WELLS FARGO SAYS OK TO CREDIT SCORE OF 500+

Good News for Certain FHA Buyers

Wells Fargo Says Ok to Credit Scores of 500+

A new policy took effect January 15, 2011 by Wells Fargo which is providing FHA Mortgages to Borrowers with credit scores as low as 500. This move comes following the National Association of Realtors (NAR) and FHA Commission David Stephens, among others at the end of last year, when they critized the country's major banks for requiring credit scores as high as 650 in some cases before making loans. Last year at NAR's Annual Conference in New Orleans, Stevens said banks' credit policies were out of sync with the FHA and artificially restraining home sales by as much as 20 percent. Under its new policy, Wells Fargo will accept Borrowers with credit scores of 500-599 if those Borrowers can make a down payment of at least 10 Percent; however gifted funds or other down payment assistance is not allowed. For Borrowers with credit scores of 580 to 599, Borrowers must put down 5 percent, with the same restrictions placed on gifted and/or assistance funds not being allowed. Borrowers with credit scores of 600 or higher can make a 3.5 Percent down payment. 

It will be something to watch to see what positive effects the new policy will have on the Market.

CondoCrazed's PeterBalcomb is a passionate condominium owner/resident with over 18 years experience specializing in the Condominium market along with Consulting & Condominium Market research. He has been licensed broker in various States.

 

PeterBalcombRealtor/CondoCrazed