Wells Fargo Eases Mortgage Loan Eligibility

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Leading lender Wells Fargo is all set to lower its home loan qualifications in order to make up for its revenue losses through getting back into the subprime market.

This means that people who have a credit score of at least 600 may have a chance of getting a government-backed home loan.

In spite of lowering credit standards by up to 40 points, the bank has explained that this move will not lead to another housing crisis thanks to the new laws that will prevent irresponsible borrowing and lending.

“It’s about balancing, again, access to credit with responsible lending. All these loan applications are fully underwritten and documented, and borrowers must demonstrate ability to repay their loans,” said Tom Goyda with Wells Fargo Home Mortgage.

While Wells Fargo is the only major bank to make this kind of move, there are several smaller banks in Las Vegas who give loans to customers whose credit scores meet the minimum requirement under the Federal Housing Authority which is 580.

According to Nevada Mortgage Bankers Association President Jon Copelan, lowering credit score qualifications will help people in Las Vegas. Our city was one of the hardest hit during the housing crisis. A first-time home buyer now may have a better opportunity to get inside a home with a 15-year fixed rate, 30-year fixed rate or adjustable rate home loan.

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