Mortgage Loans

Mortgage Loans

Good Neighbor Next Door Program

John Thomas May 17, 2019 Tags: , , ,
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If you wish to purchase a home and you’re either a law enforcement officer, firefighter, teacher or emergency medical technician, the Good Neighbor Next Door Program may have the best deal available for you!

It’s called the Good Neighbor Next Door Program—a reward by the US Department of Housing and Urban Development (HUD) for America’s “good neighbors.”

The Benefits of Good Neighbor Next Door Program in a Nutshell

  • Buy HUD REO homes for 50% off list price with today’s current mortgage rates.
  • Pay only $100 down payment when you buy any eligible HUD home at half-off its price.

How Does the GNND Program Work?

Eligible Single Family homes located in revitalization areas are listed exclusively for sale through the Good Neighbor Next Door program (GNND). Properties are available for purchase through the program for Seven days. Keep Reading...

VA One Time Close Construction Loan

John Thomas May 3, 2019 Tags: ,
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What is a VA One Time Close Construction Loan? If you’re a Veteran or have a loved one who has served as member of the Armed Forces, you’ll understand sacrifices such as being away from family, missing the birth of your child, experiencing battle trauma—or worse. Perhaps one common challenge faced by Veterans when you finally make it home is difficulty integrating back into civilian life.

Needless to say, you are our heroes and you deserve the best benefits. One such benefit relates to housing. It’s called the VA One-Time Close Construction Loan. Call 302-703-0727 to talk to a VA Lending Specialist about a VA Construction or get started online APPLY ONLINE Keep Reading...

Self Employed Bank Statement Loan Program

John Thomas April 27, 2019 Tags: , , ,
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Self-Employed? Here’s How You Can Qualify for a Bank Statement Loan

Are you self-employed? Consider a Self Employed Bank Statement Loan Program. You belong to almost nine million self-employed people in the United States. You enjoy the advantages of self-employment that aren’t afforded to full-time workers—a flexible schedule, control of your life and the ability to select who you work with and what you do.

The financial perks of self-employment can be tremendous too, opening up any number of tax deductions related to the business.

One of the benefits if you’re self-employed and looking into purchasing a home is the privilege to take a self-employed bank statement loan. Keep Reading...

FHA One-Time Close Construction Loan

John Thomas April 23, 2019 Tags: , , ,
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Is a FHA One Time Close Construction Loan right for you?

Two isn’t always better than one. Let me explain.

If you’re building your house from the ground up, you’ll most likely take a construction loan followed by a permanent loan. This scenario will require you to have 2 loans, which means you’ll have 2 start dates and 2 closing dates—which means you’ll pay for 2 separate closing costs!

An FHA one-time close construction loan, however, will allow you to have your home built and financed just under one loan. It’s simpler and more cost-efficient and you end up with a FHA Loan with a 30 year fixed rate when all is said and don Keep Reading...

Mortgage Rates Weekly Update [April 14 2019]

John Thomas April 14, 2019 Tags: ,
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Mortgage Rates Weekly Update for April 14, 2019

Mortgage Rates Update for April 14, 2019 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Rates moved higher last week as the stock market surged. If you look at the mortgage bond chart below, you can see mortgage bonds sold off on Friday and dropped below the 25 day moving average which will now at as a ceiling of resistance. The next floor of support is the 50 day moving average. We are recommending LOCKING your mortgage rate if closing in the next 30 days as mortgage bonds have still not found a floor of support. Keep Reading...

Newark Delaware Home Buyer Seminar February 16 2019

John Thomas January 20, 2019 Tags:
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Book Cover - FTHB - 2011

Newark Delaware First Time Home Buyer Seminar

There will be a Newark Delaware First Time Home Buyer Seminar on Saturday February 16, 2019 at 10:00 AM till Noon. The seminar will last about 2 hours and each participate will be able to receive a copy of their credit report. The home buyer seminar will cover all of the basics of buying a home in Delaware. The Newark Delaware First Time Home Buyer seminar will cover FHA loans, VA loans, USDA Rural Housing Loans, First Time Home Buyer Loan Programs and the FHA 203k Rehab loans.  We will also cover the Delaware Mortgage Credit Certificate Program which is also know as the Delaware first time home buyer tax credit which give you up to $2,000 a year as a federal tax credit for every year you have the mortgage loan.

Register Now!

Call 302-703-0727 or Register Online at

The Seminar is sponsored by The Neighborhood House so each participant will receive Delaware home buyer counseling credit toward the required HUD approved home buyer counseling required for Delaware First Time Home Buyer Programs such as Delaware State Housing Authority, New Castle County, City of Newark, City of Dover, and City of Wilmington.

Each participate will receive a Credit Scoring Handbook, Delaware Home Buying Handbook, A Household Budget Calculator Worksheet and an opportunity to meet with a certified mortgage planner to be Pre-Approved to buy a home at the seminar. You will also learn importance of credit in buying a home and learn valuable tips on how to improve your credit score.

