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...

CFPB Released New Rules on Foreclosures

John Thomas January 27, 2013 Tags: CFPB Foreclosure Rule, Consumer Financial Protection Bureau Rules, mortgage servicer rule for foreclosures

The Consumer Financial Protection Bureau (CFPB) released new guidelines for mortgage servicers on January 17, 2013, that set out to establish new, strong protections for struggling homeowners facing foreclosure. The CFPB is trying to help protect homeowners who may be facing foreclosure with these new rules that take effect in January 2014. The new rules were required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which directed the CFPB to implement reforms for the mortgage servicing industry. Keep Reading...

Delaware Veteran Loan Streamline Refinance with VA IRRRL

John Thomas January 24, 2013 Tags: Delaware VA IRRRL Refinance, Delaware VA Loan, Delaware Veteran Loans, VA Home loans, VA Streamline refinance, Veteran Loans

Delaware Veteran Loan Streamline Refinance with VA IRRRL

Delaware Veteran Loan Streamline Refinance with VA IRRRL Refinance – Delaware Home Owners who currently have a Veterans Home Loan on their Primary Residence can refinance to record low mortgage interest rates with a VA Streamline Refinance called a VA IRRRL. The IRRRL is an Interest Rate Reduction Loan exclusively for Delaware veterans who currently have a VA home loan. Call Now for Free VA Refinance Loan Analysis at 302-703-0727 to speak to a local Loan Officer in Delaware or schedule an in-office appointment. You can also APPLY ONLINE for VA Refinance Keep Reading...

Federal Reserve Board Issued Final Rule on Appraisals for High Priced Mortgage Loans

John Thomas January 24, 2013 Tags: Final Rule on Appraisals, High Priced Mortgage Loans, HPML, HPML Appraisal

Final Rule on Appraisals for High Priced Mortgage Loans Released.

High Priced Mortgage Loan also called an HPML is a loan that is secured against a borrower’s primary residence and has an interest rate that is higher than the average prime offer rate. The Federal Reserve Board issued the Final Rule on Appraisals for HPML on January 18, 2013, which was mandated by provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act).

The Final Rule requires lenders to use a certified or licensed appraiser who prepares a written appraisal report based on a physical inspection of the interior of the property. The rule also requires lenders to provide borrowers with a free copy of the appraisal report and to disclose the purpose of the appraisal report. In an effort to prevent fraudulent property flipping, the rule requires creditors to obtain an additional appraisal at no cost to the borrower if the property has been acquired: Keep Reading...

Allowed Seller Contribution Toward Closing Costs on Delaware Purchase Transactions

John Thomas December 26, 2012 Tags: Fannie Mae Seller Paid Closing Costs, FHA seller paid closing costs, Freddie Mac Seller Paid Closing costs, Seller Concessions, Seller Paid closing costs, USDA Seller Paid Closing Costs, VA Seller Paid Closing Costs

How much can the Sellers contribute toward Buyers closing costs and pre-paid items?

John R. Thomas with Primary Residential Mortgage in Newark, Delaware will answer how much the seller can pay toward closing costs and pre-paid items based on the loan program being used. If you have questions or would like to apply for a mortgage loan please call 302-703-0727 or you can APPLY ONLINE.

When a Buyer makes an offer to purchase a property, they can negotiate for the sellers to pay money toward closing costs and pre-paid items as long as it is written into the sales agreement. On the Delaware Real Estate Sales Agreement, this is typically written into section 32 of the sales contract. A seller is allowed to pay money towards closing costs, prepaid items, and reserves. The seller cannot, however, contribute toward the down payment. 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...

Delaware Conforming Loan Limits Remain the Same for 2013

John Thomas December 2, 2012 Tags: Conforming Loan Limits 2013, Conventional Loan Limits 2013, Delaware, Fannie Mae Loan Limits, Freddie Mac Loan Limits, John Thomas

The maximum loan limit for Freddie Mac and Fannie Mae loans in 2013 for loans made in Delaware will remain the same as it was in 2012. The Federal Housing Finance Agency (FHFA) announced on Thursday, November 29, 2012, that the baseline limit that will apply to most of the country will be $417,000 for one unit properties. Below is a chart showing the conforming loan limits for New Castle County, Delaware; Kent County, Delaware’ and Sussex County, Delaware:

Number of Units: Max Delaware (Kent, New Castle, & Sussex Counties) Loan Limit 1 Unit $417,000 Keep Reading...

Delaware USDA Rural Housing Loan Guideline Updates October 1, 2012

John Thomas October 4, 2012 Tags: Rural Development Loans, USDA, USDA Guideline Update October 2012, USDA Rural Housing Loans

Delaware USDA Rural Housing Loan Guideline Updates that took effect October 1, 2012.

Delaware USDA Rural Housing Loan Guideline Updates from John R. Thomas with Primary Residential Mortgage

USDA Rural Housing Loan Program changed the monthly mortgage insurance premium charged on USDA mortgages from 0.3% to 0.4% effective on conditional commitments issued on October 1, 2012, and after. USDA also changed the Guarantee fee it charges for refinances. The guarantee fee on refinance transactions increased from 1.5% to 2.0% effective October 1, 2012. The Guarantee Fee on purchase transactions remains the same at 2.0%. Keep Reading...