Tag Delaware FHA Loans

Tag Delaware FHA Loans

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...

Delaware FHA Loan Limits for 2019

John Thomas December 22, 2018 Tags: ,
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Delaware FHA Loan Limits

Delaware FHA Loan Limits for 2019

Delaware FHA Loan Limits for 2019 were raised in all three counties of Delaware effective January 1, 2019.    The Federal Housing Administration increased its mortgage loan limits by almost 7% for the new year, mirroring the increase in conventional loans.  The new base loan limit maximum was increased from $294,515 to $314,827 for a single unit home.  In some high-cost areas  of the country, the maximum loan limit was increased to $726,525.  The department of Housing and Urban Development (HUD) released Mortgagee Letter 2018-11 on December 14, 2018 which increased the loan limits for 2019 nationwide for all Forward Mortgage loans insured by FHA.  Call 302-703-0727 to apply for a Delaware FHA Loan or get started online at http://www.PRMILoanApplication.com

The FHA national low-cost area mortgage loan limits are set at 65 percent of the national conforming limit of $484,350 for a one unit property.  The new loan limits nationally are as follows:

One Unit – $314,827

Two Unit – $403,125

Three Unit – $487,250

Four Unit – $605,525

What determines the FHA Loan Limits for each County?

The Federal Housing Administration (FHA) calculates the mortgage loan limits based on the median home prices in accordance with the National Housing Act.  FHA’s single family mortgage loan limits for forward mortgages are set using Metropolitan Statistical Areas (MSA) and county areas.  FHA publishes updated limits effective for each calendar year.  FHA sets the maximum FHA Loan limits at or between the low-cost area and high-cost area limits based on the median home prices for the area.

What are the New Delaware FHA Loan Limits for 2019?

Delaware has three counties: New Castle County, Kent County, and Sussex County.  The maximum Delaware FHA loan limit is different in all three counties.  Below is chart showing the maximum loan limit in each county:

Single Family FHA Loan Limits for 2019:

New Castle County Delaware has a maximum FHA Loan limit of $402,500

Kent County Delaware has a maximum FHA loan limit of $314,827

Sussex County Delaware has a maximum FHA loan limit of $336,950

The FHA Loan limits are the same for a standard Delaware FHA Loan as well as a Delaware FHA 203k Loan.  The FHA Reverse Mortgage Loan limits are different that than the forward mortgage limits.

What are the FHA Loan Limits for High Cost Areas?

The FHA High Cost Area Loan Limits are set at 150 percent of the national conforming loan limit of $484,350 for a one unit property.  Below are the limits for properties with 1-4 units:

FHA Loan limit One Unit – $726,525

FHA loan limit Two Unit – $930,300

FHA Loan limit Three Unit – $1,124,475

FHA Loan limit Four Unit – $1,397,400

How Do You Apply for a Delaware FHA Loan?

You can apply for a Delaware FHA Loan by calling 302-703-0727 or you can APPLY ONLINE with the John Thomas Team with Primary Residential Mortgage.

 

John Thomas Ranked #1 Delaware FHA Lender in 2018

John Thomas July 13, 2018 Tags: ,
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John Thomas has ranked #1 Delaware FHA Lender on Ask a Lender’s annual list

Ask a Lender put John Thomas at #1 Delaware FHA Lender and at #1 Newark, Delaware FHA Lender for 2018. Visit our Delaware FHA Loan page for more information on how we can get you into your dream home today or Call 302-703-0727 to get started today.  GET STARTED ONLINE.  Ask a Lender surveyed all of the Delaware Loan Officers that originated FHA loans through data provided to the Scotsman Guide and determined that John Thomas was the Number 1 Delaware FHA Loan originator because of his affordable FHA mortgage loans and award-winning client service.

 

 

 

 

 

 

 

 

 

John and his team pride themselves on helping Delaware First Time Home Buyers achieve the dream of home ownership and in most cases the FHA loan is the best option with the following benefits:

  • Low Down Payment of only 3.5%
  • Credit Scores down to 500 FICO
  • Can have Less than perfect credit and credit challenges
  • Can have High Debt to Income Ratios
  • Can have a non-occupying Co-borrower to help you qualify
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    FHA Mortgage Insurance Premium Dropping January 26, 2015

    John Thomas January 10, 2015 Tags: , , ,
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    FHA MI Premiums 1-2015

