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UPDATE: WELLS FARGO is Decreasing the Minimum Credit Score Requirement on FHA Purchase Transactions…

 Wells Fargo, your FHA lending leader, announces a major breakthrough for their contribution to help agents sell more homes, enable more buyers to Purchase, more homeowners to sell, and help the housing market in the our area.

 EFFECTIVE SATURDAY JANUARY 15TH, 2011, WELLS FARGO WILL START ACCEPTING FHA PURCHASE LOANS WITH LOWER THAN

600 CREDIT SCORES.

 Loan score 500 – 579 allowed with maximum 90% LTV – no gift or down payment assistance

  • Loan score 580 – 599 allowed with maximum 95% LTV – no gift or down payment assistance
  • Loan score 600 and higher allowed with maximum 96.5% LTV – gift acceptable
  • Loan score lower than 500 = not allowed

 

For all Credit Risk Classes:

  • Seller contribution limited to 3%
  • Gift funds may NOT be used for the required 5% or 10% down payment

Note: Borrower’s ability to accumulate funds for down payment must be evidenced by documentation in the loan file.  Down payment Assistance Programs (DAPs) may NOT be used for the required 5% or 10% down payment

 Wells Fargo providing another tool for your real estate toolbox – use this tool this weekend and Everyday for the rest of the year.

 KEEP IN MIND FHA LOANS CAN BE DONE UP TO $417,000.

We hope this information will help you win and close your next deal…

Knowledge is Power.