Mortgage Loans

Mortgage Loans

Congress votes to increase Delaware mortgage rates through increased Guaranty Fee – 2012

John Thomas January 20, 2012 Tags: , ,

Delaware mortgage rates will be increasing in the first quarter of 2012 for all conventional loans backed by Fannie Mae and Freddie Mac because of the bill to extend payroll cut extension for two months. Two-month extension costs borrowers for the next 10 years! You need to act fast to avoid the interest rate increase, call now at 302-703-0727 or APPLY ONLINE to avoid paying this higher rate.

The U.S. Congress recently passed a two-month payroll tax cut extension. The $33 billion packages are funded by a 10-year increase in the Guaranty Fees that Fannie Mae (Fannie) and Freddie Mac (Freddie) charge lenders to guarantee home loans. Keep Reading...

Impact of Short Sales on New Castle County & Kent County Delaware for 2011

John Thomas January 15, 2012 Tags:
distressed properties

As of December 2011 close to one in four listings in New Castle County closed as a short sale or bank-owned property (REOs). As of December 2011, one in three in listings that sold in Kent County were short sales or bank-owned properties (REOs). In the pictures above we can see December 2011 alone for New Castle and Kent Counties, and below we see the figures for 2011 as a whole. The biggest difference between New Castle and Kent Counties is that 15.5% of REO or Bank-Owned properties settled in NCCO, while 22.6% settled in Kent County. Short sale figures are almost identical, although the more densely populated northern New Castle County handled almost four times as many individual properties Keep Reading...

Delaware FHA Loan Limits reset back to higher limits for 2012-2013

John Thomas December 7, 2011 Tags:

Delaware FHA Loan Limits are changed back to higher limits with Mortgagee Letter 2011-39 announces changes to its mortgage limits with the passing of H.R. 2112 (The Consolidated and Further Continuing Appropriations Act of 2012), which reestablishes the previous higher FHA loan limits. Effective immediately with all new FHA case numbers until December 31, 2012, the loan limits are as follows:

New Castle County Limit- $420,000

Kent County Limit – $376,250

Sussex County Limit – $375,000

You can apply for a Delaware FHA Loan by calling 302-703-0727 or you can APPLY ONLINE. Keep Reading...

Delaware Conventional Loan Limits for 2012

John Thomas December 6, 2011 Tags:

Delaware Conventional loan limits for 2012 have been released. Fannie Mae’s loan limits for 2012 for all conventional mortgage loans have been issued by the Federal Housing Finance Agency (FHFA) for all loans to be acquired by Fannie Mae in 2012. These maximum conforming loan limits will remain at existing levels.

First Mortgage Loan Limits for Delaware

New Castle County, Kent County, and Sussex County

1 Unit $417,000
2 Unit $533,850
3 Unit $645,300
4 Unit $801,950

Second Mortgage Loan Limit is $208,500.

If you need to apply for a Delaware mortgage loan you can call our office at 302-703-0727 or you can APPLY ONLINE. Keep Reading...

Delaware USDA Rural Housing Loans – Lapse in Funding October 1, 2011

John Thomas October 7, 2011 Tags:

Delaware USDA Rural Housing Loans are now subject to a lapse in funding as Rural Development is only issuing Contingent Conditional Commitments, subject to the availability of commitment authority” as there are currently no more funds available for guaranteeing loans as of October 1, 2011. Therefore most lenders have ceased funding USDA Rural Housing Loans.
Primary Residential Mortgage is still originating and funding these loans with the contingent commitment and will do so until funding is restored. If you received a commitment from Rural Development prior to October 1st then you will be fine if not you will need to check to see if your lender will still fund the loan and won’t have any delays. If you cannot get your loan funded, please call us at 302-703-0727 and we can get your loan closed for you. You can also APPLY ONLINE for a Delaware Mortgage. Keep Reading...

Delaware FHA Loan Limits as of October 2011

John Thomas September 15, 2011 Tags:

Delaware FHA Loan Limits for 2011

Delaware FHA loan limits are set to change for the worse on October 1, 2011. The temporary increase in FHA loan limits expires October 1, 2011. The loan limits were raised in 2008 to help stimulate the housing industry that was reeling from a recession caused by the collapse of the mortgage market.

The new FHA loan limits in Delaware are based on the median home price for each county and are as follows:

New Castle County, DE – $379,500

Kent County, DE – $271,050

Sussex County, DE – $316,250

The biggest drop that will affect most home buyers is in Kent County which will see almost $100,000 drop in Delaware FHA loan limit effective for FHA case numbers assigned on or after October 1, 2011. Keep Reading...

Delaware USDA Home Loans adds monthly mortgage insurance October 2011

John Thomas September 3, 2011 Tags: ,

Delaware USDA Rural Housing Loans will be adding a monthly mortgage insurance premium on all loans effective October 1, 2011. The USDA announced this change in administrative notice AN 4551 which made the following changes to the Delaware Single Family Housing Guaranteed Loan Program:

1) Upfront Guarantee fee lowered from 3.5% to 2% on purchase transactions.

2) New annual fee of 0.3% added to purchase and refinances.

Overview of the new guarantee fee:

  • The annual fee will be required for all loans that receive a Conditional Commitment issued by USDA on or
    after October 1, 2011
  • The annual fee will be calculated based on the average unpaid principal balance (UPB) for the year
  • This fee will be collected monthly as part of the borrowers housing payment
  • The monthly amount must be escrowed (two months will be collected at closing)
  • The USDA Annual Guarantee Fee will be required for the life of the loan
  • The new fee would increase a borrower’s housing payment approximately $17/month for a $100,000
    purchase loan (as demonstrated in the table below) or approximately $25 per $100,000 for a refinance
  • Borrowers whose DTI is already at the maximum USDA allowance of 29/41 may be at risk of not
    qualifying if the USDA Conditional Commitment is received on or after October 1, 2011

Example:
Purchase transaction with the Up-front Guarantee Fee being financed (rolled into the loan)
Loan Amount: $100,000
Rate: 4.75% Keep Reading...

Delaware FHA Monthly Mortgage Insurance Premium Increasing Monday

John Thomas April 14, 2011 Tags: ,

The monthly mortgage insurance premium for Delaware FHA loans will increase by 0.25% on all FHA case numbers pulled on or after April 18, 2011. So if you are under contract to purchase a home in Delaware and are using an FHA loan then you need to make sure your loan officer pulls your FHA case number by Friday, April 15, 2011 or if you are considering an FHA refinance then you should call to get your FHA case number pulled before the end of the day on Friday, April 15, 2011. If you need help please feel free to call 302-703-0727. Keep Reading...