Wells Fargo lowers credit score requirement for FHA mortgages

by on February 16, 2011

Wells Fargo recently announced that effective Jan. 15, 2011, it will accept FHA-insured mortgages for borrowers with credit scores as low as 500.  For borrowers with credit scores ranging from 500 to 579, a 10 percent down payment is required, and the down payment may not be a gift or be part of a down payment assistance program.  Borrowers with credit scores of 580 to 599 are required to put down 5 percent, and the down payment may not be a gift or part of a down payment assistance program. Borrowers with a credit score of 600 or higher are required to have a 3.5 percent down payment, and a gift is acceptable.  For all borrowers, seller concessions are limited to 3 percent.

So, what does this mean for the average person? It means that if someone has experienced a short sale or foreclosure or even a bankruptcy, that it may be possible for that person to purchase a home. And with home prices still at historic lows here in the Bay Area now may be the perfect time to buy a home even if you’ve been adversely affected by the recent housing crisis.

Please call me if you’ve thought about purchasing a home but were afraid that you would not be able to do so due to a bankruptcy or other credit issue.

I will be happy to review your situation if see if it’s possible to get you in to a great home!

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