FHA Loans

FHA Loans

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...

Delaware FHA Loans Going to 5% Down Payment?

John Thomas October 21, 2009

Some congressmen are becoming more concerned about the Federal Housing Administration’s financial plight and they want to increase FHA’s downpayment requirement to 5%. Rep. Ed Royce, R-Calif., said FHA is operating at the same dangerous leverage ratios that led to the takeover of Fannie Mae and Freddie Mac. Rep. Scott Garrett, R-N.J., said he has drafted a bill that would increase the FHA downpayment requirement to 5% from the current 3.5% level.

“There are increasing reports of the likely necessity of a taxpayer bailout for the FHA and this legislation aims to implement reforms to try to prevent such a bailout from occurring,” Rep. Garrett said at a House Financial Services Committee hearing. The Garrett bill also calls for a General Accountability Office study to determine the appropriate leverage ratio for FHA. In the early 1990s, Congress mandated that FHA maintain a minimum 2% capital ratio. Keep Reading...

Delaware FHA 203k Rehab Loans for Bank Owned Properties

John Thomas September 24, 2009

The increase in foreclosures has increased the number of houses listed for sale in Delaware that are owned by banks.  The banks have taken the homes by foreclosing.  The banks list the properties for sale in “as is” condition. This makes it tough for qualified buyers to purchase some of these homes because traditional FHA Loans and conventional loans may require some repairs be completed prior to closing that the bank will not due.

The solution to this problem is the Delaware FHA 203k loan. For most of these properties, the repairs are not major and are best suited to a streamlined version of the FHA 203k loan. The streamline is much quicker and easier to do than a full 203k. The program allows the buyer to borrow the cost for the repairs and doesn’t require them to be completed before closing. Keep Reading...

FHA Cash-out Refinances Just Got Tougher in Delaware

John Thomas March 23, 2009

Effective April 1, 2009, Delaware homeowners looking to take cash out on their homes, will have a tougher time.

According to a letter issued by the Federal Housing Authority (FHA), FHA plans to make it tougher for borrowers to secure a cash-out refinance mortgage.

Until now homeowners only needed to have 5% equity in their properties and have a record of on-time payments for at least the last twelve months.  January 1, 2009, FHA required two appraisals for cash-out above 85% LTV.  Now there are eliminating cash-out above 85% LTV all together for Delaware Home Owners. Keep Reading...

Delaware FHA Loan Changes – Max LTV going to 85% for cash-out on April 1st

John Thomas March 16, 2009 Tags:

FHA loans will currently let you take cash out of your home up to a maximum of 95% loan to value.  The guideline changed on January 1, 2009, to require you to have two appraisals for cash-out above 85% loan to value.  Now the guidelines will change again on April 1, 2009, so that the maximum loan to value for cash-out refinances in Delaware for FHA loans will be 85%.  If you get your FHA case # assigned before April 1, 2009, you can still go to 95% on your loan.  So you don’t have to close by April 1st. Keep Reading...

Delaware FHA Loan Limits Raised by American Recovery Bill of 2009

John Thomas February 24, 2009

The American Recovery and Reinvestment Act of 2009 was passed last Tuesday and part of the bill reinstated the higher Delaware FHA loan limits of 2008. The Delaware FHA loan limits for 2009 were raised as follows;

New Castle County  $420,000  Previous – ($376,000)

Kent County $417,000  Previous – ($271,050)

Sussex County $417,000 Previous – ($312,000)

The loan limit has significantly increased in Kent County.  If you are looking to take advantage of the higher loan limits, please feel free to call me at 302-368-7132 or send me an e-mail to DelawareMortgages@yahoo.com to see if you qualify. Keep Reading...