Delaware Mortgage Loans

The Federqal Reserve decided to raise the Discount Rate from 0.5% to 0.75% last week.  The increase took effect today Monday February 22, 2010.  The Discount Rate is the rate the federal reserve charges bank to borrower money from the Federal Reserve.  The Feds said they were keeping the Federal Funds Rate unchanged at near zero for an extended period of time.

The market was surprised by the Feds decision to increase the Discount Rate and responded by driving the yield on the treasury up.  The Fed is also changing the loan term from 28 days to overnight.  The Feds want to encourage banks to rely more on private funding and only use the Federal Reserve in emergencies.

Mortgage Rates did finish last week higher and the closer we get to March 31st could see rates move even higher.  This is because the Federal Reserve is stopping their mortgage buying program on March 31st which has been the biggest cause of the low mortgage rates.

If you need to get qualified for a Delaware home loan for the purchase or refinance of a home in Delaware, feel free to call me at 302-703-0727 or send an e-mail to DelawareMortgages@yahoo.com.

We can help you with Delaware FHA Loans, Delaware VA Loans, Delaware Conventional Loans, Delaware FHA 203k Rehab Loans, Delaware Hard Money Loans, Delaware Commercial Loans, and Delaware USDA Rural Housing Loans.

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

302-703-0727 Office

Most lenders right now will cap the maximum number of financed properties at 4.  But Fannie Mae recently relaxed there guidelines to 10 properties total.  Problem is most lenders still have the cap at 4.  Can you get a loan if you have more than 4?  The answer is yes, but there are some tough guidelines.

The guidelines are as follows for financing if you currently have 5 or more mortgages up to 10;

1) No cash-out only rate & term refinances or purchases

2) Must have 6 months of PITI for each property

3) Capped at 75% LTV

If you have questions, please feel free to contact me at 302-703-0727

John R. Thomas

Certified Mortgage Planner – Primary Residential Mortgage

42 Reads Way, New Castle, DE 19720

Delaware home buyers have been kept inside searching on their computers after a second snow storm paralyzes the state.  Snow began to fall shortly after 6:30 PM on Tuesday and kept going all through the day on Wednesday.
State offices were closed today February 10^th and state of emergency is in effect and will be in effect tomorrow Thursday February 11^th.  Many homes in New Castle County Delaware were without power as Delmarva tried to restore power to its residents.
The winds have caused the snow to drift and temperatures have made plowed roads very icy.  Delaware home buyers will have to wait till Friday or even the weekend in order to get and search for homes so they can take care of the tax credit that expires on April 30, 2010.
The snow should be cleared in time for the next Delaware First Time Home Buyer Seminar on February 27, 2010 at the Christiana Hilton Hotel in Newark, Delaware.  There are two sessions you can choose from, 10 AM till Noon or 1:00 PM till 3:00 PM.  If you would like to register, please feel free to call 302-588-3665 and ask for John Thomas or send an e-mail to DelawareMortgages@yahoo.com.
John R Thomas – Certified Mortgage Planner
Primary Residential Mortgage

42 Reads Way

New Castle, DE 19720

302-703-0727 Office

  I took the NMLS Licensing test on Friday January 22, 2010 and passed with a score of 93% on the first try at the test.  This is a new requirement for all mortgage originators of residential mortgage loans that they must pass the national licensing test as well as complete a 20 hour licensing education course.  You should ask your loan officer for their national licensing number so that you can look them up on the national registry to verify they are licensed.  If someone works for a Federally chartered Bank like Wells Fargo, Bank of America, Chase, etc. they are exempted from the licensing and the educational requirements.   This means the person who is helping you with your home loan can only have a high school diploma and not licensing or educational requirements.  So you may want to consider carefully who you choose to work with.

  My National License Number is 38783.

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

302-703-0727 DE Office     610-906-3109 PA Office    410-412-3319 MD Office

Great news for Delaware Home Buyers looking to purchase a home through FHA, the “90 day seasoning flip rule ” has been temporarily lifted by FHA. This change will allow buyers in Delaware to use a FHA Mortgage when purchasing investor and bank owned properties that have been owned for less than 90 days by the seller. 

On Friday January 15th, 2010, FHA, (Federal Housing Authority) relased this update as an excerpt from the Code of Federal Regulations without a corresponding Mortgagee Letter and contains information about FHA’s policies regarding the waiver of the 90-day seasoning required for sellers.

Here are the 6 things you need to know about these changes:

1. Waiver takes effect February 1st, 2010 for a period of one year unless extended.
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must me arms-length. 
4. No identity of interest can exist between buyer and seller.  *FHA identifies an “identity of interest” where the purchaser and seller are related, and/or affiliated through a business arrangement.
5. If sale price is 20% or more of the seller’s acquisition cost, the lender must:
   a. provide supporting documentation and/or a second appraisal and
   b. order an inspection of the property and provide it to the buyer.
6. The waiver is limited to forward mortgages only. (no reserve mortgages)

For more information or to get the process going, please call me today.

John R. Thomas – Certified Mortgage Planner

302-703-0727 Office

FHA Commissoner David Stevens annouced that FHA will be making changes effective April 2010 for all new FHA loans.  The changes are being implemented to ensure that FHA can keep a capital reserve of 2.0%.  The changes are as follows;

1) FHA upfront mortgage insurance premium will increase from 1.75% to 2.25%.  It can still be included in the loan amount.

2) FHA has decreased the allowable seller assistance from 6% of the sale price to 3% of the sales price.  This is the biggest change since buyers will no longer be able to have the seller cover all the closing costs because closing costs in Delaware are almost always higher than 3%.

3) FHA loans with FICO scores below 580 must put down 10% down payment versus the 3.5% currently.

John R. Thomas

Certified Mortgage Planner

302-703-0727 Office

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.
42 Reads Way, New Castle, DE 19720
302-703-0727 DE Office
610-906-3109 PA Office
410-412-3319 MD Office
www.prmidelaware.com