Even though FHA made a major change to their appraisal requirements, some Realtors, Sellers, and Buyers are still concerned about Loans that require an FHA Appraisal. Most of these people still have concerns because they are not aware of the changes that occurred in January of this year, or they have not seen these change first hand yet.

Here are some of the major changes that occurred in January:

Examples of MINOR property conditions that no longer require AUTOMATIC repair for existing properties are:

• Examples of Missing handrails;
  

• Cracked or damaged exit doors;
  

• Cracked window glass;
  

• Minor plumbing leaks (such as leaky faucets);
  

• Defective floor finish or covering (badly soiled carpeting);
  

• Rotten or worn out countertops;
  

• Crawl Space with debris or trash;
  

• Defective paint surfaces in homes constructed Post 1978
  

Examples of tests that may no longer be REQUIRED:
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I am pleased to announce that Nehemiah was victorious in its litigation against HUD!

Judge Lawrence K. Karlton of the United States District Court for the Eastern District of California upheld Nehemiah’s motion for summary judgment. The Court Clerk’s Office is directed to enter judgment and close the case.

To be clear, the U.S. Department of Housing and Urban Development’s (HUD) rule to ban private downpayment assistance as proposed in the “Standards for Mortgagor’s Investment in Mortgaged Property regulation published October 1, 2007, is permanently set aside.

I am thrilled with the Court’s decision to support low-to-moderate income families across the country by ruling against HUD’s attempt to ban private downpayment assistance. This is a major and conclusive judgment, leaving no uncertainty that downpayment assistance is a lifeline to the families that Nehemiah serves. It is heartening to see that the Court’s arguments echo our sentiments and concerns. This decision preserves access and supports the use of sensible and reasonable approaches to homeownership for millions of working-class families. It is a privilege to continue providing a helping hand to America’s underserved families by building both safer communities and financial strength through homeownership.

Since May 2007, Nehemiah has led the fight against this controversial rule. Since it was announced, there has been confusion throughout the industry regarding the potential impact of this rule. As the DPA industry leader, Nehemiah took seriously their responsibility to provide us with timely, accurate and responsible information about the events and activities surrounding this issue on their website.

The Down Payment Assistance Program allows for a grant from a non-profit company that can contribute the 3% required interest that the buyer must have in the transaction according to FHA guidelines. This grant can be a gift from the seller to the Down Payment Assitance Program who then gifts it to the buyer. This allows a person to essential borrower 100% financing through an FHA Loan and to have the seller also pay up to 6% of the closing costs.

If you are interested in this program please give me a call and we can discuss the details. 302-368-7132 Ext. 12.  Or fill out the contact information on this webpage and I will contact you.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713