WELLS FARGO RELAXES CREDIT SCORE REQUIREMENTS
Wells Fargo announced last week that they will consider issuing mortgage loans to buyers with lower credit scores.
FHA loans are usually requiring a 620 middle score and will lend up to 96.5% (3.5% downpayment) Conventional loans usually require a minimum 10% downpayment.
As of last week, Wells Fargo was the only lender to have relaxed their requirements to:
- Credit scores from 550 (with a 5% downpayment)
- Credit scores from 500 (with a 10% downpayment)
This will allow some buyers that may have had some problem with their credit but are still "good risk" to borrow money for a home purchase. These loans will be manually underwritten, so they will look very carefully at why the applicant's scores are low, their income and employment stability and their Loan-to-Value ratio.