USDA One Time Close Construction Loan

John Thomas August 13, 2022 Tags: USDA One Time Close Construction LOans, USDA OTC Construction Loans

USDA One Time Close Construction Loan

The USDA One Time Close Construction Loan gives USDA-qualified borrowers the opportunity to finance the construction of their dream home, as well as the permanent mortgage all in a single mortgage loan with only one closing. This saves home buyers money on closing costs as traditional construction loans require 2 closings. Now you can purchase a lot and build your new home with a builder and borrower 100% of the purchase price as long as the home is in a USDA Eligible area. You can get started today by calling the John Thomas Team with Primary Residential Mortgage at 302-703-0727 or APPLY ONLINE. Keep Reading...

Delaware USDA Loans Income Limits 2020

John Thomas May 7, 2020 Tags: Delaware USDA loans, USDA Loans Income limits 2020

Delaware USDA Loans Income Limits 2020 announced May 4, 2020 by Rural Development. The household income limits in Delaware have increased in all three counties. Anyone looking to purchase a home with a Delaware USDA Rural Housing Loan now has more leeway to qualify as income limits have gone up. If you want to get pre-approved for a USDA Loan to purchase a home please call 302-703-0727 or APPLY ONLINE.

What are the USDA Rural Housing Loan Income Limits for 2020?

The household income limit is based on the number of people in the household that will occupy the property. The income limits are set based on 1-4 people household, 5-8 people households and then excess of 8 people households. Below is the chart showing Delaware USDA Loans Income Limits for 2020: Keep Reading...

Middletown Delaware USDA Loans Update

John Thomas June 21, 2018 Tags: USDA Loans

Middletown Delaware USDA Loans Update

Middletown Delaware USDA Loans Update – Effective June 4, 2018 Middletown Area in New Castle County Delaware is no longer eligible for USDA Financing. Rural Development bases the property eligibility for a USDA Loan on the population density in an area from the US Census data. The area of Middletown, Delaware is over the population density limit and has been previously exempted to continue to allow Delaware USDA Rural Housing Loans to be used to purchase or refinance homes but as of June 4, 2018 that exemption is being removed. If you would like more information or to get pre-approved for a USDA Mortgage Loan to purchase or refinance call us at 302-703-0727 or APPLY ONLINE

How does the Middletown Delaware USDA Loan Update affect Delaware Home Buyers?

Residents looking to buy a home in New Castle County, Delaware with a USDA loan can cross Middletown off their list.

As of June 4, 2018, many previously eligible areas, including Middletown, DE, will become ineligible for USDA financing.

A USDA home loan is a zero down payment mortgage program offered by the U.S. Department of Agriculture. Because this is a 100% financing option, the loan appeals to many Americans aiming to buy homes in rural, less populated areas outside of major cities. While this governmental program may be referred to as a USDA Rural Development Loan, the areas of eligibility extend way beyond properties off the beaten path of civilization. Approximately 97% of US terrain would qualify for a USDA loan making it easy to find an eligible property in most communities.

Succeeding the June 4th changes in eligibility, the only residents who will still qualify for a USDA loan in newly ineligible areas are those who meet all of the following regulations:

The loan application was received and dated by a mortgage lender prior to June 4, 2018. The lender must also have given a loan estimate within three days of receiving the application.

The buyer has a signed or ratified sales contract of their desired property dated before June 4, 2018.

Buyer meets all other loan eligibility requirements.

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What You Need to Know About the USDA Repair Escrow

John Thomas January 9, 2018 Tags: USDA Rural Housing Loans

The USDA Repair Escrow Loan can Help You Close

Many home buyers find their dream home, but then hit a brick wall in the loan approval process: the appraiser says it does not meet USDA loan guidelines. The home of their dreams requires minor repairs to be completed or they will not be able to close. The seller won’t budge – they have a loan that requires all repairs to be completed before closing, but that’s impossible since the process can’t move forward without those repairs. It seems like a frustrating, impossible situation, but it can be rectified with a Delaware USDA Repair Escrow Loan. The John Thomas Team can help you navigate the specifics of the Delaware USDA Repair Escrow – give us a call today at 302.703.0727 or APPLY ONLINE.

What is the Delaware USDA Repair Escrow?

Simply put, the Delaware USDA Repair Escrow is a USDA loan option that allows you to finance necessary minor repairs AFTER you close on your home.

This is not comparable to a full renovation loan like the FHA 203K Rehab Loan or HomeStyle Renovation Loan. This is an escrow repair option that allows you to repair certain items under very specific guidelines and allows those repairs to be financed into a USDA loan. With the Delaware USDA Repair Escrow, the repair funds are placed in an escrow and are released to the licensed contractor once the repairs have been made. It requires a 50% deposit at the time of closing (this can be paid by either the buyer or the seller) . The deposit covers any potential overpayment for the work performed and is not allowed to be financed.

The Delaware USDA Repair Escrow is a great option for handling minor repairs that are holding up the closing process.

What Can I Repair With the USDA Repair Escrow?

