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https://www.buyhomesincharleston.com/blog/wells-fargo-relaxes-credit-score-requirements.html

WELLS FARGO RELAXES CREDIT SCORE REQUIREMENTS

Posted By: Alan Donald In: Mortgages
Date: Thu, Feb 3rd 2011 12:07 pm

WELLS FARGO RELAXES CREDIT SCORE REQUIREMENTS

Mortgage MoneyWells 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.