The City of Wilmington has a Homebuyer Assistance Program (HAP) that provides a deferred loan for up to $10,000 to qualified homebuyers to purchase homes in the City of Wilmington Delaware within the 19801, 19802, and 19805 zip codes. You can apply or get more information by calling 302-703-0727.  This is a Delaware down payment assistance program.

Eligible properties are homes that are within the target zip codes that have been vacant for a period of at least 90 days and have not been redeveloped with NSP funds.  Applicants do not have to be first time home buyers but are required to complete 8 hours of home buyer counseling.

Borrowers are free to use any first mortgage program but must get a fixed rate mortgage.  The household income must be equal to or below the limits for the program.  The purchase price cannot exceed HUD limits.  The property must be purchased at a 1% discount based upon appraised value.

Borrower must have ratified sales contract in order to apply for the HAP.

Eligible Income Limitations for HAP Program for 2011-2012

Household size      Maximum Income
1 Person                $67,550
2 Person                $77,200
3 Person                $86,850
4 Person                $96,500
5 Person                $104,200
6 Person                $111,900

PROS:

• No payments, no interest for 5 years then forgiven!
• Can use any first mortgage program and approved lender
• High Income Restrictions
• Not counted in DTI calculations

CONS:

• Must buy in 19801, 19802, or 19805 zip codes
• Must buy vacant property
• Must live in property for next 5 years as primary residence
• Must buy property 1% below appraised value

You can apply for the program or get more information by calling 302-703-0727 or send an e-mail to jthomas@primeres.com.

John R. Thomas
Certified Mortgage Planner NMLS 38783
Primary Residential Mortgage
302-703-0727 Office
248 E Chestnut Hill Rd
Newark, DE 19713

New Castle County Vacant Home Purchase Program commonly called VHAP rolled out November 2, 2011.  This is a Delaware down payment assistance program for specific zip codes in New Castle County, Delaware.  You can apply for the program by calling 302-703-0727.

The NCC Homeowner Vacant Home Purchase Program (VHAP) is a deferred loan for up to $10,000 for down payment assistance and/or closing costs that is secured against the property as second mortgage lien.   The borrower must occupy the property as their primary residence.  You DO NOT have to be a first time home buyer.

The loan is for homebuyers that are purchasing homes in the following zip codes: 19701, 19702, 19709, 19720, 19802, and 19805.  The loan is for 6% of the purchase price up to a maximum of $10,000.  The interest rate is 0% and there are no monthly payments required.  If you live in the property for 5 years as primary residence loan is forgiven and you owe nothing.

The maximum sales price is $335,400 and all properties must be inspected by ASHI or NACHI certified home inspectors.  All homes built before 1978 must also have a visual lead inspection done by a certified lead based paint inspector but no repairs are required.  You must buy the property at 1% below appraised value.

The borrower complete 8 hours of home counseling with a New CastleCounty recognized HUD approved housing counseling agency. 

Eligible Income Limitations for VHAP Program for 2011

Household size      Maximum Income

1 Person                $67,550
2 Person                $77,200
3 Person                $86,850
4 Person                $96,500
5 Person                $104,200
6 Person                $111,900
7 Person                $119,650
8 Person                $127,350

 PROS:

• No payments, no interest for 5 years then forgiven!
• Can use any first mortgage program and approved lender
• High Income Restrictions
• Not counted in DTI calculations

CONS:

• Must buy in 19701, 19702, 19709, 19720, 19802, 19805
• Must buy vacant property
• Must live in property for next 5 years as primary residence

You can apply for the program by calling 302-703-0727.

John R. Thomas
Certified Morgage Planner – NMLS 38783
Primary Residential Mortgage
302-703-0727 Office
248 E Chestnut Hill Rd
Newark, DE 19713
APPLY ONLINE for a Delaware Mortgage

Delaware Morgage Bond Program administered by the Delaware State Housing Authority (DSHA) are below market interest rate loans for first time home buyers that are sold to Bank of America to service.  Bank of America announced on October 3, 2011 to all of the lenders that make DSHA loans that it is exiting the business of servicing this loans and all loans must be delivered by December 14, 2011 or they will not buy them.

What does this mean for you?  You must close your DSHA loan by November 7th for almost all lenders so that they have time to sell the loan to Bank of America by December 14, 2011.  DSHA has not annouced that it has anyone else that has agreed to service these Mortgage Bond loans so if no one is found by November 7th there will be a lapse in the ability of a borrower to get these loans.  If you are using the program for the SMAL loan for down payment assistance then you may have other options from New Castle County, or City of Wilmington or City of Newark.  If you are just using the first mortgage program then you can just switch to a regular FHA loan but interest rate will be slightly higher.