The Delaware USDA Repair Escrow is a very niche product – while it is immensely helpful, there are certain things you can’t repair. Repairs that are allowed must be minor repairs that do not affect the safety or visibility of the home you are purchasing. For example, the following repairs would be suitable:

Replacing an Air Conditioning Unit

Replacing the flooring in a home

Install a hot water heater

Repairing holes in a floor

Keep Reading...

USDA Rural Housing Loans Increasing Monthly Mortgage Insurance October 1, 2014

John Thomas September 7, 2014 Tags: Delaware USDA Rural Housing Loan, USDA Monthly Mortgage Insurance, USDA Rural Housing Loans

USDA Rural Housing Loans will be increasing the monthly mortgage insurance premium that is charged beginning on Guarantee Commitments assigned on or after October 1, 2014, as announced by Rural Development. The monthly premium charged is currently based on an annual premium of 0.4% of the principal balance of the outstanding loan. The annual premium is increasing to 0.5% effective with commitments issued on or after October 1, 2014. It doesn’t matter if the loan application or the sales contract was dated prior to October 1, 2014.

For Delaware and Maryland USDA Rural Housing Loans, this is an extremely important update because anybody who is currently under contract and the file isn’t currently in line to be reviewed by Rural Development, there is no way to make it by October 1, 2014 as the current turn time for review by Rural Development is 30 business days which is very close to 45 calendar days.

The annual premium is re-calculated every 12 payments so the monthly insurance premium will go down each year of the loan but it will never drop off, it is for the life of the loan. The upfront guarantee fee is currently 2% of the loan amount and it will not be changing on October 1, 2014.

If you have questions or concerns or would like to apply for a USDA Rural Housing Loan for the purchase or refinance of a home in Delaware, Maryland, or Pennsylvania, then give us a call at 302-703-0727 or Apply Online

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

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

Delaware USDA Rural Housing Loan Property Eligibility Extended till 2020

John Thomas February 23, 2014 Tags: Delaware USDA Rural Housing Loan, USDA Property Eligibility

Delaware USDA Rural Housing Loan Program current eligible property areas have been extended until the 2020 Census data can be used to determine property eligibility with the passage of the 2014 Farm Bill H.R. 2642, the Agricultural Act of 2014. President Obama signed the bill into law during the first week of February 2014.

Over 900 communities across the country were at risk of losing access to USDA Rural housing loans on October 1, 2014, when the 2010 Census data was going to be required to be used to calculate eligible areas replacing the 2000 Census data currently being used. For Delaware home buyers this means that Middletown, Delaware, and Smyrna, Delaware will continue to be eligible areas for USDA financing until post-2020.

USDA Loans provide up to 100% financing for eligible homebuyers to purchase a home. USDA has two restrictions on people that can take advantage of the rural housing loan program: 1) Income limits 2) Geographical limits. The income and geographical limits both depend on which state and county the property is located.

If you would like to check to see if a property address is eligible for a USDA Rural Housing Loan you can go to the following website:

http://eligibility.sc.egov.usda.gov/

If you have questions on Delaware USDA Rural Housing Loans or would like to apply for a USDA loan, please call 302-703-0727 or you can APPLY ONLINE.

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

Delaware USDA Rural Housing Loan Income Limits for 2014

John Thomas February 6, 2014 Tags: 2014, Delaware USDA income limits, Delaware USDA loans, USDA Rural Housing Loans

Delaware USDA Rural Housing Loan Income Limits for 2014 remained the same as 2013 for each county in Delaware. The income limits are based on the household income for the total number of people living in the home. If you have questions about USDA Loans for the purchase or refinance of a home, please call 302-703-0727 or you can APPLY ONLINE.

The income limits for New Castle County, Kent County, and Sussex County are displayed below:

New Castle County Delaware Income Limits for USDA Rural Housing Loans for 2014:

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

Kent County Delaware Income Limits for USDA Rural Housing Loans for 2014:

1-4 Person 5-8 Person
Household Household
$0 – $78,200 $0 – $103,224

Sussex County Delaware Income Limits for USDA Rural Housing Loans for 2014:

1-4 Person 5-8 Person
Household Household
$0 – $78,200 $0 – $103,224

Add 8% to the 1-4 person limit for each person above the 8 person limit to get the income limit for households bigger than 8 people. Moderate income is defined as the greater of 115% of the U.S. Median family income or 115% of the average of the state-wide and state non-metro median family incomes or 115/80ths of the area low-income limit.

If you have questions on Delaware USDA Rural Housing Loans or would like to apply for a USDA loan, please call 302-703-0727 or you can APPLY ONLINE.

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

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

John Thomas August 28, 2013 Tags: Delaware 100% Financing, Delaware Farmers Home Administration Loans, Delaware Rural Development Loans, USDA Rural Housing Loans

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:

New Castle County, Delaware Map of Eligible Property Areas for USDA Loans Effective October 1, 2013

Kent County Delaware Eligible Property Areas for USDA Loans Effective October 1, 2013 Keep Reading...