Mortgage Loans

Mortgage Loans

Fannie Mae New Rules for Delaware Home Buyers January 2014

John Thomas September 8, 2013 Tags: , , , ,
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Fannie Mae New Rules for Delaware Home Buyers Effective January 2014

Fannie Mae released an update to its Selling Guide SEL-2013-06 which will be effective January 10, 2014 with the update to automated underwriting system DU version 9.1. The update makes the following changes to conventional mortgage loans sold to Fannie Mae:

  • No longer accept mortgages with terms greater than 30 years (So no more 40-year mortgages)
  • No longer accept mortgages with an interest only option
  • Adjustable Rate Mortgages (ARMs) that are 7 years fixed or 10 years fixed will need to be qualified at higher of note rate or fully indexed rate whichever is higher
  • No longer allow Loan-to-Value (LTV) over 95% (So no more 97% LTV Loans!!!)
  • Will force Lenders to purchase back loans that can be proved to fail the ATR (Ability to Repay) test

The 97% Loan that is no longer eligible includes the My Community Mortgage programs and the HFA programs. The ATR test is the biggest change that most people will not directly see as it will affect how lenders underwrite loans after January 10, 2014. The new rule says that if a loan defaults at any time during the 30-year term of the loan, Fannie Mae can review the loan and if determines the lender failed to adequately document the borrower’s ability to repay then the lender must indemnify Fannie Mae for the complete loss. The big problem is Fannie Mae has not clearly defined what a lender is supposed to do in order to document the borrower’s Ability to Repay a loan. This means Fannie Mae can subjectively decide if a lender passes the ATR test when a loan goes bad. Keep Reading...

Delaware USDA Rural Housing Loan Eligible Property Areas Changing October 1, 2014

John Thomas August 28, 2013 Tags: , , ,
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Delaware USDA Rural Housing Loans Eligible Property Areas are Changing October 1, 2014

The eligible property areas for Delaware USDA rural housing loans in Delaware were supposed to change on October 1, 2014, when Rural Development was switching from using the 2000 US census data to determine eligibility based on population density to using the 2010 US Census.  The current areas that are eligible which were no longer going to be eligible are Middletown, Delaware and Smyrna, Delaware.  THE CHANGE WAS DELAYED UNTIL 2021!!

The USDA Rural Housing Loan offers 100% financing for borrowers looking to purchase homes in eligible areas that fall under the household income limit.  The income limit is based on the number of people in the household and on which county the property is located in Delaware, Delaware USDA Loan 2013 Income Limits.  The New Eligible Property Areas Map effective October 1, 2013, by county are displayed below: Keep Reading...

Delaware USDA Rural Housing Loan Income Limits for 2013

John Thomas August 28, 2013 Tags: , , ,
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Delaware USDA Rural Housing Loan

Income Limits for 2013 are based on the county and the number of people in the household.  If you have questions about USDA Rural housing Loans or would like to Apply for a USDA Rural Housing Loan, call 302-703-0727 or APPLY ONLINE. The following table shows the income limits for each county in the State of Delaware:

New Castle County Delaware Income Limits for USDA Rural Housing Loans for 2013:

1-4 Person         5-8 Person
$0 – $93,450       $0 – $123,354

Kent County Delaware Income Limits for USDA Rural Housing Loans for 2013: Keep Reading...

FHA Back to Work Program Delaware FHA Loan Update

John Thomas August 21, 2013 Tags: , , ,
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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: , , , ,
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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: , , ,
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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: , ,
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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: , , , , ,
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Delaware Veteran Loan Streamline Refinance

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...