If you have questions call us at 302-703-0727 and we can help you figure out what your best options are to deal with this challenge. You can APPLY ONLINE for a Delaware first time home buyer loan now.

John R. Thomas
Certified Mortgage Planner
NMLS – 38783
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

Delaware USDA Rural Housing Loans are now subject to a lapse in funding as Rural Development is only issuing “Contingent Conditional Commitments,” subject to the “availability of commitment authority” as there are currently no more funds available for guaranting loans as of October 1, 2011. Therefore most lenders have ceased funding USDA Rural Housing Loans.
Primary Residential Mortgage is still originating and funding these loans with the contingent commitment and will do so until funding is restored. If you received a commitment from Rural Development prior to October 1st then you will be fine if not you will need to check to see if your lender will still fund the loan and won’t have any delays. If you cannot get your loan funded, please call us at 302-703-0727 and we can get your loan closed for you.  You can also APPLY ONLINE for a Delaware Mortgage.

John R. Thomas
NMLS – 38783
Certified Mortgage Planner
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

Delaware Mortgage Bond Program is the State of Delaware’s first time home buyer program that offers below market interest rates to qualified first time home buyers.  The program has traditionally been used for Conventional mortgages, FHA mortgages, VA mortgages, and USDA rural housing loans.  The loan program is adminsitered by the Delaware State Housing Authority (DSHA) and the servicing of the loans is currently done by Bank of America.  Bank of America announced today that they will not be servicing any more USDA loans that do not have a loan commitment from Rural Development by October 1, 2011.

Since Bank of America is the only servicer of the DSHA mortgage bond loan that means there is no longer an option to use the USDA rural housing loan with this program.  This means that if you don’t get your commiment from Rural Development by October 1, 2011 then you will have to switch your mortgage program from the DSHA first time home buyer mortgage bond program to a regular USDA loan that is funded and serviced by a bank other than Bank of America.

If you find yourself in this situation call us at 302-703-0727 and we can explore your options so that you can still purchase your first  home in Delaware. You can apply online for a mortgage at APPLY ONLINE

John R. Thomas
NMLS – 38783
Certified Mortgage Planner
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

Delaware FHA loan limits are set to change for the worse on October 1, 2011.  The temporary increase in FHA loan limits expires October 1, 2011. The loan limits were raised in 2008 to help stimulate the housing industry.

The new FHA loan limits in Delaware are based on the median home price for each county and are as follows:

New Castle County, DE – $379,500

Kent County, DE – $271,050

Sussex County, DE – $316,250

The biggest drop that will affect most home buyers is in Kent County which will see almost $100,000 drop in Delaware FHA loan limit.

If you need help with a FHA loan for the purchase or refinance of a home in Delaware, call us at 302-703-0727 or APPLY ONLINE.  If you are a Delaware First Time Home Buyer then don’t forget to register for the next Free Home Buying Seminar by registering online at Delaware Home Buyer Seminar.

John R. Thomas
NMLS – 38783
Certified Mortgage Planner
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

Delaware USDA Rural Housing Loans will be adding a monthly mortgage insurance premium on all loans effective October 1, 2011.  The USDA announced this change in administrative notice AN 4551 which made the following changes to the Delaware Single Family Housing Guaranteed Loan Program:

1) Upfront Guarantee fee lowered from 3.5% to 2% on purchase transactions.

2) New annual fee of 0.3% added to purchase and refinances.

Overview of the new guarantee fee:

• The annual fee will be required for all loans that receive a Conditional Commitment issued by USDA on or
  after October 1, 2011
• The annual fee will be calculated based on the average unpaid principal balance (UPB) for the year
• This fee will be collected monthly as part of the borrowers housing payment
• The monthly amount must be escrowed (two months will be collected at closing)
• The USDA Annual Guarantee Fee will be required for the life of the loan
• The new fee would increase a borrower’s housing payment approximately $17/month for a $100,000
  purchase loan (as demonstrated in the table below) or approximately $25 per $100,000 for a refinance
• Borrowers whose DTI is already at the maximum USDA allowance of 29/41 may be at risk of not
  qualifying if the USDA Conditional Commitment is received on or after October 1, 2011

Example:
Purchase transaction with the Up-front Guarantee Fee being financed (rolled into the loan)
Loan Amount: $100,000
Rate: 4.75%

For more information on a Delaware USDA Rural Housing Loan you can call 302-703-0727 or send an e-mail to jthomas@primeres.com

You can apply online for a Delaware USDA home loan at www.PRMIDelaware.com/loanapplication.

John R. Thomas
NMLS – 38783
Certified Mortgage Planner
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 DE Office