Central Florida Real Estate Blog

As reported in the National Association of Realtors (http://www.realtor.org) March 2011 Magazine, Wells Fargo (http://www.wellsfargo.com) is providing FHA mortgages to borrowers with credit scores as low as 500.

The move comes after the National Association of Realtors and FHA Commissioner David Stevens, among others late last year, criticized the country's major banks for requiring credit scores as high as 650 in some cases before making loans.

At NAR's annual convention last year in New Orleans, Steven said banks' credit policies were out of sync with the FHA (http://www.hud.gov) and artificially restraining home sales by as much as 20 percent.

Under its new policy, Wells Fargo will accept 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 restrictions 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 January 15, 2011.

If you are interested in purchasing a home anywhere in the Central Florida area, please contact Joe Bornstein, Broker/Owner, Rock Springs Realty, (877) 333-2811, joe@rockspringsrealty.net, or visit my website at http://www.rockspringsrealty.net for a "FREE" list of homes and bank foreclosures in your area.