Rehoboth Beach Real Estate News

Tucked away in the Northeast, Delaware is fine place to settle down even for military homebuyers. Better yet, there is a home loan program designed expressly for service members and veterans looking for a Delaware home. VA loans in Delaware bundle several financial benefits into one borrower-friendly home financing package.
Atop the list of financial benefits that come with Delaware VA loans is the minimal down payment. Most VA loan borrowers pay zero down and finance 100 percent of their home. Sussex County, including Rehoboth Beach, has a VA loan limit of $417,000. However, the median price of a home in Sussex County is about $300,000, which allows service members the ability to find a great home within the confines of the loan limit.
Monthly payments with a VA loan tend to be lower than monthly costs of a conventional loan for two major reasons. One reason being the absence of private mortgage insurance (PMI), and the other is the negotiable interest rates. Since the VA insures as much as 25 percent of each loan, VA-certified lenders take on less risk and are willing to lower interest rates. In addition, active-duty personnel, like the 1,700 men and women stationed at Dover Air Force Base, receive caps on their interest rates.
VA loans are also packed with other services and benefits to help borrowers save money while financing their home, such as:

-No prepayment penalty.

-Refinancing options that allow homeowners to lower their interest rate.

-Services to avoid default and foreclosure.

Much to the surprise of military members, qualifying for a VA loan is easier than qualifying for a conventional loan. VA-certified lenders favor scores of at least 620, but all applicants are encouraged to apply, since it is possible to have a foreclosure or bankruptcy in your past and still qualify.
Those who may be eligible for a Delaware VA loan received a discharge that was not dishonorable and fall under one of the following categories:
-Served for 90 days during wartime and 181 days during peacetime.
-Served in the Reserves or National Guard for at least six years.
-Spouse of a service member who died in the line of duty or because of a service-connected injury.
A Certificate of Eligibility (COE) marks the first step on the path to home ownership via a VA loan in Delaware. The VA and VA-certified lenders have COE forms available. COEs are plain forms that just make sure you meet the initial eligibility requirements.
More information on Delaware VA loans, contact a VA specialist today!

Conforming Loans (up to $417,000)
30yr Fixed 5.125% 0 points 4.875% 1 point
15 Yr Fixed Rate 4.625% 0 points 4.375% 1 point
**Standard 5/1 ARM 3.875% 0 points 3.625% 1 point **
For Condos with less than 25% down payment:
30yr Fixed Rate 5.375% 0 points 5.125% 1 point
***We can do warrantable and non-warrantable condos***
Long Term Rate Locks Available
Lock your rate for up to 12 months while your new home is being built
FHA primary residence only, 3.5% down payment 30yr fixed
5.00% 0 points 4.75% 1 point
**County Limits for FHA**
$375,000 in Sussex County $376,250 in Kent County
***Jumbo (loans over $417,000) ***
30 Yr Fixed 6.375% 0 points 5.875% 1 point
Standard 7/1 ARM 5.75% 0 points 5.125% 1 point
Lot Loans 10% down payment up to $500,000; Payment based on a 20yr fixed
3yr ARM 6.00% w/ 1 point
5yr ARM 6.25% w/ 1 point
no time restrictions to build; fully amortize in 20yrs; loan amounts under $250,000 = 1.5 points
(seller is allowed to pay points)
Manufactured Homes
Must be on it’s own land, double-wide, built after 1978
*** PRIMARY RESIDENCE: FHA 5.375% 0 points***
2nd Home: 10yr ARM (30yr rate; fixed for 10 yrs) 5.625% 1.5 Points
Or 25yr fixed rate 6.375% 1.5 points
USDA Loans NO MONEY DOWN! NO Monthly PMI!
-30yr fixed rate; Must be primary residence
-Single family, condo, new manufactured homes are allowed
-Income limits and debt-to-income ratio limits apply
-Seller may pay closing costs -No money down
5.00% 0 points
Lock your loan with Tidewater Mortgage and receive up to $2000 to apply toward your
settlement costs or rate buy-down! Co-broke transactions included! Call for details
Rates and programs are subject to change without notice; Based on

Conforming Loans (up to $417,000)
30yr Fixed 5.375% 0 points 5.00% 1 point
15 Yr Fixed Rate 4.875% 0 points 4.50% 1 point
For Condos with less than 25% down payment (or equity if a refi):
30yr Fixed Rate 5.50% 0 points 5.25% 1 point
***We do warrantable and non-warrantable condos***
Long Term Rate Locks Available
Lock your rate for up to 12 months while your new home is being built
FHA primary residence only, 3.5% down payment 30yr fixed
5.25% 0 points 5.00% 1 point
**County Limits for FHA have been raised again**
$375,000 in Sussex County $376,250 in Kent County
Jumbo (loans over $417,000) (3% Seller contribution allowed; 20% down)
30 Yr Fixed 6.625% 0 points 6.00% 1 point
Lot Loans 10% down payment up to $500,000; Payment based on a 20yr fixed
3yr ARM 6.00% w/ 1 point
5yr ARM 6.25% w/ 1 point
no time restrictions to build; fully amortize in 20yrs; loan amounts under $250,000 = 1.5 points
(seller is allowed to pay points)
Manufactured Homes
Must be on it’s own land, double-wide, built after 1978
10yr ARM (rate is fixed for 10 yrs) 5.625% 1.5 Points
25yr fixed rate 6.375% 1.5 points
*** If it is a PRIMARY RESIDENCE: FHA 5.75% 0 points***
USDA Loans NO MONEY DOWN! NO Monthly PMI!
-30yr fixed rate; Must be primary residence
-Single family, condo, new manufactured homes are allowed
-Income limits and debt-to-income ratio limits apply
-Seller may pay closing costs -No money down
5.50% 0 points 5.25% 1 point
Lock your loan with Tidewater Mortgage and receive up to $2000 to apply toward your
settlement costs or rate buy-down! Co-broke transactions included! Call for details; some
restrictions apply.
Rates and programs are subject to change without notice; Based on 06/29/2009 rates
Rates may vary for different property types, lock terms, or credit scores

For those of you waiting to see 4% interest rates, it’s not going to happen.  This week rates have climbed back up to the mid 5’s which are still historicaly low.

The 30 yr fixed rates dropped today to 4.875%
This is based on a 30-45 day lock for a primary or 2nd home.

So what does this really mean for home buyers?

Lets say you are interested in a $375,000 home.

Using a simple mortgage calculator $375,000 with zero down (unrealistic) for 30 years at 5.5% gives you a payment of $2129.21 a month.  If we drop the rate to 4.875% it brings the monthly payment down to $1984.53 a month,  saving you $144.68 monthly, $1736.16 a year or $52,084.80 over the life of the loan.

Realistically, lenders are looking for anywhere between 10% and 20% down on most home loans.

If you are looking for a Mortgage Calculator try out the one on our sister site Delaware Waterfront Homes

Simply enter the the MLS # you are interested in and play around with different rates and down payment amounts.

Delaware has a 3% transfer tax on property purchases. Typically the buyer pays half while the seller picks up the tab for other half.

(**condos with less than 25% down will be higher)

Post on March 19 2009.
If today is not March 19 2009 these rates may no longer apply.