Delaware Mortgage Loans

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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