Delaware Mortgage Loans

2010 Tax Credit for First Time Home Buyers & Move Up Buyers
 

The Senate and the House of Representatives have passed the bill and now it goes to President Obama to be signed into Law.
 

Highlights of the Bill;
 

• $8,000 tax credit for First Time Home Buyers
• $6,500 tax credit for move up buyers
• Buy a home from December 1, 2009 till April 30, 2010.  Must be under contract by April 30, 2010 and close by June 30, 2010.
• Move up buyers will be eligible as long as the home they’re leaving has been their principal residence for 5 years or more
• Income Limits - $125,000 for single, $250,000 for Joint.
• For 2010 Purchasers, may claim the credit on their 2009 tax return.
• No repayment of the tax credit as long as principal residence for 3 years.

If you would like to know how you can qualify for the tax credit or need help getting approved for a mortgage to buy a home, please call me at 302-703-0727 or send an e-mail to DelawareMortgages@yahoo.com

John R. Thomas – Certified Mortgage Planner – Primary Residential Mortgage, Inc.

First Time Home Buyer Expert

The Delaware State Housing Authority offers the Delaware mortgage revenue bond program to assist Delaware First Time Home Buyers.  They offer a 3% grant for down payment assistance with one of the programs.  The funds for 2009 have run out on this program so Delaware home buyers can no longer receive the 3% down payment assistance.

There is still money for the New Castle County Down payment assistance program for First Time Home Buyers.  You can also get a 100% financing with a Delaware USDA Rural Housing Loan if you buy in an area that qualifies.  For more information on either of these two programs, send an e-mail to DelawareMortgages@yahoo.com or call me at 302-703-0727.

John R. Thomas - Certified Mortgage Planner - Primary Residential Mortgage, Inc.

302-703-0727 DE office

302-588-3665 Cell Phone

Common Mistakses made by Delaware First Time Home Buyers

1) They don’t ask enough questions of their realtor and end up missing out on the best deal.

2) They don’t act quickly enough to make a decision and someone else buys the house.

3) They don’t find the right agent who is willing to help them through the homebuying process.

4) They don’t do enough to make their offer look appealing to a seller.

5) They don’t think about the resale before they buy.  The average first time home buyer only stays in a home for four years.

If you would like more information on buying a home in Delaware or would like to receive a free handbook on Home Buying, please send an e-mail to DelawareMortgages@yahoo.com

John R. Thomas - Certified Mortgage Planner - Primary Residential Mortgage, Inc.

302-703-0727 Office

Some congressmen are becoming more concerned about the Federal Housing Administration’s financial plight and they want to increase FHA’s downpayment requirement to 5%. Rep. Ed Royce, R-Calif., said FHA is operating at the same dangerous leverage ratios that led to the takeover of Fannie Mae and Freddie Mac. Rep. Scott Garrett, R-N.J., said he has drafted a bill that would increase the FHA downpayment requirement to 5% from the current 3.5% level. “There are increasing reports of the likely necessity of a taxpayer bailout for the FHA and this legislation aims to implement reforms to try to prevent such a bailout from occurring,” Rep. Garrett said at a House Financial Services Committee hearing. The Garrett bill also calls for a General Accountability Office study to determine the appropriate leverage ratio for FHA. In the early 1990s, Congress mandated that FHA maintain a minimum 2% capital ratio. A recent audit shows that the federal insurance fund has fallen below the 2% minimum. But FHA officials say the insurance fund should be able to maintain a positive capital position and FHA will not need taxpayer assistance. Source: National Mortgage News

What this means for Delaware Home Buyers is you would need to save up more money for a down payment.  So on a $200,000 purchase right now you only need 3.5% which is $7,000 but under the new law you would need $10,000.  So this is just another reason to buy a house now before rates go up, tax credit expires and FHA requires more of a down payment.

If you need help with a Delaware Home Loan for the purchase or refinance of a home, please give me a call at 302-588-3665 or send an e-mail to DelawareMortgages@yahoo.com.

I can help you with Delaware FHA loans, Delaware USDA rural housing loans, Delaware VA loans, Delaware Conventional Loans, Delaware FHA 203k Loans, and Delaware Investor Loans.

John R. Thomas - Certified Mortgage Planner - Primary Residential Mortgage, Inc.

