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4 FHA Rule Changes Affecting Wilmington Home Buyers in 2013

Thursday, December 27, 2012
by Katina Geralis

If you are a first-time home buyer, you may already be leaning towards an FHA-backed mortgage to finance your Wilmington or Newark home. Recently, the Federal Housing Administration announced changes to their mortgage guidelines, which are being made to stem the losses from sour loans.

In case you are not familiar with it, the FHA is a government entity that insures mortgage loans made by banks and other front-line lenders.

Without the FHA, home buying would be tough for buyers who cannot meet high down payment and credit score requirements. After the collapse of subprime lending and the tightening of credit, FHA-backed mortgages became the only game in town for many first-time home buyers.

FHA guidelines are also more forgiving when it comes to credit history, making it the only practical option for home buyers who had a prior bankruptcy, foreclosure, or short sale in the past few years. For these reasons it's a good idea to understand the FHA role in our housing market!

Here are the 4 FHA rule changes slated for 2013, and how they may affect you:

1. FHA loans require the borrowers to pay for mortgage insurance. This insurance protects the lender in the event you default on the loan. It used to be that you could get the monthly mortgage insurance premium waived after you achieved a certain amount of equity. This is no longer the case; effective in 2013, the mortgage premium will be on your mortgage payments for the life of the loan.

2. The cost of monthly mortgage premiums will go up by .10 basis points. This is a relatively small amount; it would add an extra $20 a month to a $200,000 mortgage. Keep in mind that this is only the increase effective in 2013, and not the entire premium.

3. For large mortgages, the FHA will require higher down payments beginning in 2013. The minimum down payment for a $625,500 mortgage will be 5%. This is an increase from the prior minimum of 3.5%.

4. Those who have credit scores in the 580-620 range will face stricter debt-to-income ratios in 2013. In other words, the less debt you have, the better.

The good news is, these changes shouldn't derail anyone's plans to buy a Delaware home. Even with the new changes in 2013, FHA-backed mortgages remain attractive.

Need more information about buying a Wilmington or Newark home? As your experienced real estate professional I'm here to help you! I can also refer you to FREE home buying seminars and help you find the best home for the right price.

Contact me for neighborhood price trends, recent sales, and expert guidance in our fast-changing real estate market.

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
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Delaware Sees Sharp Reduction in Foreclosure Filings in 2012

Thursday, December 13, 2012
by Katina Geralis

One year ago, the State of Delaware had one of the highest foreclosure rates in the nation. This prompted our State lawmakers to create the Automatic Residential Foreclosure Mediation Program, which became effective as of January 19, 2012.

In December 2011, Delaware foreclosure filings affected 1 out of every 485 homes, according to data by RealtyTrac.

New Castle County had the highest rate of filings. Foreclosures in the State were also swift, averaging only 106 days to process. The average sale price of a foreclosed home was $121,100.

As of November 2012, Delaware foreclosure filings affected 1 out of every 1,166 homes, according to RealtyTrac. Kent County took over the top spot for the highest rates of foreclosure.

While our foreclosure process remains efficient, the timeline can now range up to 6 months. Meanwhile, the average sale price of a foreclose home has improved to $162,140.

Who gets the credit for the improvement? We all do! There are six things that have helped make a difference for distressed homeowners in Delaware:

  • Delaware's mandatory mediation program
  • Improvements in the regional economy
  • Improvements in the short sale process
  • Federal involvement with large banks to promote alternatives to foreclosure
  • Improvements in Delaware home values
  • Slowing rate of new defaults

It's important to note that it took a combination of the above to bring us to the improvement we have today. We must also acknowledge that foreclosure remains a concern in Delaware, and we will be dealing with distressed properties for the foreseeable future.

If you are a homeowner in Wilmington or Newark who is struggling with mortgage payments, or you want to sell your home but you have negative equity - let me help! I have extensive experience in short sales and foreclosures, and I can guide you through the options that are available. I also have tips on avoiding foreclosure on my website.

Have a few questions, or just want to talk about your situation? Contact me today! I will be happy to help you.

Katina Geralis

Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
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Buying a Home Near the University of Delaware? Consider Arbour Park in Newark!

Thursday, November 15, 2012
by Katina Geralis

The University of Delaware employs over 4,000 people, including faculty and hourly staff. Newark, DE benefits by the economic and cultural contributions that the University of Delaware provides to the community.

There is a consistent demand for homes near campus from a wide range of buyers.

The area attracts relocation buyers, retirees, and commuters who are drawn to Newark's college-town charm.

There are several Newark, DE neighborhoods worth your consideration, and I'm going to introduce you to one of them here! If home value and proximity to campus are among your priorities, consider the established neighborhood of Arbour Park.

Bordered by the Delaware Turnpike, Elkton Road and falling just shy of the Christiana Parkway, Arbour Park is a short distance away from the University of Delaware Stadium, the David M. Nelson Athletic Complex, and the Allen Biotechnology Lab.

Arbour Park is only minutes away from downtown Newark and the Christiana Mall. Commuters have access to Philadelphia, Baltimore and New Jersey. There are also large public parks in the neighborhood, such as Iron Hill Park and Rittenhouse Park.

What about the homes? Glad you asked! Homes in this area of Newark have a variety of age and construction, but are generally well-maintained. Median home prices are running right around $292,000.

To find out more about Newark, DE and the Arbour Park neighborhood, contact me! Being UD alumni myself, I am very familiar with this area. As your Newark and Wilmington real estate professional, I will help you find the best home in the right price range.

Ready to look at Delaware homes for sale, or just have a few questions? Contact me for neighborhood price trends, recent sales, and expert guidance in today's fast-changing real estate market.

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
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Should Wilmington and Newark Homeowners Wait to Sell?

Thursday, October 4, 2012
by Katina Geralis

A recent survey by Redfin examined home seller moods in 20 metros, including Washington D.C. and Baltimore, MD. The survey targeted homeowners who would like to sell their home, but have not entered the market.

Here are a few insights from the would-be home sellers:

  • 80% believe home prices will be higher in 1 or 2 years.
  • 13% believe now is a good time to sell a home.
  • 49% are concerned about today's economy.
  • 32% intend to list their home for more than the market suggests.

However, 61% of the respondents believe that now is a good time to buy a home!

This is where a bit of logic has to be realized; you can't expect to get top dollar for your home next year, while paying today's prices on your next home. You must also consider the escalating scale of closing costs, commissions and taxes, along with possible changes to mortgage interest rates and economic conditions.

Trying to time the market is not a valid strategy for selling your home. Nor will you get top dollar by pricing your home above the market. Tactics like these tend to backfire!

If you are a homeowner in Wilmington or Newark, when should you sell your home?

  • When you need to sell. This could be due to a personal hardship, life event, or circumstance.
  • When you want to sell. Reasons like wanting a larger home, moving closer to family, or a new job.

It isn't wrong to make a profit on the sale of your home; but it's wise to make sure your expectations are based on market facts, not speculation. Also, your reasons for selling will direct your sense of urgency and therefore your marketing strategies. This is where I come in!

As your professional Wilmington and Newark, DE real estate agent, I understand that selling your home is a personal decision. This is why I provide professional guidance with compassion, so that you can make intelligent, informed choices about your next move!

It all starts with a simple phone call. Let me know your home selling goals, and I'll tell you how I can help. From there, we do a comparative market analysis and talk about numbers. Any decision to sell, or stay, is yours to make.

Remember too, my experience in short sales and foreclosures can help you if you are struggling with your mortgage. It's never too early to talk to me, so please contact me today with any questions you may have!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
Follow me on Twitter

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