    FHA Mortgage Insurance Premium Dropping January 26, 2015

    FHA Mortgage Insurance Premium being lowered on all new FHA Case Numbers assigned on or after January 26, 2015, as announced by HUD Secretary Julian Castro on January 8, 2015, per an executive order by President Obama.  FHA will reduce the annual mortgage insurance that borrowers will pay by 0.5%.  FHA made this official with the publication of the Mortgagee Letter 2015-01. Call 302-703-0727 to Apply for an FHA Loan or APPLY ONLINE

    Below is a table that shows the changes to the annual mortgage insurance premiums for FHA Loans:

    The Highlights of the New Rule are as follows:

    • The annual premium is Reduced by 50 basis points (0.5%) on both purchase and refinance transactions.
    • Applies to all FHA loans w/ terms greater than 15 years
    • There is no change in premium on 15 years or shorter terms
    • All loan types are affected except streamline refinances that are refinancing existing FHA loans endorsed before May 31, 2009
    • Hawaiian homelands (Section 247) are also excluded.
    • There is no change to the upfront premium (1.75%) or the life of loan requirement

    FHA Streamline Refinance with New Lower Mortgage Insurance

    Anybody that has gotten an FHA Loan since 2012 could probably save hundreds of dollars per month by refinancing their FHA loan with an FHA Streamline Refinance to lower the rate and lower their monthly mortgage insurance by taking advantage of this new rule.

    This change to the annual mortgage insurance premium will be seen by a borrower in a lower monthly mortgage insurance premium on their mortgage payment.  This could be a savings of $80 to $100 per month for borrowers using an FHA loan to purchase a home.

    If you would like to apply for an FHA Loan to purchase or refinance a home in Delaware, Maryland, or Pennsylvania please call the John Thomas Team with Primary Residential Mortgage at  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

    FHA Property Flipping Waiver Expires December 31, 2014

    John Thomas December 11, 2014 Tags: ,
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    FHA Property Flipping Temporary Waiver on the 90 Day Rule will expire on December 31, 2014, and will not be extended as announced by the Federal Housing Authority on December 11, 2014.  This is important news for investors and home buyers to be aware of starting January 1, 2015, as investors will need to wait 91 days before they can execute a sales contract on a flip for a buyer using FHA financing to purchase the property.

    If you have questions or would like to apply for an FHA Loan to purchase or refinance a home in Delaware, please call 302-703-0727 or you can APPLY ONLINE

    The waiver applies to all sales contracts executed on or after February 1, 2010, until 11:59 PM, December 31, 2014. FHA deems a sales contract to be executed when all parties to the contract have signed the contract, and the contract is enforceable under the law of the state the property is located. Mortgages that are made on properties in which sales contracts have been executed after 11:59 PM, December 31, 2014, are not eligible for a waiver of the regulation prohibiting property flipping.  FHA stated they will not extend the waiver beyond December 31, 2014.

    On June 7, 2006, HUD published a final rule in the Federal Register prohibiting property flipping on the FHA Mortgage Loan Program. The property flipping rule and became effective for mortgages endorsed for FHA insurance on or after July 7, 2006.  A waiver to this rule was issued on February 1, 2010, which allowed individuals to sell homes within 90 days of purchasing in order to help the weak housing market that was being hampered by the glut of foreclosures.

    Property Flipping is described by HUD as a practice whereby property is resold a short period of time after it is purchased by the seller for a considerable profit with an artificially inflated value, often abetted by a lender’s collusion with the appraiser. FHA’s policy prohibiting property flipping eliminates the most egregious examples of predatory flips of properties within the FHA mortgage insurance programs.  FHA prohibits properties being sold within the first 90 days of purchase

    Overview of FHA’s Property Flipping Policy that becomes Effective Again January 1, 2015

    FHA requires that:

    a) only owners of record may sell properties that will be financed using FHA-insured mortgages

    b) any resale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing

    c) that for resales that occur between 91 and 180 days where the new sales price exceeds the previous sales price by 100 percent or more, FHA will require additional documentation validating the property’s value. FHA also has the flexibility to examine and require additional evidence of appraised value when properties are re-sold within 12 months.

    FHA has made Exceptions to the 90 Day Flipping Rule for the following:

  • Sales by HUD of its Real Estate Owned
  • Sales by other United States Government agencies of single-family properties pursuant to programs operated by these agencies.
  • Sales of properties by nonprofits approved to purchase HUD-owned single-family properties at a discount with resale restrictions.
  • Sales of properties that are acquired by the sellers by inheritance.
  • Sales of properties purchased by employers or relocation agencies in connection with relocations of employees.
  • Sales of properties by state and federally charted financial institutions and Government Sponsored Enterprises.
  • Sales of properties by local and state government agencies.
  • Upon FHA’s announcement of eligibility in a notice (i.e., ML), sales of properties located in areas designated by the President as federal disaster areas, will be exempt from the restrictions of the property-flipping rule. The notice will specify how long the exception will be in effect and the specific disaster area affected.
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    Delaware FHA Loan Limits for 2015

    John Thomas December 6, 2014 Tags: ,
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    Delaware FHA Loan Limits for 2015 Announced by Federal Housing Administration on December 5, 2014, in the mortgage letter 2014-25.  The mortgage loan limits published in this mortgage letter go into effect for FHA case numbers assigned on or after January 1, 2015, and will remain in effect through December 31, 2015.

