At the National Association of Realtors conference last year in New Orleans, FHA Commissioner David Stevens said banks’ credit policies were out of sync with the FHA and artificially restraining homes sales by as much as 20 percent. He criticized the country’s major banks for requiring credit scores as high as 650 in some cases before making loans.
In a long-awaited shift, Wells Fargo is now providing FHA mortgages to borrowers with credit scores of 500 to 579 if those borrowers can make a down payment of at least 10 percent; gifted funds or other down payment assistance is not allowed. For borrowers with credit scores of 580 to 599, borrowers must put down 5 percent, with the same restriction on gifts and assistance funds. Borrowers with credit scores of 600 or higher can make a 3.5 percent down payment. The new policy took effect Jan 15.
These loosened restrictions will definitely help to bring qualified buyers to the closing table. Contact Mark Lackey today with Atlanta Housing Source at 404-886-8789 if you would like to purchase a home in Gwinnett, Cobb, Forsyth, or North Fulton.
This information was taken from REALTOR.org and this information should be confirmed with your loan officer.