Have you been thinking of buying a property in the past few years but discarded the dream because you have taken a hit to your credit score? There are many people in the same boat. But some changes are coming… According to Realtor magazine, at the National Association of Realtor conference last year banks were accused of restraining homes sales by not considering buyers with low credit scores. The conversation went further and stated that “banks’ credit policies were out of sync with the FHA” and the impact on sales was estimated to be as high as a 20% slow down. Wells Fargo was listening!
Their new policy, which took effect January 15, states:
• With a credit score between 500-579 a borrower would be considered if the borrower was able to make a minimum down payment of 10% (gifted funds and other down payment assistance is not allowed)
• With a credit score between 580-599 a borrower would be considered if the borrower was able to make a minimum down payment of 5% (gifted funds and other down payment assistance is not allowed)
• With a credit score 600 and above the minimum down payment would be 3.5%
So what are you waiting for?! Call your Wells Fargo lender now! (I have no affiliation with Wells Fargo; I am simply a supporter of policies that allow more options for the consumer).