Leveling the Playing Field
In a victory for home buyers everywhere, Wells Fargo & Co. is the first major lender to lower credit score requirements for FHA mortgages. Borrowers with FICO scores as low as 500 could qualify for a mortgage based on the newly revised lending standards. A FICO score of at least 600 was previously required.
To ensure responsible, sustainable home ownership, the revisions come with a few restrictions. Borrowers with scores below 580 will be required to make a down payment of at least 10 percent and have a maximum debt-toincome ratio of 31 percent. Borrowers with scores of 580-599 will be required to produce a down payment of at least 5 percent.
Opening the door to home ownership… Talk to Realtors® and their current home buyer clients in your area about the mortgage application process – requirements, timeline, etc. Ask Realtors® how the process has changed or affected how people buy and sell homes today.