WELLS FARGO RELAXES CREDIT SCORE REQUIREMENTS

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.

Print This Post Email This Post

Share on Social Media:

Tags: mortgages, credit scores