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FHA Loans

Delaware FHA Loans – MIP Changes October 4, 2010

John Thomas September 29, 2010 Tags: , ,

It is official: FHA was given authority on September 3, 2010, to change the amount charged to borrowers for both the Up Front Mortgage Insurance Premium and the Annual Mortgage Insurance premiums…and change them they did.

This will impact how you write up a Delaware FHA purchase agreement, as well as any monthly payments you might estimate

The new premium amounts will be effective on all FHA case numbers assigned on or after October 4, 2010, so if you already have a Delaware FHA transaction in process, you won’t be impacted as long as your loan officer has already pulled an FHA case number, but new FHA clients who come into process on or after October 4th will be subject to the new guidelines. Keep Reading...

Delaware FHA Mortgage Insurance Change Official October 4, 2010

John Thomas September 2, 2010 Tags: , ,

FHA MIP Changes Now Official for Delaware Home Owners and Delaware Home Buyers

With the passing of H.R. 5981 and the resulting Public Law 111-229, FHA was given authority to change the amount charged to borrowers for both the Up Front Mortgage Insurance Premium and the Annual Mortgage Insurance premium. These changes that are outlined in Mortgagee Letter 2010-28, are effective for all FHA case numbers assigned on or after October 4th, 2010.

Here are the 6 things you need to know about these changes:

  1. The Up Front premium is now 1.0 % for all standard FHA programs (purchase money mortgages, full credit-qualifying refinances, streamline refinances)
  2. The Annual premium is now .90% for LTVs GREATER than 95% on 30-year loans
  3. The Annual premium is now .85% for LTVs EQUAL to or LESS than 95% on 30-year loans
  4. The Annual premium is now .25% for LTVs GREATER than 90% on 15-year loans
  5. The Annual premium is now .00% for LTVs EQUAL to or LESS than 90% on 15-year loans
  6. These premiums apply to purchases, regular refinances and streamlines

Please note that this new law also gives FHA the authority to raise the Annual premium at will up to 1.5% for LTVs at or below 95% and 1.55% for LTVs more than 95%. Keep Reading...

FHA Loan Questions – What is FHA Mortgage Insurance and what is the refund?

John Thomas June 3, 2010

Many people are confused on how much and even if they can get a refund of the upfront mortgage insurance premium they paid to FHA when they obtained a FHA insured mortgage loan. The confusion comes because the date you obtained the mortgage determines what you are eligible for in terms of a refund. There are two important dates: January 1, 2001, and December 8, 2004. Watch this video for a complete explanation of the FHA upfront mortgage insurance and the monthly mortgage insurance:

Fact Sheet on FHA Refund of the upfront mortgage insurance premium is here Keep Reading...

Delaware FHA 203k Rehab Loan – Selecting Contractors

John Thomas May 15, 2010

Delaware FHA 203k Rehab Loan Selecting Contractors

Here are the guidelines you must follow when selecting a contractor to give a bid for the repair work:

CONTRACTORS AND REHABILITATION CRITERIA

1. Must use contractors to complete repairs/rehabilitation (unless borrower can demonstrate needed expertise/experience)

2. Use of contractors:

A. Borrower selects contractor

B. Contractors provide estimates for the work to be done, if applicable

C. The lender must review the contractor’s credentials verifying jurisdictional requirements for licensing, bonding & insurance are met (need copy of all these docs) Keep Reading...

Proposed Increase to FHA Down Payment for Delaware Home Buyers Voted Down

John Thomas April 29, 2010

On Tuesday the House Financial Services Committee defeated a proposal sponsored by Scott Garrett (R-NJ) which would have increased the minimum down payment for FHA guaranteed loans from 3.5 percent to 5 percent. This means required down payment for Delaware Home Buyers using FHA loans is still only 3.5 percent of the purchase price.

The Committee approved a request by the Federal Housing Administration (FHA) to raise the ceiling on annual FHA mortgage insurance premiums from its current level of 0.55 percent. FHA had requested the increase as one part of a plan aimed at shoring up its capital reserves which have dropped below the 2 percent required by law. Keep Reading...

Delaware State Bond Loan for March 2010

John Thomas March 17, 2010

The Delaware State Bond Loan is supposed to help first time home buyers by providing them with a lower interest rate than the current market rate.  Problem is right now the current FHA rate is below the bond rate so you are better off getting an FHA loan without going thru the bond program. Until rates go back up, you will actually be paying more for the Delaware State Bond Loan then for a regular FHA loan.

The New Castle County Down payment assistance program is a better bet than the Delaware State Bond program right now. If you need more information or would like to apply for one of these loans, you can APPLY ONLINE HERE, or call 302-703-0727 and ask for John Thomas. Keep Reading...

90 Day FHA Seasoning Flip Rule Waived for Delaware Buyers, Sellers, & Investors

John Thomas January 22, 2010

Great news for Delaware Home Buyers looking to purchase a home through FHA, the 90-day seasoning flip rule has been temporarily lifted by FHA. This change will allow buyers in Delaware to use an FHA Mortgage when purchasing investor and bank-owned properties that have been owned for less than 90 days by the seller.

On Friday, January 15th, 2010, FHA, (Federal Housing Authority) released this update as an excerpt from the Code of Federal Regulations without a corresponding Mortgagee Letter and contains information about FHA’s policies regarding the waiver of the 90-day seasoning required for sellers. Keep Reading...

FHA Announces Changes for Delaware FHA Loans

John Thomas January 22, 2010

FHA Commissioner David Stevens announced that FHA will be making changes effective April 2010 for all new FHA loans. The changes are being implemented to ensure that FHA can keep a capital reserve of 2.0%. The changes are as follows;

1) FHA upfront mortgage insurance premium will increase from 1.75% to 2.25%. It can still be included in the loan amount.

2) FHA has decreased the allowable seller assistance from 6% of the sale price to 3% of the sales price. This is the biggest change since buyers will no longer be able to have the seller cover all the closing costs because closing costs in Delaware are almost always higher than 3%. Keep Reading...