan was delivered to FHA after June 1, 2009, then you must use the FHA Streamline Refinance guidelines that took effect on April 9, 2012. Apply Now for an FHA Streamline Refinance by calling 302-703-0727 or APPLY ONLINE for Delaware FHA Streamline Refinance Keep Reading...

FHA Rescinds New Credit Guidelines for Collections Effective June 15 2012

John Thomas July 2, 2012 Tags: Delaware FHA Loans, Delaware Home Loans, FHA Update, mortgage loans

FHA Rescinds Select Credit Guides Effective June 15, 2012, with mortgage letter 2012-10

Mortgagee Letter 2012-10 rescinds guidelines regarding disputed accounts and collection accounts that were announced February 28, 2012, via Mortgagee Letter 2012-03.

Here are the 2 things YOU NEED TO KNOW about these changes:

1. Effective now, the FHA guides revert back to the previous guides regarding disputed accounts and collection accounts, meaning the DE underwriter has to make the decision whether disputed accounts and collection accounts must be paid as a condition of loan approval. Keep Reading...