302-703-0727 Office

The following analysis was from the Federal Reserve Bank of New York report from January 2009

• Delware Borrowers were more likely to have provided full documentation with their loans.  77.1% versus 67.6% nationally.
• Delaware Borrowers had a lower average FICO score of 608 compared to the national average of 617.
• 45.1% of subprime borrowers had a FICO score of 600 or less but only 17.4% of them had a score greater than 660.
• The average loan balance of the active, first-lien subprime loans was $169,496 which is lower than the national average of $182,105 for the same loans.
• Delaware Subprime borrowers have been paying interest rates (8.23%) below the national average interest rates (8.32%) for their owner occupied first-lien mortgages
• Delaware had fewer (2.4%) subprime loans in Real Estate Owned (REO) compated to the 6.7% nationally in 2007.
• Delaware had an 83.66% average combined Loan-to-Value (CLTV) ratio for subprime loans compared to 84.39% national average.
• Delaware had an above average foreclosure rate. Delaware ranked 33rd for foreclosure rate.
• Kent County Delaware had the worst foreclosure experience in the state with 1 in every 716 housing units with foreclosure action.

John R. Thomas - Certified Mortgage Planner - Primary Residential Mortgage, Inc.

302-703-0727 Office   42 Reads Way, New Castle, DE 19720   DelawareMortgages@yahoo.com e-mail

This is my daily advice on locking or floating your Delaware Mortgage Rate for Friday October 16, 2009.

Mortgage rates have steadily increased since hitting record low last Friday.  The mortgage bond lost some 120 basis points since last Friday causes mortgage rates to increase.  Rates are still near historic lows but the pressure is for rates to slowly increase from here.  The federal government has slowed its buying of mortgage backed securities which is causing less of a demand for mortgage backed securities.  The government’s buying program is what has kept rates low so as the program winds down rates will rise.

The stock market has also rallied which has been another factor for mortgage bonds dropping 120 basis points.  My advice is to lock in your rate as soon as you can because rates are only going to go up.  If you are waiting for rates to go slightly lower like they were last week, you will be waiting a lifetime.  Now is the time to buy or refinance to get a really low rate.

The bond market did recover some today on news that Bank of America post a loss for the quarter.  Even with a slight recover in the bond marktet today, I still believe rates are headed higher.

My advice is to LOCK your Delaware Mortgage Rate for Friday October 16, 2009.

If you need advice or help with a Delaware Mortgage Home Loan for the purchase or refinance of a home in Delaware, please feel free to call me at 302-703-0727 or send an e-mail to DelawareMortgages@yahoo.com.

If you are a First Time Home Buyer then you should register for our First Time Home Buyer on Saturday October 24, 2009 at 10 AM till Noon and again from 1 PM till 3 PM.  Visit www.DelawareMortgageLoans.net/seminars for complete list of seminars.

I can help you with a Delaware FHA loan, Delaware USDA Rural housing loan, a Delaware VA loan,  Delaware FHA 203k loans, and Delaware Conventional loans.

John R. Thomas - Certified Mortgage Planner - Primary Residential Mortgage, Inc.

302-703-0727 Office /  302-588-3665 Cell  /  42 Reads Way, New Castle, DE 19720

U.S. Representative Michael Castle made his accounced to run for U.S. Senate on October 6, 2009 at a press conference.  He will be running for Vice President Joe Biden’s former Senate Seat.  The current senator Edward Kaufman said he will not run for election when he was appointed by Former Governor Ruth Minter.

Castle believes his experiece will be a great benefit to the State of Delaware in Congress.

John Thomas - Certified Mortgage Planner - Primary Residential Mortgage, Inc.

Office - 302-703-0727

There will be a Free Delaware First Time Home Buyer Seminar on Saturday October 24, 2009 at 10:00 AM and again at 1:00 PM. The seminar will last about 2 hours and each participate will be able to recieve a free copy of their tri-merge credit report. The seminar will cover all of the basics of buying a new home in Delaware. The seminar will cover Delaware FHA loans, Delaware VA loans, Delaware USDA Rural Housing Loans, First Time Home Buyer Loan Programs and the Delaware FHA 203k Rehab loans.   Learn how to get $8,000 tax credit for buying a home. in 2009  That is a check for $8,000 from the IRS to you at tax time just for buying a home!  The best thing is you don’t have to ever pay the $8,000 back!!     

Each participate will recieve a Free Audio CD on Homebuying 101, Credit Scoring Handbook, Homebuying Handbook, and an opputunity to meet with a 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 valueable 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 changes to borrowing 100% financing.

The Seminar is being held at The Seminar is being held at The Christiana Hilton Hotel at 100 Continental Drive, Newark, DE 19713 from 10:00 AM till 12:00 PM and a second session from 1:00 PM till 3:00 PM. To register for the seminar, please call 302-588-3665 and ask for John Thomas. You can also e-mail me at DelawareMortgages@yahoo.com

For a Complete list of seminars visit www.DelawareMortgageLoans.net/seminars

John R. Thomas - Certified Mortgage Planner - FHA & USDA Specialist