We recently had the opportunity to hear from a Wells Fargo rep who came to our office to discuss a new program for buyers who have marginal credit scores between 500 and 600. WOW, unheard of..
FHA loans are available through Wells Fargo for buyers who have less than great credit but who have some money for down payments.
Buyers will be required to have more down payment the lower the score is . So, someone with a score of 500 must expect to pay ten percent down on the property they choose.
Pre-approvals are done prior to offer writing , instead of afterwards. In other words, you will be required to provide, w2 forms, 1099, tax papers and proof of employment to the lender up front instead of forwarding it all later.
Instead of just having a pre-qualification and pre-approval letter , your loan will be ready for appraisal right away. The loan should move along quickly according to FHA guidelines.
You will NOT have the advantage of having someone "gift" you down payment money as with normal FHA , but the seller may still contribute 3 percent of your closing costs and pre -paids.
The option for this loan allows some buyers, who have been able to save some money following a slump where their credit has suffered a chance to be a homeowner sooner than later.
For more information on this loan give me a call at the office 765 286-8400
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