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New Castle County will no longer Exempt Fannie Mae & Freddie Mac from Transfer Tax effective June 14 2012

John Thomas May 12, 2012 Tags: , , , , , , , ,

New Castle County Delaware ruled that effective June 14, 2012, Fannie Mae and Freddie Mac will NO LONGER be exempt from transfer taxes on the sale of homes.

The New Castle County law department has recently ruled on transfer taxes on transactions involving Fannie Mae (Federal National Mortgage Company) or Freddie Mac (Federal Home Loan Mortgage Company). Historically, purchases from these entities have been treated as exempt from transfer tax as a conveyance from a governmental agency. In fact, Fannie Mae and Freddie Mac are NOT governmental agencies – they are federally chartered private corporations. New Castle County has decided to enforce that distinction starting on June 14, 2012.

Based on the language of the letter, we believe that any deed RECORDED on or after June 14th will be subject to full transfer tax (unless a first time home buyer or some other exemption applies). Technically, this letter only applies to the New Castle County transfer tax, not the State of Delaware, not Kent or Sussex and not any of the municipalities a property might be in. I expect that the State, the other counties, and municipalities will follow the interpretation offered by New Castle County.

If you have questions on Delaware transfer taxes or need help applying for a Delaware mortgage 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 for Delaware Mortgage.

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

About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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