Richard DeGrace

Home Improvement Loan
Two special loans administered through the Federal Housing Administration (FHA) are the Title I and Section 203(k) programs. A Title I loan allows you to borrow up to $25,000 for improvements to a single-family home. These are fixed-rate loans that FHA insures against the risk of default. Loans must be made by an approved Title I lender.

The 203(k) program is not as well known, but if you are looking to purchase a fixer-upper, it is a terrific opportunity. It allows home owners to receive a single, long-term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of the property. To obtain a loan under the 203(k) program, you must use an FHA-approved lending institution. Most mortgage lenders are approved to make loans through this program.

Call us today to learn what repairs you can include in this type of FHA loan!

New Jersey Rate Manual Simplification Effective March 1, 2009

The New Jersey Department of Banking and Insurance ("DOBI") recently approved an application from the New New Jersey Rate Manual Simplification Effective March 1, 2009 Jersey Land Title Insurance Rating Bureau ("Rating Bureau") to (1) replace the long-standing Basic Rate and Reissue Rate schedules with a single Standard Rate in the New Jersey Manual of Rates and Charges ("Rate Manual"), and (2) replace the two-tier county Examination Charge (usually referred to as the "search and exam" charge, for either $105.00 in Basic Rate matters or $90.00 in Reissue/Refinance Rate matters) with a uniform search and exam charge of $100.00 regardless of the Rate schedule applied.

Change in the Underwriting Charge

Effective March 1, 2009, for all new orders received on or after that date, the Basic Rate and Reissue Rate schedules will no longer be used, and the new Standard Rate will be applied (1) to all owner's title insurance applications and (2) to all loan title insurance applications unless any other loan rate schedule (Refinance, Modification or Construction) applies in whole or in part.

The new Standard Rate preserves the same price points that we have always had, but the price-per-thousand formula will be as set forth below:

I. Changes to Section 4.2 "STANDARD UNDERWRITING RATE SCHEDULE"

The standard underwriting rate for either owner's insurance, leasehold insurance, or mortgage insurance, shall be calculated according to the following rate schedule:

Policy Liability Rate per $1,000 or Fraction Thereof

$0-$100,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.00

$100,001-$500,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Add $3.95

$500,001-$2 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Add $2.65

Over $2 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Add $ 2.00

II. Changes to Section 5.1 "EXAMINATION CHARGE"

When the insurer or its agent examines the title to real estate and issues a
commitment to insure, the charge for such examination involving a single
chain of title shall be $100.00. The examination charge includes only the
county search.

II. Refinance Rate in Section 4.61 Refinance, Recast or Substitution Loans remains unchanged and applies to loans that are made the same borrower
on the same property, the following rates shall apply to so much of the new
policy as represents the face amount of the mortgage or mortgages other
than construction loans being refinanced:

Policy Liability Rate per $1,000 or Fraction Thereof

$0-$100,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.50

$100,001-$500,000.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Add $2.25

$500,001-$2 million.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Add $2.00

Over $2 million. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Add $1.50