Learn what programs are available to help with down payment and closing costs. The new loan limits for conventional and FHA will be covered as well as options for borrowing 100% financing to purchase a home in Delaware at the Delaware First Time Home Buyer Seminar.

The seminar is based on the best selling book, Your Guide to Buying Your First Home in Delaware written by John R. Thomas.

What will you learn at the Newark Delaware First Time Home Buyer Seminar?

You will also learn the following at the seminar:

Valuable Tips on How to Improve Your Credit Score
How to Establish Credit if You have None
How to Budget to Afford a New Home
How to Calculate How Much Your Qualify for
How to Get Pre-Approved for a Delaware Mortgage Loan
Learn what Mortgage Programs are available for Delaware First Time Home Buyers
Learn what programs are available to help with down payment and closing costs such as a Delaware Down Payment Grant
Learn what your Delaware Mortgage Lender should be doing for you
Learn what your Delaware Real Estate Attorney should be doing for you
Learn what your Delaware Real Estate Agent should be doing for you
Learn what your Delaware Home Inspector should be doing for you
How to find the right Realtor to help you find your new home
How to shop for your new home
How to make the offer and negotiate the best price and terms
and much more!!!

Where will the Newark Delaware First Time Home Buyer Seminar Be Held? Keep Reading...

What is Mortgage Insurance or PMI?

John Thomas December 29, 2018 Tags: ,
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Mortgage Insurance

What is Mortgage Insurance or PMI?

Mortgage Insurance is an insurance policy that protects lenders against a borrower defaulting on the mortgage loan for a portion of the loss incurred by the lender.  Mortgage Insurance is sometimes termed PMI which stands for Private Mortgage Insurance.  Mortgage lenders typically do not want to lend more than 80% of the value of a home as it is too risky long term.  Mortgage insurance is used to offset the risk to the lender and allows a borrower to put down less than 20% to purchase a home so it creates a win-win scenario for lender and borrower.  If you have questions or would like to get started on a mortgage pre-approval, call 302-703-0727 or you can APPLY ONLINE

When Do I Have to Pay Mortgage Insurance?

Mortgage Insurance is requirements are dependent on the type of mortgage loan that is being used.  The requirements are different for Conventional, FHA, VA, and USDA.   The rules for how much you pay and options for buying out the mortgage insurance also depend on the mortgage loan type.  Below is summary of mortgage insurance guidelines for each loan type:

FHA Loan MI Requirements

FHA Loans require mortgage insurance on all FHA loans regardless of the amount of down payment.   The mortgage insurance factor is the same no matter what the credit score of the borrower.  For FHA 30 year fixed rate loans with less than 5% down the mortgage insurance factor is 0.85%.  If you put 5% or more down on a 30 year fixed rate FHA loan then the mortgage insurance premium factor is only 0.8%.  The mortgage insurance is required for the life of the loan for FHA loans unless you put 10% or more down.  If you put 10% or more down then the mortgage insurance will drop off after 11 years.

FHA mortgage insurance also has a special advantage in that the monthly mortgage insurance payment is re-calculated every 12 payments so the mortgage insurance payment goes down every year.

FHA also requires the borrower to pay an upfront funding fee of 1.75% which can be financed into the loan or paid in full at closing.

VA Loan MI Requirements

VA Loans or Veteran Loans do NOT require mortgage insurance which is a huge benefit of a VA Loan.  Veterans can borrower 100% financing without paying any extra monthly toward mortgage insurance because the VA guarantees the loan on behalf of the veteran.  The VA only requires the veteran to pay a funding fee which they allow to be financed into the new loan.  The funding fee amount depends on whether the veteran is active duty or reserves and whether this is the first time use of a VA loan.  If veteran has VA disability then they would be exempt from paying the funding fee.

USDA Loan MI Requirements

USDA Rural Housing Loans require the borrower to pay a monthly mortgage insurance premium based on a factor of 0.3% and it is the same regardless of credit score.  The mortgage insurance is on for the life of the loan just like FHA Loans.  USDA also requires a upfront guarantee fee of 1% which can be financed into the loan.  USDA will allow 100% financing so the borrower needs 0% down payment.

Conventional Loan MI Requirements

Conventional Loans require mortgage insurance to be obtain from a private company hence why it is called private mortgage insurance or PMI for short.  Conventional loans are the only ones that provide risk based pricing for mortgage insurance. Risk based pricing means your credit scores affects how much you will pay for your private mortgage insurance.  The higher the credit score the cheaper the PMI and the lower the credit score, the more expensive the PMI.

Conventional loans do NOT charge any upfront funding fees or guarantee fees like the government insured loans.  The mortgage insurance is also cheaper if put more money down and no mortgage insurance is required if put down at least 20%.  The PMI will also drop off automatically when the loan balance reaches 78% of the original value or purchase price as long as it has been two years.

What Types of Mortgage Insurance Are Available?

There are three types of mortgage insurance that can be used when mortgage insurance is required:

  • Borrower Paid Monthly Mortgage Insurance (BPMI)
  • Lender Paid Monthly Mortgage Insurance (LPMI)
  • Single Premium Mortgage Insurance (SPMI)
  • Keep Reading...