Wells Fargo Lowers Credit Requirements for FHA Loans - Good NEWs Phoenix Arizona

Wells Fargo has announced that it will accept lower credit scores for loans backed by the Federal Housing Administration. (That's GOOD NEWS)

Relaxes Home Loan Qualifications  

A low credit score may no longer get in the way of buying a home. One
of the country's leading lenders is easing some of its mortgage loan
qualifications and getting back into the sub-prime market.

Wells Fargo will sign off on government-backed home loans if you have
a credit score of at least 600. The bank dropped its minimum credit
requirement by 40 points.


This is a big move for the corporate giant. Wells Fargo is trying to
make up for its overall revenue losses by getting back into the subprime
market.

 “We have dropped our FICO minimum for FHA from 640 to 600,”  says
Wells Fargo Executive Vice President Franklin Codel, adding that the
move is a way for the bank to start “opening up our credit box more.”

Codel says the bank is looking to expand mortgage-credit availability
now that it has significantly reduced its repurchase risk. Wells Fargo
was among several banks that had to pay millions to Fannie Mae and
Freddie Mac to resolve repurchase claims from loans that were bought by
the GSEs and then went sour during the housing bust. 





Wells Fargo Lowers Credit Requirements for FHA Loans 

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