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Guide to Delaware Mortgages
Maybe you are buying your first home in Delaware, or perhaps you're relocating to Delaware from another state. Then again, you may be a long-time Delaware resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on Delaware home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in Delaware:
The median price of a home in Delaware is $211,500. Recently, homes in Delaware have been appreciating at rates well above the national average. As a result, income levels in many parts of Delaware are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Delaware are below the national average, Delaware has one of the lowest levels of home affordability in the nation.
In Delaware, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
Delaware's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. Delaware law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, Delaware law enacted a set of anti-predatory lending laws in order to help protect Delaware homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of Delaware, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for Delaware FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for Delaware's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of Delaware also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, Delaware's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the Delaware Housing Finance Agency.
Last Updated: Wednesday, September 17, 2008
Delaware Real Estate Market View
updated Wednesday, September 17, 2008
| Housing & Social Facts |
Delaware |
United States |
| Total housing units |
374,872 |
n/a |
| Owner-occupied housing units |
72.4% |
66.9% |
| Renter-occupied housing units |
27.6% |
33.1% |
| Vacant housing units |
15.3% |
10.8% |
| Average Home Value |
$203,800 |
$167,500 |
| Average Mortgage Payment |
$1,246.00 |
$1,295.00 |
| Average Rental Payment |
$326 .00 |
$388.00 |
| Total Population |
818,587 |
n/a |
| Percentage Male |
48.5% |
49.0% |
| Percentage Female |
51.5% |
51.0% |
| Median Age |
37.9 |
36.4 |
| Under 5 years |
6.8% |
7.0% |
| 18 years and over |
76.1% |
74.6% |
| 65 years and over |
13.0% |
12.1% |
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1 Year Market Value Change for Delaware |
| 1yr | 5yr | 10yr |
 |
|
Popular Delaware Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Bear |
17,593 |
$53,240 |
| Brookside |
14,806 |
$50,107 |
| Claymont |
9,220 |
$40,813 |
| Dover |
32,135 |
$38,669 |
| Glasgow |
12,840 |
$61,707 |
| Hockessin |
12,902 |
$100,844 |
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| Balance Group Financial Services |
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Balance Group Financial Services is a mortgage lending institution that prides itself in providing high quality financial services to the public. No matter how large or how deep your debt, we balance our expertise with your needs to find the perfect financing solution. In addition to mortgage loans, we offer insurance and financial planning services. If you are a real estate investor, we specialize in helping you find the capital you need, as well as the incorporation advice that will maximize your investment profits. One of the most exciting adventures you will ever encounter is purchasing a home. If you are a first time buyer or an experienced investor we will make the process quick and easy. Bring us your dreams! We will find an effective financial solution. Our hard working team prides itself in providing high quality mortgage programs at the most competitive rates in the nation. Our home loan programs include: purchase, refinance, debt consolidation, home equity loans, second mortgages, construction loans, and home improvement loans tailored to your unique situation. Dare to compare! Contact us anytime by calling Office: 302.368.7132 or fill out our Online Application to get started. We will help determine which solution fits your needs. Balance Group Financial Services
256 Chapman Road Suite 105
Newark, DE 19702
Toll Free: 888-287-3278
Office: 302-368-7132
Fax: 302-368-7131
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| Absolute Mortgage Company, LLC |
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Absolute Mortgage Company LLC, a Delaware Mortgage Brokerage Company, was established in 2006 and is owned and operated by Kristy Brittingham. Kristy is a native of Sussex County and has 23 years of financial planning experience, including Bank Management and Mortgage Lending. Kristy is committed to providing clients with superior service and expertise in a friendly, personable ambience. Absolute Mortgage Company is without a doubt the most competent mortgage broker company available today. Obtaining a mortgage can sometimes be a complicated, stressful experience. However, Absolute Mortgage takes their clients through each step with genuine care and uses expertise and connections to ensure a smooth process. Absolute Mortgage is dedicated to providing extraordinary customer service. Absolute Mortgage Company, LLC
353 #1 North Dupont Highway
Millsboro, DE 19966
Phone: (302) 934-9449
Fax: (302) 934-6980
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| Choice Finance |
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Choice Finance® knows Delaware and the Dover market very well. We are a lender of home loans for the state of Delaware. Shop and compare today's Delaware mortgage interest rates and programs. A Choice Finance® Loan Officer will be happy to get you approved over the phone and through e-mail. Your Loan Officer will explain in detail what is needed by you and by what date so that you will close on time. Choice Finance® is committed to closing your loan on time. If you are looking to purchase Delaware real estate, make sure you have your approval letter in hand. You will need this for your Real Estate Agent to submit with your offer. Get approved for financing up front so you can gauge how much you qualify for. This will also give you the opportunity to see what your payment options look like. Shopping for a loan can be difficult. With so many programs to choose from, each of which has different rates, points and fees, it's hard to figure out which program is best for you. That's where an experienced loan officer can help you make a decision that's best for you. Your Loan Officer will spend 10 minutes or 10 hours with you, depending on your needs. These professionals are backed by a strong processing department. Together your hard-working Loan Officer and Processor expedite your loan to make sure you have a great mortgage experience. Choice Finance
6001 Montrose Road, Suite 704
Rockville, Maryland 20852
(888) 404-8111 - Phone
(866) 876-2944 - Fax
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