    The FHA Loan Limits are based on which county the property is located.  The maximum mortgage loan limit per county in Delaware for 2015 is as follows:

    New Castle County                 $379,500

    Kent County                            $271,050

    Sussex County                         $316,750

    The FHA Loan Limit is calculated by taking 115% of the median home price in that county as calculated by HUD.  The “floor” still remains at $271,050 so if 115% of the median home price is below the floor then the loan limit is set at $271,050 such as in Kent County, Delaware.

    FHA also left the maximum FHA Loan Limit in high price areas at $625,500.

    If you would like to apply for an FHA Loan to purchase or refinance a home in Delaware, call the John Thomas Team at 302-703-0727 or you can apply online at FHA Loan Application

    The new loan limits apply to all FHA Loans including FHA 230k Rehab Loans and FHA Streamline Refinance Loans as well FHA Reverse mortgage loans.

    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 FHA Loan Limits for 2014

    John Thomas December 10, 2013 Tags: , ,
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    Delaware FHA Loan Limits for 2014 will be going Lower for FHA case numbers assigned on or after January 1, 2014. FHA mortgage maximum loan amounts vary by states and by regions based on the median home price in that region. Currently, FHA loan limits range from $271,050 up to $729,750.

    Effect January 1, 2014, FHA is reducing the maximum loan amount from $729,750 to $625,500 and reducing maximum loan limits in most regions.  The lowest maximum loan limit will remain at $271,050. The FHA loan limits in Delaware are being reduced in all three counties of Delaware as follows:

    FHA Backed about one-third of all purchase loans in 2013 and now is looking to not provide loans to the high-end real estate market anymore.  The higher loan limits were on a temporary extension authorized by Congress but this extension expires December 31, 2013, so without Congress passing legislation, the higher loan limits are expiring.

    The big surprise is FHA has decided to change how it calculates the maximum loan limit and that is why loan limits are changing in most regions even if not at the high end of the real estate market such as Kent, New Castle, & Sussex County Delaware. The current calculation uses 125% of the median home price for the region. January 1, 2013, FHA is changing the calculation to only 115% of the median home price so that is why maximum loan limit is going down in all three counties. Everyone expects the rollback in high-cost area loan limits but nobody was expecting the drop from 125% to 115% of the median home price as this affects almost all regions.

    Call 302-703-0727 to schedule a mortgage consultation to get pre-approved for an FHA mortgage to purchase a home. Call us or e-mail us now to get more information 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

    HUD Delays Ban on Dual Agency for Short Sales on FHA Loans

    John Thomas September 29, 2013 Tags: , , , ,
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    HUD Delays the Ban on Dual Agency for Short Sales on Properties with FHA Loan being sold short. The rule was to go into effect on October 1, 2013, as outlined in mortgagee letter 2013-23 released in July 2013. The rule stated that brokers and their agents may only represent the buyer or the seller, but not both parties. This is commonly called dual agency so the rule thus makes it illegal for an agent that works for the brokerage of the listing agent to represent a buyer in the purchase of a short sale.

    The intent of the rule is not to limit real estate agents but was to limit the risk of fraud and to ensure “arms-length” transactions on short sales and deed in lieu of foreclosure. There has been rampant fraud being performed with some agents listing homes for short sale and selling them to other agents below the market price by not taking any other offers to the bank. The same thing has been happening on REO properties that have been sold by agents that sell them to a partner at below market value by not taking any other offers to the bank that is selling the property.

    The intent of the rule is well-intentioned but it would actually hurt sales of homes with FHA loans that need to be short sold as it would mean a lot fewer agents taking short sales if they couldn’t sell the home to any other agent that worked under the same brand name. HUD had originally proposed the policy change because HUD’s inspector general had detected fraud and abuse in the pre-foreclosure sales process.

    The National Association of Realtors cited many problems with the new rule such as violating some state laws and also some laws for listing properties on the MLS. It seems HUD has responded to the complaint by NAR and has delayed implementation of the rule so as of October 1, 2013, there can still be a dual agency on Short Sales.

    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