FHA Lending in the State of Delaware

FHA allows for financing just 2 years after the discharge of a Chapter 7 Bankruptcy, provided you have re-established good credit. You may refinance out of a Chapter 13 Bankruptcy payment plan provided you have the trustee's permission, a timely mortgage history, and a timely payment history on your bankruptcy.

If you have limited or even no established credit on your credit report, you may still qualify for FHA Financing with "alternative credit". You would need to show four sources of alternative tradelines paid on time for at least 1 year. Sources of alternative credit include rent, your electric bill, cable bill, cell phone, or any other monthly fee paid.

The Delaware State Housing Authority(DSHA) often has bond issues which can be used with FHA financing for reduced rates for first-time buyers. Inquire with your mortgage professional about any current bond issues being offered.

As of April 2007, the single family FHA Loan Limits for Delaware are as follows: $292,685 for New Castle County, $266,300 for Kent County, and $247,000 for Sussex County. The loan limits are higher for 2-4 unit properties. Consult your mortgage professional for more details on multi-family FHA Loan Limits in Delaware.

» DISCLAIMER: The information contained in this article on 'FHA Lending in the State of Delaware' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.