Primary Residential Mortgage, Inc. Delaware Mortgage Company

Delaware FHA Loans - FHA is the Federal Housing Administration which is governed by HUD (United States Department of Housing & Urban Development)

FHA Loan Limits for Delaware for 2012

            The 2012 loan limits for FHA Loans have been released and are calculated based off the median home price for the county.   Each county has a different loan limit based on the median home price for that county.  2012 loan limits are as follows;

County	Loan Limit
New Castle County	$420,000
Kent County	$376,250
Sussex County	$375,000

The loan limits do not include the financing of the upfront mortgage insurance premium.  So for someone buying a home in New Castle County, Delaware they could get a maximum loan amount of $420,000 plus the upfront mortgage insurance premium.

Delaware FHA Income Limits

There are no income limits for FHA loans, you can make as little or as much as you want as long as you meet the Debt-to-income ratios allowable by FHA.  The ratios are 31% of your gross income can be used toward your housing expense and 43% of your gross income can be used for your housing plus all your other expenses listed on your credit reprot.  You can push the ratios higher if you have some compensating factors such as good credit or reserve money.

Delaware FHA Down Payment Requirements for 2012

FHA loans require you to invest 3.5% in the transaction as of January 1, 2009.  This 3.5% must be used toward down payment and not closing costs or pre-paid items.  The maximum loan to value for an FHA loan for a purchase in Delaware is 96.50%.  If you are using an FHA loan to refinance for a change in rate and term then you can go up to a maximum of 97.75%.  If you already have an FHA loan and want to do an FHA Streamline Refinance to change your rate and term, then you don’t need an appraisal but you can’t take any cash out.  If you wish to do a cash-out refinance then you are limited to a 85% loan to value.

Delaware FHA Mortgage Insurance

FHA Loans require that the borrower pay an upfront mortgage insurance premium that may be financed into the loan and FHA loans also require a monthly mortgage insurance premium that is part of the monthly mortgage payment.  As of April 9, 2012 the upfront mortgage insurance premium of Delaware FHA Loans is 1.75% and the monthly mortgage insurance premium is calculated using a yearly premium amount of 1.25% for loans with 95% or higher loan to value for 30 year  FHA mortgages.  It is 1.15% on 30 year mortgages with 5% or more down payment.

If you have more questions or would like to apply for a Delaware FHA Loan for the purchase or refinance of a home please call me at 302-703-0727 or send an e-mail to jthomas@primeres.com.

John R. Thomas – Certified Mortgage Planner – Primary Residential Mortgage, Inc. – NMLS – 38783

248 E Chestnut Hill Rd, Newark, DE 19713

 

FHA Loan Rates © ML

 

Mortgage Calculator © ML